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Farmer/Rancher Financing Loan Programs
Beginning Farmer · Established Farmer · Family Farm · Farm Operating · FSA · ENVEST · Ag PACE · Bank Participation · First Time Farmer · Farm Real Estate Loan Guarantee · Livestock Guarantee · Livestock Waste · Biofuels PACE 
Farm and Ranch Participation Program

BND's participation loan program is founded on the principles that all loans should:
  • Serve the legitimate credit needs of the State.
  • 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.

Qualifying Requirements Use of Proceeds - BND will consider a broad range of loan applications. Desirable loans include, but are not limited to, the following:
  • Construction, conversion, expansion, repair and modernization of farm improvements.
  • Purchase of land, livestock, machinery and equipment and the repair and modernization of the machinery and equipment.
  • Operating needs.
  • Refinancing an existing loan.
  • For any other reasonable agricultural purpose.

Equity - Specific equity requirements have not been established. Each loan is reviewed on its own merits. The amount of equity required is evaluated along with all other elements of the operation.

Collateral - Adequate collateral will generally be required to protect the interest of BND. The collateral must be of such a nature that repayment of a loan is reasonably assured. Examples of acceptable collateral may include:
  • Accounts receivable and inventory for short-term loans.
  • Machinery and equipment which have an established market.
  • A first mortgage on farm real estate.
  • Livestock and crops.
In addition, personal guarantees are required from the principals with respect to corporate and partnership borrowings.
Application Process

Application by a lead lender is required for BND's participation. See application for additional documentation required when submitting a request to BND. Lead lender is responsible for servicing the loan.

Interest Rate

The interest rate on BND's participation percentage is set in accordance with either the loan policies for the program or the current market rate for similar loans. Such factors as risk, liquidity of collateral, equity position, repayment and the term of the loan will all be taken into consideration.

Repayment Terms

BND will place primary emphasis upon a borrower's ability to repay a loan rather than upon the collateral pledged as security. BND will participate in a loan only when a specific source of repayment can be identified and agreed upon by all parties. Such a source must reasonably assure repayment. The repayment terms assigned to these loans will vary depending upon the use of the proceeds as well as the overall nature of the business. The following maturities can be used as a general guideline for the term of loans.

Real Estate 15 to 25 years
Equipment and Livestock 5 to 7 years

Fees

Commitment fees, origination fees and service fees may be charged. These fees will depend upon the loan request and be reviewed on an individual basis.

For more information on this program or other Bank of North Dakota programs, contact:

Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
(701) 328-5672
1-800-472-2166 ext. 5672
TDD (Telephone Device for the Deaf) 1-800-643-3916

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