Agricultural Growth, Research, and Innovation Value-Added Grant

The Minnesota Department of Agriculture administers the Agricultural Growth, Research, and Innovation Value-Added Grant, a state-funded program authorized under Minnesota Statutes 41A.12. The AGRI program was established to advance Minnesota's agricultural and renewable energy industries, and the primary goal of the Value-Added Grant is to increase sales of Minnesota agricultural products. For this program, value-added means adding value to an agricultural product through processing. The grant supports value-added businesses, including bioenergy producers and hemp processors, by investing in production capacity, market diversification, and market access. The Value-Added Grant and the AGRI Meat, Poultry, Egg, and Milk Grant are administered as a single program with two application tracks. Approximately $2.25 million is available between the Value-Added and Meat, Poultry, Egg, and Milk programs, with an expected 30 to 50 grants awarded through a competitive process. Value-Added Grant awards range from $1,000 to $150,000, although the department states that very few, if any, applicants should expect awards above $100,000. This is a reimbursement grant. For the first $50,000 in project costs, the applicant is responsible for 50 percent and may receive reimbursement of up to $25,000. For costs after the first $50,000, the applicant is responsible for 75 percent of the remaining cost and the grant reimburses 25 percent, up to the $150,000 maximum award. Match may include cash, loans, other grants, and liquid capital assets dedicated to the project. State grant funds cannot be used as match, although non-forgivable state loans may be used. Eligible applicants must intend to engage, or already be engaged, in processing Minnesota agricultural products; be located or reside in Minnesota and authorized to conduct business in Minnesota; and satisfy the pre-award risk assessment requirements. Eligible applicants include individuals, including farmers, businesses, agricultural cooperatives, nonprofits, educational institutions, local units of government, and Native American Tribal governments. Projects must be conducted in Minnesota and must aim to increase sales of Minnesota agricultural products through increased production capacity, market diversification, or increased market access for value-added products. Eligible costs include equipment purchases and installation, grading and packaging equipment, traceability equipment, certain food-safety facility improvements, refrigeration, contractor installation costs, refrigerated trucks used to access new markets, qualifying renewable energy equipment, biofuel process-efficiency equipment, and other specified value-added processing equipment. Ineligible costs include pre-contract expenses, cash-paid expenses, wages and benefits, land purchases, beginning inventory and working capital, consumables, general overhead, advertising, fundraising, most taxes, lobbying, finance charges, and out-of-state travel. Applications were required through MDA's online application system by 4 p.m. Central Time on June 17, 2026. Applicants were instructed to create an account if they were new users, log in, select FY26 AGRI Value-Added Grant, complete the application, and confirm receipt of the submission confirmation email. Applications had to be complete, and unsolicited materials were not considered. Application content includes applicant and authorized-representative information, eligibility certifications and attestations, previous Minnesota state grant history, project cost and grant request information, a public project description, organization and organizational-capacity summaries, licensing information, a business-plan summary, Minnesota agricultural impact information, market outlets and market expansion, priority-area responses, measurable outcomes, a workplan and timeline, and a detailed budget narrative. A full business plan is required for requests of $100,000 or more. Quotes or estimates are strongly encouraged, particularly for equipment or work over $10,000. Eligible applications are evaluated competitively by MDA staff and external reviewers. Applications must first address the goals of the AGRI Value-Added Grant. Scored criteria total 100 points: business readiness, financial sustainability, and experience are worth 25 points; impact on Minnesota agriculture is worth 25; priority areas are worth 15; measurable outcomes are worth 10; project plan, workplan, and timeline are worth 10; and budget narrative and match are worth 15. Priority points address projects that increase food safety or increase hemp fiber processing capacity. Reviewers and staff recommend whole or partial funding to the commissioner of agriculture, who makes award decisions. Geographic distribution, prior performance as a state grantee, regulatory compliance, and capacity to perform the proposed work may also be considered. Applicants advanced from the first phase undergo a pre-award risk assessment, with documentation requirements varying by applicant type and contemplated award amount. Grant program questions were due in writing by 4 p.m. Central Time on June 10, 2026, through MDA.AGRIGrants@state.mn.us with "Value-Added Grant" in the subject line. Online application assistance was available at 651-201-6500 or the same email address. Phase one review was scheduled for June 2026, followed by phase two pre-award risk assessments in August 2026 and applicant notification in September 2026. Projects were expected to begin in October or November 2026 after the grant agreement was fully executed. Projects must be completed in three years or less, with November 2029 identified as the latest possible project end date. Grantees cannot incur eligible project expenses until the contract is fully executed, effective, and MDA has notified them that work may begin. Annual progress reports are expected in fall 2027 through 2029, and a final report is required before final payment.

Apply early and preferably at least 24 hours before the deadline; use plain and easily understood language; answer all questions completely within character limits; keep the proposal focused on one or two clear objectives; make the budget realistic and consistent throughout the application; clearly explain how grant funds will be spent; base budget estimates on vendor quotes and market research; review the Project Evaluation Profile before submission; explain how success will be measured; clearly demonstrate business readiness, Minnesota agricultural impact, measurable outcomes, a realistic workplan, and the required match