This bill amends the farm down payment assistance program in Minnesota, specifically targeting eligibility criteria and grant provisions. It defines an "eligible farmer" as a Minnesota resident intending to acquire farmland, with a gross income cap of $250,000 from farm products, and who has no prior ownership interest in farmland. A new requirement is added, stating that eligible farmers must demonstrate adequate farming experience or knowledge relevant to the type of farming for which they seek assistance. Additionally, the bill specifies that grants of up to $20,000 for purchasing 2 to 75 acres and up to $40,000 for more than 75 acres must be matched with at least $8,000 of other funding. The farmland must not be zoned for residential use, and if in a commercial zone, a business plan is required.

The bill also outlines the funding appropriations for various agricultural programs, including $1,250,000 for farm down payment assistance grants, with priority given to applicants with lower gross sales and those producing specialty crops. It introduces a new provision that reserves half of the second-year appropriation for applicants who submit purchase agreements. Furthermore, the bill includes provisions for studies and recommendations on agricultural practices and support for minority and immigrant farmers, with an effective date set for July 1, 2026.