First Time Farmer Finance Program
The First Time Farmer Finance Program is a tax-exempt bond program that assists first time farmers and ranchers in North Dakota to acquire agricultural property at low interest rates. See the First Time Farmer Summary for additional information on the program.
A first time farmer or rancher must meet the following criteria:
- North Dakota resident who is at least 18 years of age at time of funding
- Has never had any direct or indirect ownership interest in substantial farmland in the operation of which he/she has materially participated. An ownership interest or material participation by a person’s spouse or child will be attributed to the person as well. See Program Summary.
- A net worth of $750,000 or below
- The agricultural land, agricultural improvements and depreciable agricultural property shall be used for farming by the first time farmer, spouse or minor children.
Finance the purchase of North Dakota land suitable for use in farming, finance the construction or purchase of improvements located on agricultural land, or the purchase of personal property suitable for use in farming for which an income tax deduction for depreciation is allowed in computing federal income taxes.
Agricultural land and improvements: $533,500
- No more than $250,000 of the above aggregate loan amount may be used for agricultural improvements and depreciable agricultural chattel property
- Within the above $250,000, no more than $62,500 may be used for depreciable agricultural chattel property.
Interest rate: The interest rate is a tax-exempt rate negotiated by the first time farmer and the bond purchaser.
Fees: The first time farmer or bond purchaser must pay a non-refundable $100 application fee to BND. A loan fee equal to one percent of the amount of the bond, but not less than $500, must be paid to BND by the first time farmer at loan closing. The loan fee may be financed with bond proceeds, or in the case of a contract sale, the loan fee may be included in the purchase price reflected in the sales contract.
Collateral is negotiable between the bond purchaser and the borrower.
The loan terms are negotiated by the first time farmer or rancher and bond purchaser.