Farmland Down Payment Assistance Program

This grant program offers up to $15,000 to qualified farmers purchasing their first farm. Funds may be used for the purchase of farmland or other agricultural real estate within the state of Minnesota. To qualify, you must close on the purchase after your application is approved and within six months, or by June 30, 2024, whichever is sooner. The RFA will award these grants using a random lottery process, with preference given to emerging farmers. If you are not an emerging farmer, you may still apply.

• Application Period: July 1, 2023 – July 31, 2023
• Agency Contact: Jenny Heck, 651-201-6316, jenny.heck@state.mn.us
• Web page: https://www.mda.state.mn.us/business-dev-loans-grants/down-payment-assistance-grant

Beginning Farmer Tax Credit

The Minnesota Beginning Farmer Tax Credit provides annual state tax credits to landlords and sellers (asset owners) who rent or sell farmland, equipment, livestock, and other agricultural assets to beginning farmers. Applicants are highly encouraged to apply early in the year and may apply before sales close if needed. To qualify, the beginning farmer must be enrolled in or have completed an approved farm business management program within 10 years of their first year of farming. LSP’s Farm Beginnings class is an approved farm business management program. Beginning farmers are also eligible for a nonrefundable Minnesota tax credit equal to their farm business management program tuition, up to$1,500. This tax credit is available for up to three years.

• Application Period: January 1 to July 17 of each year for cash and share crop rentals; January 1 to November 1 of each year for land and other sales; January 1 to November 1 of each year for Beginning Farmer Farm Business Management Tuition  Reimbursement.
• Agency Contact: Jenny Heck, 651-201-6316, jenny.heck@state.mn.us
• Web page: https://www.mda.state.mn.us/bftc

Emerging Farmer Technical Assistance Grant

Organizations can apply to the Emerging Farmer Technical Assistance Grant to provide technical and culturally appropriate services to Minnesota emerging farmers. The most recent application period closed on June 26, 2023, but more funds were appropriated during the 2023 Minnesota legislative session.

• Application Period: To be determined.
• Agency Contact: Jenny Heck, 651-201-6316, jenny.heck@state.mn.us
• Web page: https://www.mda.state.mn.us/business-dev-loans-grants/emerging-farmer-technical-assistance-grant

AGRI Meat, Poultry, Egg & Dairy Processing Grant

This program offers designated grants to facilitate the start-up, modernization, or expansion of meat, poultry, egg, and milk processing businesses. The intent of the program is to increase sales of Minnesota-raised livestock products by investing in equipment and physical improvements that support processing, capacity, market diversification, and market access. Individuals, farmers, businesses, agricultural cooperatives, nonprofits, educational institutions, local governments, and Tribal Governments are eligible to apply. The MDA will prioritize projects that create additional meat/poultry slaughter capacity, in addition to projects that increase access to Kosher/Halal markets.

• Application Period: To be determined.
• Agency Contact: Courtney VanderMey, 651-201-6335, courtney.vandermay@state.mn.us
• Web page: https://www.mda.state.mn.us/grants/agri-mpem-processing

Meat Processing Training & Retention Incentive Grants

This program, established during the 2023 Minnesota legislative session, will offer grants to “partner organizations” to assist small- to medium-sized meat and poultry processors (150 FTE or fewer) with hiring and training new employees. New employees at eligible meat and poultry processing plants may receive up to $10,000 in the form of tuition reimbursement for programs at Minnesota State Colleges and Universities, sign-on bonuses, relocation assistance, retention incentives, child care stipends, and other related expenses. Up to 20% of a grant to a partner organization may be used for direct services to employees, including but not limited to translation services. Priority will be given to applicants who are working in partnership with Minnesota State Colleges and Universities.

• Application Period: To be determined.
• Agency Contact: Courtney VanderMey, 651-201-6335, courtney.vandermay@state.mn.us
• Web page: To be developed.

In addition, as part of the Safe Workplaces for Meat & Poultry Processing Workers Act, small- and mid-sized meat and poultry processors may be eligible for funding to become compliant with new worker protections through the Minnesota Department of Labor and Industry. Stay tuned for more information.

Farm to School Grant Program

This program reimburses schools and early child care education centers for purchases for Minnesota-grown and raised food used in meal programs. There are two grant options for applicants: 1. “First Bite Mini-Grants” for those with little or no experience with local procurement, and 2. “Full Tray Grants” for applicants with some experience with local procurement. Applicants may also apply for equipment grants to make it more possible to serve locally sourced products. There is $1 million per year available for this grant program, Schools and early childcare education centers apply for these grants, but farmers and community members are encouraged to reach out to their school district or child care education centers to encourage them to apply. 

• Application Period: Applications for fiscal year 2024 are expected to open in August 2023.
• Agency Contact: Kate Seybold, 651-201-6165 , kate.seybold@state.mn.us
• Web page: https://www.mda.state.mn.us/farm-school-grants

SNAP & EBT Infrastructure at Farmers’ Markets

Through a new appropriation from the 2023 Minnesota legislative session, $100,000 per year will become available for grants to farmers’ markets for infrastructure to support EBT, SNAP, Senior Farmers’ Market Nutrition Program (SFMNP), and related programs.

