Buying your first farm is an exciting milestone, but it's no secret that rising land prices and tight capital can make that dream harder to reach. That’s why AgQuest Financial is sharing the return of a valuable opportunity for new producers: the Minnesota Department of Agriculture’s (MDA) Down Payment Assistance Grant, now open for applications through September 15, 2025.
This year’s program offers up to $20,000 in grant funds for eligible applicants—an increase from previous years, to help with the down payment on a first-time farm purchase. With funding boosted to $1.25 million by the Minnesota Legislature, the program is expected to help even more producers take that first big step into farm ownership.
Who’s Eligible?
To qualify, applicants must:
- Have earned no more than $100,000 in annual gross farm product sales
- Provide a minimum of $8,000 in matching funds from a loan, cash, or other financing
- Purchase land after receiving the award (pre-purchased properties do not qualify)
- Avoid buying directly from parents, siblings, or grandparents (extended family sales are permitted)
Preference is given to applicants who:
- Earn less than $100,000 annually
- Produce industrial hemp, cannabis, or specialty crops
Grants are awarded via a random lottery, and awardees will be notified in late September. Once selected, recipients have six months to close on a farm purchase, with possible deadline extensions available if a purchase agreement or technical assistance support is secured.
How AgQuest Can Help
At AgQuest Financial, we believe the next generation of farmers deserves strong support and solid guidance. Programs like the Minnesota first-time farm buyer grant can offer a crucial leg up, but navigating the financial side of land purchases still takes planning. That’s where our team comes in.
We’ll work with you to:
- Determine how the grant can complement your financing strategy
- Help you secure matching funds through loans
- Ensure your financing aligns with both grant requirements and long-term success
With the application deadline approaching and funds limited, now’s the time to take action. If you’re planning to buy your first farm, talk to an AgQuest Relationship Manager today to learn how we can support your journey from application to closing day.