North Dakota Industrial Commission authorizes Bank of North Dakota loan programs for livestock producers
The programs are the Livestock Drought Loan Program and Livestock Rebuilder Loan Program,
BISMARCK, N.D. - The North Dakota Industrial Commission has approved two new Bank of North Dakota (BND) loan programs to help the state’s livestock producers cover expenses related to the extreme drought conditions in the state. Producers must work with their local lender to determine if the programs are appropriate for their situation and make application through them.
The Livestock Drought Loan Program will cover ag-related costs incurred as a result of the 2021 drought. Applications will be accepted through June 30, 2022. Loans are made for up to a five-year term at a fixed interest rate of 3.50%. Proceeds may be used for items such as production or purchase of feed; transportation of feed or livestock; obtaining water for livestock to include drilling a well, piping or hauling; forage and seed costs; cover crops; silaging costs or insecticide costs.
The Livestock Rebuilder Loan Program is designed to strengthen the livestock industry post-drought by providing a financing program to help livestock producers who had to reduce the size of their herd due to lack of feed supply. This program has an extended application deadline of June 30, 2023, and provides funds for producers to purchase and rebuild breeding stock. This ensures producers have adequate time to assess the situation and create their business plan to rebuild their herds. The loan is available for up to a seven-year term at a fixed interest rate of 3.50%.
“This is a pivotal time for the livestock industry in North Dakota. It is crucial that we shore up resources that allow livestock producers to successfully navigate the drought,” the Industrial Commission said in a joint statement. “These Bank of North Dakota programs are one of several avenues being used to relieve the financial stress they are experiencing.”
BND staff held meetings with stakeholders including trade associations, livestock producers, bankers and state agencies to determine needs before developing the programs. There is $150 million dedicated for the two programs and loans will be made on a first-come basis. More detailed information is available at www.bnd.nd.gov .
“The local lender is most familiar with their customers who are producers and will work closely with them to access the programs if they are needed,” said Todd Steinwand, interim president of BND. “We are grateful to the local banks and credit unions for their continued willingness to facilitate the distribution of state funds.”
The Bank of North Dakota is overseen by the Industrial Commission, which consists of Gov. Doug Burgum as chairman, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring.