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

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

Historically Underserved

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.

There are two options to apply
1. Email a completed PDF application (available below) to RFA.loans@state.mn.us.
2. Complete the online Minnesota Down Payment Assistance Grant application. No pre-registration or account is required.
Mailable applications may also be requested from the program contacts.

Jenny Heck

Loan Programs

The Minnesota Down Payment Assistance Grant offers up to **$20,000 for qualified farmers purchasing their first farm**. The grant program is administered by the MDA's Rural Finance Authority (RFA) as part of its mission to develop the state’s agricultural resources.



The Minnesota Down Payment Assistance Grant offers up to $20,000 for qualified farmers purchasing their first farm. The grant program is administered by the MDA's Rural Finance Authority (RFA) as part of its mission to develop the state’s agricultural resources.

Eligible Applicants
- Individual (LLCs, partnerships, etc. must apply as individual)
- Minnesota resident
- Earn less than $250,000 annually in gross agricultural sales
- Applicants and their spouses have never owned a farm
- Will provide the majority of labor and management on the farm
- Will farm the land for at least 5 years
- In good standing with the State of Minnesota
- Have not been convicted of a crime related to a state grant agreement
Eligible Purchases
- Farmland or other agricultural real estate (tillable acres, hog barn, commercial greenhouse, etc.)
- Within the borders of Minnesota
- Must close on purchase after application approval and within designated timeframe. This grant cannot be applied retroactively toward purchases that have already closed.

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

Grant

- Information Session
- Grant Instructions - FY26
- Lottery Process
- Grant Instructions - FY26 (HMONG)
- Grant Instructions - FY26 (SOMALI)
- Grant Instructions - FY26 (SPANISH)

Native Americans

Español

Women

Socially Disadvantaged

People Of Color

The Minnesota State Legislature approved $1 million for fiscal year 2025 Down Payment Assistance Grants to Minnesota farmers earning less than $250,000 per year in gross agricultural sales. Applications will remain valid for purchases closing within six months after grant approval or until June 30, 2025, whichever is sooner.
The RFA expects to award approximately 66 grants in this funding cycle, dependent on size of grant requests. 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. Applications will be accepted from July 1 to July 31, 2023. The RFA will make award decisions in early to mid-August. 

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

Erika Camplin

Agricultural Marketing and Development

The AGRI Make it Minnesota Marketing Investment Cost-Share Program can help your Minnesota consumer packaged goods (CPG) food, beverage, or pet food company, cooperative, or Tribal entity grow by matching your investments in a variety of high-impact marketing activities. MDA processes applications first-come, first-served.



To be eligible, you must be a Minnesota-based company or cooperative registered with the Minnesota Secretary of State; offer a branded CPG food, beverage, or pet food product; be a small-to-medium enterprise with fewer than 500 employees (grower cooperatives are exempt); and be a current holder of an MDA Food License (your own or that of a Minnesota co-manufacturer you use).

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

Cost Share

- How to Fill Out Your Online Application

Certification

Distribution

Diversification

Events

Trade Show

Certified Organic

Trade Relief

These cost-share programs are reimbursed at a rate of 50% of eligible investment made. The maximum annual reimbursement per eligible entity in FY26 is $4,000 for brands manufactured in Minnesota, or $3,000 for brands that otherwise qualify but manufacture elsewhere.

- Request for Proposals - Livestock Investment Grant FY2025
- How to Fill Out Your Online Application

Courtney VanderMey

The AGRI Livestock Investment Grant encourages long-term industry development for Minnesota livestock farmers and ranchers by helping them improve, update, and modernize their livestock operation infrastructure and equipment.



