Livestock Drought Loan Program

This program assists local financial institutions in providing loans to North Dakota livestock producers for ag-related costs incurred as a result of the 2021 drought. BND has set aside up to $150 million for 2021 drought related programs. Funds will be allocated on a first-come basis.

Applications will be accepted until June 30, 2022 at 5 p.m. CT.

The borrower must be a North Dakota resident or North Dakota family farm entity who is an active livestock producer or a landowner renting pasture for livestock feeding in North Dakota.

All ag-related expenses incurred as a result of the 2021 drought’s impact on livestock and feedstock including but not limited to:

  • Production or purchase of feed
  • Transportation of feed or livestock
  • Obtaining water for livestock (drilling a well, piping, hauling, etc.)
  • Forage and seed costs
  • Fencing expenses
  • Cover crops
  • Silaging costs
  • Insecticide costs

BND will participate up to 90 percent of the total loan amount, not to exceed a maximum participation of $250,000. Standard underwriting procedures will apply to all loans.

Up to a 5-year term. At the discretion of the originating lender, payments may be interest only for up to 12 months then convert to principal and interest payments amortized over the remaining term. Loan may be a line of credit that converts to a term loan after 12 months.

BND Interest rate: Interest rate will be fixed at 3.50% for up to 5 years. BND to net 3.25%. The originating lender to
retain a 0.25% service fee.

Lead Lender Rate: The interest rate charged on the originating lender share of the loan may be determined by originating lender.

BND Fees: BND to receive a $250 origination fee.

Adequate collateral coverage will be required. Collateral to be shared prorata, or if the loan to liquidated value is at 120% or less based on BND’s advance rates, a second lien on chattels may be acceptable. For collateral purposes, any FSA loan may require FSA subordination.

Bank Participation Loan Application

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All applications must be submitted by a local lender. Please contact your local lender to initiate the loan application with Bank of North Dakota.