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Minnesota State Wire

Tuesday, September 9, 2025

Minnesota Department of Agriculture awards $1.75 million in grants to local food businesses

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Thom Petersen Commissioner | Minnesota Department of Agriculture

Thom Petersen Commissioner | Minnesota Department of Agriculture

The Minnesota Department of Agriculture (MDA) has allocated over $1.75 million in grants to 42 businesses across the state. These funds, awarded through the Agricultural Growth, Research, and Innovation (AGRI) Value-Added Grant and Meat, Poultry, Egg, and Milk Processing (MPEM) Grant programs, aim to support equipment purchases and facility improvements that enhance production capacity and market access for agricultural products.

The grant awards range from $1,000 to $150,000 and require recipients to provide a cash match. The cost-share model is designed to encourage private investment alongside state support. Sixteen businesses received a total of $714,010 through the Value-Added Grant program. This funding will assist various enterprises including produce processors and value-added grain producers.

Additionally, 26 businesses were granted a total of $1,041,613 through the MPEM Grant track. This funding is targeted at meat, poultry, egg, and dairy processors aiming to improve their facilities with upgrades like expanded cold storage or new on-farm creameries.

“State support, when paired with the drive and investment of Minnesota’s farmers and food businesses can lead to big results,” said MDA Commissioner Thom Petersen. “We’re proud to back entrepreneurs who are expanding their processing capacity creating economic opportunity.”

Applications for fiscal year 2026 grants are now open until August 7 via the MDA’s online application system.

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