N.D. Admin. Code Title 95 — Agricultural Products Utilization Commission

Article 95-01 General Administration

Chapter 95-01-01 Organization of Commission

N.D. Admin. Code 95-01-01-01 Organization of agricultural products utilization commission

1.History and function. The agricultural products utilization commission was established by the legislative assembly in 1979. The commission is authorized by North Dakota Century Code

section 4.1-01.1-01 to provide assistance to agriculturally related industry.

2.Purpose of commission. The purpose of the commission is to enact the provisions of the code by supporting projects that are consistent with the code and enhance opportunities in agricultural research, development, diversification, processing, technologies, marketing, and promotion.

3.Commission membership. The commission consists of nine members as designated in North Dakota Century Code section 4.1-01.1-01.

History

• History: Effective June 1, 1990; amended effective April 1, 2012; April 1, 2026.
• General Authority: NDCC 28-32-02
• Law Implemented: NDCC 4.1-01.1

Article 95-02.1 Categories and General Procedures for Grant Requests

Chapter 95-02.1-01 Categories of Grant Requests

N.D. Admin. Code 95-02.1-01 Categories of Grant Requests

ARTICLE 95-02.1

CATEGORIES AND GENERAL PROCEDURES FOR GRANT REQUESTS

Chapter 95-02.1-01Categories of Grant Requests 95-02.1-02Applicant and Project Eligibility 95-02.1-03Evaluation and Funding Criteria 95-02.1-04Procedure for Grant Requests 95-02.1-05Supplemental Program Information

CHAPTER 95-02.1-01

CATEGORIES OF GRANT REQUESTS

Section 95-02.1-01-01Categories of Grant Requests 95-02.1-01-01. Categories of grant requests.

The commission shall consider grant proposals submitted in the following categories:

1.Basic and applied research.

2.Marketing and utilization.

3.Nature-based agritourism.

4.Technical assistance for value-added businesses.

5.Farm diversification.

6.Agricultural prototype development.

7.Agricultural technologies.

8.Other agricultural-based initiatives as directed by the legislature.

History: Effective April 1, 2012; amended effective April 1, 2026.

General Authority: NDCC 28-32-02

Law Implemented: NDCC 4.1-01.1

Chapter 95-02.1-02 Applicant and Project Eligibility

N.D. Admin. Code 95-02.1-02 Applicant and Project Eligibility

CHAPTER 95-02.1-02

APPLICANT AND PROJECT ELIGIBILITY

Section 95-02.1-02-01Applicant and Project Eligibility for All Categories 95-02.1-02-01. Applicant and project eligibility for all categories.

1.Preference must be given to projects that:

a.Utilize North Dakota agricultural products in their production processes.

b.Produce food, feed, fuel, and fiber products through processes that are innovative and add to the value of agricultural products.

c.Are submitted by an existing or prospective company that will be actively engaged in utilizing and adding value to North Dakota agricultural products.

d.Comply with the goals and intentions of one of the grant categories.

2.Consideration may not be given to applications for:

a.Projects that do not clearly meet the commissioners' stated purpose.

b.Projects that are aimed solely at business expansion or creation without regard to enhanced agricultural products utilization.

c.Projects that cannot reasonably be expected to result in viable commercialization.

d.Projects that cause unwarranted duplication of efforts or processes.

e.Projects that focus on agricultural inputs, infrastructure, or production methods that do not relate clearly to agricultural product utilization, agricultural diversification, or nature-based tourism.

f.Projects from applicants who are not fulfilling, or have not fulfilled, the requirements of prior agricultural products utilization grants.

History: Effective April 1, 2012; amended effective April 1, 2026.

General Authority: NDCC 28-32-02

Law Implemented: NDCC 4.1-01.1

Chapter 95-02.1-03 Evaluation and Funding Criteria

N.D. Admin. Code 95-02.1-03 Evaluation and Funding Criteria

CHAPTER 95-02.1-03

EVALUATION AND FUNDING CRITERIA

Section 95-02.1-03-01Evaluation and Funding Criteria 95-02.1-03-01. Evaluation and funding criteria.

Unless otherwise specified, proposals are evaluated upon a basis of one hundred points, according to the following criteria:

1.Preference is given to applications that demonstrate a high probability of job and wealth creation. While the commission does not make any specific requirements for jobs created per dollar granted, a close review must be made of return-on-investment and job enhancement.

2.The commission shall review each proposal as to its technical and commercial feasibility.

