Benz family member Blake Young wades through clover, alfalfa, and other wild flowers ripe for haying on the Benz Family Farm in Hibbing, Minnesota, in 2021. (Photo by Zack Benz)
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Minnesota to offer grants to support new farmer-owned cooperatives

The Minnesota Department of Agriculture (MDA) has opened applications for its Cooperative Development Grant Program, which provides financial support to new farmer-owned cooperatives working to produce, process, or market Minnesota-grown products and services.

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The Minnesota Department of Agriculture (MDA) is now accepting applications for its Cooperative Development Grant Program, designed to assist new farmer-owned cooperatives in establishing stronger business foundations and expanding their role in the state’s agricultural economy.

The program offers funding to cooperatives developing business plans or strategies to support the production, processing, or marketing of Minnesota-grown goods and services.

“Minnesota has a proud tradition of farmer-owned cooperatives that have anchored rural communities, helping producers pool resources, share risks, and maintain local control in the face of changing market conditions,” said Minnesota Agriculture Commissioner Thom Petersen. “We’re proud to invest in this model so the next generation of farmers can build thriving businesses and keep their communities strong.”

Up to $185,000 in total funding is available through this round of grants. Applicants may request funding between $2,500 and $50,000 per project, with a matching requirement of at least 50% of the total project cost.

Eligible cooperatives must be organized under Minnesota Statutes Chapter 308A or 308B and incorporated on or after January 1, 2016. Approved projects may last up to three years from the date of the contract.

Applications are due by 4 p.m. Central Time on Monday, January 5, 2026. Complete eligibility requirements and application materials can be found on the MDA’s Cooperative Development Grant Program webpage.

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