Browse Ambrook’s collection of funding programs by Minnesota Department of Agriculture

Before you apply, read the full Request for Proposals (PDF) for complete details of the program. You can also review the list of past projects and read prior issues of the Greenbook, which contains summaries, findings, and locations of previous grants. Using these resources will help you design a competitive project.

Then, apply through MDA's online application system.
- If you are a new user, you will need to create an account.
- Once you are logged in, select AGRI Sustainable Agriculture Demonstration Grant FY23.

Kelly Anderson

Eric Nooker

MDA Grants Line

The AGRI Sustainable Agriculture Demonstration Grant supports innovative on-farm research and demonstrations. It funds projects that explore sustainable agriculture practices and systems that could make farming more profitable, resource efficient, or personally satisfying. Findings are published in the Minnesota Department of Agriculture’s annual _[Greenbook](https://www.mda.state.mn.us/greenbook)_.



The AGRI Sustainable Agriculture Demonstration Grant supports innovative on-farm research and demonstrations. It funds projects that explore sustainable agriculture practices and systems that could make farming more profitable, resource efficient, or personally satisfying. Findings are published in the Minnesota Department of Agriculture’s annual Greenbook.

Applicant eligibility
Applications from Minnesota farmers receive priority, but the program also funds Minnesota nonprofits and educational organizations that meaningfully involve Minnesota farmers in projects.
Your project must last two to three years and you must be willing to share what you learn with others.
Project eligibility
MDA will fund projects that explore the profitability, energy efficiency, and environmental benefits of sustainable agriculture practices or systems. Projects can include, but are not limited to:
- Practices that increase environmental sustainability and improve soil health
- Conservation tillage and weed management methods
- Novel cover crops and crop rotations
- Input reduction strategies, including nutrient and pesticide management
- On-farm energy production, such as wind, methane, or biomass, or improvements in energy efficiency
- Developing/refining/improving marketing opportunities, including season extension and post-harvest storage and handling
- Novel enterprise diversification, including organic production, using traditional and non-traditional crops and livestock
- Other creative ideas that focus on environmental benefits, energy savings or production, profitability, and/or farmers’ quality of life

A lump sum of money for a specific purpose that does not need to be paid back.

Grant

- Request for Proposals - Sustainable Agriculture Demonstration Grant 2023
- How to fill out your online application
- Greenbook

Air Quality

Carbon Capture

Certification

High Tunnel

Landscape

Soil Health

Wildlife & Pollinator Habitat

Certified Grassfed

Cover Crops

Trials

Stewardship

Certified Organic

Reduced Tillage

Conservation

Marketing

Regenerative

Complete the application below according to the instructions.

Submit by email (preferred): mda.bftc@state.mn.us

or by mail to:
Rural Finance Authority 
Minnesota Department of Agriculture 
625 Robert St. N. 
St. Paul, MN 55155

Beginning Farmer Tax Credit Program

The Minnesota Beginning Farmer Tax Credit provides tax credits for the rent or sale of farm land or a variety of farm assets to beginning farmers. This includes incentives for the sale of farm land.



A Beginning Farmer is defined as: 
- A Minnesota resident who is seeking entry, or has entered into farming within the last 10 years 
- A farmer who will provide the majority of the labor and management of the farm that is located in Minnesota 
- Has adequate experience and knowledge of the type of farming for which they seek assistance from the Rural Finance Authority 
- Can provide positive projected earnings statements 
- Is not directly related to the owner of the agricultural asset (This includes parents, grandparents, brothers, sisters, spouses, children, and grandchildren. Legal adoption shall be considered in full effect) 
- Has a net worth that does not exceed the limit provided under section 41B.03, subdivision 3, paragraph (a), clause (2). Currently this limit is $903,000. 
The beginning farmer may need to participate in an approved financial management program. Costs of financial management programs up to a maximum of $1,500 per year (for up to 3 years) may also be eligible for a tax credit. The financial management credit need not be tied to any agricultural asset sale or rental.

A reduction or waiving of fees for meeting a certain criteria.