• Application Period: To be determined.
• Agency Contact: Ashley Bress, 651-201-6648, ashley.bress@state.mn.us
• Web page: To be developed.

Good Food Access Grant Program 

The Good Food Access Program (GFAP) Equipment and Physical Improvement Grant increases the availability of and access to affordable, nutritious, and culturally appropriate foods (including fruits and vegetables) for underserved communities in low- and moderate-income areas. Grants help grocery stores and small food retailers make physical improvements and purchase equipment to stimulate sales of such foods. For-profit and nonprofit grocery stores are encouraged to apply as well as small food retailers such as corner stores, farmers’ markets, mobile food markets, or retail food outlets operated by an emergency food program. 

• Application Period: Applications are expected to open fall of 2023.
• Agency Contact: Ashley Bress, 651-201-6648, ashley.bress@state.mn.us
• Web page: https://www.mda.state.mn.us/grants/grants/gfapequipmentgrant

Urban Agriculture Grant Program

The AGRI Urban Agriculture Grant Program encourages urban youth agricultural education and urban agriculture community development within the city limits of urban or peri-urban areas. “Urban” means cities with populations of 5,000+ or communities located within the boundaries of federally recognized tribal land serving tribal community members, regardless of population size. For-profit businesses, nonprofit organizations, schools, local government entities, and tribal communities are encouraged to apply. 

Grants help organizations and communities obtain the materials and services necessary to successfully promote urban youth agricultural education and urban agriculture community development.

• Application Period: Applications are expected to open fall of 2023.
• Agency Contact: Emily Mehr, 651-201-6465, emily.mehr@state.mn.us
• Web page: https://www.mda.state.mn.us/grants/grants/urbanaggrant

The Good Acre’s Local Emergency Assistance Farmer Fund (LEAFF) Program 

The LEAFF Program purchases fresh and culturally relevant produce from small-scale emerging farmers within 200 miles of the Twin Cities looking to expand into wholesale markets. LEAFF is not a grant, but a guarantee to buy a specific dollar amount of produce from each accepted farm during the farm season, dependent on funding. The Good Acre then redistributes purchased produce by donating to food shelves and other hunger relief organizations striving to offer fresh and culturally relevant produce to their communities. Efforts focus on areas where healthy foods have been inaccessible and neighborhoods with a higher density of Black and Indigenous residents and residents of color. This growing season, The Good Acre was able to approve 78 farms with a guarantee of purchasing $5,000 of produce per farm. 

• Application Period: The next application period is expected to be in Spring 2024.
• Good Acre Contact: Nikki Warner, 612-787-5969, nikki@thegoodacre.org
• Web page: https://thegoodacre.org/leaff/ 

Agricultural Cooperative Grants 

This program, established during the 2023 Minnesota legislative session, will offer grants to help farmers finance new cooperatives that operate an agricultural product processing facility, market an agricultural product, or provide an agricultural service. This program is still in development and received $200,000 per year in the 2023 session to award grants to farmers.

• Application Period: To be determined.
• Agency Contact: Ashley Bress, 651-201-6648, ashley.bress@state.mn.us
• Web page: In development. 

Soil Health Financial Assistance Program

The Soil Health Financial Assistance Grant started as a pilot grant program and won permanent funding during the 2023 Minnesota legislative session. Funding may be used for projects that increase soil carbon, integrate perennial vegetation, reduce nitrous oxide and methane emissions, or enable the purchase of or retrofitting of soil health equipment (i.e. a no-till drill). Owners and lessees of farmland in Minnesota can apply. Local government units, including cities, towns, counties, soil and water conservation districts, Minnesota Tribal governments, and joint powers boards, are also eligible for a grant. A local government unit that receives a grant for equipment or technology must make those purchases available for use by the public.

• Application Period: July 31-September 15, 2023
• Agency Contact: Jesssica Jurcek, 651-802-3059, jessica.jurcek@state.mn.us
• Web page: https://www.mda.state.mn.us/soil-health-grant

Agriculture Water Quality Certification Program 

The Minnesota Agricultural Water Quality Certification Program (MAWQCP) certifies farmers for managing the land within their operation in a way that protects water quality. Area Certification Specialists assist farmers through the certification process. You can get started by contacting your local Soil and Water Conservation District, your Area Certification Specialist, or the Minnesota Department of Agriculture. The MAWQCP has five endorsements available to water quality certified producers: Climate Smart Farm, Soil Health, Integrated Pest Management, Wildlife, and Irrigation Water Management. Certified producers receive (a) regulatory certainty: certified producers are deemed to be in compliance with any new water quality rules or laws during the period of certification; (b) recognition: certified producers may use their status to promote their business as protective of water quality; and (c) priority for technical assistance: producers seeking certification can obtain specially designated technical and financial assistance to implement practices that promote water quality. 

