AGRI Meat, Poultry, Egg, and Milk Processing Grant Q&A

Here are some common questions about the AGRI Meat, Poultry, Egg, and Milk Processing Grant. If you have questions that are not addressed here, please email them to MDA.AGRIGrants@state.mn.us with "AGRI Meat, Poultry, Egg, and Milk Processing Grant" in the subject line. We will post all questions and answers on this page as we receive them.

Organizational Eligibility
Project Eligibility
Match
Application Process
Other Questions

Organizational Eligibility

Q: We own a facility in Minnesota which is part of a company based in another state. Are we eligible to apply?
- A: The applicant must reside in Minnesota and be authorized to conduct business in Minnesota.
Q: Our company is growing and working on increasing processing capacity. If a piece of equipment we plan to obtain helps to build capacity, would our company be competitive for this grant?
- A: Your company is eligible to to apply for this grant.
Q: Is this grant intended for smaller processing businesses?
- A: We welcome all applications from both large and small livestock processing businesses.
Q: We were previously part of a business that received a Value-Added Grant several years ago and another one a couple years later. We will have exited that business and we are starting a new business. Are we eligible for this new grant program?
- A: Your new business is eligible for this grant program regardless of your previous business venture. There is no cap on the number of times or the amount of funds that a business or an individual can receive. In the interest of transparency for the grant reviewers, you may want to disclose your previous business’s grants.

