Funding Boosts Ag Processing Growth

By Scout Nelson

The Minnesota Department of Agriculture (MDA) is inviting applications for two important grant programs under its Agricultural Growth, Research, and Innovation (AGRI) initiative. These include the Value-Added Grant and the Meat, Poultry, Egg, and Milk Processing (MPEM) Grant. The programs aim to support agricultural businesses by helping them invest in equipment and facility improvements.

The MDA plans to distribute up to $2.25 million through these reimbursement grants. Individual awards range from $1,000 to $150,000. Since these are reimbursement-based grants, applicants must first complete and pay their project expenses before receiving funds. A cash match is also required by applicants.

These grants focus on increasing processing capacity, improving market access, and encouraging innovation in agricultural products. Projects that improve food safety, increase hemp fiber processing, or expand access to kosher and halal markets are given priority. Applications that support Native American Tribal communities are also encouraged.

“I’ve visited grant recipients across Minnesota and have seen firsthand how these investments help businesses expand, innovate, and reach new markets,” said MDA Commissioner Thom Petersen. “Thanks to the support of the Minnesota Legislature, these grants continue to deliver strong returns by building a more diverse and resilient agricultural economy in our state.”

Eligible expenses include a wide range of equipment and improvements. These include machines for producing value-added products, packaging and labeling equipment, refrigeration units, and tools for livestock processing. The program also supports equipment for dairy and egg processing, as well as systems that improve product tracking and efficiency.

The AGRI program plays a key role in supporting farmers, agribusinesses, and schools across Minnesota. It aims to strengthen both agriculture and renewable energy sectors.

Interested applicants must submit their applications by 4 p.m. on June 17, 2026. More details and application guidelines are available on the official AGRI Value-Added and AGRI MPEM Grant webpages.

Photo Credit: minnesota-department-of-agriculture