Applications closed.
Applications will likely re-open in late summer or fall 2025. Eligibility and other program details are subject to change. Please check this page and subscribe to MDA email and text alerts here for grant updates.
Grant Details
The Minnesota Down Payment Assistance Grant offers up to $15,000 for qualified farmers purchasing their first farm. The grant program is administered by the MDA's Rural Finance Authority (RFA) as part of its mission to develop the state’s agricultural resources. The MDA will award these grants using a random lottery process, with priority given to eligible applicants as described below. Complete request for grant proposals (RFP) with timeline and full grant rules available as a pdf in the forms box on this page.
Am I Eligible?
Eligible Applicants
- Individual (LLCs, partnerships, etc. must apply and buy farm as individual)
- Minnesota resident
- Earn less than $250,000 annually in gross agricultural sales
- Applicants and their spouses have never owned a farm
- Cannot buy farm from family member (new)
- Will provide the majority of labor and management on the farm
- Will farm the land for at least 5 years
- In good standing with the State of Minnesota
- Have not been convicted of a crime related to a state grant agreement
Priority Applicants (new)
- Earn less than $100,000 annually in gross agricultural sales, or
- Produce one or more of the following crops: industrial hemp, cannabis, specialty crops (fruits, vegetables, and other horticultural crops) as defined by the USDA
Eligible Purchases
- Farmland or other agricultural real estate (tillable acres, hog barn, commercial greenhouse, etc.)
- Within the borders of Minnesota
- Must close on purchase after application approval and within designated timeframe. This grant cannot be applied retroactively toward purchases that have already closed.
Resources
Looking to purchase farmland? Check out the MDA's other land access programs:
- Beginning Farmer Tax Credit - state tax credits for landlords and sellers who lease/sell to new farmers
- Farm Advocates - free, 1:1 support navigating farm financials, land access, and more
- Farm Business Management - business training from an approved instructor
- RFA Loans - low interest financing for farmers
- FarmLink - online land access directory
- Farmland Access Hub – land directory, resources, and 1:1 support for farm sellers and seekers
Buying a Farm - Webinar Series
This summer, the MDA and the Farmland Access Hub partnered to host a series of informational webinars. Each webinar focuses on a different topic related to the grant program and the farm-buying process.
- Grant Overview & Preparation for Buying a Farm
- Webinar 1 Recording
- Resources
- Self-led Farm Dreams Visioning Exercise (Land Stewardship Project)
- Farmland Access Financial Decision Making Tool (Land Stewardship Project)
- Affordability & Financing Your Farm Purchase
- Finding Farmland (How to look and what to look for)
- Webinar 3 Recording
- Resources
- Farmland Evaluation Checklist (Land Access Hub)
- Necessary, Desirable, Optional Worksheet (Land for Good)
- Web Soil Survey (USDA)
- Detailed Review of Grant RFP
