BISMARK, North Dakota – The North Dakota Industry Commission has approved two new Bank of North Dakota (BND) loan programs to help the state’s livestock breeders meet the costs of the state’s extreme dry conditions. Manufacturers should work with their local lender to determine if programs are appropriate for their situation and apply through them.
Drought Loan Program for Livestock will cover agricultural-related costs incurred as a result of the 2021 drought. Applications are accepted until June 30, 2022. Loans are issued for up to five years with a fixed interest rate of 3.50%. The proceeds can be used for purposes such as the production or purchase of feed; transportation of feed or livestock; obtaining water for livestock, including drilling a well, laying pipelines or transporting; feed and seed costs; cover crops; silage costs or insecticide costs.
IN Livestock Repair Loan Program is intended to strengthen the livestock industry after a drought by providing a funding program to help livestock breeders who have had to reduce their herd size due to lack of feed. This program has an extended application deadline until June 30, 2023 and provides producers with funds to purchase and restore breeding stock. This gives producers enough time to assess the situation and draw up a business plan to rebuild their herd. The loan is provided for up to seven years at a fixed interest rate of 3.50%.
“This is a pivotal time for the North Dakota livestock industry. It is imperative that we strengthen the resources that will enable livestock breeders to successfully cope with the drought, ”the Industry Commission said in a joint statement. “These Bank of North Dakota programs are one of several tools used to alleviate the financial stress they are experiencing.”
BND staff met with stakeholders including trade associations, livestock breeders, bankers and government agencies to identify needs before developing programs. These two programs are allocated $ 150 million and loans will be disbursed on a first come, first served basis. More information is available on the website www.bnd.nd.gov…
“The local lender is most familiar with its manufacturer customers and will work closely with them to access the programs if needed,” said Todd Steinwand, interim president of BND. “We are grateful to local banks and credit unions for their continued willingness to facilitate the allocation of public funds.”
The Bank of North Dakota is overseen by the Industry Commission, which includes Gov. Doug Burgum as chairman, Attorney General Wayne Stenehge, and Agriculture Commissioner Doug Goering.