"Should those farmers require extra support, they are encouraged to submit a new application to this larger fund," Adair said.
"We have been working with Federated Farmers, DairyNZ, Beef + Lamb New Zealand, Deer Industry New Zealand and councils, to determine how this financial support can have the greatest impact."
Grants would assist farmers to clear flood debris, enabling pasture and fodder crops to be resown.
"Our highest priority is the clean-up of debris such as shingle, boulders, trees and silt, to return paddocks to a productive state."
Applications could be made retrospectively for clean-up work already undertaken, and the size and allocation of grants would be determined once all applications had been received, Adair said.
Grant applications would be assessed by an independent panel, made up of people who sector groups have helped to select.
The panel would consist of people with a strong understanding of farming businesses and rural communities in Canterbury, Adair said.
"They will confirm that grants meet the eligibility criteria and that the allocation process is fair, consistent, and transparent. MPI will contribute up to half of the clean-up cost for uninsurable works."
Applications for the fund will open on July 9 and close on July 30.
A full list of criteria, an application form and details of how to apply will be available on MPI's website here.