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The Minnesota Department of Agriculture is currently accepting applications for its Cooperative Development Grant Program (CDG). The CDP offers eligible applicants grant awards to help finance new cooperatives that organize for purposes of operating an agricultural product processing facility or marketing an agricultural product or agricultural service. Applications are due by 4 p.m. Central Time on February 20, 2025.

The eligibility criteria for the CDG include:

  • Being a new cooperative organized under Minn. Stat. 308A or 308B, incorporated on or after January 1, 2020.
  • The cooperative must be controlled by farmers, family farm partnerships, family farm limited liability companies, or family farm corporations who are actively engaged in agricultural commodity production.
  • The cooperative must be operated primarily to process agricultural commodities or market agricultural products or services produced in Minnesota.
  • The cooperative must receive or intend to receive agricultural commodities produced primarily by shareholders or members of the cooperative.

Eligible projects include:

  • Feasibility studies.
  • Market analysis.
  • Assistance with organizational documents (including updating articles and bylaws).
  • Financing and managing new cooperatives.
  • Product development.
  • Development of business and marketing plans.
  • Site development related activities.
  • Co-op education.

Projects must be completed by June 30, 2026. Applicants can request between $2,500 and $50,000 for an individual project. There is a matching requirement of at least 50% of the project costs, which can be in the form of cash, in-kind contributions or both.

More information can be found here.

Fredrikson’s Cooperatives Group has significant experience forming agricultural cooperatives and can assist with the CDG application process. Please contact Levi Smith for additional information or assistance.

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