North Dakota statute assigns the State Board of Agricultural Research and Education (SBARE) the responsibility of administering the Agricultural Research Fund (ARF) (Chapter 15-12.1-18 of the North Dakota Century Code). The ARF is a special fund in the state treasury derived from agricultural equipment sales. The monies in the fund must be expended for agricultural research. Annually, SBARE apportions the Agricultural Research Fund: 70% to research activities affecting North Dakota agricultural commodities (those that account for at least two percent of the gross sales of all agricultural commodities grown or produced in the state, but the percentage allocated to each commodity cannot exceed the percentage that the gross sales of the commodity contribute to the total of gross sales of all agricultural commodities grown or produced the previous year); 18% to research activities affecting animal agriculture; and 12% to research activities affecting new and emerging crops. SBARE solicits research proposals and appoints committees to review the proposals and award grants competitively.

For the ARF, the SBARE shall solicit proposals that support agricultural research projects that:

• have a positive economic impact for producers of crops and livestock in North Dakota;
• improve the quantity and/or quality of agricultural commodities;
• lead to efficiencies in, or sustainability of agricultural productivity;
• are submitted by individuals, groups, or institutions from either the public or the private sector;
• are selected through a competitive process that includes review of written proposals;
• include funding from other sources, public or private; and
• include a framework for timely progress toward stated objectives.

_{Approved June 1, 1998
Some text and style taken from NDAPUC Documents.Used with Permission.}

In all ARF Grant Review Committees, the majority of membership will consist of producers. All members of the ARF Grant Review Committees will be approved by SBARE annually by July 1. Each committee will include the director of the ND Agricultural Experiment Station or the director's designee, and an individual who has a background in agricultural research and experience in the contemplated area including major crops. ^{(SBARE Minutes February 9, 1998)} Appointments are for two-year terms. Two-year terms may be renewed at the conclusion of a term.

For the major crops category, SBARE will review and approve one ARF Grant Review Committee for each commodity. SBARE will solicit ARF Grant Review Committee member names of producers from appropriate commodity groups and approve producer membership to each commodity committee.

For the animal agriculture category, the ARF Grant Review Committee membership will consist of a minimum of one producer designated by the ND Beef Commission, one producer designated by the ND Stockmen's Association, one producer designated by the ND Milk Producers Association, one producer designated by the ND Pork Producers, one producer designated by the ND Lamb and Wool Producers Association, one producer designated by the ND Bison Producers Association, with the director and research expert as before.  ^{(SBARE Minutes December 15, 1997; amended February 9, 1998)}

For the new and emerging crops category, SBARE will appoint to the ARF Grant Review Committee a minimum of four individuals who are growers or producers of new or emerging crops or who have a familiarity with new or emerging crops, the director of the NDAES, and an individual with a background in agricultural research and processing ^{(SBARE Minutes December 15, 1997; amended February 9, 1998).}  New and emerging crops are defined as any crop not included on the list of crops in the 70% funding category ^{(SBARE Minutes December 15, 1997; amended February 9, 1998).}

Members approved by SBARE to serve on the ARD Grant Review Committees may be those already selected to serve on commodity research committees/boards; but SBARE must approve each individual on the ARF Grant Review Committee annually by July 1.

SBARE will track the balance in the ARF that will vary from year to year. The amount in the fund as of July 1 of each year will be available for distribution. While commodity committees will review, select, and award grants, SBARE will be responsible for:

• Appointing Grant Committees - July 1
• Apportioning the ARF into commodity (70%), animal (18%), and new/emerging crops (12%); and parsing the commodity funds by relative contribution to gross sales based on the ND Ag Statistics Service Annual Publication ^{(SBARE Minutes February 9, 1998)} - August 1
• Issuing a Call for Proposals - beginning August 1. Normally the call will be coordinated with the corresponding commodity group.
• Annual progress reports for multi-year projects are due at the end of the first year of the project.   For annual renewal of multi-year projects, investigators need to submit only an annual progress report, descriptions of changes in the scope of work, and an updated budget. Annual progress reports are required prior to the consideration of renewed funding for multi-year projects.
• Receiving/logging/filing project completion reports are due 90 days after the end of the funding period.
• Ensuring commodity grant committees meet and award grants expeditiously. Every effort will be made to accommodate established procedures within each commodity granting process but, the awards must be made and an agreement executed before June 30 of each year. Researchers may be seeking matching funds from a commodity group directly, so commodity groups may need to consider ARF requests concurrently with other proposals not eligible for ARF. SBARE encourages awarding of grants by March 1 for crops research. Early awards can allow recipients to plan and engage in field research in the upcoming crop season rather than delaying the process one year.
• Ensuring that successful proposals are in compliance with federal and state regulations that govern the conduct of research. Maintain records on all ARF grant awards and lists of research requests for accounting purposes.
• Preparing summary reports as required by OMB, SBHE, or other cognizant authority.

Each ARF Grant Review Committee should establish its own review procedures. The only requisite component for initial ARF funding is the written proposal. Annual progress reports are requisite for continued funding of multi-year projects. Grant committees may wish amplifying information by having requesters available during deliberations, requesting oral presentations from requesters, tours of research facilities, etc. Neither SBARE nor ARF funds will be available to support the operating expenses of ARF Grant Review Committees. ^{(SBARE Minutes February 9, 1998)}