Proposals that feature outcomes that are innovative as well as commercially plausible will receive preference. Within this criterion, the relative competence and technical qualifications of project principals are assessed. Proposals or components of proposals which can be construed as subcontracts or contracts for service, and which provide information that the process by which contractors are selected has been competitive are more highly favored.

3.Preference is given to proposals demonstrating a high probability of rapid commercialization or address an imminent need, or both.

4.Priority is given to projects that demonstrate a shared commitment for funding from other private or public sources or from the applicant, or both. Matching funds may be in the form of cash or in-kind services, or both. Approved indirect costs may qualify as matching funds.

Disbursement of funds is contingent upon evidence that matching funds have been allocated to the proposal.

5.Preference is given to the proposals that center efforts on nonurban locales. When the proposal requires specific research activities that cannot possibly be carried out in rural North Dakota, consideration is given to the ultimate development and commercialization of the results of the proposal, with the same rural preference. Favorable community support is considered.

6.Commissioners shall provide their judgment on the probable success and relative importance of the proposed research.

History: Effective April 1, 2012; amended effective April 1, 2026.

General Authority: NDCC 28-32-02

Law Implemented: NDCC 4.1-01.1

Chapter 95-02.1-04 Procedure for Grant Requests

N.D. Admin. Code 95-02.1-04 Procedure for Grant Requests

CHAPTER 95-02.1-04

PROCEDURE FOR GRANT REQUESTS

Section 95-02.1-04-01Procedure for Grant Requests 95-02.1-04-01. Procedure for grant requests.

1.Applications must be typed, single-spaced or double-spaced eight and one-half inch by eleven-inch pages, including the application form and any attachments or supplementary materials. One signed original of the proposal must be delivered or mailed to the commission on or before the published deadlines for consideration at the next commission meeting.

2.Prescribed formats must be used as follows:

a.The commission shall prepare application forms, instructions, or guidelines and make them available for downloading from the agriculture commissioner website. Hard copies of the grant applications are available at agricultural products utilization commission, 600 E. Boulevard Ave. Dept 602, Bismarck, ND 58505-0020. Reasonable accommodations will be made to assist individuals with disabilities.

b.While the specific information requested for each category may vary, it may include:

(1)Applicant's name, telephone number, mailing address, and e-mail address.

(2)Applicant adviser's name with similar contact information.

(3)Applicant's fiscal agent with similar contact information.

(4)Grant application amount.

(5)Estimated total cost of the project.

(6)Estimated time of completion of the project.

(7)Estimated date of final report.

(8)Brief description of the project and how grant funds will be used.

(9)Where the business is or will be located.

(10)Amount of the applicant's personal or company matching funds.

(11)Other matching funds, with source and amount.

(12)Assurance that matching funds have been secured, or date of availability.

(13)Whether the project has received public or private funding prior to this proposal, listing sources and amounts.

(14)Whether the individual has received previous funding from the agricultural products utilization commission, listing prior projects and amounts.

(15)Type of business structure. Sole proprietorship, corporation, partnership (listing names and contact information), cooperative (number of people), and date of structure formation.

(16)Federal tax identification number, if any.

(17)The business's primary financial institution.

(18)The business's gross sales for the last financial year.

(19)The business's current number of employees.

(20)Currency of the business's taxes.

(21)Three years' projection on estimated gross sales, estimated capital expenses, and estimated number of created jobs.

(22)If the grant is to provide professional services, the name of individuals preparing the business plan, the feasibility study, the accounting, and legal work.

(23)Description of the product or potential outcome.

(24)Description of the marketing plan and names or the preparers.

(25)Description of the work, research, or investigation that has been done to date.

(26)Description of intended market, potential customers, new use, etc.

(27)Verification that individuals selected to do marketing have market management experience and expertise.

(28)Prior marketing or advertising.

(29)Listing of the risks or concerns that need to be addressed to make the project a success.

(30)List of competitors.

(31)Scope of work.

(32)Research plan with objectives, milestones, and timelines.

(33)Description of marketing areas, in state and out of state.

(34)Resumes of principal applicant and key participants.

(35)Name and contact information of two references familiar with the applicant's work relevant to the application.

(36)A complete project budget attached as a supplement.

(37)Information suitable for a press release along with authorization.

c.Applicants shall complete the application form for the category most suitable for the project. Forms may be downloaded and adjusted to provide room for entries, but the sequence, style, and information requested on the form must be preserved.

d.Information must be succinctly summarized, complete, and accurate to the best of the applicant's knowledge. Estimates must be indicated with the trailing (est.). Inappropriate questions should be marked with "N/A" for not applicable or "none" to indicate that question was considered.

e.The commission reserves the right to deny any grant application, including those that fail to provide information on which commission judgments are made. Similarly, the commission reserves the rights to accept and consider applications that may vary form format but still provide requisite information.

