North Dakota is hoping to use a loan program through its state-owned bank to help ranchers rebuild breeding stock and to help pay for feed to stabilize herd levels that have been decimated by the state’s worst drought in decades.
Agriculture Commissioner Doug Goehring estimates that drought this summer has forced North Dakota cattle ranchers to sell off about 100,000 animals as pastures dried up and pushed hay prices to as much as double the normal cost.
The commission will meet Wednesday to approve guidelines for a drought disaster low-interest loan program through the bank, which would underwrite the loans from other North Dakota financial institutions.
Some of the areas hit hardest by drought are "some of the most significant cattle producing regions," said Ellingson, who also is a rancher.
The U.S. Agriculture Department said North Dakota’s cattle herd stood at 1.8 million animals in January, the latest figures available.
Burgum also made a request last month for a presidential major disaster declaration for drought.
Ellingson called the proposed loan program through the state-owned bank "another tool" to "help offset feed costs and help livestock producers address liquidating portions of their herds because of drought."
"Stabilizing that industry not only benefits that industry but the state of North Dakota as a whole," she said.
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