Projects strengthen climate smart agriculture, supply chains, and rural economic development



department of agriculture


*For Immediate Release*




*Media Contact:*

Cynthia Moothart

651-429-2637

[email protected] <[email protected]>




Jan. 20, 2026

Previous Announcements [ [link removed] ]





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MDA Invests Nearly $500,000 to Accelerate Markets for Continuous Living Cover Crops

Projects strengthen climate-smart agriculture, supply chains, and rural economic development

*St. Paul, Minn.: *The Minnesota Department of Agriculture (MDA) awarded nearly $500,000 in grants to eight projects under the Developing Markets for Continuous Living Cover Grant [ [link removed] ] program. The funding will help build early-stage enterprises and value chains needed to bring continuous living cover (CLC) crops and cropping systems to commercial scale.

Funding was provided to the MDA by the Minnesota Pollution Control Agency under its Minnesota Climate-Smart Food Systems initiative [ [link removed] ], supported by the U.S. Environmental Protection Agency.

“Continuous living cover is one of the most promising strategies we have for building a more resilient agricultural future in Minnesota,” said MDA Commissioner Thom Peterson. “These investments will help farmers, entrepreneurs, and supply‑chain partners bring innovative crops and systems to market, strengthening rural economies while protecting our soil, water, and climate. Minnesota is proud to support the early‑stage work that turns good ideas into real‑world solutions.”

Continuous living cover refers to agricultural systems that maintain living plants and roots in soil year-round. These systems include winter cover crops sown between summer annuals, agroforestry practices, perennial forage crops, perennial biomass crops, and perennial grain production. Examples include regenerative poultry silvopasture systems, Kernza® perennial grain, winter camelina, and elderberry.

CLC crops have been shown to improve water and soil quality, sequester carbon, build soil health, and enhance biodiversity and pollinator habitat. Scaling these benefits requires strong markets and supply chains that support farmers, processors, and end-users.

Recipients of the funds are:

*Organization Name*



*Project Summary*



*Award Total*



40 Century Grain



Develop commercial granola products featuring Minnesota-grown agroforestry crops (hazelnuts, elderberries, currants, aronia berries) and Kernza flakes and establish direct purchase agreements with Minnesota CLC farmers while developing marketing strategies that communicate measurable regenerative outcomes.



$60,228



Gerten Greenhouses



Transition from small, test-scale indoor plant management to a large-scale, dedicated, outdoor mound bed operation. Grow up to 8,000 farm-ready hybrid hazelnut plants.



$74,610



Ivy & Karma Inc. (Green Acres Milling)



Support the growth of CLC systems by developing a modern oat processing facility. Project funds will help purchase a Caterpillar 926HL end loader, which is essential for handling by-products from oat processing.



$100,000



Midwest Hazelnuts, LLC



Midwest Hazelnuts, LLC is at a critical stage of growth in taking Upper Midwest Hazelnut Development Initiative's high-performing hybrid hazelnut genetics to market. This project will support expanding Midwest Hazelnut’s co-founding team to expand plant sales, as well as the annual legal and business development costs of clear nursery contracts. 



$30,881



Minnesota Native Landscapes



Improve the availability of current and future CLC crops by expanding its cleaning operation to include a brush machine, which will more efficiently process a wide variety of CLC crops resulting in more and better seed available for farmers and businesses to utilize on the landscape.



$42,500



MSX Nexgen Inc.



Add an auger and generator to a seed cleaner to make it more mobile and allow for on-farm cleaning. Most farms don't have the correct power or handling equipment to accommodate the cleaner. These additions will make the cleaner a standalone unit that can move from farm to farm.



$49,000



Perennial Pantry



Upgrade its Kernza milling and baking operation, expand marketing, and launch a brick-and-mortar grocery store dedicated to CLC crops. Grant funds will purchase and install a hammer mill, flour sifter, dough mixer, and proofing cabinet to boost production of high-quality Kernza flour and baked goods. The grant will also allow for a buildout of retail space in its Northfield bakery to make CLC crops more accessible and affordable.



$100,000



Regenerative Agriculture Alliance



This project will procure the latest genetics developed by the Upper Midwest Hazelnut Development Initiative and distribute seedlings and tree tubes directly to farmers looking to increase the productivity and diversity of their farms, with the new material allowing for the distribution to be spread out over two years. This project also will support the processing of the 2025 hazelnut harvest, as well as fund opportunities for training and connecting within perennial agricultural networks.



$35,460



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