Project Eligibility

Q: What are ineligible expenses for this grant?
- A: Ineligible expenses include land and building purchases, crop or livestock production equipment, expenses prior to the contract execution, and beginning inventory costs. Refer to the Request for Proposals for a comprehensive list of ineligible expenses.
Q: I’m currently remodeling the building we were processing in. But I can’t order or contract any equipment until at least January if I receive a grant correct? Can I lease equipment now and the buy it if I receive grant?
- A: Purchases made prior to the contract being signed are not eligible, so be sure to exclude prior purchases in the application. With that said, submit the information for the equipment you plan to lease and later buy if awarded the grant. The equipment would need to be purchased after the grant contract is signed by all parties which will be sometime in early 2022. Also be aware that the grant will not be able to reimburse for any leasing expenses.
Q: We purchase milk from Minnesota as well as surrounding states. How should we address this in the application?
- A: Answer the question carefully and truthfully when you are asked about project impact on Minnesota agriculture. For example, explain how the project will increase sales of Minnesota livestock products and identify the sources of Minnesota products.
Q: I would like to purchase scales for my meat processing facility. Can I get a grant to help with this cost?
- A: Yes. The grant can help with any grading, packing, labeling, packaging, or sorting equipment.
Q: As we’re working to expand sales of our MN grown and processed pork, we struggle in coordinating with local customers on order pickup timing. We also have a local farm that has started direct marketing. I’ve been visiting with a temperature-controlled retail locker company and see a self-service kiosk as a way to gain local sales. As I’m thinking about improving market diversification and access, would this type of project fit the intent of this grant?
- A: Provided that you intend to or currently process the meat and the new equipment improves market diversification and access, it would be eligible for the AGRI Meat, Poultry, Egg, and Milk Processing Grant.
Q: We plan to make several upgrades to our milk processing plant. Should we apply as one big project or send in several applications?
- A: You will only be able to receive one Meat, Poultry, Egg, and Milk Processing Grant at a time, but more than one application with different project ideas can be submitted. In other words, the application can be sent in as one big application or as more than one application for each project idea.
Q: Part of the project we will be doing involves building the cooler box, but my husband used to do construction so we will not be submitting any costs for labor since he will do it himself. Is that allowed?
- A: The supplies for building the cooler box would be eligible for reimbursement, but not the value of the in-kind labor provided by your husband. Make it clear in the application that you will not be submitting any costs for the in-kind labor.
Q: We will be requesting grant monies for building a cooler and purchasing equipment to process big animals. We will be building our own cooler box and have already purchased the rafters (no other building materials have been purchased). If we just exclude the rafters from the plan can we submit the plan for all the other pieces of the cooler box or is it ineligible since we purchased one piece?
- A: Purchases made prior to the contract being signed are not eligible, so be sure to exclude the rafters and other prior purchases from the plan. With that said, submit the information for all the other pieces of the cooler.
Q: If we obtained the grant for processing equipment, can we go with used equipment or can it only be new equipment?
- A: Either used or new equipment may be purchased. The equipment would need to be purchased after the grant contract is signed by all parties which will be sometime in early 2022.
Q: I'm confirming that this grant can be used by poultry and rabbit farmers who are doing on-farm processing of their poultry and rabbits - that then can be sold at farmers' markets (and from their farm) without a license (PL 90-492).
- A: As long as poultry and rabbit farmers are compliant with state policies for on-farm processing, they are eligible and welcome to apply for the AGRI Meat, Poultry, Egg, and Milk Processing Grant. Read more about Poultry and Rabbit Processing.
Q: For our abattoir that is located on the farm, we borrow a skid loader to move the guts, hide, bones, etc. We also need it to clean the holding pens and if we are to be open in the winter, we will need it to move snow. If we are to go to daily slaughter, we would need one everyday. Would a purchase of a skid loader be an eligible expense?
- A: The skid loader would be an eligible expense provided it will allow you to expand and slaughter daily. The best program would be the new AGRI Meat, Poultry, Egg and Milk Processing Grant due to the more advantageous matching requirements compared to the AGRI Value-Added Grant. Note that the AGRI Value-Added Grant will be offered again in January, but meat, poultry, egg and milk processors are strongly encouraged to apply for this new grant program instead of the traditional AGRI Value-Added Grant.
- Another thing to keep in mind is that purchases cannot be made until a grant contract is signed by all parties which will be sometime in early 2022 and may not work with your timeline if you need it by winter to move snow.
Q: We are constructing a new meat processing facility. Ground has been broken, and we hope to have the space complete this winter. Since we’ve already begun most of the work for this project, we realize the facility itself is not an eligible project. However, certain components (such as a generator) haven’t been ordered yet, so the project we will be using on our application would be something like ‘Purchase and Installation of Generator for Meat Processing Facility.” My question is, when we complete the application, should we include information about the facility as a whole in addition to the generator project in terms of expected start/end date and total project cost?
- A: The project start date would be when you anticipate getting the generator. Project costs would also reflect the generator and related project expenses. The generator, contractor costs, and materials for the installation of the approved equipment would be eligible for reimbursement if the expenses are incurred after contract execution. As you are aware, expenses incurred prior to the contract execution will not be eligible. Contract execution is anticipated to be in early 2022. Also, please share information about the entire meat processing facility.
Q: I raise livestock, have it slaughtered and further processed at a facility, and then deliver it. Will I be eligible to apply for this grant?
- A: If you plan to establish a slaughtering facility to slaughter and further process the livestock in-house, then yes, you are eligible to apply for this grant. The AGRI Livestock Investment Grant may be a better fit if you do not process meat and poultry.
Q: We are also looking at installing a certified kitchen so any assistance would be greatly appreciated.
- A: While a certified kitchen would not be a fit for the AGRI Meat, Poultry, Egg, and Milk Processing Grant, we encourage you to consider the AGRI Value-Added Grant for this project; it's expected to open in January 2022.
Q: When the application says that the project cannot be started until the grant is signed (if awarded), does that mean the WHOLE project? Can I still apply for the grant knowing that I’m anticipating breaking ground in fall, but I won’t be purchasing the equipment until next spring?
- A: You may apply for purchasing equipment if you are willing to wait until you have been notified whether you have been awarded the grant to purchase the equipment.
Q: I have a mobile slaughter set-up. Will this grant only cover the kill floor, or would it also apply to the building as well?
- A: The grant will cover kill floor equipment. It cannot be used to outright pay for a building but can be used to make physical improvements (electrical work, plumbing, cooling components, etc.) to a building to enable the kill floor to be used appropriately.
Q: Are alcohol related projects eligible for this grant?
- A: Yes, alcohol related projects are eligible, assuming they process meat, poultry, eggs, or milk.
Q: Would a knocking pen and holding pen be eligible for this grant?
- A: Yes, a knocking pen and holding pen would be eligible for this grant since they would increase production capacity and increase market access for livestock products.

