Farming and Ranching Goals
North Dakota’s farmers and ranchers are well-known for their entrepreneurial spirit. Whether born from necessity or curiosity, many of them desire new opportunities while maintaining the family farm or ranch.
The Ag PACE program at Bank of North Dakota was created for this purpose. When an established farming family approached their local financial institution to purchase a metal machining business to be located on their farm, the lender referred them to BND for an Ag PACE loan.
Ag PACE provides interest buydown on loans to farmers and ranchers investing in nontraditional agricultural activities to supplement farm income. The funds reduce the interest rate on loans approved by the local lender and BND. Farming or ranching must remain as the primary business.
The local lender works with his or her customer to establish the terms and conditions of the loan, including the interest rate. Then, the lead lender can call BND to request the Ag PACE funding to buy down the interest rate.
BND works with local financial institutions to be an agile partner that responds to current and emerging economic needs. Contact your BND Ag Lending Officer to discuss programs that may be beneficial to your clients.