A shortage of new farmers threatens the future of agriculture. And while there are people who want to farm, new generations of farmers must overcome significant barriers to start and succeed in farming. Traditional patterns of farm entry and farmer support are no longer adequate; farmers of all backgrounds are challenged to find the resources they need to get started in farming.
To help the beginning, emerging, and retiring farmer, the Minnesota Department of Agriculture (MDA) offers the following services, resources, and financial assistance:
Agricultural Microloan Program
The Agricultural Microloan Program is designed to help nontraditional farmers start or expand their businesses. The loan can be used for working capital (annual costs such as seed, feed, fertilizer, land rent) or equipment and other farm asset purchases with a common useful life of 10 years or less. The maximum loan amount is $20,000.
Beginning Farmer Equipment and Infrastructure Grant
The Beginning Farmer Equipment and Infrastructure Grant program offers up to $5,000 for a mini grant and up to $20,000 for beginning farmers in Minnesota to make investments in their farm’s equipment and infrastructure. The minimum request is $1,000. Through this grant, beginning farmers will be able to pay for: farm-specific equipment and farm infrastructure development such as investments in water access, irrigation, fencing, electricity, walk-in coolers, production-related structures such as livestock buildings and greenhouses, and other farm infrastructure.
Beginning Farmer Tax Credit
The Minnesota Beginning Farmer Tax Credit provides tax credits for the rent or sale of farm land or a variety of farm assets to beginning farmers. This includes incentives for the sale of farm land.
Community Development Financial Institution (CDFI) Technical Assistance Grant
The CDFI Technical Assistance Grant is a new program that expands financial service access for farmers. Through this program, funds were available for technical assistance grants to certified CDFIs for two main areas of technical assistance:
- Technical assistance given by CDFIs to farmers, for example assisting farmers with loan readiness or expanding outreach efforts towards target groups with agriculture-focused financial services or
- Technical assistance for CDFIs to increase their own capacity to serve farmers.
Down Payment Assistance Grant Program
The Down Payment Assistance Grant Program offers up to $15,000 for qualified farmers purchasing their first farm. The grant can be used to buy farmland or other agricultural real estate (hog barn, commercial greenhouse, etc.)
Farm Advocates
Farm Advocates provide one-on-one assistance for Minnesota farmers who face crisis caused by either a natural disaster or financial problems. Farm Advocates understand the needs of our agriculture families and communities. They are trained and experienced in agricultural lending practice, mediation, lender negotiation, farm programs, crisis counseling, disaster programs and to recognize the need for legal and/or social services.
Reach out to our Emerging Farmers Farm Advocates:
Friendly Vang-Johnson
Minnetonka
206-276-2284
Laura Cullip
Hutchinson
320-296-1569
Farm Business Management (FBM) Scholarships
The AGRI Beginning Farmer FBM Scholarship program provides scholarships up to 50% of the cost to eligible farmers in Minnesota to learn business management strategies that will lead to profitable and satisfying farming operations. FBM is available through seven Minnesota state college and universities.
FarmLink
Minnesota FarmLink brings together beginning farmers who are looking for land, farming operations, or mentors, with retiring farmers and landowners who want to see their farms or farming operations continue. It also allows users to search for land and livestock operations that are for sale or rent.
Grants, Loans, and Financing
The MDA has many other grant and loan programs to help farmers improve and expand their current operations. Whether you are in need of new equipment, changing your farm management practices, or expanding your farm, the MDA is here to assist you in making the process a little easier. Grants are generally awarded to finance a particular activity or facility.
Minnesota Grown
The Minnesota Grown Program is a statewide partnership between the MDA and Minnesota producers of specialty crops and livestock. It was created over 30 years ago by specialty crop growers to differentiate their produce from produce grown thousands of miles away. Consider joining the Minnesota Grown directory as a marketing tool and market access resource.
