Soil Health Financial Assistance Program 2026

The Minnesota Department of Agriculture (MDA) is accepting applications for the Fiscal Year 2026 Soil Health Financial Assistance Program. This initiative, established under Minnesota Statute 17.134, was created in 2022 to support the implementation of healthy soil management practices. The program is managed by MDA’s Pesticide and Fertilizer Management Division and is intended to facilitate the adoption of sustainable agricultural practices by reimbursing costs for purchasing and retrofitting equipment that advances soil health. The funding for this program is sourced from three streams: $639,000 from the Minnesota General Fund, $1,750,000 from the Clean Water Fund, and $1,974,286 from the Minnesota Climate Smart Food Systems Initiative. The Soil Health Financial Assistance Program specifically supports practices that minimize soil disturbance, keep the soil covered, maintain living roots, diversify crops, and integrate livestock. Eligible applicants may request reimbursement for up to 50% of project costs, with grant awards ranging from a minimum of $500 to a maximum of $45,000. The grant operates on a reimbursement basis, meaning that grantees must first incur and document expenses before receiving funds. All purchases and retrofits must occur within the grant period, which is anticipated to begin in January or February 2026 and last for one year. Ineligible expenses include labor, tools, general equipment, pesticide or fertilizer application tools, and purchases made prior to contract execution. Applications must be submitted through the MDA’s online application system by 4:00 p.m. Central Time on August 29, 2025. Applicants are encouraged to submit early to ensure enough time for troubleshooting or technical assistance. Questions about the grant must be submitted by 4:00 p.m. on August 22, 2025, via email to Jessica Jurcek (jessica.jurcek@state.mn.us) or Brad Jordahl-Redlin (brad.jordahlredlin@state.mn.us). Only written inquiries are accepted, and MDA staff cannot provide advice on individual applications. Eligible applicants include individuals or entities that own or lease farmland in Minnesota, as well as local government units such as cities, counties, soil and water conservation districts, Tribal Nations, and joint powers boards. Applicants must be in good standing with the state, be authorized to do business in Minnesota, and not have any state or federal debarments or financial defaults. Leased land must be documented with a signed lease agreement and confirmation that the lease extends beyond the project end date. Only one application per applicant is permitted, although collaborative applications are allowed if a lead entity is designated. Applications will be scored based on a defined Project Evaluation Profile. Key evaluation criteria include the degree to which the proposed equipment supports soil health goals, the applicant's status as a beginning farmer, geographic diversity, previous funding history, and participation in the Minnesota Agricultural Water Quality Certification Program (MAWQCP). Bonus points are available for applicants operating in Highly Vulnerable Drinking Water Supply Management Areas. Additional considerations include cost efficiency, project readiness, and budget justification. Applicants must also undergo an organizational capacity assessment prior to grant execution. If selected, they must register as a vendor in SWIFT, the state’s accounting system, and sign a grant contract within 30 days of notification. The grant prohibits selling purchased equipment for a 10-year period unless approved by the Commissioner under special circumstances. Monitoring and site visits are mandatory for awards of $25,000 or more and for purchases from private sellers. All grantees are required to submit both financial and project impact documentation to receive full reimbursement, which is paid out in two installments—90% upon initial proof of payment and 10% after final reporting.