Farmers have numerous challenges when it comes to producing a successful crop. Certainly, not all things are under their control, but choosing quality seed is one they can.
Steve Knorr and Billy Johnson paired their passions for farming to “bring value to their friends, family and neighbors” when they started Farmers Choice Seed in 2018. With Knorr’s sales background and in-depth knowledge of quality seed and Johnson’s ability to clean and treat soybeans, the two have established a highly respected business.
Farmers Choice Seed offers a full range of services including quality seed, fertilizer, crop protection, a network for growers and distributors, and agronomy services. Local producers have an opportunity to enhance their nonfarm income by selling their crops through dealer farmers/agents within its network.
Since its beginning, Farmers Choice Seed has experienced year-over-year growth in both its business portfolio and workforce. It started with one full-time employee and now has six full-time, permanent employees and five to seven seasonal employees.
This tremendous growth meant their farmsteads could no longer support their business needs, so they worked with their local banker James Moen from Peoples State Bank of Velva (PSB) to creatively finance a project to construct two facilities. One of the facilities is north of Minot along Highway 83 near Forfar, and the other is west of McClusky, along Highway 200.
To execute the “best” possible financing terms, PSB partnered with Bank of North Dakota (BND) to utilize the Flex Partnership in Assisting Community Expansion (PACE) program. The financing package came together through the support of Souris Basin Planning Council, Lewis & Clark Development Group, PSB, BND and the local communities of Lansford and McClusky.
From a production perspective, Knorr explained the new facilities allow them to treat soybeans and hold corn boxes. Banker James Moen added, “With updated facilities, they will be able to grow their business while providing timely, high-quality service to their customers.”
Moen worked with Jim Leier and Michael Lehn from BND to access the Flex PACE funding for this project and appreciated their responsiveness. PSB has partnered with BND to share in the financing of other projects for agribusinesses and ag producers.
“I have worked closely with Jim Moen of PSB for a number of years with various BND loan programs and customers. When he called to visit on this deal, I steered the conversation to the Flex PACE Program because that is a perfect fit,” said BND Business Banker Jim Leier. “What makes this deal unique is the two locations over 100 miles apart. Their partnership with Elizabeth Calderon of Souris Basin Planning Council in Minot and Matt Burthold of Lewis & Clark Development Group of Mandan provided the community share of the buydown interest needed to match BND’s buydown interest.”
Farmers Choice Seed is one example of a growing value-added agriculture industry business in North Dakota. The ability to combine different financing resources is a key to their success, and the success of other new ventures in the state.