Discount

- Beginning Farmer Tax Credit Fact Sheet
- Asset Owner Application (2023)
- Beginning Farmer Application (2023)
- Crop Share Calculator

Historically Underserved

The credit to the agricultural asset owner is as follows: 
- 5% of the lesser of the sale price or fair market value of the agricultural asset up to a maximum of $32,000; 
- 10% of the gross rental income in each of the 1st, 2nd, and 3rd years of the rental agreement, up to a maximum of $7,000 per year, or 
- 15% of the cash equivalent of the gross rental income in each of the 1st, 2nd, and 3rd years of a share rent agreement, up to a maximum of $10,000 per year. The agricultural asset owner can claim credits in one of the above categories in a given tax year up to the maximums stated. 

1. Contact the grant administrator to find out if your project is eligible.
2. Complete and submit the Dairy Business Planning Grant Application (PDF) or apply online.
3. The application asks for the following information:
    a. Farm summary
    b. Goal of business plan
    c. Professional services you will be using to develop business plan.
    d. Budget of project
4. An MDA review committee will look over your project and decide if it should be funded.

Courtney VanderMey

Grants cover 50 percent of the cost to hire a qualified, independent third party to create a business plan for a dairy operation and/or test for stray voltage. Dairy producers have used these grants to evaluate the feasibility of expanding a dairy, plan environmental upgrades, and create strategies to transfer the operation to a family member or other new owner.



Existing and beginning Minnesota dairy farmers are eligible for this grant.

The cost of services that are not directly related to the improvement and continuance of the dairy farm are ineligible for this grant, such as:
- Nutrition consulting
- Retirement and investment planning
- Tax planning and tax return preparation
- Intergenerational transfer planning that discontinues the dairy enterprise
- Loan origination or documentation fees
- Chattel real estate appraisal
- Crop consulting
- Nutrient management planning – except as required in the business plan
- Veterinary/herd health consulting
- The cost to complete a dairy business planning grant application

Dairy

Butter

Cheese

Milk

Yogurt

Cow Milk

Goat Milk

- Dairy Business Planning Grant Application (PDF)
- Livestock Expansion Loan Program
- Livestock Equipment Loan Program

Legal & Finance

The grant pays 50 percent of the cost to develop a business plan, up to $5,000. Applicant must pay the other 50 percent.

Apply through MDA's online application system.
- If you are a new user, you will need to create an account.
- Once you are logged in, select New Markets: Marketing Investment Cost-Share Program (July 1, 2022-June 30, 2023).
If this is your first time applying for reimbursement, you must also submit a W-9 (Request for Taxpayer ID and Certification) by either:
- Uploading a completed and signed IRS form W-9 (PDF), or
- Within the application system, completing the online W-9 PowerForm hosted by DocuSign.

Brian Erickson

Jennifer Alexander

The AGRI New Markets Cost-Share Program can help your Minnesota farm or branded food, beverage, or pet food company take advantage of market opportunities through E-commerce, digital and e-mail marketing, Business-to-Business (B2B) tradeshows (virtual and in-person), and store demos.

This year's program combines two previous programs – the _E-Commerce and Digital Marketing Cost-Share_ and the _Wholesale Cost-Share_.

**MDA processes applications as they come in (first-come, first-served) until the application deadline or the funds are gone, whichever is first.** 



The AGRI New Markets Cost-Share Program can help your Minnesota farm or branded food, beverage, or pet food company take advantage of market opportunities through E-commerce, digital and e-mail marketing, Business-to-Business (B2B) tradeshows (virtual and in-person), and store demos.
This year's program combines two previous programs – the E-Commerce and Digital Marketing Cost-Share and the Wholesale Cost-Share.
MDA processes applications as they come in (first-come, first-served) until the application deadline or the funds are gone, whichever is first. 

To apply for either of these programs, your business must be:
- A Minnesota farm, or a branded food, beverage, or pet food making company registered with the Minnesota Secretary of State, 
- A small-to-medium enterprise, which is an entity with fewer than 500 employees, AND
- A current holder of an MDA Food or Feed License or Minnesota Grown License number
You must also agree to:
- Promptly return post-event and follow-up surveys that ask for information including the number of leads generated and sales projections.
- Retain receipts and records for three years and make them available for audit or inspection by the MDA or state auditor on request.

A payment that requires some percentage of matching contributions by the recipient.

Cost Share

- How to Fill Out Your Online Application

Distribution

Diversification

Events

Trade Show

Trade Relief

These cost-share programs are reimbursed at a rate of 50% of eligible investment made.

To apply for an RFA loan contact one of our loan officers at 651-201-6004 or RFA.loans@state.mn.us. You can also start your loan application by reaching out to your local lender. Search for lenders who work with RFA by county with our List of Participating Lenders.