Applicant eligibility
Minnesota livestock farmers may apply. Applicants must:
- Be the principal operator of a livestock operation in Minnesota.
- Be a resident of the state of Minnesota or be a business entity authorized to farm in Minnesota.
- Hold an appropriate feedlot registration when applicable.
- Be in good standing with the State of Minnesota:
    - No back taxes owed.
    - No defaults on Minnesota state-backed financing for the last seven years.
    - Acceptable performance on past MDA grants.
    - Compliant with current state regulations or this project will support the organization becoming compliant.
NOTE: For this program, we define "livestock" as beef cattle, dairy cattle, swine, poultry, goats, mules, bison, sheep, horses, farmed cervids (deer, elk), ratites (flightless birds including emu), and llamas.

Project eligibility
This grant program reimburses investments in:
- Buildings or facilities to produce livestock or livestock products.
- Development of pasture for use by livestock, including but not limited to lanes, watering systems, and fences.
- Equipment for livestock housing, confinement, feeding, and waste management.
All project materials and services must be purchased and paid for after a grant contract agreement has been signed by all parties and has reached its start date. Any expenses incurred prior to that date aren't eligible for reimbursement.
The grant will not pay for livestock, tractors, skid steer loaders, general purpose buildings, pasture or crop land, animal feed, crop seed, planters, combines, or debt refinancing.

Livestock

Cattle

Pigs

Poultry

Sheep

Specialty Livestock

Beef Cattle

Dairy Cattle

Feeder Cattle

Slaughter Cattle

Calves

Heifers

Steers

Bulls

Barrows

Boars

Feeder Pigs

Hogs

Sows

Chickens

Cornish Hens

Ducks

Geese

Turkey

Ewes

Lambs

Rams

Alpacas

Beefalo

Bison

Buffalo

Caribou

Deer

Emus

Goats

Guinea Pigs

Llamas

Mink

Mohair

Ostrich

Pheasants

Quail

Rabbits

Reindeer

Water Buffalo

Beef Bottom Round

Beef Brisket

Beef Chuck Roast

Beef Eye Round

Beef Flank Steak

Beef Flat Iron Steak

Beef Heart

Beef Liver

Beef London Broil

Beef NY Strip Steak

Beef Oxtail

Beef Rib Steak

Beef Rump Roast

Beef Short Ribs

Beef Sirloin

Beef Sirloin Tip Roast

Beef Skirt Steak

Beef Soup Bones

Beef Stew Meat

Beef Tongue

Beef Top Round

Beef Whole Filet

Ground Beef

Broilers

Chicks

Fryers

Layers

Pullets

Roasters

Ducklings

Goslings

Poults

Toms

Ground Lamb

Lamb Chops

Lamb Heart

Lamb Leg

Lamb Liver

Lamb Shank

Lamb Shoulder

Lamb Stew Meat

Bison Calf

Bison Meat

Bucks

Nannies

Slaughter Goats

Request for Proposals - Livestock Investment Grant 2024, Spring

Infrastructure

Disaster Relief

Emergency

Amount available
- We expect to award a total of $650,000 in the FY 2024 spring round.
- We will reimburse 10% of the first $250,000 of an eligible investment.
- For each project, the maximum grant amount available per fiscal year is $25,000.
- An individual or farm may only receive one grant in FY 2024.
- Only one grant per project.


Before you apply, read the full  FY26 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

- AGRI Overview
- Sustainable Agriculture Demonstration Grant Statute (M.S. 17.116)
-  Greenbook


Air Quality

Carbon Capture

High Tunnel

Landscape

Soil Health

Wildlife & Pollinator Habitat

Certified Grassfed

Cover Crops

Trials

Stewardship

Reduced Tillage

Conservation

Marketing

Regenerative

- Carefully read the 2026 AGRI Urban Ag Community & Economic Development Grant RFP (PDF) and FY26 Urban Ag Youth Education Grant RFP (PDF) for eligibility, requirements, and priorities.
- Apply for an AGRI Urban Agriculture Grant.
    - If you are a new user, you will need to create an account.
    - Once you are logged in, select either "FY26 AGRI Urban Agriculture Community and Economic Development Grant" or "FY26 AGRI Urban Agriculture Youth Education Grant."

