Farming is an expensive business to enter. This Minnesota program helps farmers get started
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It can be prohibitively expensive for new farmers to get their start in agriculture. According to the 2022 National Young Farmer Survey, access to land is the biggest barrier young farmers face.
To help, the Minnesota Department of Agriculture launched the Down Payment Assistance Grant in 2023. Starting Monday, July 6, first-time farm buyers will be able to apply for up to $20,000 to go toward the purchase of a new farm.
Minnesota Department of Agriculture Program Manager Jenny Heck said that money can account for about 5 percent of a farm’s purchase price.
“Folks say that it allowed them some breathing room; right after they buy [a farm], they didn't use up all their savings just to make the down payment,” said Heck. “They were able to move forward with other projects to get their farm up and running successfully.”
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The grants are awarded through a lottery system, which has enabled farmers across the state to access the funds. Heck said the program has helped 130 farmers make purchases since it began.
Not only can farmers get their start through the program, but once they make their purchases, Heck said many choose to invest in conservation practices they couldn’t use when they rented their land.
“Now that they own property, they're willing to plant perennial crops or invest in soil health, and these things that are so important to farming sustainably and for future generations,” said Heck.
Minnesota farmers are eligible if they or their spouse haven’t bought or owned farmland before. Their past farm sales must be under $250,000 per year, and they must demonstrate knowledge of the type of farming they intend to practice, among other requirements.
Farmers will be prioritized if they earn less than $100,000 annually in gross agricultural sales or produce industrial hemp, cannabis and/or specialty crops recognized by the USDA. Applications close on Aug. 31.
This marks the fifth round of grants awarded by the Minnesota Department of Agriculture through the program. Heck, who checks in with farmers annually for five years after they’ve been awarded a grant, said she hopes the program continues to help more farmers as it grows.
“You often hear that the number of farmers is declining or the average age of the farmer is going up,” said Heck. “But we know that there are people out there who want to get their foot in the door. It's just that they need a little support to make that happen.”
