A producer harvests soybeans Sept. 28, 2025, near Hamberg, North Dakota. (Photo by Lora Wobbema/For the North Dakota Monitor)
The Bank of North Dakota is working on a new loan assistance program for farmers in response to tough financial conditions facing the industry.
Don Morgan, president of the state-owned Bank of North Dakota, said the state’s agricultural industry has been hit hard by a combination of low commodity prices, a sustained period of high interest rates and inflation.
“We believe we have an extreme stress situation coming up in our agricultural sector for 2026,” Morgan told the North Dakota Industrial Commission on Tuesday.
The Bank of North Dakota is preparing a new relief program for farmers and ranchers modeled after a 2019 program that worked very well, Morgan said.
“It allowed our banks and credit unions to restructure some agricultural debt at some below-market rates,” Morgan said.
The details of the program have yet to be determined. Morgan will return to the Industrial Commission in November or December, he said, with a finished product for the board’s approval “so that we could roll out for the 2026 ag renewal season,” he said.
Gov. Kelly Armstrong, who chairs the Industrial Commission, urged bank officials to keep in mind that there is discussion in Washington, D.C., about a federal relief program for farmers this year, though he noted the exact timing may change.
“My concern is not knowing what the federal government is going to do,” Armstrong said.
The other factor to keep in mind, Armstrong said, is there will likely be a special session of the North Dakota Legislature at the start of 2026. If the Bank of North Dakota is rolling out a loan assistance program at the same time, the governor said it will likely be a topic of discussion for lawmakers.
Agriculture Commissioner Doug Goehring, Armstrong’s colleague on the Industrial Commission, suggested the Legislature could consider additional aid for farmers if the state-owned bank’s program is insufficient.
Morgan said it’s important to get the relief program rolled out with time to spare before banks begin working with farmers to renew agricultural loans this winter, even if the Legislature decides to provide additional assistance after the program is implemented.
“The banks do need some time to prepare because most of the ag renewals come in February, March, April, May,” Morgan said.
North Dakota Monitor reporter Jacob Orledge can be reached at jorledge@northdakotamonitor.com.
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