New drought loan programs available for North Dakota livestock producers
(VAN) Two Bank of North Dakota loan programs approved Tuesday aim to make $150 million available to help the state’s livestock producers cover expenses related to the drought.
Interested producers should work with their local lender to determine if the programs are a good fit and to apply, according to the North Dakota Industrial Commission.
The Livestock Drought Loan Program will cover ag-related costs incurred as a result of this year’s drought. Loans are for up to a five-year term at a fixed interest rate of 3.5%. The proceeds may be used for items such as production or purchase of feed; transportation of feed or livestock; obtaining water for livestock by drilling a well, piping or hauling; forage and seed costs; cover crops; silaging costs and insecticide costs.
Applications will be accepted through June 30, 2022.
The Livestock Rebuilder Loan Program is meant for producers who had to reduce the size of their herd due to a lack of feed supply. It will provide funds for purchasing and rebuilding breeding stock. The loan is available for up to a seven-year term at a fixed interest rate of 3.5%.
Applications will be accepted through June 30, 2023. Participation in the programs is on a first-come, first-serve basis. The programs stem from meetings with trade associations, producers, bankers and state agencies.
“This is a pivotal time for the livestock industry in North Dakota. It is crucial that we shore up resources that allow livestock producers to successfully navigate the drought,” the Industrial Commission said in a statement. “These Bank of North Dakota programs are one of several avenues being used to relieve the financial stress they are experiencing.”
The Industrial Commission consists of three members: Gov. Doug Burgum, Agriculture Commissioner Doug Goehring and Attorney General Wayne Stenehjem. It oversees the Bank of North Dakota.