The AGRI Value-Added Grant offers designated grants for value-added businesses (including bioenergy producers and hemp processors) to invest in equipment. The program is intended to increase sales of Minnesota agricultural products by investing in production capacity, market diversification, and market access for value-added products.

For the purposes of this grant, “value-added” is defined as the addition of value to an agricultural product through processing.

Small business owner standing next to meat cooler

Eligibility and funding priorities

Eligible applicants include:

  • Individuals
  • Farmers
  • Businesses
  • Agricultural cooperatives
  • Nonprofit organizations
  • Educational institutions
  • Local governments
  • Tribal governments

We will prioritize projects that:

  • Increase food safety
  • Increase hemp fiber production capacity

Amount available

In fiscal year (FY) 2025, we expect to award $2.5 million through the AGRI Value-Added and AGRI Meat, Poultry, Egg, and Milk (MPEM) Grants. Of this amount, at least $1.17 million is set aside for meat, poultry, egg, and milk processing businesses.

Cash match

This grant requires a cash match. For the match:

  • You are responsible for 50% of the first $50,000 to receive up to a $25,000 reimbursement.
  • For costs after the first $50,000, you are responsible for 75% of the total remaining cost to receive 25% reimbursement, up to a maximum grant award of $150,000.

Example:

  • You are working on a project that is expected to cost $400,000.
  • We will reimburse $25,000 of the first $50,000 of expenses. After that, you would be eligible for $87,500 in grant reimbursement from the State and would have to contribute the remaining $262,500.
  • In total, you would be eligible for $112,500 from the State and you would pay for the other $287,500.
Table 1. Example $400,000 project showing the reimbursement amount and your contribution

Project Cost

Grant Reimbursement

Your Cost

First $50,000

$25,000

$25,000

Remaining $350,000

$87,500

$262,500

Total Cost: $400,000

$112,500

$287,500

Applying

Applications are due by 4 p.m. Central Time on Wednesday, October 23, 2024.

  • Carefully read the full Value-Added Request for Proposals (PDF) for eligibility and requirements. You can also view the list of past projects or request a copy of an application to help you prepare.
  • Apply online.
    • If you are a new user, you will need to create an account.
    • Once you are logged in, select “AGRI Value-Added Grant.”

Contact us if you need this information in an alternative format.

Grant writing assistance from USDA

Depending on capacity, you may be able to get free grant writing assistance from the North Central USDA Regional Food Business Center's technical assistance providers. Scroll down their webpage to see Minnesota’s providers, listed in bold.

Relationship to the AGRI MPEM Grant

The FY 2025 AGRI Value-Added and the FY 2025 AGRI Meat, Poultry, Egg, and Milk (MPEM) Grants will be administered as a single program with two application tracks. Value-added businesses should use the information on this page as it’s tailored to these businesses.