Farm Credit Services Announces New Program

(Minot, ND) – January 4, 2006 – Farm Credit Services of North Dakota is pleased to introduce a new, innovative program called . This program changes the way we price our loans and will put dollars into our customer's pockets NOW!

Effective January 1, 2006 Farm Credit Services of North Dakota reduced most customers interest rates by 50 basis points. This reduction included almost all variable and fixed rate loans in our traditional agricultural portfolio. It made no difference if a customer had the same fixed interest rate for years, it was reduced.

Most people are familiar with patronage dividends. This is the method cooperatives use to return part of their annual earnings to customers if certain ratios are met. The Board of FCS of ND authorized a rate reduction as a method to provide those returns throughout the year instead of waiting for year end. This is why we have called the program . We believe this program will save our customers in northwest North Dakota nearly $2 million in interest for 2006.

It appears that fertilizer and fuel costs will be at an all time high in the coming year. In addition to this the Federal Reserve will continue to raise rates in order to control inflation. "This rate reduction could not have come at a better time for the farmer. Every dollar counts," says Claude Sem, CEO.

"At FCS of ND we have worked hard to be your lender of choice in northwest North Dakota. Thanks to your commitment we have become one of the financially strongest Farm Credits in the nation," Sem adds.

Farm Credit Services of ND is a member-owned agricultural credit association providing loans to farmers and ranchers for real estate, machinery, livestock, and operating needs. FCS also offers life & disability and crop insurances to the rural community. They serve 17 counties in northwest North Dakota through seven branch offices located in Minot, Carrington, Bottineau, Rugby, and Williston, including Ward County Crop Insurance (Minot) and Schaan Crop Insurance (Rugby).