Match

Q: What are the accepted forms of cash matches?
- A: Matching funds can be in the form of cash, loans, other grants, or liquid capital assets dedicated to the project. However, other state funds cannot be used for the matching funds. In-kind contributions are not allowed either.
Q: The match seems confusing. Can this be clarified?
- A: This is a reimbursement grant. You must provide documentation for the total cost of the project to receive the awarded reimbursement amount. You are responsible for at least 50% of the total cost to receive the first $25,000 and 75% of the total cost for every dollar after as a cash match (no in-kind matches).

Example 1: A piece of equipment and installation costs $50,000. The applicant may apply for up to $25,000, and they are responsible for the other $25,000.

Project Cost	Applicant Cost	Grant Reimbursement
$50,000	$25,000	$25,000

Example 2: A grantee is working on a project that is expected to cost $400,000. The first $50,000 of expenses will be reimbursed $25,000. After that, the grantee would be eligible for $87,500 from the state and would have to contribute the remaining $262,500. In total, the grantee would be eligible for $112,500 from the state and would be responsible for the other $287,500.

Project Cost	Applicant Cost	Grant Reimbursement
First $50,000	$25,000	$25,000
Remaining $350,000	$262,500	$87,500
Total Cost: $400,000	$287,500	$112,500

Q: We saw in the Request for Proposals that this grant has a maximum award of $150,000 and most will be funded under $100,000. We would be requesting up to $80,000. If the grant was partially funded, would the remainder be considered for an AGRI Value-Added Grant this spring?
- A: Yes, you would have the opportunity to apply for the remaining $70,000 as a part of the AGRI Value-Added Grant. The traditional matching requirements will apply for any funds awarded under that grant program.

Application Process

Q: I will be purchasing a meat locker this fall, after the grant application deadline. Would I still qualify for this grant if I apply?
- A: Processors seeking to start up, modernize, or expand their businesses are eligible to apply for this grant. Therefore with your plans to buy the locker, the grant could be used towards equipment purchased for the operation. Wait until you have been notified whether you have been awarded the grant before purchasing any equipment you would like to receive grant funding for.
Q: In the eligibility section under MDA Employee or Spouse the statement reads: “No one involved in the project or the application for the grant is an employee or spouse of an employee of the MDA.” Then the options to answer are “Yes” or “No.” If the statement is true and no one is an employee of the MDA should we answer “Yes” for True or would we answer “No” since no one is under the MDA?
- A: You would answer “Yes” as in it is true that no one involved in the project or the application for the grant is an employee or spouse of an employee of the MDA.
Q: How accurate does the budget need to be? If we obtain quotes/estimates while putting together our budget for the grant, can those be used when we actually purchase equipment or do we have to go through the quotes process again?
- A: The more detailed the budget is the better. The budget that is included in the application will be the basis of the budget in the contract, if a contract is awarded. Depending on the equipment, vendor, and other factors, the quotes may still be good to purchase equipment, and updated quotes may be necessary in some cases.
- Also be aware that if specific contractors are named in the application, grantees will not need to undergo a formal bidding process. This can save you time and effort later, as stated in the application. Quotes or estimates from businesses for equipment, installation, and shipping costs will help show the grant reviewers your project costs. If you have a specific supplier in mind, include their business name along with the equipment quote as part of your application and a formal bidding process will not be necessary.

Organizational Eligibility

Project Eligibility

Match

Application Process

Other Questions

Eric Nooker