Apply for an AGRI Urban Agriculture Grant

Contact us if you need this information in an alternative format.

Emily Mehr

**NEW, in fiscal year (FY) 2026, there are two funding opportunities:**

- The **Community and Economic Development Grant** if for projects that directly support community development or increase economic vitality through urban agriculture. Projects must benefit multiple growers or community members.

- The **Youth Education Grant** will support projects that focus on starting or growing agricultural-based education programs from early childhood through post-secondary and&#x2004;young adult-aged students.

Previously, there was one grant to support either youth education or community engagement projects in urban agriculture. This year, there are two separate grants.


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.



NEW, in fiscal year (FY) 2026, there are two funding opportunities:
- The Community and Economic Development Grant if for projects that directly support community development or increase economic vitality through urban agriculture. Projects must benefit multiple growers or community members.
- The Youth Education Grant will support projects that focus on starting or growing agricultural-based education programs from early childhood through post-secondary and young adult-aged students.
Previously, there was one grant to support either youth education or community engagement projects in urban agriculture. This year, there are two separate grants.

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
- Nonprofit organizations
- Schools or school districts
- Post-secondary institutions
- Local government entities
- Native American tribal communities or governments

Project Eligibility:

Eligible grant projects must directly support the goals of promoting urban agriculture youth education or urban agriculture community development. 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 (RFP).
- Eligible grant expenses include but aren't limited to the purchase and installation of equipment; capital expenditures (costs incurred to make physical improvements to or construct a facility); personnel (staff/contractor) time; transportation costs; and translation costs.

- FY26 Urban Ag Community & Economic Development Grant RFP (PDF)
- FY26 Urban Ag Youth Education Grant RFP (PDF)
- FY 26 AGRI Urban Ag Budget Table template
- FY 26 AGRI Urban Ag Authority to Apply Letter template
- AGRI Overview

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.

Sonya Borgeson-Bethke

The AGRI Value-Added Grant helps Minnesota processors add value to Minnesota agricultural products by investing in the purchase of equipment, production capacity, market diversification, and market access for value-added products.



Individuals, farmers, businesses, agricultural cooperatives, or local government entities are eligible to apply. You must explain how your project will increase the sales of Minnesota agricultural products and/or increase market access. The program aims to fund projects that impact many farmers.

MDA will prioritize projects that create additional meat or poultry processing capacity, increase food safety to improve marketability, respond to changing market conditions as result of COVID-19, or respond to civil unrest.

MDA is not funding feasibility studies this year.

- Request for Proposals - FY23 Value-Added Grant
- How to Fill Out Your Online Application

HVAC

Lighting

Repairs

MDA expects to award a total of $1 million in Fiscal Year 2021. Grants may reimburse up to 25 percent of eligible expenses. The maximum award is $150,000, and the minimum award is $1,000.

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

**7/18/25 FUNDING UPDATE:** We have exhausted funds for 2025 sales and leases and are no longer accepting asset owner applications. Notes:

- Funding is still available for beginning farmer FBM tuition reimbursement tax credits. Beginning farmers&#x2004;must submit their applications by Nov 1.

- New funding for 2026 transactions will become available on January 1, 2026.

- Asset owners cannot reapply for 2025 rental income or a sale that closed in 2025 with 2026 funding. You may only apply for a tax credit in the year the transaction took place.



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.



7/18/25 FUNDING UPDATE: We have exhausted funds for 2025 sales and leases and are no longer accepting asset owner applications. Notes:
- Funding is still available for beginning farmer FBM tuition reimbursement tax credits. Beginning farmers must submit their applications by Nov 1.
- New funding for 2026 transactions will become available on January 1, 2026.
- Asset owners cannot reapply for 2025 rental income or a sale that closed in 2025 with 2026 funding. You may only apply for a tax credit in the year the transaction took place.


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

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. [Application Guide]
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.

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

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

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

List of Minnesota Department of Agriculture Funding Opportunities