Governor Tim Walz and Lieutenant Governor Peggy Flanagan announced today a new grant program to support Minnesotans purchasing their first farm. The Minnesota Department of Agriculture (MDA) will manage the grant program and offer dollar-for-dollar matching up to $15,000 for qualified small farmers to purchase farmland.
“Farming is a part of Minnesota’s identity and a significant component of our economy. We want every Minnesotan to have an opportunity to explore a career in farming,” said Governor Walz. “These funds will help remove obstacles facing Minnesotans looking to get into farming and help foster the next generation of farmers in Minnesota.”
“Emerging farmers are the future of Minnesota’s agriculture industry. As we continue to expand economic opportunity for Minnesotans across the state, these grants will go a long way in breaking down the barriers preventing emerging farmers from getting a solid footing,” said Lieutenant Governor Flanagan. “I’m proud of the work being done to expand opportunities for emerging farmers who work every day to fuel and feed our state.”
“We know from our work engaging emerging farmers that land cost is one of the biggest barriers keeping people from getting into farming,” said MDA Commissioner Thom Petersen. “We have to address those barriers to make sure Minnesota agriculture stays strong, and this is a big step forward.”
MDA’s Rural Finance Authority (RFA) will award this funding using a first-come, first-served application process that will open at 9 a.m. on January 4, 2023. The Minnesota Legislature appropriated $500,000 in the fiscal year 2023 for these grants. The RFA expects to award between 30 and 40 grants in this cycle, depending on the size of requests. The second cycle of $750,000 in funding has been secured and will be available on July 1, 2023.
Farmers must be Minnesota residents who will earn less than $250,000 annually in gross agricultural sales and plan on providing the majority of the day-to-day physical labor on the farm for at least five years. Applicants must not have previous direct or indirect farmland ownership.
Applications will continue to be accepted until a waitlist of 100 applicants forms, or May 15, 2023, whichever comes first. Approved applications will remain valid for purchases closing within 90 days of approval or until May 15, 2023, whichever comes first.
Applications and more information will be made available as they become ready at https://www.mda.state.mn.us/down-payment-assistance-grant-program. The RFA will host two informational webinars about the grant opportunity, with Spanish, Hmong, and Somali interpretations available. Additional language interpretation needs can be requested up to one week before each webinar. Please send requests and other questions to RFA.loan@state.mn.us.