3.Applicants are encouraged to employ services of a project adviser.

4.The application must be signed by the applicant or by the representative of a company or agency with authority to approve submission of the proposal. If utilized, the project adviser must sign the proposal indicating the project adviser has offered critical review of the proposal.

The applicant's signature is a certification that the submission is complete, the information is accurate, and the proposal represents the true intent of the project. Misrepresentations may disqualify applicants from any further agricultural products utilization commission funding.

5.Promotional materials or materials not directly related to the proposal are discouraged.

6.Applicants are required to complete a press release information and authorization sheet that summarizes the important aspects of the projects. The release may not contain confidential or proprietary information.

7.Applicants are encouraged to provide information that collects demographic information that can be used to monitor compliance with applicable federal civil rights laws.

History: Effective April 1, 2012; amended effective April 1, 2026.

General Authority: NDCC 28-32-02

Law Implemented: NDCC 4.1-01.1

Chapter 95-02.1-05 Supplement Program Information

N.D. Admin. Code 95-02.1-05 Supplement Program Information

CHAPTER 95-02.1-05

SUPPLEMENT PROGRAM INFORMATION

Section 95-02.1-05-01Supplemental Program Information 95-02.1-05-01. Supplemental program information. 1.a.Unless otherwise designated, proposals are not limited to a specific dollar amount. The commission reserves the right to increase or decrease the amount of requested funding based on its findings and on its level of available funds. The commission also reserves the right to fund in whole or in part specific portions of eligible proposals. Requests must be justified with respect to the scope of the project.

b.Unless restricted by legislative directive, or by available funding in commission-administered ancillary programs, the commission may allocate funds to projects in any of the categories.

c.The commission may elect to limit total funding during any particular quarter, and may disperse available funding over the quarters of a biennium in order to provide opportunities for meritorious projects that may submitted later in the biennium. 2.a.Proposals may be submitted anytime within the biennium. Only fifteen proposals may be considered at each commission meeting based on the date received. Eligible proposals received after the quota has been met are deferred until the next commission meeting.

b.Reviews and grant awards are made on a quarterly basis.

c.Generally, grants are limited to a one-year time frame. 3.a.Generally, applicants are only allowed to apply for one grant at a time. Multiple proposals from the same applicant must be considered if each proposal covers distinctly different projects.

b.Proposals that have been submitted under other state, federal, or private grant programs may be considered concurrently by the commission. Proposals that contain matching funds from other grant programs must demonstrate contingent approval from appropriate sources prior to release of funds by the commission. Similarly, agricultural products utilization commission grants that are used as match for other grants may be held, with contingent approval, until the other grants have been approved.

c.Upon completion of a grant, applicants may apply for a successive grant if the subsequent grant demonstrates an important next step; however, the commission reserves the rights to limit or deny the number or amount, or both, of funding of successive grants without cause. 4.a.Acting on behalf of the commission, the staff reviews submitted proposals. Incomplete, ineligible, or inappropriate grants may be rejected by the staff or returned for amendment.

b.Eligible proposals are distributed to commission members for review prior to commission meetings. As part of the review process, commissioners or staff, or both, may contact references, experts, government agencies, and other sources to help ascertain feasibility of the project and credibility of the applicants.

c.Each proposal must be considered individually on its own merits, and according to the stated criteria, by the entire commission. Applicants must be invited to present their proposal, discuss relevant points, and clarify components at a commission meeting; however, the predominant consideration will be based on the written proposal. Generally, presentations are limited to thirty minutes divided into presentation and questioning periods as determined by the commission chair.

d.A decision to accept, modify, or deny each project must be made, by majority vote of at least a quorum of the commission. If the process produces a funding level less than the amount requested in the proposal, the commission staff shall confer with the applicant to determine whether the amount recommended would be acceptable to further the goals of the project.

e.The decision of the commission is final, binding, and not subject to review or appeal except as allowed by law. Projects that have been denied funding cannot be resubmitted in their original form. Revised projects may be considered as new submissions.

f.By law, no member of the commission may participate in, or vote on, a decision of the commission relating to a project or a business, or both, which would constitute a conflict of interest. 5.a.Applicants must be notified of the commission's decision. The commission is under no obligation to provide rationale for its decision; however, the applicant may request an advisory report that could point out some of the considerations in the decision.

