The Minnesota Down Payment Assistance Grant offers up to $15,000 for qualified farmers purchasing their first farm.
Donor Name: Minnesota Department of Agriculture
State: Minnesota
County: All Counties
Type of Grant: Grant
Deadline: 07/31/2023
Size of the Grant: Up to $15,000
Grant Duration: 6 months
Details:
The grant program is administered by the Minnesota Department of Agriculture’s Rural Finance Authority (RFA) as part of its mission to develop the state’s agricultural resources.
The intent of the grant program is to help emerging farmers invest in farm ownership. With the average age of farmers increasing in the state, farm succession and legacy planning is important to the sector. At the same time, land access is one of the most noted barriers for emerging farmers to succeed.
Emerging Farmers include farmers and aspiring farmers who are:
- Women
- Veterans
- Persons with disabilities
- American Indian or Alaskan Natives
- Members of a community of color
- Young (35 and younger)
- Lesbian, gay, bisexual, transgender, queer, intersex, or asexual (LGBTQIA+)
- Urban (reside in cities with a population over 5,000 or within the boundaries of federally recognized tribal land regardless of population size)
- and any other emerging farmers as determined by the commissioner.
Funding Information
- The Minnesota State Legislature approved $1 million for fiscal year 2024 Down Payment Assistance Grants to Minnesota farmers earning less than $250,000 per year in gross agricultural sales
- Applications will remain valid for purchases closing within six months after grant approval or until June 30, 2024, whichever is sooner
- The RFA expects to award approximately 66 grants in this funding cycle, dependent on size of grant requests. The RFA will award these grants using a random lottery process, with preference given to emerging farmers. If you are not an emerging farmer, you may still apply.
Eligible Purchases
Transactions must:
- Be the purchase of farmland (tillable acres, commercial greenhouse, hog barn, etc.)
- Be within the borders of the state of Minnesota
- Be for purchases closed after approval of the application.
Eligibility Criteria
Applicants must:
- Be an individual. (Farms structured as LLCs, partnerships, non-profits, and other businesses must apply and purchase land as an individual. Loans may be in the business name if the individual is on the deed)
- Be a resident of Minnesota
- Gross less than $250,000 from the sale of farm product in the most recent tax year
- Applicants and their spouses must have not previously had any direct or indirect ownership in farmland or other agricultural property (hog barn, commercial greenhouse, etc.)
- Plan on providing most of the day-to-day physical labor on the farm
- Plan on owning the farmland for at least five years. (Awardees who do not own and farm the land for at least five years will pay a penalty to the commissioner equal to 20% of the grant amount for each year that is applicable)
- Be in good standing with the state of Minnesota:
- No back taxes owed
- No defaults on Minnesota state-backed financing for the last seven years
- Acceptable performance on past MDA grants
- Compliant with current state regulations
- Must not have been convicted of a state or federal criminal offense related to a state grant agreement.
For more information, visit MDA.
