The News Tribune says 10 mushers have signed up to compete in the marathon race that runs 375 miles up the North Shore from Duluth to the Gunflint trail and back.
Another 30 teams will take part in the 125-mile mid-distance race.
However, that's still half the number of contestants who competed in the last race.
"I just think that training conditions have been a challenge with the lack of snow," race director Pat Olson told MPR. "I don't think the economy has helped much. So for lots of different reasons, we saw a drop in numbers this year."
A lack of good snow forced organizers to postpone the annual race in January.
The Beargrease was cancelled last year because of poor snow conditions and unseasonably warm weather.