Bank of North Dakota Beginning Farmer Loan Program for First Time Farmers

The Bank of North Dakota's Beginning Farmer Loan Program is a game-changer for first-time farmers. This program offers low-interest loans to help new farmers get started.

The loan amount is up to $400,000, which can be used for a variety of purposes such as purchasing land, equipment, and livestock. This funding can be a huge relief for new farmers who often struggle to secure capital.

The loan terms are favorable, with a fixed interest rate of 2.75% and a 5-year repayment period. This allows new farmers to focus on building their business without the burden of high interest payments.

With the Bank of North Dakota's Beginning Farmer Loan Program, new farmers can get the financial support they need to succeed.

To qualify for the Bank of North Dakota's beginning farmer loan, you'll need to meet certain requirements. You must be a North Dakota resident at time of funding.

A First Time Farmer must be at least 18 years of age. This is a non-negotiable requirement, so make sure you meet this criterion before applying.

You'll also need to have never had any direct or indirect ownership interest in substantial farmland in the operation of which you've materially participated. This means if you've had any involvement in farming in the past, you may not be eligible.

An ownership interest or material participation by a person's spouse or child will be attributed to the person as well, so it's essential to consider their involvement too.

Your net worth must be $1,500,000 or below, according to the Bank of North Dakota's guidelines. This is a crucial factor in determining your eligibility.

The agricultural land, agricultural improvements, and depreciable agricultural property must be used for farming by you, your spouse, or minor children. This is a key requirement of the program.

Here are the specific requirements in a concise format:

The First Time Farmer Finance Program has a few fees associated with it. The application fee is a non-refundable $100, which must be submitted to BND.

You'll also need to pay a loan fee equal to 1% of the bond amount, but not less than $500. This fee can be financed with bond proceeds, or included in the purchase price if you're buying on a contract sale.

The loan fee is a significant cost, but it's worth noting that it can be financed or included in the purchase price. This can help make the loan more manageable for first-time farmers.

To qualify for the First Time Farmer Finance Program, you'll need to meet certain requirements. You must be a North Dakota resident at the time of funding.

To be eligible, you must also be at least 18 years old. This is a straightforward requirement that ensures you're an adult with the capacity to manage a farm.

You'll need to have never had any direct or indirect ownership interest in substantial farmland, and not have materially participated in the operation of that land. This means you can't have owned or managed a farm before, and your spouse or child can't have done so either.

Your net worth must be $1,500,000 or below, according to the program's guidelines. This ensures that the program is available to beginning farmers who may not have a lot of assets to begin with.

Here are the specific qualifying requirements in a concise format:

The agricultural land, improvements, and depreciable property must be used for farming by you, your spouse, or minor children. This ensures that the program is used for its intended purpose: helping beginning farmers get started.

BND borrowers must pay all costs incurred by the lender in connection with a loan application and closing.

A first mortgage is required on the property being used as collateral, and BND also requires an assignment of rents.

The loan term may not exceed thirty years, and annual amortized payments are required.

A non-refundable $100 application fee must be submitted to BND by the First Time Farmer or Bond Purchaser.

The loan fee equals 1% of the bond amount, but not less than $500, and must be paid to BND by the First Time Farmer at loan closing.

The loan fee may be financed with bond proceeds, or in the case of a contract sale, it may be included in the purchase price reflected in the sales contract.

The Farmer Finance Program is a game-changer for first-time North Dakota farmers. This tax-exempt bond program helps beginning farmers and ranchers acquire agricultural property at low interest rates.

To be eligible, you must be a North Dakota resident who is at least 18 years old and has never had a direct or indirect ownership interest in substantial farmland. You also need a net worth of $1,500,000 or below.

The program allows you to finance the purchase of North Dakota land suitable for farming, as well as the construction or purchase of improvements located on agricultural land. You can also purchase personal property suitable for use in farming for which an income tax deduction for depreciation is allowed.

Here are the specific loan limits: