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Any farmer or rancher will tell you that the business of agriculture is more difficult today than it has ever been. The challenges to the young or beginning farmer are even greater. Bank of North Dakota offers a number of farm loan programs that can help meet the challenges by making financing more affordable and easier to access.
In participation with a local financial institution, BND offers:
- Farm Operating Program - up to $400,000 at below market rates to fund annual input costs
- Family Farm Program - up to $400,000 at below market rates to finance equipment, livestock
or real estate purchases
- Farm and Ranch Participation - The total loans and extensions outstanding at any one time to a single
borrower may not exceed 15% of BND's total capital. BND will consider a
broad range of loan applications.
- The Farm Real Estate Loan Guarantee 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.
BND also provides direct financing of farm real estate through the following:
The First Time Farmer Finance Program is administered through BND as well. The program allows access to funding
for the purchase of farm real estate or equipment at a tax-exempt rate.
The loan maximum is $469,200 for agricultural land and improvements. No
more than $250,000 of the $469,200 aggregate loan amount can be used for
Agricultural Chattel improvements and Depreciable Agricultural Chattel
Property. In addition, within the $250,000 limitation, no more than $62,500
can be used for Depreciable Agricultural Property. |
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