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Funding Assistance Programs for Irrigation Development in North Dakota: Financial Incentives for Irrigators and Irrigation Districts (AE1674 Reviewed Dec. 2017)

This publication list the sources of funding agencies to aid irrigation development.

Tom Scherer, Agricultural Engineer, NDSU Extension Service

Milt Lindvig, Field Representative, North Dakota Irrigation Association; Jerry Schaack, Field Representative, North Dakota Irrigation Association


Photo, Tom Scherer
Photo, Tom Scherer, NDSU

Photo, Tom Scherer, NDSU
Photo, Tom Scherer, NDSU

 

Programs for Individual Irrigators . . .

Bank of North Dakota (BND) Programs

AgPACE (Agricultural Partnership in Assisting Community Expansion) Program

• The AgPACE program is an interest rate buy-down program available to farmers to create an on-farm business integrated into the farm operation.

• The producer initiates the loan through a local lender, who requests the participation of the BND.

• The interest rate buy-down is up to 4 percent below yield rate. The maximum buy-down per borrower may not exceed $20,000 per biennium, with a lifetime cap of $60,000.

• To receive buy-down funds in excess of $20,000, the applicant must have a net worth of less than $1 million.

• For irrigation development, an additional $20,000 is available from the North Dakota State Water Commission through the BND for a total buy-down of $40,000 for the first-time borrower.

• The program may be used only for new irrigated acres.

• The AgPACE program is limited to the interest buy-down maximums, whether it is through one or more loans.

For more information, call: 701-328-5600 or visit the Bank of North Dakota website.

U.S. Department of Agriculture

Natural Resources Conservation Service

Environmental Quality Incentives Program (EQIP)

• EQIP is a voluntary program that offers farmers and ranchers a tool to address their natural resource concerns while achieving environmental benefits.

• Owners of land or people who are engaged in livestock, agricultural or forest production and have a natural resource concern may participate in the EQIP program.

– To be eligible, land must have been irrigated at least two of the last five years and meet Natural Resources Conservation Service soil/water quality compatibility standards and hold a current water permit.

• EQIP offers a suite of irrigation water management and structural conservation practices with financial and technical assistance. Assistance is available for practices that result in a net water savings in the current water application method or for conversion to a more efficient water application method.

• Financial assistance is based on a payment schedule that accounts for a typical irrigation installation cost.

– Limited-resource and beginning farmers may be eligible for a higher rate of financial assistance.

• Program participants will be required to implement an irrigation water management plan.

• The program also offers technical assistance in the design of the system.

• Applications are accepted on a continual basis for the program. The NRCS established application deadlines for evaluation and ranking of eligible applications. Please check the NRCS website or contact your local NRCS Service Center for a list of application deadlines.

For more information, contact your local NRCS Service Center.

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Programs for Irrigation Districts . . .

State Water Commission

State Water Commission Cost-share Program for Irrigation Development

• The program is available only to political subdivisions, such as irrigation districts.

• The State Water Commission’s cost-share is up to 50 percent for eligible items, depending on the availability of funds.

• Eligible items are those associated with new central supply works, such as pump intakes, pumps, power units, conveyance facilities, electric power facilities, other related facilities and engineering.

• Maintenance costs are not eligible.

• Plans and cost estimates, along with an economic feasibility determination, are required for a new project.

For more information, contact: contact the director of the Water Appropriations Division, State Water Commission, at 701-328-2754

Capital Financing Program

Irrigation and Related Facilities Program

• The program is available to qualifying organizations, including irrigation districts.

• The program may be used for equipment and water supply infrastructure that the irrigation district owns, as well as storage facilities for commodities produced under irrigation.

• The North Dakota Public Finance Authority issues the bonds.

• The program requires that the irrigation district have 20 percent equity in the project.

• The U.S. Department of Agriculture, through the Guaranteed Business and Industry Loan Program, guarantees the bonds for up to 80 percent of the project cost on qualifying projects.

For more information, contact: North Dakota Public Finance Authority 701-328-7100

For information about irrigation development, contact:

Jerry Schaack, Field Representative
North Dakota Irrigation Association
Bismarck
701-223-4615

Milt Lindvig, Field Representative
North Dakota Irrigation Association
Bismarck
701-223-4615

Tom Scherer, Agricultural Engineer, Water Quality/Irrigation,
NDSU Extension Service
Fargo
701-231-7239

ND Irrigators lorgo

Revised December 2017

Filed under: crops, irrigation
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