<?xml version="1.0"?>
<!-- - EDGAR Ease Plus 1.0                                   07/25/03  TT    -->
<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
   <periodOfReport>2004-01-06</periodOfReport>
   <notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000712534</issuerCik>
        <issuerName>FIRST MERCHANTS CORP</issuerName>
        <issuerTradingSymbol>FRME</issuerTradingSymbol>
   </issuer>
   <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001012742</rptOwnerCik>
            <rptOwnerName>ANDERSON STEFAN S</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>200 E JACKSON ST</rptOwnerStreet1>
            <rptOwnerStreet2>PO BOX 792</rptOwnerStreet2>
            <rptOwnerCity>MUNCIE</rptOwnerCity>
            <rptOwnerState>IN</rptOwnerState>
            <rptOwnerZipCode>47308-0792</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
         <isDirector>1</isDirector>
         <isOfficer>0</isOfficer>
         <isTenPercentOwner>0</isTenPercentOwner>
         <isOther>1</isOther>
         <otherText>Chairman - Board of Directors</otherText>
      </reportingOwnerRelationship>
   </reportingOwner>
 <nonDerivativeTable>
   <nonDerivativeTransaction>
      <securityTitle>
         <value>Common Stock</value>
            <footnoteId id="F2"/>
            <footnoteId id="F3"/>
            <footnoteId id="F4"/>
      </securityTitle>
      <transactionDate>
         <value>2004-01-06</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>G</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
      </transactionCoding>
      <transactionAmounts>
         <transactionShares>
           <value>98</value>
         </transactionShares>
         <transactionPricePerShare>
            <footnoteId id="F1"/>
         </transactionPricePerShare>
         <transactionAcquiredDisposedCode>
           <value>D</value>
         </transactionAcquiredDisposedCode>
      </transactionAmounts>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>2071</value>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
            <value>I</value>
         </directOrIndirectOwnership>
         <natureOfOwnership>
            <value>Spouse</value>
         </natureOfOwnership>
      </ownershipNature>
   </nonDerivativeTransaction>
 </nonDerivativeTable>
   <footnotes>
      <footnote id="F1"> Gift of reporting persons spouse of 98 shares to the United Way</footnote>

      <footnote id="F2"> Reporting person owns 74,247 shares directly.</footnote>

      <footnote id="F3"> Non-employee director stock option - right to buy - 5,789.</footnote>

      <footnote id="F4"> Employee stock option - right to buy - 30,909.</footnote>
   </footnotes>
   <ownerSignature>
      <signatureName>Larry R. Helms (Confirming Statement on File)</signatureName>
      <signatureDate>2004-01-06</signatureDate>
   </ownerSignature>
</ownershipDocument>

