MINNEAPOLIMEDIA NEWS | Minnesota Opens $5 Million Soil-Health Equipment Grant Program

ST. PAUL, MN (August 2, 2026). Minnesota will open applications Monday for a $5 million grant program designed to help farmers and local governments purchase equipment that establishes, improves or accelerates soil-health practices.

Applications for the fiscal year 2027 Soil Health Financial Assistance Program will be accepted from August 3 through August 31.

Competitive grants will range from $500 to $45,000 and may cover up to 50 percent of an eligible project’s cost.

Individual agricultural producers, producer groups and local government units may apply. Eligible government applicants include cities, townships, counties, soil and water conservation districts, Tribal nations and joint powers boards.

Local government units receiving equipment grants must make the purchased equipment available for public use.

The reimbursement program covers new or used equipment and certain parts or materials needed to retrofit existing machinery.

Examples identified by the Minnesota Department of Agriculture include no-till drills, air seeders and agricultural drones used to seed cover crops. Applicants may propose other equipment if they explain how it will improve soil health on their operation.

Beginning farmers will receive priority points during the application review. Priority will also be given to applicants who have not previously received a grant through the program.

Operations certified through the Minnesota Agricultural Water Quality Certification Program, or actively working toward certification, may receive additional consideration.

Applications must identify the proposed equipment, its cost, the number of acres on which it will be used and how the purchase would advance soil health.

The department cautioned applicants not to purchase equipment before receiving an award and signing a grant agreement. Purchases, orders or agreements completed before the contract’s effective date will not qualify for reimbursement.

Labor, equipment shipping costs and purchases from family members are not eligible expenses.

Applicants must be owners or lessees of Minnesota farmland unless they are applying as an eligible local government unit.

Applications submitted at the beginning of the application period will not receive an advantage over those submitted later. All applications received by the deadline will be evaluated after the application window closes.

Grant recipients are expected to be announced by January 1, 2027. Awarded contracts will remain active for 12 months.

The program is supported by Minnesota’s Clean Water Fund and General Fund, with additional federal investment leveraged by the state funding.

Application instructions and detailed eligibility requirements are available through the Minnesota Department of Agriculture.

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