MDA Announces $1.5 Million to Expand Access to Nitrogen Enhanced‑Efficiency Fertilizers

The Minnesota Agricultural Water Quality Certification Program (MAWQCP) is launching a new funding opportunity to help Minnesota farmers reduce greenhouse gas emissions and protect water quality through nitrogen enhanced‑efficiency fertilizers (N EEFs) during the 2026 growing season.

Supported by a federal Climate Pollution Reduction Grant, the program will provide financial support to agricultural retailers that offer farmers discounts on approved N EEF products. Eligible products include nitrification inhibitors, urease inhibitors listed on the Minnesota Department of Agriculture (MDA) approved product list, and polymer‑coated urea.

The Request for Proposals (RFP) is now open to agricultural cooperatives and other qualified retailers interested in contracting with MAWQCP to distribute discounted products to farmers statewide.

“Enhanced‑efficiency fertilizers can help keep nitrogen where farmers need it—on their fields—and out of the air and water,” said MDA Commissioner Thom Petersen. “This funding helps make these tools more accessible while supporting both environmental quality and farm profitability.”

Contracted retailers may receive up to $10 per acre for verified discounted sales and applications of eligible N EEF products. Payments are capped at 75% of product cost, and at least 80% of all per‑acre payments must be passed directly to farmers as a point-of-sale discount.

Proposals will be competitively reviewed, with priority given to projects that encourage N EEF use in alignment with state best management practices and other agricultural and environmental priorities.

Quick Facts About the Program
• $1.5 million available for 2026; similar opportunities anticipated in 2027 and 2028
• Open to qualified Minnesota retailers of nitrogen enhanced‑efficiency fertilizers
• Contract awards range from $25,000 to $400,000
• Nitrification inhibitors and polymer‑coated urea qualify for up to $10/acre
• Urease inhibitors qualify for up to $8/acre
• Program payments may not exceed 75% of actual product cost
• Farmers receiving discounts must be MAWQCP certified, working toward certification, or willing to receive program information
• No individual farm may receive more than $10,000 in combined N EEF‑related discounts

The competitive RFP is available on the MDA website.

Proposals are due by 11:59 p.m. on March 30.

Questions and proposal submissions should be directed to Ellen Friedrich, ellen.friedrich@state.mn.us.