Family Farm Loan Program

The Family Farm Loan Program allows a farmer to purchase or refinance land, equipment or livestock or to restructure operating debt.

The borrower is a farmer or rancher who is a North Dakota resident with farming experience and training to operate a family farm and to make proper use of the loan. The applicant’s net worth may not exceed $750,000.

Proceeds may be used for:

  • Purchase or refinancing agricultural real estate
  • Permanent improvements to agricultural real estate
  • Purchase or refinancing farm equipment
  • Purchase or refinancing livestock
  • Restructure of operating debt carryover

BND’s participation amount is limited to the lesser of $500,000 or 90 percent of the total loan amount.

Interest rate: The interest rate on BND’s percentage will float at 1.00% below BND’s base rate. The interest rate will never exceed 11.00%.

The interest rate charged by the lead financial institution on its share of the loan may not exceed BND’s base rate plus 2.00% on variable rate loans and 3.50% over the corresponding Federal Home Loan Bank Advance Rate on fixed rate loans.

Fees: No fees are charged by BND.

BND uses its normal credit standards in reviewing the loan.

The collateral used to secure the loan depends upon the intended use of the proceeds.

  • Real estate: A first real estate position on the real property which is the subject of the loan as well as an assignment of rents is required.
  • Equipment or livestock: A first lien on the equipment or all livestock.

Appraisal requirements are evaluated on a case-by-case basis.

BND’s participated loan amount may not exceed 90 percent of the total loan amount. Borrower must work with a local lender to submit the loan application. Lead lender is responsible for servicing the loan.

 Maximum term (years)Loan to value
Farm equipment775%
Livestock775%
Real estate3075%
Restructure operating debt585%

Bank Participation Loan Application (PDF)

It is recommended you use Internet Explorer 11 or above to download these forms. If you are not able to access a PDF, please contact us for assistance.

BND offers this loan by partnering with local lenders. To apply, contact your lender.

If you have any questions, contact us or call 701.328.5795.