b.Successful applicants shall adhere to the conditions outlined in this article and North Dakota law. Following approval of the grant award, a formal grant contract must be entered between the agricultural products utilization commission and the grantee. This agreement must specify the agreed-upon objectives, tasks to be performed, timeline and budget, fund release schedule, and any other conditions specific to the individual proposal. Under the terms of all grant contracts, the grantee is required to submit to the commission periodic interim reports outlining progress and both timeline and budget compliance.

c.In most cases, the entire grant amount is not be released at the time of the commission's decision. In such instances, funds released are tied to the grant contract, and any insufficiencies with the contract may result in withholding of further funding.

d.Grantees must submit a final written report describing the work performed and the results obtained prior to final release of grant funds. The report must be supplemented by a financial report of all expenses actually incurred and income generated by the project. 6.a.As a state agency, the commission is subject to audits through established procedures.

b.To protect the investment of the commission and of the people of North Dakota, all financial documents, books, receipts, orders, expenditures, electronic data and accounting procedures, and practices of the grantee are subject to examination by or for the commission at any time for three years following the completion of the project.

c.If a grant is in default because of inadequate reporting, inappropriate use of grant funds, or nonuse of funds, any moneys that have not yet been released must be withheld. If such grave insufficiencies exist that the project appears to the commission in jeopardy, the contract may be canceled, and all funds previously released may be recovered through collection procedures.

d.Funds retrieved from vacated and incomplete projects must be returned for redistribution as grants. If the grant originated from special funding, the return and redistribution will be within that funding source. 7.a.Eligible uses of funds are detailed in each of the category descriptions and as part of the application form.

b.In general, agricultural products utilization commission grant funds are for enhancements, improvements, and new ventures and may not be used to defray the normal operating costs of the individual or business, including salaries of individuals in the business.

c.Projects that bring producers, processors, distributors, buyers, and other individuals important in a supply chain together in a forum that fosters contacts and information exchange supportive of marketing ventures. 8.a.Generally, proposals, grants awards, reports, and proceedings are open records and may be disclosed as allowed under North Dakota law.

b.An applicant may request confidentiality of all portions of a proposal to protect the applicant's intellectual property rights. Such proposals or sections of proposals must be clearly marked as "Proprietary". The commission may limit the dissemination of information regarding confidential proposals, including considering the proposal during an executive session, however, the commission is not, in any event, liable for inadvertent disclosure.

c.By accepting an agricultural products utilization commission grant, awardees agree to serve as a contract for individuals interested in pursuing a similar project.

d.Under the term of all grant contracts, the grantee may be required to submit to the commission periodic interim reports outlining progress and both timeline and budget compliance. In most cases, the entire grant amount is not released at the time of the commission's decision. In such instances, the release of funds is tied to the grant contract and any insufficiencies with the contract may result in withholding of further funding. Grantees will be required to submit a final written report describing work performed and the results obtained, prior to final release of grant funds. The report must be supplemented by a financial report of all expenses actually incurred and income generated by the project. 9.a.Subject to the policies, if any, of participating public programs and entities, rights to use products, processes, or services developed under this grant program remain with the grantee.

b.Subject to the same policies, the ownership and all rights to project outcomes may revert to the commission if the grantee or assignee fails to market the product, process, or service in accordance with individually negotiated funding contracts. In such cases, the commission may provide notice and the opportunity to others to assume control of research projects. In these cases, priority is given to any license under such property or others who benefit North Dakota commercially, with first priority being given to small firms in nonurban areas of the state.

10.The commission may receive royalties on the sale or lease of any product, process, or service developed under a commission grant. Royalty agreements must be negotiated at the time of the grant award and structured so the commission may recover at least a portion of the investment of public funds. Repaid funds must be used to make new investments in other agricultural products utilization commission projects.

History: Effective April 1, 2012; amended effective April 1, 2026.

General Authority: NDCC 28-32-02

Law Implemented: NDCC 4.1-01.1

Chapter 95-02

N.D. Admin. Code 95-02

ARTICLE 95-02

RESEARCH AND MARKETING GRANT PROGRAM [Repealed effective April 1, 2012]

Chapter 95-03

N.D. Admin. Code 95-03

ARTICLE 95-03

COOPERATIVE MARKETING GRANT PROGRAM [Repealed effective April 12, 2012]

Chapter 95-04

N.D. Admin. Code 95-04

ARTICLE 95-04

FARM DIVERSIFICATION GRANT PROGRAM [Repealed effective April 1, 2012]

Chapter 95-05

N.D. Admin. Code 95-05

ARTICLE 95-05

AGRICULTURAL PROTOTYPE DEVELOPMENT PROGRAM [Repealed effective April 1, 2012]