This program covers 50 percent of the cost of completing a business plan for a dairy operation. Producers who have applied for this grant are exploring the feasibility of expansion, environmental upgrades, stray voltage testing or transferring the operation to the next generation producer. Applications are funded on a first come first serve basis.

The goal of the Minnesota Dairy Business Planning Grants is to encourage dairy business planning and modernization activities of Minnesota dairy farms.

The Minnesota Department of Agriculture can provide 50% of eligible project costs up to a maximum of $3,000, the actual amount of funds awarded to any applicant is based upon:

• The viability of the project
• The project’s economic impact
• Fund availability

Applicants will be required to contribute at least 50% of the total project costs from sources other than the State of Minnesota.

Eligible applicants for the Minnesota Dairy Business Planning Grant program include existing and start-up Minnesota dairy producers.

Proceeds from an award may only be used to cover the cost of having a qualified, independent third party provide the professional services necessary to assist the applicant in evaluating the start-up, modernization or expansion of a dairy farm.

Eligible professional services include activities that are necessary in order for the applicant to make a “go or no go” decision, i.e., business planning, pre-engineering expenses. For example, costs associated with developing a business plan that fully examines the feasibility of the proposed venture would be eligible.

To be eligible for funding, proposals must, at a minimum, contain the following key components of a business plan:

• Executive Summary
• Short and Long Term Goals and Objectives
• Management Analysis
• Current and Historical Financial Information/Production Information
• Analysis of Proposed Business Changes

A Sample Business Plan Outline is included in this application as Attachment C and will be used to evaluate the eligibility of the final project.

We recognize that there are many types of professional services that are beneficial to dairy farm businesses as they position themselves for the future. However, given the limited funds available under the program, eligibility is limited to business planning, pre-engineering, and generational transfers that result in the continuance and enhancement of the dairy farm. Therefore, the following list is being provided to give you an idea of the type of professional services that are NOT ELIGIBLE.

1. Nutrition Consulting
2. Retirement and Investment Planning
3. Tax Planning and Tax Return Preparation
4. Intergenerational Transfer Planning that discontinues the dairy enterprise.
5. Information System Development or Consulting
6. Loan Generation/Origination Documentation
7. Chattel or Real Estate Appraisal
8. Crop Consulting
9. Nutrient Management Planning except that aspect required in the business plan.
10. Herd Health Consulting
11. The Cost of Completing a Dairy Business Planning GrantApplication Form

Note: This list is for information purposes only, it is not meant to be an all-inclusive list of ineligible activities.

If you have questions regarding eligibility, please contact the Department’s Agriculture Project Consultant at (651) 201-6646. Minnesota Department of Agriculture 625 N. Robert St. St. Paul, MN 55155 651-201-6646