BND Drought Disaster Program – Feed Cost Loan
This program is designed to assist with feed costs for livestock producers who can establish an expected shortfall in the amount of feed needed to sustain existing breeding livestock and backgrounding livestock operation levels for those impacted by the 2017 drought.
Applications will be accepted until June 30, 2019 at 5 p.m. CT.
The borrower must be a North Dakota resident who is a livestock producer from a county in D2, D3 or D4 according to the August 1, 2017 Drought Monitor Map, as well as counties adjacent to the D2, D3, or D4 counties. Cavalier, Pembina, Ramsey, Walsh, Nelson, Grand Forks and Traill counties are outside of these areas and are not eligible.
Borrower must establish an expected shortfall in the amount of feed needed to sustain existing breeding livestock and backgrounding livestock operation levels to be eligible. Applicants who are backgrounding cattle must demonstrate a history of this practice to be eligible for the program.
This program will provide borrowers with financing for the additional costs associated with feeding livestock because of the drought including but not limited to: 1) purchasing feed, 2) remote haying, 3) hauling hay, 4) hauling livestock to a feedlot, 5) feedlot fees, and 6) harvest of cash crops.
This program is not intended to assist with feed costs of an expanding livestock operation.
BND will participate up to a maximum of 90 percent of the total loan amount. BND’s maximum participation amount is $100,000.
Fixed rate option: BND to net 4.50%. The lead lender may charge up to a 0.25% service fee.
Variable rate option: BND to net Base Rate minus 1.00% variable adjusting daily or monthly through maturity. The lead lender may charge up to a 0.25% service fee. Annual rate of increase is capped at 1% annually with a floor of 3.25%.
Fees: BND receives a $100 origination fee.
BND uses its normal credit standards in reviewing the loan.
Maximum loan to value of 75% on all chattels. Valuation is based on average market prices. BND and lead bank will share the collateral pro rata. Any FSA loans secured by the chattels will require FSA subordination.
Any financial institution in North Dakota can be the lead lender. BND will participate up to a maximum of 90 percent of the total loan amount. Lead lender is responsible for servicing the loan.
Fully amortizing term loan. Up to a 3-year amortization depending on lead bank discretion.