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Appropriations Committee advances amendment to $25 million Agricultural Diversification Fund; final action deferred

February 17, 2025 | Appropriations, Senate, Legislative, North Dakota


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Appropriations Committee advances amendment to $25 million Agricultural Diversification Fund; final action deferred
The Senate Appropriations Committee on Feb. 27 approved an amendment to legislation that continues a $25 million Agricultural Diversification and Development Fund but postponed final committee action so members could review additional program detail.

Committee members approved an amendment that replaces a prior “up to 5%” administrative allowance with language authorizing the Agriculture Commissioner to reimburse the Agriculture Diversification and Development Committee members for travel, lodging, per diem and related costs “as authorized under” state employee rules. The amendment also explicitly ties certain funds to per diem and related costs of the Ag Infrastructure Grant Program each biennium.

Senator Wozzeck, the bill sponsor, said the measure continues a $25 million fund to incent value‑added agricultural projects and that the fund matches the prior biennium’s appropriation. “This bill addresses the agricultural diversification and development program… it’s a $25,000,000 fund, it’s the same as that we provided last biennium,” he said.

Doug Goring, North Dakota Agriculture Commissioner, told the committee the $25 million is intended for interest‑rate buy‑downs and grants. He said $15 million was dedicated for interest buy‑downs; that amount could subsidize roughly $256 million in loans, and currently about $125 million in loans exist within the program. Goring said the interest buy‑down has already reduced borrower obligations by about $7.8 million and that the program has been operating for about 18 months.

The bill also allocates up to $10 million for the Ag Infrastructure Program for community infrastructure tied to value‑added animal processing projects. Commissioner Goring described the infrastructure funding as available to political subdivisions where an egg or other animal processing facility is built or expanded and said the bill would allow up to $1.2 million (or 80% of a project) for road and bridge upgrades and up to $350,000 for utility upgrades (power, wastewater, water) per project.

Several senators asked for documentation of prior program awards and outcomes before making a final committee recommendation. Senator Davidson and other members said they could not locate program outcome reports on the Department of Agriculture website and requested a booklet summarizing closed projects and results. Commissioner Goring agreed to provide a report and said the department could supply project summaries to the committee before its next meeting.

After discussion the sponsor and committee members agreed to remove the pending motion to give the bill a “due pass as amended” and to move the item to the Wednesday session so members would receive the requested booklet and additional clarifying information before voting. The committee did not take a final vote on the bill during the Feb. 27 hearing.

The measure remains scheduled for continued committee consideration on Wednesday at 08:30 a.m.

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