The state-owned Bank of North Dakota has approved a plan to provide $300 million in loans to farmers hit by low commodity prices or crop production.

Farmers who are residents of North Dakota can apply for the loans, if they can prove they have had a cash-flow shortage this year or last year. Additionally, farmers must also have an operating line planned for next year.

Applications will be made through local banks and credit unions. The loans will be funded by the Bank of North Dakota and serviced by the originating financial institution.

The loans can be used to rebuild working capital or restructure debt to provide cash-flow relief.

Crop prices have fallen sharply this year and a continued decline is projected for 2016, Gov. Jack Dalrymple said in a Thursday news release. The average price for spring wheat fell 34% from 2012 to 2014. Soybean prices fell 49% during the same period. North Dakota is the largest U.S. grower of spring wheat, barley, sunflowers, beans, canola and honey.

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