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Minnesota farmers’ next chance for help buying their first farm has arrived, with the return of the Minnesota Department of Agriculture’s (MDA) Down Payment Assistance Grant program.

The Down Payment Assistance Grant offers eligible farmers up to $20,000 to help buy their first farm, up from $15,000 in past years to reflect increasing land prices. The Minnesota Legislature boosted funding for the program to $1.25 million this year, up from $1 million last year.

Applications are open now through September 15, 2025 for the fourth round of funding. To date, the program has helped 112 farmers buy their first farms, with $1,677,500 in total awards made.

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.

The MDA will award grants using a random lottery process, with priority given to eligible applicants who:

• Have earned no more than $100,000 in annual gross farm product sales, or;
• Are producers of industrial hemp, cannabis, or specialty crops.

The MDA will notify applicants of award decisions in late September.

Farm purchases from direct family (e.g. parents, grandparents, or siblings) are not allowed. Purchases from extended family (e.g. aunt/uncle, cousins) will be allowed.

Farm purchases must take place after approval of the application. The MDA cannot award grants for purchases that have already taken place.

Awardees have six months from the award notification to close on land purchases. The MDA will consider a deadline extension if the awardee can provide a signed purchase agreement or written commitment from an approved technical assistance provider stating that the applicant is looking for land and financially prepared to buy.

The MDA is hosting an informational webinar for prospective applicants. Additional webinar recordings and other resources focused on different topics related to the farm-buying process are also available on our webpage.

Down Payment Assistance Grant – Informational Webinar

• Monday, August 18, 11 a.m. - 12 p.m.
• Register now through Zoom

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Media Contact
Larry Schumacher, MDA Communications
651-201-6629
Larry.Schumacher@state.mn.us