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SB 2327

AN ACT to amend and reenact sections 4.1-01.1-07 and 4.1-01.1-08 of the North Dakota Century Code, relating to uses of the agriculture diversification and development fund and committee; to provide an appropriation; and to provide for a transfer.

69th Legislative Assembly (2025-26) Introduced by Mike Beltz and 5 co-sponsors

The bill creates a funded Agriculture Diversification and Development Fund offering loans, grants, and infrastructure aid to grow value-added agriculture and local jobs in North Da

Filed with Secretary Of State 04/23
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Bill Summary · SB 2327

Summary — SB 2327 (North Dakota, 2025)

Status: Filed with Secretary of State 04/23/2025 (enacted); introduced March 12, 2025

Main purpose

SB 2327 revises statutes governing the Agriculture Diversification and Development Fund and its oversight committee to clarify permissible uses, committee duties and membership, administrative expense allowances, and to provide a one-time transfer from the general fund into the agriculture diversification fund for the 2025–2027 biennium.

Key provisions and changes

  • Creates/continues the Agriculture Diversification and Development Fund as a special fund in the state treasury consisting of legislative transfers, interest, and loan repayments. Fund moneys are continuously appropriated to:
    • The Bank of North Dakota (BND) for loan disbursements and administration; and
    • The Agriculture Commissioner for grants (under this section and NDCC §4.1-01-27).
  • Authorizes the fund to be used for:
    • Loans, interest-rate buydowns, and grants to support new or expanding value‑added agriculture businesses that are financially feasible, increase farm/ranch profitability, create jobs, and grow the state economy;
    • Grants to political subdivisions for infrastructure improvements necessary for new/expanded value‑added agriculture businesses (per §4.1-01-27).
  • Clarifies BND responsibilities:
    • Develop loan and buydown policies in consultation with the Agriculture Diversification and Development Committee;
    • Review applications, deposit loan principal and interest back into the fund;
    • May charge a servicing fee from interest paid (not to exceed 0.5% of the outstanding loan amount);
    • Fund must be audited annually (costs paid from fund).
  • Amends committee statute (NDCC §4.1-01.1-08) to specify an 11-member Agriculture Diversification and Development Committee:
    • Five commissioner appointees (four active farmers, one agribusiness);
    • One governor appointee (active in business);
    • Representatives: independent community banks, North Dakota Bankers Association, Commerce Commissioner (or designee), NDSU President (or designee), and the Agriculture Commissioner (or designee).
    • Committee develops grant guidelines (including priority for majority North Dakota‑owned businesses), reviews applications, and makes funding recommendations.
    • Members are reimbursed for expenses and, if not state employees, receive $135 per diem for committee business.
  • Administrative expense allowance:
    • Committee may use up to 5% of fund balance (as measured July 1 of each odd-numbered year) for in‑state travel, per diem, and related costs of administering the agriculture infrastructure grant program each biennium.

Appropriation / Transfer

  • Transfers $15,000,000 from the general fund to the Agriculture Diversification and Development Fund for the 2025–2027 biennium (July 1, 2025 – June 30, 2027).
  • Up to $10,000,000 of that transfer may be used for agriculture infrastructure grants to political subdivisions under NDCC §4.1-01-27.
  • Note: earlier draft language proposed a $25,000,000 transfer; the enacted amount is $15,000,000.

Who is affected

  • Value‑added agriculture businesses (food/commodity processors, feed/pet food processors, ag product manufacturers, and animal production facilities such as swine, poultry, dairy, feedlots).
  • Political subdivisions seeking infrastructure grants for agricultural development.
  • The Bank of North Dakota (loan administration) and the ND Agriculture Commissioner (grant distribution).
  • Members of the Agriculture Diversification and Development Committee (appointment, reimbursements).

Procedural / timeline highlights

  • Introduced March 12, 2025; underwent committee amendments in both chambers.
  • Passed both chambers (Senate and House) with amendments; sent to Governor and signed April 22, 2025; filed with Secretary of State April 23, 2025.
  • Public/committee hearings and reconsiderations occurred in spring 2025 during the bill’s progression.

Potential impact

  • Provides capital (loans, buydowns, grants) targeted at growing in‑state agricultural processing and related infrastructure, potentially increasing value‑added production, local jobs, and farm/ranch profitability.
  • Directs up to $10M to public infrastructure projects supporting agro‑development; creates a structured committee and administrative framework for program oversight.

Compiled from official sources — confirm details with the bill’s official record.

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