The North Dakota Industrial Commission has approved the Bank of North Dakota’s 2024 Ag Disaster Relief program. This initiative aims to support farmers and ranchers across the state who have faced challenges due to extreme weather, wildfires, inflationary costs, and volatile commodity prices. The Bank has allocated $200 million for this purpose.
Farmers and ranchers can apply for the relief through their local lenders after determining if the program suits their needs. The loan program is designed to help cover operating shortfalls from 2023 and 2024, payments for the 2024 farm operating cycle, and declines in working capital. Additionally, balances from the 2019 Ag Disaster program loans may be included in the new loan amounts. Applications will be accepted until June 30, 2025.
The loans are available with a fixed interest rate of 5.25% for up to five years. They can be used for operational expenses related to farms and ranches with an approved operating line for 2025 but cannot refinance existing debt unless it pertains to the 2019 Ag Disaster Loan Program.
In a joint statement, the Industrial Commission said: “The state’s ag producers have experienced a perfect storm of compounded inflation, interest rate shocks and a drop in commodity prices, complicated by wildfires and weather-related events over the past two years. We need to ensure they can enter the 2025 production season on a more stable foundation than they may have without this option.” The Commission includes Gov. Kelly Armstrong as chairman, Attorney General Drew Wrigley, and Agriculture Commissioner Doug Goehring.
Before developing this program, BND staff consulted with stakeholders such as trade associations, agricultural producers, bankers, and state agencies to assess needs. More information about the program is available on their website.
Don Morgan, president of BND stated: “Bank of North Dakota relief programs are a proven way to assist our ag community in challenging times,” adding that local partners provided valuable input on setting parameters for this loan program.
BND continues its mission “to support agriculture, commerce and industry,” which has remained unchanged since its founding in 1919. It remains unique as the only state-owned bank in the United States.
