The Minnesota Department of Agriculture (MDA) offers the Cooperative Development Grant (CDG) Program to support farmers in establishing new cooperatives for agricultural product processing or marketing. This competitive grant aims to bolster Minnesota’s agricultural economy by enabling farmers to organize and operate cooperatives focused on processing commodities or marketing agricultural goods and services.

To be eligible, applicants must represent new cooperatives incorporated in Minnesota under statutes 308A or 308B on or after January 1, 2020. Control of the cooperative must reside with actively engaged farmers, family farm partnerships, family farm limited liability companies, or family farm corporations as defined by Minnesota law. Eligible cooperatives must process or market commodities produced primarily in Minnesota by cooperative members or shareholders. Nonpatron voting rights are not permitted under this program.

Eligible projects include initiatives that aid in the development of cooperatives involved in the production, processing, or marketing of Minnesota-grown agricultural commodities, products, or services. Up to $160,000 in funding is available for FY 2025, with individual grants ranging from $2,500 to $50,000. Projects must be completed by June 30, 2026. A matching contribution of at least 50% of the total project cost is required, which can include cash or in-kind contributions.

Applications must be submitted online by February 20, 2025, at 4 p.m. Central Time. Applicants are encouraged to thoroughly review the FY 2025 Request for Proposals (RFP) for detailed program guidelines and requirements. First-time users of the online system must create an account to apply. Upon logging in, users should select “Cooperative Development Grant FY25” to begin the application process.

Resources are available to support applicants, including the University of Minnesota Extension’s Community Development program, Cooperative Development Services, the Agricultural Utilization Research Institute (AURI) Rural Cooperative Development Center, and the Minnesota Farmers Union. Applicants needing alternative formats of the program information or further assistance can contact MDA through the provided channels.

This program provides an opportunity for farmers and farming entities to strengthen their operations and enhance agricultural innovation through cooperative efforts, with the goal of contributing to the state's agricultural sustainability and economic development.