Cooperative Development Grant Program

The Cooperative Development Grant Program is administered by the Minnesota Department of Agriculture (MDA) to support the creation and expansion of farmer-owned cooperatives. This program focuses on facilitating the development of cooperatives engaged in the production, processing, or marketing of agricultural commodities, products, or services within Minnesota. It aims to enhance the agricultural economy by promoting farmer-controlled initiatives that process and market local agricultural outputs. To be eligible, applicants must be new cooperatives incorporated under Minnesota Statutes 308A or 308B on or after January 1, 2016. They must demonstrate that all control resides with Minnesota farmers or their qualified family farming entities, as defined in statute. The cooperative must be primarily operated to process agricultural commodities or market agricultural products or services produced in Minnesota. Additionally, they must receive or plan to receive inputs from members of the cooperative and may not allow nonpatron voting rights, ensuring democratic member control. The program provides up to $185,000 in total funding, with individual awards ranging from $2,500 to $50,000. Each applicant must contribute a match equal to at least 50% of the total project cost. This match can be met with cash, in-kind contributions, or a combination of both. All projects must be completed within three years of the grant agreement. Funding is intended to support eligible costs related to cooperative formation and early development stages. Applications must be submitted through the MDA's online portal, with a submission deadline of 4 p.m. Central Time on January 5, 2026. First-time applicants are required to create an account before accessing the application form titled “Cooperative Development Grant FY26.” Questions about the application process must be submitted in writing by December 29, 2025, via email with the grant program name in the subject line. MDA staff are restricted from offering individualized advice to maintain fairness. Applicants are advised to thoroughly review the official Request for Proposals (RFP) document to understand eligibility, documentation requirements, and evaluation criteria. Support may also be available through partner organizations such as Cooperative Development Services, AURI’s Rural Cooperative Development Center, and the Minnesota Farmers Union. The application does not require pre-proposals or concept papers, but adherence to all formal steps and deadlines is critical to eligibility. Primary contacts for the grant include Jenny Lezer from Ag Marketing & Development at 651-201-6133 or Jenny.Lezer@state.mn.us, and the general grants line at 651-201-6500. The grant operates on a recurring basis, with an annual cycle implied. Applications are reviewed competitively, and all awarded projects are expected to be completed within the defined three-year term of the grant agreement.

Ensure eligibility by verifying cooperative incorporation date and ownership control; avoid seeking staff guidance, as it may disqualify your application.