Electric Farm Equipment Grant

The Electric Farm Equipment Grant is administered by the Minnesota Department of Agriculture (MDA), a state agency responsible for supporting agricultural productivity, environmental stewardship, and rural economic development across Minnesota. This grant program is funded through a federal Climate Pollution Reduction Grant authorized under the Inflation Reduction Act and distributed through the Environmental Protection Agency to the Minnesota Pollution Control Agency, which then allocates funds to MDA. The program reflects a coordinated federal and state effort to reduce greenhouse gas emissions and improve air quality, particularly by targeting diesel-powered agricultural equipment. The primary purpose of this grant is to support the adoption of electric farm equipment in place of fossil fuel-powered machinery. The program aims to reduce emissions, especially diesel exhaust, by incentivizing farmers and agricultural organizations to transition to cleaner technologies. Priority is given to projects that replace existing gasoline or diesel equipment, demonstrate high usage frequency, and support beginning farmers. The program also emphasizes equitable distribution of funds and encourages applications that benefit underserved or disproportionately impacted communities, including Native American Tribal communities. Funding is available through a competitive review process, with approximately $6.6 million expected to be awarded across more than 90 grants. Individual awards range from a minimum of $1,500 to a maximum of $150,000. The grant operates as a reimbursement program, meaning recipients must pay upfront for project costs and then submit documentation for reimbursement of up to 75 percent of eligible expenses. A required cash match of at least 25 percent must be provided by the applicant, and in-kind contributions are not permitted. Eligible expenses include the purchase of electric farm equipment and associated infrastructure needed for charging, such as electrical upgrades or installation. Eligible applicants include principal operators of farms, authorized farm business entities, and organizations that train or support farmers within Minnesota. This includes individuals, for-profit businesses, nonprofits, municipalities, and Tribal governments. Applicants must meet pre-award risk assessment requirements and comply with state and federal regulations. Projects must involve the purchase of new electric equipment used for agricultural production, harvesting, or processing, and must not begin until a fully executed grant contract is in place. All projects must be completed by June 30, 2028. Applications must be submitted through the MDA online application system. Applicants are required to create an account, complete all required fields, and submit supporting documentation such as cost estimates and financial capacity evidence. The application includes detailed questions about the proposed equipment, expected usage, project impact, and replacement of fossil fuel equipment. Additional documentation may be required during the pre-award risk assessment phase, particularly for larger funding requests. Only one application per entity is allowed, and incomplete or late submissions are not accepted. The evaluation process consists of two phases. The first phase involves scoring applications based on criteria such as justification for equipment, agricultural use, expected frequency of use, impact on operations, and support for beginning farmers. The second phase includes a pre-award risk assessment to evaluate the applicant’s financial and operational capacity. Final award decisions are made by the commissioner of agriculture. Applicants are notified in October, with contracts expected to begin in January of the following year. The application period opens on May 20, 2026, with a deadline to submit questions by July 24, 2026, and final applications due by August 11, 2026 at 4 p.m. Central Time. The review process occurs from August through September, with award notifications in October. Projects are expected to start January 1, 2027 and conclude by June 30, 2028. This program is recurring as part of ongoing climate funding initiatives, although future cycles depend on continued federal funding availability.

Prioritize replacing diesel equipment, demonstrate high usage frequency, clearly justify impact on farm efficiency, and show strong financial readiness for reimbursement model