N.D. Cent. Code § 4.1-01.1-07

4.1-01.1-07. Agriculture diversification and development fund - Continuing

appropriation. (Effective through June 30, 2029)

1. There is created in the state treasury the agriculture diversification and development

fund. The fund consists of all moneys transferred to the fund by the legislative

assembly, interest upon moneys in the fund, and payments of interest and principal on

loans made from the fund. Moneys in the fund are appropriated to the Bank of North

Dakota on a continuing basis for loan disbursements and administrative costs

pursuant to this section, and moneys in the fund are appropriated to the agriculture

commissioner on a continuing basis for grants and value-added agriculture facility

incentive funding pursuant to this section and section 4.1-01-27. The agriculture

diversification and development committee shall designate the amount available from

the fund for loans, interest rate buydowns, grants, and value-added agriculture facility

incentive funding.

2. Loans, interest rate buydowns, or grants under subsections 3 and 4 may be issued

from the fund to support new or expanding value-added agriculture businesses that

demonstrate financial feasibility, enhance profitability for farmers and ranchers, create

jobs, and grow the state's economy. Grants under section 4.1-01-27 may be issued

from the fund for infrastructure improvements necessary for the development or

expansion of new or existing value-added agriculture businesses. Value-added

agriculture businesses include food production or processing facilities; feed or pet food

processing facilities; commodity processing facilities; agriculture product

manufacturers; and animal agriculture production facilities, including swine, poultry,

dairy, and feed lot production facilities.

3. The Bank of North Dakota shall develop policies for loans and interest rate buydowns

from the fund in consultation with the agriculture diversification and development

committee. The Bank shall review loan applications. To be eligible for a loan under this

section, an entity shall agree to provide the Bank with information as requested. The

Bank may develop policies for loan participation with local financial institutions. The

Bank shall deposit in the fund all principal and interest paid on the outstanding loans.

The Bank may use a portion of the interest paid as a servicing fee to pay for

administrative costs, which may not exceed one-half of one percent of the amount of

the outstanding loans. The fund must be audited annually pursuant to section 6-09-29,

and the cost of the audit must be paid from the fund.

4. The agricultural diversification and development committee shall develop policies for

grants from the fund to support new or expanding value-added agriculture businesses,

including eligibility criteria, maximum grant amounts, and reporting requirements.

Based on recommendations from the agricultural diversification and development

committee, the agriculture commissioner shall distribute the grant funding.

5. The agriculture diversification and development committee shall develop a

value-added milk processing facility incentive program to provide grants.

a. Grant funding under this subsection is limited to the lesser of five million dollars or

five percent of the total construction cost of building or expanding a value-added

milk processing facility in the state capable of processing at least three million

pounds [1360777 kilograms] of milk each year.

b. Grant funding under the program is a reimbursement for infrastructure, site

acquisition, or other capital expenditures necessary for the value-added milk

processing facility construction, including natural gas supply, electricity supply,

roads, water lines, wastewater lines, storm water conveyance, or rail lines.

c. Upon achieving one hundred percent of the processing capacity of the

value-added milk processing facility, the agriculture commissioner shall distribute
acquisition, or other capital expenditures necessary for the value-added milk

processing facility construction, including natural gas supply, electricity supply,

roads, water lines, wastewater lines, storm water conveyance, or rail lines.

c. Upon achieving one hundred percent of the processing capacity of the

value-added milk processing facility, the agriculture commissioner shall distribute

the grant award from funding available in the agriculture diversification and

development fund.

6. The agriculture diversification and development committee may use funding available

in the agriculture diversification and development fund for in-state travel, per diem, and

related costs of administering grants under this section. The agriculture commissioner

may reimburse agriculture diversification and development committee members for

in-state travel, per diem, and related costs incurred associated with the program as

authorized under subsection 2 of section 4.1-01.1-08.

7. The agricultural diversification and development committee shall develop a value-

added agriculture production facility incentive program to provide grants. Grant award

funding for the value-added agriculture production facility incentive program under this

subsection is limited to thirty million dollars.

a. To be eligible for a grant award under the value-added agriculture production

facility incentive program, the production facility must:

(1) Be located within the state;

(2) Be a new construction project on an industrial-ready site with access to

existing municipal infrastructure;

(3) Have capital investment of at least three hundred fifty million dollars and

leverage regional agricultural producer capital investment to support the

facility's operations;

(4) Have a competing offer from at least one other midwestern state;

(5) Produce a new agriculture product or variant of an existing agriculture

product to provide a domestic supply of the product and to diversify the

market for agriculture products; and

(6) Have an estimated economic contribution of at least twenty million dollars

when fully operational based on an economic analysis conducted by the

Bank.

b. Grant funding under the program is a reimbursement for infrastructure, site

acquisition, or other capital expenditures necessary for the value-added

agriculture facility construction, including natural gas supply, electricity supply,

roads, water lines, wastewater lines, storm water conveyance, or rail lines.

c. Upon issuance of a certificate of occupancy for the value-added agriculture

production facility, the agriculture commissioner shall distribute a grant equal to

fifty percent of the total grant award from funding available in the agriculture

diversification and development fund.

d. Upon achieving fifty percent of the production capacity of the value-added

agriculture production facility, the agriculture commissioner shall distribute the

remainder of the grant award from funding available in the agriculture

diversification and development fund.

e. The Bank of North Dakota may extend a line of credit of up to thirty million dollars

to the agriculture commissioner to support a grant from the fund under this

subsection. The interest rate associated with the line of credit must be the

prevailing interest rate charged to North Dakota governmental entities.

f. If the agriculture diversification and development committee approves a grant

under this subsection, the agriculture commissioner may access the line of credit

under this subsection through June 30, 2029, to provide funding for the grant. Any

moneys borrowed from the Bank pursuant to this subsection must be transferred

to the fund. If the agriculture commissioner accesses the line of credit, the

commissioner shall request from the legislative assembly a deficiency

appropriation to repay the line of credit.

Agriculture diversification and development fund - Continuing appropriation.
e 30, 2029, to provide funding for the grant. Any

moneys borrowed from the Bank pursuant to this subsection must be transferred

to the fund. If the agriculture commissioner accesses the line of credit, the

commissioner shall request from the legislative assembly a deficiency

appropriation to repay the line of credit.

Agriculture diversification and development fund - Continuing appropriation.

(Effective after June 30, 2029)

1. There is created in the state treasury the agriculture diversification and development

fund. The fund consists of all moneys transferred to the fund by the legislative

assembly, interest upon moneys in the fund, and payments of interest and principal on

loans made from the fund. Moneys in the fund are appropriated to the Bank of North

Dakota on a continuing basis for loan disbursements and administrative costs

pursuant to this section, and moneys in the fund are appropriated to the agriculture

commissioner on a continuing basis for grants pursuant to this section and section