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 $1,500,000.

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 $750,000 or 90 percent of the total loan amount.

Interest rate: A loan may be variable at the Bank’s current base rate less 1.00% or fixed at the Bank’s current base rate for up to 10 years. The rate during the remaining term of the loan floats at the Bank’s base rate in effect at that time. The interest rate will never exceed 11.00% during the course of the loan.

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%
Real estate3075%
Restructure operating debt585%

Bank Participation Loan Application (PDF)
Loan Renewal Application for Existing Participations (PDF)

PDFs will automatically download. Once downloaded, on desktop PC, right-click the file name in browser’s default download location, select “Show in folder,” open PDF. 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.