MDA unveils latest recipients of clean-water crops grants

Gloved hands hold a bag of winter camelina seeds. They are being poured into an unidentifiable, large, green piece of machinery.

Market development grants allow entrepreneurs to focus on developing new products made with clean-water crops. (Photo by Dodd Demas for FMR)

Numerous Minnesota businesses, cooperatives and nonprofts are getting an important financial boost as they work to bring clean-water crops such as Kernza and elderberries to stores.

The Minnesota Department of Agriculture (MDA) has announced recipients of the first three rounds of clean-water crops market development grants.

The goal of the grants (which River Guardians helped FMR successfully advocate for) is to more quickly strengthen what are called "value chain" organizations — the businesses and groups that are essential for getting a crop from a farm to a store shelf. That can include seed processors or food manufacturers, for example. Financial support during these early stages allows entrepreneurs to innovate and focus on making better products, in turn leading to more consumer demand, more acres of clean-water crops planted in Minnesota and, ultimately, a much healthier Mississippi River.

For example: So far, we've seen a farmer build a bespoke winter camelina cleaning unit, a family-owned Minnesota nursery propagate 10,000 hazelnut shrubs, and a fast-growing Kernza food business open a new facility to meet demand. Read about these stories via Green Lands Blue Waters

The MDA has, to date, awarded two rounds of grants, with a total of more than $900,000 going to 16 organizations. The first wave of recipients was announced in December of 2023, with additional waves revealed in June of 2024 and March 2025.

Here's an overview of how each plans to use the funds:

Meet the grant recipients

Round 1

Perennial Promise Growers Cooperative — $50,000

The growers cooperative will use the funds to promote and market Kernza — leading to more demand and, as a result, more products featuring the perennial grain.

Regenerative Agriculture Alliance — $50,000

The organization will purchase a mechanical harvester and two de-husking units for two hazelnut grower networks in Minnesota. (Read more about the region's emerging hazelnut industry via AgWeek.)

Perennial Pantry — $50,000

A new processing plant in Northfield, Minnesota, will allow the business to increase production of clean-water crops products, such as Kernza crackers. The grant is being used to help get that facility up and running.

Midwest Elderberry Cooperative — $50,000

The grant will help the cooperative design, build and test a prototype of a new machine for more efficiently de-stemming elderberries. 

Nine Hazels Farm — $29,657

Improvements to the farm's greenhouse operations will allow them to produce and sell seedling plugs for hybrid hazelnuts.

Dawson Drug & Gifts — $50,000

They plan to buy a new freeze dryer that will help expand the market for products made with clean-water crops — particularly fruits.

Round 2

Perennial Promise Growers Cooperative — $48,000

The cooperative will look to expand marketing to existing customers, while promoting Kernza grain to new customers.

River Rock Kitchen & Baking Co. — $50,000

This small business from St. Peter, Minnesota, aims to use Kernza in at least 75% of its baked goods.

Rookie Farmers, LLC — $50,000

Rookie Farmers, LLC plans to use the grant funds to purchase a cleaning trailer for winter camelina — the oilseed that, as the Star Tribune put it, "could save the Mississippi River."

Gertens — $50,000

The business has its eye on hybrid hazelnuts, and says it will use the grant money to propagate as many as 10,000 farm-ready hybrid hazelnut plants.

MSX Nexgen Inc. — $50,000

This grant money will be used to create a regional location where clean-water crops — including winter camelina Kernza and others as needed — can be pre-cleaned, dried and stored.

Round 3

Bang Brewing Company — $45,000

This St. Paul brewery will increase the percentage of Kernza it uses in its beer (part of its commitment to the The Land Institute's Perennial Percent program), as well as improve its marketing. 

Estling Farms Inc — $45,000

This company plans to develop a seed cleaning line for clean-water crops that help provide continuous living cover — which will reduce the cost of seed for northern Minnesota farmers.

Midwest Elderberry Cooperative — $45,000

The cooperative will buy a used refrigerator for additional storage of harvested elderberries, and also pave the driveway of its regional hub to accommodate larger trucks. 

Midwest Hazelnuts, LLC — $44,772

The funds will be used to set up an aggregation station at a Go First Farm in Minnesota. 

Perennial Pantry — $45,000

The company is looking to increase capacity and sales of products made with clean-water crops, and will use the grant money to create marketing content and strategies. 

Perennial Promise Growers Cooperative — $45,000

The cooperative will find and develop customers for Kernza products, provide samples for potential customers, fulfill orders and provide customer service with its funds. 

Regenerative Agriculture Alliance — $35,865

This group will buy plant material from Midwest Hazelnut LLC, then distribute it among growers who are involved with the Poultry-Centered Regenerative Agroforestry ecosystem.

Sturdiwheat — $45,000

The Stillwater-based small business will tweak the recipes of its mixes to include 1-5% perennial grain flour, and also modify its packaging to highlight the inclusion.

SUN Consulting Inc. — $36,000

SUN Consulting will build a new cutter that will help with the harvesting of 2-year-old, farm-ready hazelnut plants in propagation beds.

Tree Range Farms — $45,000

Tree Range Farms raises slow-growth chickens that live in forested pastures, where they can forage on plants, sprouted grain and bugs — their natural diet. The farm will use the grant money to help market this type of poultry to schools, communities, retailers and restaurants in Minnesota.

There's more to come

With consecutive years of support for the grants program, it's clear state leaders and decision-makers understand the value of these early investments as businesses navigate all the expected challenges of launching brand new products with very new crops. FMR continues to work alongside other members of the Forever Green Partnership in actively advocating for even more funding.

"We are really grateful to the Department of Agriculture for all their work reviewing applications, identifying deserving projects and getting funds out to these farms, cooperatives, small businesses and other organizations working with clean-water crops," said FMR Agricultural Policy Manager Peter LaFontaine. "And of course to the state lawmakers who made this funding available multiple years in a row. We're looking forward to continuing to find these types of opportunities in the sessions ahead."

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