Minnesota State Wire

The Minnesota Department of Agriculture (MDA) has announced the return of its Down Payment Assistance Grant program, aimed at helping new farmers purchase their first farms. The program, now in its fourth round, is accepting applications until September 15, 2025.

This year, the maximum grant amount available to eligible applicants has increased from $15,000 to $20,000. The increase reflects higher land prices and a legislative boost in funding. The Minnesota Legislature raised the program’s budget to $1.25 million for this cycle, compared to $1 million last year.

Since its inception, the Down Payment Assistance Grant has helped 112 farmers acquire their first farm properties. In total, $1,677,500 has been awarded through previous rounds.

To qualify for the grant, applicants must have less than $250,000 per year in gross agricultural sales and are required to match the award with at least $8,000 from other sources such as loans or personal funds. According to MDA guidelines: “Eligible applicants must make less than $250,000 per year in gross agricultural sales, and they must match the award with at least $8,000 of other funds (e.g. loan, contract for deed, cash or other financing) to unlock the full award amount.”

Grant recipients will be selected using a random lottery system. However, priority will be given to those who meet certain criteria: “Have earned no more than $100,000 in annual gross farm product sales,” or “are producers of industrial hemp, cannabis or specialty crops.” Applicants will be notified about their status by late September.

There are restrictions on eligible purchases under this program. Buying land directly from immediate family members—such as parents or siblings—is not permitted; however purchases from extended family like aunts/uncles or cousins are allowed. Additionally: “Farm purchases must take place after approval of the application. The MDA cannot award grants for purchases that have already taken place.”

Once an applicant receives notification of an award decision they have six months to close on their land purchase. If necessary and with appropriate documentation—such as a signed purchase agreement—the MDA may consider deadline extensions.

To assist potential applicants with navigating the process and understanding requirements further: “The MDA is hosting an informational webinar for prospective applicants.” This session is scheduled for Monday August 18 from 11 a.m. to noon via Zoom registration.

Additional recorded webinars and resources related to buying farmland are also available on the MDA’s official webpage.

The Down Payment Assistance Grant continues efforts by state agencies and lawmakers to support new entrants into agriculture amid rising costs and barriers associated with purchasing farmland across Minnesota.