Bank of North Dakota planning debt refinancing program to help ag producers

BISMARCK, N.D. (North Dakota Monitor) — The Bank of North Dakota is developing a disaster relief program to help agricultural producers in the state survive the current crisis in the industry.

The program will work with local banks and credit unions across the state to help ag producers refinance their debt, state officials said during a North Dakota Industrial Commission meeting Monday.

“We’re looking at a very sizable ag disaster program given what’s going on with interest rates still high, soybean market, low commodity prices, high input costs from the compound of inflation,” said Don Morgan, CEO of the Bank of North Dakota. “We’re hearing from our banks that agriculture producers are under a lot of stress.”

Don Morgan, president of the Bank of North Dakota, speaks during a meeting of the Industrial Commission on Oct. 27, 2025. (Photo by Michael Achterling/North Dakota Monitor)

The goal is to create a program that will help farmers and ranchers in the state regardless of whether a federal relief program materializes later this year.

Morgan said they’ve had conversations with local banks and have come to the conclusion ag producers are going to be in a tough situation even if federal relief is approved by Congress.

“No matter the amount of money the federal government throws their way, they’re still going to have a very difficult year in 2026,” Morgan said.

It’s not clear if Congress will approve relief funding, or when, especially as the federal government shutdown continues. That makes planning a relief program at the state level more difficult.

“We’re trying not to duplicate anything the federal government does,” Gov. Kelly Armstrong said.

Agriculture Commissioner Doug Goehring said a little less than 20% of the state’s ag producers “are really going to be hurting” this winter.

“We’re going to have banks that are going to have to make some really hard decisions,” Goehring said.

Morgan is having preliminary conversations with legislative leaders to discuss whether lawmakers will want to craft a more extensive relief program for the state’s agriculture industry during a special session planned in the first quarter of next year.

“We are having those conversations as we build this program,” Morgan said.

The one silver lining is agriculture land values are being propped up by a diversified set of factors, Morgan said, including agricultural consolidation and out-of-state buyers purchasing ag land in North Dakota.

“I know that’s contentious, but it’s a reality that is holding land values up,” Morgan said.

The Industrial Commission, which oversees the state-owned bank, consists of the governor, agriculture commissioner and attorney general.

North Dakota Monitor reporter Jacob Orledge can be reached at jorledge@northdakotamonitor.com.