By Scout Nelson
The Minnesota Department of Agriculture (MDA) has granted $1,755,623 to 42 Minnesota-based agricultural businesses as part of its 2025 fiscal year funding. This support is provided through the Agricultural Growth, Research, and Innovation (AGRI) Value-Added Grant and the Meat, Poultry, Egg, and Milk Processing (MPEM) Grant programs.
These grant programs help local businesses invest in equipment and facility improvements to expand their production capacity and improve access to local food. Award amounts range from $1,000 to $150,000. A matching fund requirement ensures that grantees contribute a portion of project costs—50% for the first $50,000 and 75% for any remaining amount—encouraging both public and private investment.
The Value-Added Grant awarded $714,010 to 16 businesses, supporting a wide range of producers such as those working in produce processing, hemp, beverages, grains, herbs, and food hubs.
The MPEM Grant awarded $1,041,613 to 26 businesses focused on meat, dairy, poultry, and egg processing. These funds are being used for cold storage expansions, new creameries, and commercial-scale equipment installations to enhance food safety and increase product capacity.
“State support, when paired with the drive and investment of Minnesota’s farmers and food businesses, can lead to big results,” said MDA Commissioner Thom Petersen. “We’re proud to back entrepreneurs who are expanding their processing capacity, creating economic opportunity, and helping more Minnesotans access more locally produced food, fuel, and fiber.”
Applications for fiscal year 2026 are now open. Interested businesses can apply online through the MDA’s application portal until 4 p.m. on Thursday, August 7, 2025. More details are available on the MDA’s AGRI Value-Added Grant and MPEM Grant webpages.
Photo Credit:pexels-karolina-grabowska
Categories: Minnesota, Government & Policy