Agriculture Diversification and Development Fund (ADD)

The Agriculture Diversification and Development Fund (ADD) is administered by the North Dakota Department of Agriculture and guided by the ADD Committee, authorized under North Dakota Century Code 4.1-01.1. The program is designed to stimulate new and expanding value-added agriculture businesses that contribute to North Dakota’s economic development. The Committee has a mission to diversify the state’s agriculture industry, enhance profitability for producers, and generate employment through the creation of innovative agri-business initiatives. This program targets businesses engaged in food production and processing, feed and pet food manufacturing, commodity and agricultural product processing, and animal production facilities. Applications are encouraged from businesses that use North Dakota's agricultural outputs to develop products or services that foster economic returns. Priority is given to proposals most aligned with the Committee's goals and to applicants with majority ownership by North Dakota residents. Companies from outside the state may apply if they have an established relationship with a North Dakota partner. Proposals must be financially feasible and demonstrate an ability to create new wealth and jobs. Applicants must submit a comprehensive package that includes a business plan, historical and projected financials, and a complete application form with original signatures. The plan should cover project descriptions, market viability, competition, team composition, and funding sources. Proposals are accepted on a rolling basis but must meet quarterly deadlines (January 1, April 1, July 1, and October 1). Only the first ten eligible applicants for each cycle are invited to present to the Committee. Meetings take place in different North Dakota cities throughout the year. Grant requests are capped at $500,000, with award sizes linked to total capital expenditures. For instance, projects with capital needs over $2 million may receive up to the full $500,000. However, the Committee does not fund salaries or routine operating expenses. Proposals are evaluated against a 100-point scoring system, weighing factors like the probability of success, economic value added, financial backing, project team qualifications, and sustainability efforts. The Committee retains discretion in scoring and funding decisions, and its judgments are final. Grants are typically issued for one year, though extensions are possible under certain circumstances. Approved projects must sign a grant agreement with NDDA and adhere to periodic reporting requirements. These include interim and final reports detailing progress, financial compliance, job creation, and economic impacts. Reimbursements are issued monthly or quarterly, and the final 10% of funds is withheld until a satisfactory final report is submitted. To apply, businesses must download the application PDF (not complete it via browser), prepare the required documents, and submit them by email or mail. For assistance or eligibility questions, applicants are encouraged to contact Daniel Ratajczak at the North Dakota Department of Agriculture. Proposals are subject to audit, and the ADD Committee maintains the right to examine financial records to ensure responsible fund use. The program operates under a $7.5 million allocation for grants, separate from its loan and interest buydown funds.

Priority given to strong financial backing, experienced teams, and sustainable practices.