By Scout Nelson
The Minnesota Department of Agriculture (MDA) has awarded $1,755,623 in grant funding to 42 local businesses through two important programs: the Agricultural Growth, Research, and Innovation (AGRI) Value-Added Grant and the Meat, Poultry, Egg, and Milk Processing (MPEM) Grant. These grants support Minnesota-based businesses that are expanding production and improving access to local food products.
The AGRI Value Added Grant provided a total of $714,010 to 16 businesses. These recipients include businesses involved in producing value-added goods such as processed produce, hemp items, grains, herbs, beverages, and food hub operations. The funding helps these businesses purchase equipment and make physical improvements to increase production and diversify their markets.
The MPEM Grant awarded $1,041,613 to 26 businesses focused on meat, poultry, egg, and dairy processing. These grants help businesses improve their processing facilities by adding cold storage, upgrading equipment, and even launching new on-farm creameries to boost capacity and maintain food safety standards.
Each grant ranges between $1,000 and $150,000 and is awarded through a competitive review process. Grantees must match the funding with their own investment—50% for the first $50,000 in project costs and 75% for costs beyond that, up to the program maximum.
“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.”
These grants are part of the 2025 fiscal year, which ended on June 30. Applications for the 2026 fiscal year are now open and can be submitted online until 4 p.m. on Thursday, August 7, 2025.
Photo Credit:gettyimages-valentinrussanov
Categories: Minnesota, Government & Policy