By Scout Nelson
The Minnesota Department of Agriculture is expanding support for farmers who use nitrogen enhanced-efficiency fertilizers. A new funding program aims to help farmers reduce greenhouse gas emissions and improve water quality during the 2026 growing season.
The initiative is part of the Minnesota Agricultural Water Quality Certification Program. It is supported by a federal Climate Pollution Reduction Grant and provides financial support to agricultural retailers. These retailers will offer farmers discounts on approved nitrogen enhanced efficiency fertilizer products.
Enhanced efficiency fertilizers help keep nitrogen in the soil where crops need it most. By improving nitrogen use, these products help reduce losses to the air and water. This can support both environmental protection and farm productivity.
“Enhanced-efficiency fertilizers can help keep nitrogen where farmers need it—on their fields—and out of the air and water,” said MDA Commissioner Thom Petersen. “This funding helps make these tools more accessible while supporting both environmental quality and farm profitability.”
Participating in retailers may receive payments for verified sales and applications of approved products. The program offers up to $10 per acre for products such as nitrification inhibitors and polymer coated urea. Urease inhibitors qualify for payments of up to $8 per acre.
Program payments will not exceed 75% of the product cost. In addition, at least 80% of the financial support must be passed directly to farmers through point-of-sale discounts.
The program is open to agricultural cooperatives and qualified fertilizer retailers across Minnesota. Contract awards are expected to range from $25,000 to $400,000. Proposals will be reviewed through a competitive process.
Farmers who receive discounts must be certified through the Minnesota Agricultural Water Quality Certification Program, working toward certification, or willing to receive information about the program.
Each farm may receive up to $10,000 in total discounts related to enhanced efficiency fertilizers.
The program will provide $1.5 million in funding for 2026. Similar funding opportunities are expected for 2027 and 2028. Proposals are due by 11:59 p.m. on March 30.
The competitive RFP is available on the MDA website.
Questions and proposal submissions should be directed to Ellen Friedrich, Ellen.Friedrich@state.mn.us.
Photo Credit: istock-cactusoup
Categories: Minnesota, Government & Policy