The Minnesota Department of Agriculture (MDA) is offering grants to help farmers finance new cooperatives that organize for the purpose of operating an agricultural product processing facility or marketing an agricultural product or agricultural service.
Donor Name: Minnesota Department of Agriculture (MDA)
State: Minnesota
County: All Counties
Type of Grant: Grant
Deadline: 01/05/2026
Size of the Grant: $10,000 to $100,000
Grant Duration: Grant Duration Not Mentioned
Details:
Funding Information
They will award up to $185,000. Grantees must complete their project within three years of signing a grant contract agreement.
- You can request between $2,500 and $50,000 for an individual project.
- This grant requires a match.
- You must commit at least 50% of the total project cost as a match.
- Match can be in the form of cash, in-kind contributions, or both.
Eligible projects
Projects must support the development of a new cooperative in the production, processing, or marketing of agricultural commodities, products, or services produced in Minnesota. Examples of eligible projects include:
- Feasibility studies
- Market analysis
- Assistance with organizational development
- Financing and managing new cooperatives (such as developing a capital plan for new cooperatives)
- Staff time for the purpose of carrying out the proposed project. Staff time for tasks related to development, management, and operations of the new cooperative may be allowable if it relates to a project objective. If staff time is included in your grant budget, you must explain in your proposal your plan for sustaining the staff necessary to manage the cooperative long term after the end of the contract period.
- Product development, formulation, or design (such as nutritional analysis, sensory evaluation, and packaging design to bring a food product to market)
- Development of business and marketing plans
- Predesign of facilities including site analysis, the development of bid specifications, preliminary blueprints and schematics, and the completion of purchase agreements and other necessary legal documents
- Co-op education (education to potential members about the business model and cooperative values and principles)
- Updating articles and bylaws
Eligibility Criteria
Applicants must:
- Be a new cooperative organized under chapter 308A or 308B (incorporated on or after January 1, 2016).
- Certify that all control of the cooperative is from farmers, family farm partnerships, family farm limited liability companies, or family farm corporations (as defined in section 500.24, subdivision 2) who are actively engaged in agricultural commodity production.
- Be operated primarily to process agricultural commodities or market agricultural products or services produced in Minnesota.
- Receive or intend to receive agricultural commodities produced primarily by shareholders or members of the cooperative.
- Not allow non-patron voting rights.
- Be in good standing with the State of Minnesota:
- Registered with the Minnesota Secretary of State’s Office.
- No back taxes owed.
- No defaults on Minnesota state-backed financing for the last seven years.
- Acceptable performance on past grants with the MDA and other state agencies.
- Not debarred or suspended from doing business with the State of Minnesota or the federal government.
- No conviction of felony financial crimes in the past ten years.
- Compliant with current state regulations or this project will support the business becoming compliant.
- Be appropriately licensed and authorized to conduct business in Minnesota.
For more information, visit MDA.