Rural Finance Authority Office
Loan Programs

RFA established the Beginning Farmer Loan Program to help people who want to farm in Minnesota. The program offers&#x2004;affordable financing, a reasonable down payment, and built-in safeguards, such as farm business management training and financial planning to help minimize the risk all farmers face. This is a partnership approach backed by the State's financial participation used to finance a purchase or possibly refinance an existing farm debt. Funding an improvement may be possible if done in conjunction with the requested financing package.


The MDA's Rural Finance Authority (RFA) is the state's main agricultural lending arm with a mission to develop the state's agricultural resources. RFA offers low-interest loan programs for a variety of farm activities, including:

- Land purchases

- Farm improvements

- Equipment

- Meat and poultry processing

- Operating capital

- Debt restructure

- Disaster relief

RFA partners with local lenders to purchase a portion of a farmer's loan at a lower interest rate. We utilize the local lender's supporting documentation, so farmers have limited application paperwork with us and only make payments to their bank. As of May 2023, RFA has invested in more than 3,800 participation loans, totaling **over $360 million to Minnesota farmers** since 1986.



RFA established the Beginning Farmer Loan Program to help people who want to farm in Minnesota. The program offers affordable financing, a reasonable down payment, and built-in safeguards, such as farm business management training and financial planning to help minimize the risk all farmers face. This is a partnership approach backed by the State's financial participation used to finance a purchase or possibly refinance an existing farm debt. Funding an improvement may be possible if done in conjunction with the requested financing package.

The MDA's Rural Finance Authority (RFA) is the state's main agricultural lending arm with a mission to develop the state's agricultural resources. RFA offers low-interest loan programs for a variety of farm activities, including:
- Land purchases
- Farm improvements
- Equipment
- Meat and poultry processing
- Operating capital
- Debt restructure
- Disaster relief
RFA partners with local lenders to purchase a portion of a farmer's loan at a lower interest rate. We utilize the local lender's supporting documentation, so farmers have limited application paperwork with us and only make payments to their bank. As of May 2023, RFA has invested in more than 3,800 participation loans, totaling over $360 million to Minnesota farmers since 1986.

A beginning farmer is a person who intends, over time, to become a full-time farmer. This may exclude some established farmers who are expanding their operations. Land speculators and investors looking for tax advantages are not eligible.
The RFA recognizes that many farmers will need off-farm incomes to supplement farm earnings, especially in the early years of farm operations. To be eligible for this loan program, the borrower and their spouse may have off-farm income, but they must prove with cash flow statements that more than 50% of their gross income will come from the farm operation. These eligibility tests allow beginning farmers to be eligible for RFA loan participation and work toward becoming full-time farmers.
The farmer candidate must also meet the following eligibility tests which were established to protect them as well as the lender and the state. A farmer must:
- Be an individual who is a resident of Minnesota, a domestic family farm corporation, or a family farm partnership.
- Have sufficient education, training, or experience to succeed in the type of farming that they intend to practice.
- Have a total net worth of less than $1,013,000 in 2024 (indexed annually for inflation), including the assets and liabilities of their spouse and dependents.
- Have the financial need for a loan and the ability to repay the loan.
- Agree to be the principal operator of the farm to be purchased and intend to make farming their principal future occupation.
- Agree to consult with a local farm management instructor and enroll in an approved farm business management program for at least the first three years of the loan, if an approved program is available within 45 miles from the borrower's residence.
- Agree to consult with a local Board of Water and Soil Resources office or the county Natural Resources Conservation Service.
- Agree to obtain credit life insurance for the amount of the debt incurred to purchase the property.


A payment that must be returned to the provider following specified terms of repayment and interest rate.

