AGRI Livestock Investment Grant

Minnesota Department of Agriculture (MDA)


Grant amount: Up to US $25,000

Anticipated deadline: Dec 15, 2018

Applicant type: Working Professional For-Profit Business College / University Nonprofit

Funding uses: Applied Project / Program

Location of project: Minnesota

Location of residency: Minnesota

View website    Save Need help writing this grant?

Overview:

AGRI Livestock Investment Grant

The Livestock Investment Grant was first funded by the Minnesota Legislature in 2008. Since then, 572 grant recipients have invested an estimated $193 million in improvements to their operations.

Minnesota Agriculture Commissioner Dave Frederickson says these grants will allow eligible livestock producers to support their industry and help them stay competitive. 

“The Livestock Investment Grant Program helps encourage long-term development in Minnesota’s $7 billion livestock sector,” said Frederickson. “These grants have enabled livestock farmers to pay for new buildings or make renovations. In some cases, the recipients used the grants for modernizations and improvements that would help expedite the farm transition process to their sons or daughters.”

It is a grant to a person or entity who raises livestock in Minnesota for the purposes of improving or expanding livestock production in Minnesota. It will award 10% of a project’s cost with a minimum expense of $4,000 and a maximum expense of $500,000.

Eligible Expenses

Qualifying expenditures include the purchase, construction, or improvement of buildings or facilities for the production of livestock, and the purchase of fencing as well as feeding and waste management equipment. Producers who suffered a loss due to a natural disaster or unintended consequence may also apply. The grant will not pay for livestock or land purchases or for the cost of debt refinancing.

Minnesota livestock producers who applied for but did not receive a grant in past years are still eligible as long as they haven't reached the lifetime cap of $50,000. The maximum available per year is $25,000.  

The 2018 Livestock Investment Grants will fund expenses incurred between January 1, 2018 and June 30, 2019. $2 million is available for the program operations and grants.

What does the grant cover?

  • The acquisition, construction, or improvement of buildings or facilities for the production of livestock or livestock products (animal comfort, decreasing temperature/humidity). 
  • The acquisition of equipment for livestock housing, confinement, feeding, and waste management. 
  • The development of pasture for use by livestock.

Except for qualifying pasture development expenditures, qualifying expenditures only include amounts that are allowed to be capitalized and deducted under either section 167 or 179 of the Internal Revenue Code in computing federal taxable income. IRC 167 and 179 describe what property can be depreciated and what methods of depreciation are allowed under tax law.

You can learn more about this opportunity by visiting the funder's website.

Eligibility:

  • Who's Eligible:
    • A Minnesota livestock farmer meeting these criteria:
      • in good standing with the state of Minnesota (no back taxes)
      • current Minnesota resident or entity authorized to farm in Minnesota, and
      • principal operator of the farm (actively involved in the operation of the farm).
  • All livestock species are eligible for the investment grant. 
  • Do I need to have 25% of my gross income from agriculture? 
    • Yes. This will ensure the program will benefit those actively engaged in agriculture.

Preferences:

  • Which areas of the Evaluation Profile (here) receive priority consideration? 
    • Those that help facilitate entry or transition of the operation to the next generation. 
    • Those with fewer years farming.
    • Those that clearly have a positive impact on the environment.

Ineligibility:

  • Ineligible Expenses:
    • Purchase of land, animals, and feed as well as refinancing debt.