• Application Period: Ongoing basis.
• Agency Contact: Brad Jorddahl Redlin, 6651-201-6489, brad.jordahlredlin@state.mn.us
• Web page: www.mda.state.mn.us/environment-sustainability/minnesota-agricultural-water-quality-certification-program

BWSR Soil Health Cost-Sharing

There are a myriad of opportunities through the Board of Water and Soil Resources (BWSR) to build soil health and climate resiliency, as well as advance water quality. Farmers can access these programs through their local Soil and Water Conservation District (SWCD), although some programs are still in development as they were newly established during the 2023 Minnesota legislative session.

• Application Period: Dependent on program, some are still in development.
• Agency Contact: Tom Gile, 507-696-1974, tom.gile@state.mn.us
• Web page: https://bwsr.state.mn.us/agricultural-lands

Continuous Living Cover Supply Chain Development Grant Program

This program provides grants to organizations in Minnesota to develop enterprises, supply chains, and markets for continuous living cover (CLC) crops and cropping systems in the early stage of commercial development. This includes but is not limited to regenerative poultry silvopasture systems, Kernza intermediate wheatgrass, winter camelina, and elderberry. The goal is to provide grants to CLC crops and cropping systems value chain enterprises for equipment infrastructure, as well as market development. For example, this could include customized equipment to harvest the crop, clean, and store seeds, as well as process crops for food products. The intended outcome is supply chain and market development that can increase CLC crops and cropping systems on agricultural lands in Minnesota.

• Application Period: To be determined.
• Agency Contact: Margaret Wagner, 651-201-6488, margaret.wagner@state.mn.us
• Web page: https://www.mda.state.mn.us/developing-markets-clc-crops

Four million dollars will become available for Dairy Assistance, Investment, Relief Initiative (DAIRI) grants and other forms of financial assistance to Minnesota dairy farms that enroll in coverage under a federal dairy risk protection program and produced no more than 16,000,000 pounds of milk in 2022. The state agriculture commissioner will make DAIRI payments based on the amount of milk produced in 2022, up to 5,000,000 pounds per participating farm, at a rate determined by the commissioner within the limits of available funding. 

• Application Period: To be determined.
• Agency Contact: Courtney VanderMey, 651-201-6335, courtney.vandermay@state.mn.us
• Webpage: To be developed.

The Inflation Reduction Act included funds for debt relief for farmers. Now, some of the applications for those funds are available or about to be made available very soon.

Inflation Reduction Act Section 22006: Extraordinary Measures Assistance

Status of Application: Open now, all requests for assistance must be received by December 31, 2023. Assistance is subject to funding availability.

Summary: Farm Service Agency (FSA) announced a financial assistance option for FSA direct loan borrowers who took extraordinary measures to keep their loan accounts current between February 28, 2020 through October 18, 2022. Examples include FSA direct loan borrowers who were able to make their FSA direct loan payment by taking out additional loans, selling property, or borrowing from a retirement account.

Details: Fact Sheet, USDA Website, Letter to Borrowers [English], Letter to Borrowers [Spanish]

More info: Check out this very informative powerpoint made by the Federation of Southern Cooperatives.

How to Apply: Online app here, or submit a request in person at your local FSA office.

Inflation Reduction Act Section 22006: Distressed Borrowers Assistance 

Status of Application: Open now, while this program may be extended in some form, it is currently limited to installments due August 1, 2022, through September 30, 2023, and should be requested by December 31, 2023.

Summary: If you are a direct borrower of a qualifying loan within 60 days of your due date or have already missed a recent installment payment due since August 1, 2022, you can request a cash flow analysis from FSA. If FSA determines that you qualify for assistance as a financially distressed borrower, FSA will make a

one-time payment covering your installment and any additional interest or other costs necessary to make

the loan current.

Details: USDA Website, Letter to Borrowers [English]

More info: Check out this very informative powerpoint made by the Federation of Southern Cooperatives.

How to Apply: Contact your local farm loan officer or the FSA call center (877-508-8364) and make a request for a review of your cashflow when you are within 60 days of the installment due date (or missed a recent installment/payment)

Inflation Reduction Act Section 22007: Assistance for Producers Who Experienced Discrimination in USDA Farm Loan Programs

Status of Application: Not open yet, but should be available any day now, keep your eye out! The app will likely close December 31, 2023.

Summary: Section 22007 of the Inflation Reduction Act (IRA) provides $2.2 billion in financial assistance for farmers, ranchers, and forest landowners who experienced discrimination in USDA’s farm lending programs prior to January 1, 2021.

Details: USDA Website (where updates will be shared)

More info: Check out this very informative powerpoint made by the Federation of Southern Cooperatives.

How to Apply: Keep your eye out on the website for the application. You can also receive free application assistance from trained, community-based organizations, including the Federation of Southern Cooperatives (info@federation.coop, phone numbers in powerpoint above.)

Note: Avoid scams! There is NO FEE to apply for IRA 22007 financial assistance. NO FEE to receive application assistance from trained, community-based organizations

For more details, two of LSP’s partner organizations are very knowledgeable about these programs and can help answer questions: The Federation of Southern Cooperatives (info@federation.coop) and Rural Coalition (farmers@ruralco.org).