2025 AGRI Value-Added Grant Program

The Minnesota Department of Agriculture (MDA) is offering the Agricultural Growth, Research, and Innovation (AGRI) Value-Added Grant. This grant aims to provide funding for value-added businesses, including bioenergy producers and hemp processors, to invest in essential equipment. The overarching mission is to bolster the sales of Minnesota agricultural products by enhancing production capacity, fostering market diversification, and improving market access for value-added goods. For the purposes of this grant, "value-added" specifically refers to the process of increasing the worth of an agricultural product through processing. This aligns with the broader strategic goal of strengthening Minnesota's agricultural sector and its economic impact. The primary beneficiaries of this grant program are value-added businesses operating within Minnesota, including individuals (such as farmers), businesses, agricultural cooperatives, nonprofits, educational institutions, local government units, and Native American tribal governments. Examples of eligible applicants include fruit and vegetable processors, honey processors, renewable energy producers, soy processors, and consumer packaged goods (CPG) companies. The impact goals are centered on increasing sales of Minnesota-raised livestock products and other agricultural goods, supporting the growth and modernization of processing businesses, and expanding their reach into new markets. The program prioritizes projects that contribute to increased food safety and those that enhance hemp fiber processing capacity. These priorities reflect a strategic focus on critical areas within the agricultural industry that offer both immediate benefits in terms of consumer safety and long-term potential for economic growth and innovation, particularly in emerging sectors like hemp processing. The grant specifically supports investments in equipment and physical improvements that are crucial for processing, capacity building, market diversification, and market access. Expected outcomes and measurable results include an increase in production capacity for value-added agricultural products, greater market diversification, and improved market access, all contributing to higher sales of Minnesota agricultural goods. The grant supports various eligible projects, such as the purchase and installation of production equipment, aquaponics systems, grading and packaging equipment, food safety improvements in processing facilities, and even refrigerated trucks for market access. Approximately $2.5 million is available for both the Value-Added and MPEM programs, with individual equipment awards ranging from a minimum of $1,000 to a maximum of $150,000, although most awards are expected to be $100,000 or less, ensuring a broad distribution of funds to impactful projects.