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Agricultural Financing Services
Farming and ranching can be difficult, not only for the beginning farmer or rancher, but for the established as well. The Bank of North Dakota offers farm lending programs that help make financing affordable and accessible.
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Agriculture Partnership in Assisting Community Expansion (Ag PACE)
This program has been established to buy down the interest rate on loans to farmers who are investing in other nontraditional agriculture activities to supplement farm income.
Beginning Farmer Farm Loans (Revolving Loan Fund)
The Beginning Farmer Loan Programs assist the farmer and rancher in the first time purchase of farm real estate and/or the purchase of equipment and livestock. Each qualified applicant is eligible for a $250,000 loan from the Real Estate Loan Program and $250,000 loan from the Chattel Loan Program.
Biofuels PACE
Biofuels PACE (Biofuels Partnership in Assisting Community Expansion) was established to buy down the interest rate on loans to biodiesel and ethanol production facilities, and livestock operations.
Established Farmer Real Estate Loan Program
The Established Farmer Real Estate Loan Program assists the farmer and rancher with agricultural real estate loans. The Bank may make direct loans to farmers for agricultural purposes. The borrower must be a North Dakota resident.
Family Farm Loan Program
The North Dakota legislature has developed a program to help family farms. This program allows BND to participate in loans for qualified purposes up to 90% of the loan amount.
Farm and Ranch Participation Program
This program follows the principles of BND's participation loan program, that all loans should: 1) Serve the legitimate credit needs of the State; and 2) Be made on a sound and collectible basis. The total loans and extensions outstanding at any one time to a single borrower may not exceed 15% of BND's total capital. All loans are reviewed in accordance with BND's lending policies and sound banking practices including, but not limited to, the intended purpose of the loan, the ability to repay, the operation and its management and the feasibility of the project.
Farm Operating Loan Program
The North Dakota legislature has established a loan program to assist with farm operating loans. The Bank may participate in farm operating loans with the minimum requirements for eligibility as a "farmer".
Farm Real Estate Loan Guarantee Program
This program is designed to assist farmers with the purchase or the restructuring of agricultural real estate loans by providing a financial institution with a 75% guarantee of total loans that do not exceed $400,000 to an individual borrower. The Bank may guarantee loans for the purchase of agricultural real estate or the restructuring of agricultural real estate loans to North Dakota residents by banks, credit unions, lending associations that are part of the farm credit system, and savings and loan associations in the state of North Dakota.
First Time Farmer Finance Program
The North Dakota First Time Farmer Finance program (NDFTFFP) is a tax-exempt bond program designed to assist First Time Farmers in the state of North Dakota to acquire agricultural property at lower interest rates. The Bank of North Dakota (BND), acting as the Farm Finance Agency, determines the eligibility of the applicant and also approves and issues the bond. The bond will then be assigned to a Bond Purchaser which typically is a financial institution or contract holder. Since the interest received by the Bond Purchaser is exempt from state and federal tax, the interest rate to the First Time Farmer is at a lower rate.
Flex PACE Program
Flex PACE was designed to provide interest buy down to non-PACE qualifying businesses where the Community determines eligibility and accountability standards. Flex PACE targets essential community businesses without the job creation requirement.
Government Guaranteed Loan Purchase Program
The Government Guaranteed Loan Purchase Program (FSA or Rural Development) has been designed at BND to provide interest rate assistance to borrowers that are experiencing cash flow difficulties. The Bank may purchase the guaranteed portion of a term loan guaranteed by the Farm Service Agency, Rural Development, or Small Business Administration.
Livestock Waste Management System Loan Program
The primary purpose of this program is to reduce and/or prevent water quality impacts associated with livestock waste by providing low interest financial assistance to livestock producers for installing waste management facilities. Eligibility will be determined by approval of applications by the North Dakota Department of Health.
Partnership in Assisting Community Expansion (PACE)
One of the most attractive programs is the Partnership in Assisting Community Expansion (PACE) fund, an interest buy down loan program that is available to primary sector business including manufacturing, data processing, communications, telecommunications and targeted service industries.
The PACE Fund is designed to assist North Dakota communities in expanding their economic base by providing for new job development. The PACE Program is available to finance the purchase of equipment or real estate, as well as term working capital. In conjunction with community support, the program provides an interest buy down that can reduce the borrower's overall interest rate.
Value-Added Agriculture Equity Loan Program (Envest)
The ENVEST Program provides a below market interest rate for North Dakota farmers and businessmen to purchase shares in start up or expanding agricultural processing facilities.
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