Loan

Under the program currently being offered by the RFA, each loan will have a loan-to-value of no more than 90%. In most cases, the loan-to-value will be determined by the lender. Loan amortization will be scheduled on a flexible term of 15, 20, 25, or 30 years negotiated between the lender, applicant, and the RFA. However, loans will balloon and require full payment of the RFA loan in 10 years from the effective date of the loan. At the time of the balloon, the RFA participation will end, and the borrower will repay the loan. Loans carry a prepayment penalty equal to 10% of the outstanding balance in the first 5 years. The penalty is decreased by 2% annually. There is no maximum on the size of loan that a participating lender may make under the program. However, the RFA participation in a qualifying loan is limited to 45% of the lender's loan up to a maximum of $400,000.
The RFA will take a full $3,500 debt per acre on the RFA portion of the loan. An example of this would be: 80 acres X $7,777 per acre X 45% = $279,972 or $3,500 per acre for the RFA’s 45%.
The RFA will charge a reduced interest rate (call for a quote) on its portion of each loan. Each buyer should confirm the RFA's current rate when making application with the lender. The RFA interest rate is basically fixed for 10 years. However, the RFA rate may change at any time for failure to remain in compliance with the rules or statutes that govern the program.
The originating lender will retain the balance of each loan. The borrower must satisfy the local lender's guidelines. The local lender will control the day to day operation of the loan. Participating lenders are allowed to charge either fixed or adjustable interest rates consistent with their normal farm real estate lending practices and their agreement with the RFA. Therefore the actual interest rate paid by the farmer will be an average of the RFA and lender rates. For example, if the loan to purchase a farm was $300,000 after down payment, the RFA could purchase a $135,000 participation interest (45%) in the loan.
A borrower may use the program more than one time to an aggregate amount of $400,000. For example, a borrower could have two loans - one for $225,000 and one for $175,000 or four loans of $100,000 loan from the RFA.
A borrower would have to make a new application for each loan. Approval would be determined by the current guidelines in effect at the time of the application.
 
Find current interest rates and more information about RFA loans on our main page, here.

Read the full Request for Proposals and apply online following these instructions.

If you need the application in an alternative format, contact the program administrator.

Emily Mehr

The AGRI Urban Agriculture Grant Program encourages urban youth agricultural education and urban agriculture community development within city limits of urban or peri-urban areas.


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



The AGRI Urban Agriculture Grant Program encourages urban youth agricultural education and urban agriculture community development within city limits of urban or peri-urban areas.

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

The following groups are eligible to apply:
- For-profit businesses
- Non-profit organizations
- Schools
- Local government entities
- Native American tribal communities

Project Eligibility:

Eligible grant projects include the purchase and installation of equipment; capital expenditures (costs incurred to make physical improvements to or construct a facility); and/or dedicated staff contractor time. Projects must be located in or serve communities that meet one of the following criteria:
- Cities with a population over 5,000 or located within the boundaries of federally recognized tribal land and serving tribal community members, regardless of population size. You'll find a list of eligible cities and tribal areas in the Request for Proposals.

- Request for Proposals - Urban Agriculture Grant FY25
- How to Fill Out Your Online Application
- FAQs
- Resources for Grantees
- Past Projects

Applications are due no later than 4:00 pm Central Time on Monday, March 13, 2023.
Read the full Request for Proposals (PDF) for eligibility and requirements and apply online at this portal. If you need the application in an alternative format, please contact the program administrators above.

Ian Kushner

This grant funds projects that will increase the competitiveness of Minnesota grown specialty crops in domestic and foreign markets. The United States Department of Agriculture (USDA) defines specialty crops as fruits and vegetables, tree nuts, dried fruits, horticulture and nursery crops, floriculture, and processed products that have 50% or more specialty crop content by weight, exclusive of added water. A comprehensive list of eligible [specialty crops](https://www.ams.usda.gov/services/grants/scbgp/specialty-crop) is&#x2004;available on the USDA's web site.

### Funding Priorities

Minnesota is seeking projects for our 2023 SCBG that pertain to the following issues affecting the specialty crop industry:

- Improving distribution systems and marketing of specialty crops, such as reducing costs, increasing promotion and awareness, or creating new methods to achieve and sustain profitable businesses.

- Increasing child and adult nutrition knowledge and consumption of specialty crops.

- Researching and developing of techniques that focus on pest or disease control.

- Developing new or improved specialty crop seed or plant varieties.

- Researching and developing techniques to increase sustainable production of specialty crops, including growing season extension, adaption to drought and floods, strengthening seed and crop systems, and increasing soil health.

- Improve capacity of all entities in the specialty crop distribution chain to comply with the requirements of the Food Safety Modernization Act, for example, developing “Good Agricultural Practices,” “Good Handling Practices,” “Good Manufacturing Practices,” and other support for farmers, packers, and processors to enhance food safety.



