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You are asking . . .

Q. What is the confiscatory price defense and what happens when it is raised?

A. The confiscatory price defense is based on NDCC § 28-29-04, § 28-29-05 and § 28-29-06. These statutes give North Dakota courts broad discretion to delay foreclosure or other judicial remedies when the prices of farm products are below the cost of production. It is not a “defense” in the usual sense because it does not bar enforcement of a right, rather it merely delays the outcome. When this defense is raised, a hearing will be held to determine the applicability of the statutes. If current prices are found to be confiscatory, enforcement may be delayed until the court deems it “advisable” to continue. If current prices are not found to be confiscatory, enforcement of a right may continue as usual.