Livestock Feed Program – Ag Disaster Program
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 2019 extreme weather conditions.
Applications will be accepted until June 30, 2020 at 5 p.m. CT.
The borrower must be a North Dakota resident who is an active livestock producer. Borrower must show the ability to repay and have an operating plan in place for 2020.
This program will provide borrowers with financing for the additional costs associated with feeding livestock because of the extreme weather conditions 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 for feed.
BND will participate up to a maximum of 90 percent of the total loan amount. BND’s maximum participation amount is $250,000.
Fixed rate option: BND to net 3.50%. The lead lender may charge up to a 0.25% service fee.
Fees: BND receives a $100 origination fee.
BND uses its normal credit standards in reviewing the loan.
Adequate collateral coverage will be required. 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 5-year amortization depending on lead bank discretion. Interest only for the ﬁrst year and principal and interest payments the remaining term.