MDA Helps Grow Farmer Cooperatives

By Scout Nelson

The Minnesota Department of Agriculture (MDA) has opened applications for its Cooperative Development Grant Program, aimed at helping new farmer-owned cooperatives plan, launch, and grow their businesses across the state.

This initiative focuses on helping cooperatives develop solid business plans and strategies to effectively produce, process, or market Minnesota-grown agricultural products and services. The program ensures that emerging farmer groups have the tools and financial support to build strong, community-driven operations.

“Minnesota has a proud tradition of farmer-owned cooperatives that have anchored rural communities, helping producers pool resources, share risks, and maintain local control in the face of changing market conditions,” said Minnesota Agriculture Commissioner Thom Petersen. “We’re proud to invest in this model so the next generation of farmers can build thriving businesses and keep their communities strong.”

The MDA will distribute up to $185,000 through this funding round. Eligible applicants can request grants ranging from $2,500 to $50,000 per project, with a requirement to match at least 50% of the total project cost.

Projects funded under this program can run for up to three years from the contract start date. To qualify, cooperatives must be officially organized under Minnesota’s Chapter 308A or 308B and incorporated on or after January 1, 2016.

Through this grant, MDA aims to continue its legacy of strengthening rural economies by encouraging cooperative ownership and innovation. Interested applicants can review full eligibility details and application instructions on the Cooperative Development Grant Program webpage. Applications must be submitted by 4 p.m. CT on Monday, January 5, 2026.

Photo Credit:minnesota-department-of-agriculture