# Cattle operating loan rates in North Dakota

> North Dakota cattle operating loans generally run 7.75% to 10.50% APR in early 2026, with Farm Credit Services of North Dakota and commercial ag banks at the low end and FSA direct operating loans near 5.375%.

**Headline:** 7.75% – 10.50% APR

## Key Figures

| Metric | Value |
| --- | --- |
| Farm Credit Services (FCS of Mandan / AgCountry) | 7.75% – 9.25% APR variable |
| Commercial ag banks (Bell, Starion, Bravera) | 8.50% – 10.50% APR |
| FSA Direct Operating Loan | 5.375% APR (Feb 2026) |
| Typical term length | 12-month revolving line, annual renewal |
| Typical LTV on cattle collateral | 65% – 75% of appraised market value |

## Detail

North Dakota's cattle operating loan market is anchored by the Farm Credit System, with Farm Credit Services of Mandan covering the western cattle country and AgCountry Farm Credit Services serving the eastern tier. Variable-rate operating lines from these cooperatives typically price at 7.75% to 9.25% APR in early 2026, while commercial ag banks such as Bell Bank, Starion, and Bravera sit higher at 8.50% to 10.50% APR. The USDA Farm Service Agency undercuts both with a Direct Operating Loan rate of 5.375% as of February 2026, though FSA direct loans are capped and subject to eligibility screening.

Collateral expectations are stricter than for row-crop operations because live cattle values swing with CME feeder futures. North Dakota lenders generally advance 65% to 75% of appraised market value, require a current state brand inspection, and file a UCC-1 against the herd. The Minneapolis Fed's Q4 2025 Agricultural Credit Conditions Survey reported tighter collateral requirements across the Ninth District as lenders responded to compressed cow-calf margins, and ND bankers specifically flagged rising loan-renewal scrutiny.

Seasonal cash-flow timing shapes how these loans are structured. Cow-calf operators draw on operating lines in spring for calving supplies, pasture leases, and hay, then pay down the balance after fall calf sales at barns like Kist Livestock in Mandan or Napoleon Livestock. Most ND operating lines are written as 12-month revolving facilities with annual renewal tied to an updated balance sheet and herd inventory, which allows the lender to re-price the line against prevailing Farm Credit System or prime-plus benchmarks each cycle.

## Frequently Asked Questions

### Which lenders dominate cattle operating loans in North Dakota?

Farm Credit Services of Mandan and AgCountry Farm Credit Services cover most of the state, alongside Bell Bank, Starion Bank, Bravera Bank, and smaller community banks in cattle-heavy counties like Morton, Stark, and McKenzie.

### Does the FSA Beginning Farmer program lower rates for ND ranchers?

Yes. FSA Direct Operating Loans for beginning farmers carry the same 5.375% rate as of February 2026, and FSA will guarantee up to 95% of a commercial lender's operating loan, which often shaves 50-100 basis points off the bank's quoted rate.

### How is cattle collateral valued by North Dakota lenders?

Most ND ag lenders require a current brand inspection and use CME feeder cattle futures plus a basis adjustment for Northern Plains sale barns (Kist, Napoleon, Rugby) to set collateral value, then advance 65-75% against that number.

## Sources

1. USDA FSA Farm Loan Programs Interest Rates (2026) — https://www.fsa.usda.gov/resources/programs/farm-loan-programs/interest-rates
2. Federal Reserve Bank of Minneapolis Agricultural Credit Conditions Survey (Ninth District, incl. North Dakota) (2025-Q4) — https://www.minneapolisfed.org/agriculture/agricultural-credit-conditions-survey
3. Farm Credit Services of Mandan - Loan Products (2026) — https://www.farmcreditmandan.com/

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Source: Vellum — https://vellum.app/cattle-operating-loan-rates/north-dakota