Minnesota opens $1.64 million in down payment grants to help new farmers

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The Minnesota Department of Agriculture has announced the opening of another round of its Down Payment Assistance Grants program.

The $20,000 grant is intended for the purchase of a first farm. The program has assisted 130 farmers over the last five years, with $1.64 million available for allotment this year.

“Prices right now are incredibly high, but $20,000 averages about 45% of the sale price,” said Jenny Heck, program administrator. “Farm succession and legacy are increasingly important in this sector, and land access is one of the biggest barriers we’re seeing for new farmers.”

Applications open Monday, July 6, and run through Aug. 31. Sales must take place after applications close. Following award notification in mid-September, awardees have a six-month window to close on land purchases. Exceptions may be made if an applicant provides a signed purchase agreement or written approval from an approved technical assistance provider indicating they are searching for land and are financially sound.

To qualify, applicants must have annual gross agricultural sales under $250,000 and provide at least $8,000 in matching funds. Grants are awarded through a lottery, with priority given to those growing specialty crops or those with less than $100,000 in annual gross farm product sales. Farm purchases from direct family members are not permitted, though purchases from extended family are allowed.

The MDA is hosting an informational webinar for prospective applicants from 11 a.m. to noon on Tuesday, July 7. The session will cover eligibility, recent program updates, additional resources and a Q&A session. More information and application materials can be found at https://www.mda.state.mn.us/business-dev-loans-grants/down-payment-assistance-grant.

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