North Dakota Initiates Loan Programs to Support Struggling Farmers

By Jacob Orledge

The North Dakota Industrial Commission has approved two vital loan programs aimed at assisting agricultural producers who have faced challenges from tariffs, decreasing commodity prices, high operational costs, and adverse summer weather conditions.

Farm Financial Stability Loan Program

The first initiative, the 2026 Farm Financial Stability Loan Program, will allocate $300 million to aid farmers and ranchers grappling with operating shortfalls from 2024 or 2025. Eligible producers will have the opportunity to apply for low-interest loans through local banks and credit unions.

“Agriculture is still the backbone of every community in North Dakota,” stated Gov. Kelly Armstrong, who chairs the Industrial Commission overseeing the Bank of North Dakota. “In uncertain times, it’s essential to stabilize that foundation to the best of our ability.”

According to Kaylen Hausauer, financial institutions market manager, interest rates for these loans will likely hover around 4.3% to 4.4%, significantly lower than the bank’s current base rate of 7%. Up to 75% of the loan will be funded by the Bank of North Dakota, although agricultural producers must apply through their local lenders.

“This aligns perfectly with our mission,” expressed Don Morgan, CEO of the Bank of North Dakota. “It provides balanced support for our agricultural sector during a period of significant stress.”

Goals and Support for Agricultural Producers

The aim of the loans is to help agricultural stakeholders restructure existing debts, convert recent operational losses into loans with extended repayment schedules, and ensure financial readiness for the 2026 planting season.

“We’re on the right track, and I believe our state can offer significant support to our farmers and ranchers through this backstop,” commented Doug Goehring, agriculture commissioner and member of the Industrial Commission.

Gov. Armstrong noted that several farmers would face the prospect of leaving farming behind next year without this program due to their precarious financial circumstances.

“The mediation program has revealed that numerous farmers are struggling financially due to storm damage and unfavorable market conditions,” Goehring added. “It’s a compounded problem.”

Grain Inventory Loan Program

The second approved program, the 2026 Grain Inventory Loan Program, seeks to assist local farmers burdened with unsold inventory from the 2025 harvest. This initiative allows them to secure short-term financing to hold onto their crops until market prices improve.

“These short-term loans will particularly benefit young and beginning farmers, who often lack the equity and working capital of their more experienced counterparts,” said Gov. Armstrong. The Bank of North Dakota has allocated $100 million for this program, with loan rates set slightly below the current market rate.

“While we don’t want to encourage producers to hold grain longer than necessary, this tool can provide crucial support when needed,” Hausauer outlined.

Conclusion and Application Details

These programs illustrate North Dakota’s unique capability to provide timely relief to the agricultural sector due to its state-owned bank, as emphasized by Gov. Armstrong. “We remain committed to utilizing these resources to support the diligent farmers and ranchers who contribute significantly to our food supply,” he reiterated.

Producers can start applying for either program through local banks or credit unions beginning at noon on December 9, with applications due by June 30, 2026. “This initiative could place our producers in a better financial stance compared to others nationwide,” Goehring concluded.

Contact reporter Jacob Orledge at jorledge@northdakotamonitor.com.

North Dakota Monitor is part of States Newsroom, the largest state-focused nonprofit news organization supported by grants and donations. The editorial decisions of the Monitor are made locally by North Dakota journalists, maintaining full editorial independence.

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