This grant funds projects that will increase the competitiveness of Minnesota grown specialty crops in domestic and foreign markets. The United States Department of Agriculture (USDA) defines specialty crops as fruits and vegetables, tree nuts, dried fruits, horticulture and nursery crops, floriculture, and processed products that have 50% or more specialty crop content by weight, exclusive of added water. A comprehensive list of eligible specialty crops is available on the USDA's web site.
Funding Priorities
Minnesota is seeking projects for our 2023 SCBG that pertain to the following issues affecting the specialty crop industry:
- Improving distribution systems and marketing of specialty crops, such as reducing costs, increasing promotion and awareness, or creating new methods to achieve and sustain profitable businesses.
- Increasing child and adult nutrition knowledge and consumption of specialty crops.
- Researching and developing of techniques that focus on pest or disease control.
- Developing new or improved specialty crop seed or plant varieties.
- Researching and developing techniques to increase sustainable production of specialty crops, including growing season extension, adaption to drought and floods, strengthening seed and crop systems, and increasing soil health.
- Improve capacity of all entities in the specialty crop distribution chain to comply with the requirements of the Food Safety Modernization Act, for example, developing “Good Agricultural Practices,” “Good Handling Practices,” “Good Manufacturing Practices,” and other support for farmers, packers, and processors to enhance food safety.

Applicant Eligibility
The Minnesota Department of Agriculture (MDA) encourages the following groups to apply for the Specialty Crop Block Grant Program (SCBGP):
- nonprofit organizations
- producer organizations
- government agencies
- universities
- other agricultural groups
For-profit entities, farms, and other businesses who want to develop sector-wide research and development projects are also eligible.
Project Eligibility
Projects must enhance the competitiveness of specialty crops that are grown in Minnesota by:
- Leveraging efforts to market and promote specialty crops;
- Assisting producers with research and development relevant to specialty crops;
- Expanding availability and access to specialty crops; or
- Addressing local and regional challenges confronting specialty crop producers.
A specialty crop is defined by the USDA. This program cannot fund starting a business or expanding a farm. Each project must demonstrate external support from specialty crop stakeholders and produce measurable outcomes for the specialty crop industry and/or public beneficiaries. Projects that address problems or opportunities that cross state boundaries are eligible.
Visit the USDA's SCBGP Awarded Grants page to see previously funded projects in Minnesota and across the country.

Specialty Crops

Aloe Leaves

Blackberries

Fruits

Honey

Horticulture

Mamey Sapote

Maple Syrup

Mustard Greens

Parsnips

Passion Fruit

Pineapples

Plantains

Pummelos

Raspberries

Rutabagas

Tree Nuts

Vegetables

Abiu

Achachairu

Antidesma

Apples

Apricots

Bananas

Barbados Cherry

Blueberries

Breadfruit

Cacao

Caimito

Calabaza Melon

Canary Melon

Canary Seed

Caneberries

Canistel

Cantaloupes

Casaba Melon

Cherries

Chinese Bitter Melon

Chokeberry

Citron

Citron Melon

Coconuts

Cranberries

Crenshaw Melon

Custard Apple

Dates

Dragon Fruit

Durian

Elderberries

Figs

Genip

Goji

Gooseberries

Grapefruit

Grapes

Guava

Guavaberry

Honeyberries

Honeydew

Huckleberries

Israel Melons

Jack Fruit

Jujube

Juneberries

Kiwiberry

Kiwifruit

Korean Golden Melon

Kumquats

Langsat

Lemons

Limequats

Limes

Longan

Loquats

Lychee

Mangos

Mangosteen

Mayhaw Berries

Mesple

Mulberries

Nectarines

Oranges

Papaya

Passion Fruits

Pawpaw

Peaches

Pears

Pineapple

Plantain

Plumcots

Plums

Pomegranates

Prunes

Pummelo

Raisins

Rambutan

Sapodilla

Sapote

Schizandra Berries

Soursop

Sprite Melon

Star Fruit

Star Gooseberry

Strawberries

Sugar Apple

Tangelos

Tangerines

Tangors

Wampee

Watermelon

Wax Jamboo Fruit

Winter Melon

Apiary

Anise

Basil

- Request for Proposals (PDF)
- Past Projects

Applicants may request a grant award of at least $20,000 up to a maximum of $125,000 per project that spans up to 2.5 years.

List of Minnesota Department of Agriculture Funding Opportunities