An official website of the State of North Dakota
The Beginning Farmer Chattel Loan program assists beginning ranchers with the purchase of equipment and livestock.
BND offers this loan by partnering with local lenders. To apply, contact your lender.
If you have any questions, contact us or call (701) 328-5795.
Bank Participation Loan Application (PDF)
Loan Renewal Application for Existing Participations(PDF)
To ensure proper functionality, BND forms MUST be downloaded and then opened with your system’s PDF application. Click here for download instructions.
If you are not able to access a PDF, please contact us for assistance.
- Applicant must be a North Dakota resident who has not previously farmed for more than 15 years. The eligibility is determined by totaling the number of years the applicant has received federal farm program payments.
- Applicant’s net worth, including that of dependents and spouse, of less than $1,500,000
- Applicant’s principal occupation is or will be the production of an agricultural commodity.
Purchase equipment or livestock
The loan amount is a lifetime cap of $750,000 per borrower.
Interest rate
BND’s rate: Fixed at 1.00% below BND’s base interest rate for the first five years with a maximum interest rate of 6.00% per year. Rate is adjusted annually for the remaining two years at 1.00% below BND’s base rate.
Lenders rate: The interest rate on the lead lender’s share of the chattel loan will be set according to prevailing market rates. The rate on fixed rate loans may not exceed 3.50% over the corresponding Federal Home Loan Bank Advance Rate. The initial rate on variable rate loans may not exceed 2.00% over the Bank’s Base Rate and a floor must be established. Interest buydown funds, to the extent they are available, will be used to reduce the lead lender’s rate by up to 4.00% subject to a minimum rate of 1.00% to the borrower.
BND uses its normal credit standards in reviewing the loan. These standards include loan size and type of project.
Collateral shall be first security interest on the chattels, not to exceed 80% of the agricultural collateral value.
BND is required to take at least 50%, and not more than 80%, of the total loan. Borrower must work with a local lender to submit the loan application (PDF). Lead lender is responsible for servicing the loan.
The loan term may not exceed seven years. Annual amortized payments are required.
If the borrower is in default under the loan agreements, the interest rate on the loan changes from the buydown rate to the original higher interest rate. The borrower shall accrue interest at the higher interest rate and all interest rate buydown funding is suspended until the loan is brought current.