NORTH DAKOTA

Robert Humann, SVP of Lending
Bruce Schumacher, Loan Officer & Marketing
The Bank of North Dakota
P.O. Box 5509
Bismarck, ND 58506-5509
(800) 472-2166
FAX (701) 328-5731
www.banknd.com
bhumann@state.nd.us – bschumac@state.nd.us

Beginning Farmer Real Estate Loan Program
1984
First-time land buyers with net worth less than $150,00

Unlike the IDB-based program, this program is administered through the Bank of North Dakota. The maximum loan is $150,000 with the bank lending up to 75 percent of the appraised value with a maximum repayment term of 25 years.

Family Farm Loan Program
1985
Farmers with net worth less than $200,000

This program also is administered through the Bank of North Dakota. Banks may participate in loans up to 90 percent of the loan amount but not exceed $150,000; proceeds of the loan can be used to purchase or refinance real estate, farm equipment or livestock, as well as to restructure debt carry-over.

AG PACE Program
1990
Any business, except traditional production agriculture, that is integrated into the farm operation and will supplement farm income. Also includes the first time purchase of irrigation equipment or the purchase of stock in a value-added ag-processing project.

Provides low-interest rate financing to on-farm businesses. Borrowers will receive an interest rate, after buy-down, of 5 percent below national prime, but no less than 1 percent. The maximum buy down on any one project is $20,000.

Established Farmer Real Estate Loan Program
North Dakota resident currently in the business of farming
This loan program was developed to assist in the purchase or refinance of agricultural real estate by farmers and ranchers currently in the business of farming and can be used for other agricultural purposes. Maximum amount of $600,000 to any one borrower—up to 65 percent of appraised value of property.

Irrigation Loan Program
1997
Any irrigator in North Dakota who incorporates Best Management practices into a crop management plan.

This program was designed to promote irrigation by providing low interest to those who wish to purchase, develop, or repair irrigation systems. BND will utilize the State Revolving Fund money which will enable the borrower to receive up to the first $50,000 of the total loan at 5.5 percent fixed for 10 years.

Beginning Farmer Chattel Loans
North Dakota resident whose principal occupation is farming or ranching.

Total loan must be less than $150,000 with BND funding no less than 50 percent or greater than 80 percent of total loan. Borrower’s net worth must be less than $200,000. BND share fixed for 5 years at 1% below BND base, max 6%, then adjusted annually at 1% below BND base. Maximum term of 7 years.

Farm Operating Loan Program
North Dakota resident owning or operating a farm/ranch with debt-to-asset ratio of 50 percent or greater.

Program proceeds for operating expenses only or for livestock retention. Variable interest rate at BND base less 1 percent and term no longer than 1 year.

FSA Guaranteed Loan Purchase Program
Borrower must meet FSA requirements.

Proceeds used to purchase or refinance land, improvements to ag real estate, or purchase or refinance farm equipment/livestock. Terms are based on loan purpose and FSA Guarantee.

Regular BND Loan Participation
Any North Dakota farmer or ranch operation.

Proceeds can be used for all ag related activities including real estate, equipment, livestock and operating. Interest rate is fixed or variable, depending on risk, collateral, repayment and terms. No upper lending limit has been established but is generally 90 percent of the total loan or less.

First Time Farmer Finance Program (Aggie Bond)
North Dakota farmer with no substantial farmland ownership.

Proceeds used for the purchase of ag land, improvements, and depreciable property. Interest rate and term negotiated between farmer and bond purchaser. Net worth requirement of less than $200,000. Maximum loan of $250,000 for real estate and $62,500 for “used” depreciable ag property. Application fee of $50 and closing fee of 1 percent of bond with minimum of $500.

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