By Scout Nelson
The Minnesota Department of Agriculture (MDA) has reopened its Down Payment Assistance Grant program, helping first-time farmers purchase land. The program offers eligible applicants up to $20,000, an increase from previous years due to rising land prices.
This year, the Minnesota Legislature raised the total program funding to $1.25 million, up from $1 million last year. Applications for the fourth round of funding are now open and will be accepted through September 15, 2025.
So far, 112 farmers have benefitted from the program, with more than $1.67 million awarded in total. The program aims to support new farmers who face challenges entering the agricultural industry due to high land costs.
To qualify, applicants must have less than $250,000 in annual gross agricultural sales and must match the award with at least $8,000 from other funding sources like loans, cash, or contracts. The grant will be awarded through a random lottery process, with priority given to applicants who:
- Earn less than $100,000 in farm sales annually, or
- Grow industrial hemp, cannabis, or specialty crops
Purchases from direct family members such as parents or siblings are not allowed, but buying land from extended family like cousins or aunts/uncles is permitted.
Land purchases must happen after approval. The MDA will not award grants for already completed purchases. Winners must complete their land purchases within six months of notification, though extensions may be granted with proof of active efforts.
An informational webinar will be held on Monday, August 18, from 11 a.m. to 12 p.m. on Zoom. The MDA’s website also offers webinar recordings and resources to help applicants through the process.
This program supports Minnesota’s goal to grow its farming community by helping beginning farmers take the first big step toward land ownership.
Photo Credit: istock-alenamozhjer
Categories: Minnesota, Government & Policy