This page will be updated with questions that have been asked and answered about the Down Payment Assistance Grant. If you have questions that you'd like addressed, please submit them to Jenny Heck at Jenny.Heck@state.mn.us or 651-201-6316.
Eligibility - Land
I already purchased farmland. Can I use this grant retroactively for my recent purchase?
No. The grant is designed to facilitate new purchases. Eligible purchases must close after a grantee receives their award letter and within the deadline set in their award letter.
I own farmland that isn’t in production. Am I eligible to apply for this grant to purchase new farmland?
No. Even if the farmland you own is not in production or a small acreage, if it is zoned for agricultural use or has tillable acres, you are not eligible for this grant because it is not your first-time owning farmland. You can contact your county to find details about your property’s land-use classifications.
I own land in the USDA Conservation Reserve Program (CRP). Am I eligible? Can this grant be used to purchase farmland in CRP?
Land in CRP will be considered on a case-by-case basis dependent on the details of your CRP contract. Contact us at RFA.Loans@state.mn.us or 651-201-6316 to review.
Are urban farms and indoor growing facilities eligible purchases?
Potentially yes. Urban agriculture will be reviewed on a case-by-case basis to determine if it can be considered farmland. Applicants intending to purchase urban farmland may be required to provide additional proof of licensing, business plans, construction financing, or other relevant documents that prove the property can be farmed.
Note: Purchasing a home in a dense urban or suburban residential neighborhood is not an eligible purchase.
Eligibility - Farmer
Am I required to have farming experience or provide a Schedule F federal tax filing?
Eligible applicants must demonstrate knowledge in the type of farming they intend to do. This can include work experience on a farm, enrollment in or completion of a farm production or farm business management program/degree, involvement with a farming mentor, or other reasonable farming experience. If you do not have a Schedule F federal tax filing, we may ask to review other records to prove program eligibility.
Can I purchase farmland from a parent or grandparent with this grant?
No. Purchases where the seller is a direct family member of the grantee or grantee’s spouse are not eligible. Direct family member has the meaning given in section 267(c)(4) of the Internal Revenue Code, which includes siblings, spouses, parents, grandparents, children and other lineal descendants/ascendants.
Aunts/uncles, nieces/nephews, and cousins are not considered direct family and would be eligible sellers.
If I am purchasing farmland with a sibling or other individual, would we be eligible?
The individual on the application must be the only buyer. You could consider splitting the sale so there is only one buyer for each parcel. If the sale is split, both individuals would be eligible to apply. Married couples purchasing farmland together are eligible but may only submit one application per household.
Can my spouse and I each apply for the grant?
No. Spouses who file their taxes jointly are considered one and may only submit one application.
Are LLCs eligible to apply if they are a single-member LLC?
No. The way the grant statute is written, only “individuals” are eligible. Farms that aren’t structured as individual sole proprietors (including LLCs with only one member or a married couple as the only members) must apply and purchase the land as individuals not as the business entity. It is okay if your loan is in the name of the LLC or other business entity as long as the deed for the land and all purchase documents (settlement statement, contract for deed) are in the name of the individual.
Are there any requirements surrounding eligible visas or US citizenship?
No, but the grant does require that applicants are Minnesota residents, which we define as: the applicant has established a permanent home within Minnesota’s borders and has no present intention of moving outside the state.
Financing
Can I use this grant as part of the cash required for a Farm Service Agency (FSA) or bank loan?
Assuming there are no additional conditions from your lending institutions, yes. We will issue an approval letter for grantees to share with their lenders, and we will make grant funds available to the buyer before the sale closes to be used as all or part of a cash down payment. Lenders may require additional information, such as a copy of your grant application, if you do not have sufficient cash without the grant award.
Are contracts for deed eligible for this grant?
Yes. A farmer may use this grant if they are purchasing farmland with a contract for deed. Instead of a settlement statement, we will require a copy of the notarized contract for deed.
Technical Assistance
Who is available to help me complete my application?
Below is a list of professionals who have identified themselves as willing to help farmers with their application, provided as a service to those in need of help. The MDA is not responsible for the actions of and does not endorse any of these entities. If you would like to be added to this list, please contact Jenny.heck@state.mn.us
| Organization | Contact | Region | Specialty |
| Farmland Access Hub | Katie Kubovcik Katiekub0908@gmail.com, 651-528-0608 Contact Katie with info above to be matched with someone to help. | Statewide | Specialty crops, direct marketing Support in Hmong, Spanish and Swahili languages available. |
| Latino Economic Development Center (LEDC) | Contact LEDC for support through their Contact Form. | Statewide | Specialty crops. Support in Swahili available. |
Contact information available on the Farm Advocates webpage | Statewide | Free grant advising and application review for emerging farmers | |
| Michael Fields Institute | Wren Almitra grants@michaelfields.org, 262-642-3303 | Statewide | Grant advising and application review |
| The Nature Conservancy | Andrea Eger Andrea.eger@tnc.org | Statewide | Grant writing, emerging farmers |
UMN Extension – Ag Business Management | Ryan Pesch pesch@umn.edu, 218-770-4398 | Statewide | Free grant advising and application review |
Additional sources of technical assistance to consider reaching out to:
- AgPlan business planning software free from UMN Extension
- Bank loan officer
- Farm Advocates
- Farm Business Management
- Farm Service Agency (FSA)
- University of Minnesota Extension
What other land access resources are available?
Below are links to Minnesota Department of Agriculture’s additional resources for accessing farmland.
- Cropland Grazing Exchange, matches livestock farmers with crop farmers who have forage to harvest
- FarmLink, connects farm buyers and sellers
- Farmland Access Hub, free support finding land, negotiating, and financials
- Rural Finance Authority Farm Loans, low-interest financing
- Rural Finance Authority Beginning Farmer Tax Credit, state tax credit for selling or leasing to beginning farmers
Please review the grant instructions for complete grant eligibility, requirements and application instructions. The grant instructions can be found as a pdf in the 'Forms + Resources' box on the main grant page.
