Dairy Business Planning Grants

The Dairy Business Planning Grant encourages business planning for Minnesota dairy farms and dairy processors.

Grants cover 50% of the cost, up to $5,000, to hire a qualified, independent third party to provide technical assistance services for evaluating the operation, transitional changes, expansions, improvements, and other business modifications.

Amount available

We have approximately $83,000 available each fiscal year (July 1 through June 30).

• You may request a grant amount between $500 and $5,000 per farm or processor.
• You are responsible for the other 50%.

Eligible applicants

To apply:

• You must be the principal operator or prospective operator of a dairy farm or dairy processing business.
• Your farm or business must be in Minnesota and have authorization to farm or conduct business in Minnesota.
• You may only have one open Dairy Business Planning Grant at a time.

Eligible activities

Grant funds may only be used for hiring a professional to provide technical assistance services, such as:

• Evaluating the operation
• Updating feedlot permits
• Legal advice for farm transition
• Developing plans for an expansion
• Assessing improvements and business modifications

The provider must also assist in creating a business plan report for you to submit with your reimbursement request. This report must include the following:

• Executive summary
• Short- and long-term goals and objectives
• Analysis of proposed business changes
• Financial projections on how the business plan will change operations on the farm or processor

Ineligible costs

We recognize there are many types of professional services that are beneficial to dairy farms or processors preparing for the future. We’re using the funds available for this program to focus on activities that result in a specific plan that supports the continuance and enhancement of the dairy farm or dairy processing business.

Ineligible items include, but are not limited to:

• Farm Business Management tuition
• Herd health, nutrition, or crop consulting
• Investment, tax planning, and tax return preparation
• Intergenerational transfer planning that discontinues the dairy enterprise
• Information system development or consulting
• Loan generation, origination documentation, chattel, or real estate appraisal
• Nutrient management planning, except for aspects required in the business plan
• Costs of completing a dairy business planning grant application form
• Expenses that are incurred before a signed contract
• Capital purchases
• Operational expenses

Applying

We review applications in the order we receive them. An MDA review committee will look over your project and determine if it should be funded. We prioritize applications received by May 1 of each fiscal year.

1. Read the full Dairy Business Planning Grant Program Details (PDF).
2. Prepare the information needed for the online application, including:
   • Farm or business summary
   • Goal of business plan
   • Professional services you’ll be using to develop your business plan
   • Quotes (optional)
   • Workplan and timeline
3. Apply online.
   • If you’re a new user, you will need to create an account.
   • Once you’re logged in, select, “Dairy Business Planning Grant.”
4. An MDA review committee will look over your project and decide if it should be funded.

Contact us if you need this information in an alternative format.

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