By Scout Nelson
The Cooperative Development Grant Program (CDG) provides essential financing to new cooperatives seeking to process agricultural products or market agricultural services in Minnesota. It awards up to $160,000 in total, supporting multiple projects that strengthen local economies and encourage collaborative innovation.
Applicants may request funding ranging from $2,500 to $50,000 for each proposed venture, ensuring flexibility for various project sizes and goals.
To qualify, cooperatives must be organized under Minnesota Statutes 308A or 308B on or after January 1, 2020, and maintain complete control by eligible agricultural entities actively involved in commodity production.
Each cooperative must be designed to process or market products and services originating in Minnesota, while also receiving or intending to receive agricultural commodities produced primarily by its members or shareholders. Nonpatron voting rights are not allowed within the cooperative’s governance structure.
Projects should specifically advance the production, processing, or marketing of local agricultural commodities, services, or products within Minnesota. Whether introducing new processing techniques, improving infrastructure for product distribution, or developing specialized marketing strategies, the initiative aims to equip cooperative groups with resources to succeed. Awarded projects must be completed by June 30, 2026.
A 50% match of the total project cost is required, reflecting a shared commitment to building sustainable ventures. This contribution can be made in cash, in-kind services, or a combination of both. By sharing financial responsibility, cooperatives and their members invest in the long-term viability of their initiatives, ensuring thoughtful planning and broad-based support.
Interested applicants should submit their proposals by 4 p.m. Central Time on February 20, 2025. Proposals need to address the program’s guidelines and eligibility requirements. To fully understand these criteria, applicants are encouraged to review the Fiscal Year 2025 Request for Proposals document, which clarifies the program’s aims and application procedures.
By offering targeted financial support and fostering collaboration among agricultural stakeholders, the Cooperative Development Grant Program helps new cooperatives establish a sturdy foundation for success. This funding not only fuels innovation in product development and processing but also strengthens Minnesota’s agricultural sector through shared expertise and local engagement.
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Categories: Minnesota, Business, Energy, Government & Policy