Governor Kathy Hochul on Nov 1st, announced $21.6 million is available through the Dairy Modernization Grant Program to help New York’s dairy farmers and agricultural marketing cooperatives expand on-farm milk storage capacity and support projects that will improve the transportation and storage of milk. First announced in Governor Hochul’s 2024 State of the State address, the program will support the needs of dairy farmers and processors by facilitating the installation of critical technological and infrastructural improvements that will improve dairy supply chain efficiency and avoid the need for raw milk dumping during emergency events.

“New York’s dairy farms are the backbone of our agricultural industry, and they contribute so much to our communities, our economies, and our long legacy of agricultural excellence,” Governor Hochul said. “I’m proud that the Dairy Modernization Grant Program will help our dairy farmers and processors make much needed improvements to their technology and facilities, helping New York State to remain a powerhouse in dairy nationally and ultimately getting nutritious, locally produced dairy products to more New Yorkers statewide.”

The Dairy Modernization Grant program is being administered by the Farm and Food Growth Fund (FFGF). Grants will range from $50,000 to $250,000 and will be awarded to eligible applicants for projects that seek to expand on-farm milk storage capacity; improve efficiencies; invest in milk transfer systems and cooling technologies; and more. Examples of eligible projects include the purchase/installation of milk storage tanks, including bulk tanks, and milk silos; milk tankers for transport; milk pipelines; upgraded glycol chillers; farm milk loading systems; reclaim systems for water and watering systems (e.g., on-demand tanks); and more. Full details regarding project eligibility can be found online.

The request for proposals opens on, November 1, 2024. Virtual open office hours for interested applicants will be held on Nov. 13, 2024, 2:00 - 3:00 p.m.; Dec. 8, 2024, 2:00 - 3:00 p.m.; and Jan. 15, 2025, 2:00 - 3:00 p.m. Applications are due by Friday, Feb. 14, 2025.

Funding for this program comes as part of Governor Hochul’s overarching commitment to the dairy industry, including additional funds dedicated in the FY25 Enacted Budget to support several major dairy manufacturing facility projects and a number of promotional efforts designed to educate consumers about New York dairy products. Further, this investment builds on the commitment that Governor Hochul has made to support sustainability in the agricultural industry, including for dairy farms. Under the Governor's leadership, the FY25 Enacted Budget provides $81.8 million through the Environmental Protection Fund, up $4 million from last year, for agricultural programs and initiatives, such as the Climate Resilient Farming grant program, that are helping farms to implement environmentally sustainable practices and combat climate change.

Since taking office, Governor Hochul has made significant strides in expanding the dairy manufacturing sector in New York. In the last few years, New York has celebrated investments across the State, including a $650 million fairlife production plant in Webster, $518 million Great Lakes Cheese packaging and manufacturing facilities in Franklinville, and $30 million expansion to the Agri-Mark cheese manufacturing facility in Chateaugay, helping New York continue to be the leading producer of milk in the Northeast. There are currently nearly 300 world-recognized dairy processing plants across New York.

New York State Agriculture Commissioner Richard A. Ball said, “The Dairy Modernization Grant Program provides critical funding to support our dairy farmers and cooperatives by investing in projects that upgrade agricultural facilities and facilitate the purchase of new equipment. I thank Governor Hochul for her continued support of New York’s dairy farmers, and encourage anyone eligible to learn more about this program and consider applying for these critical funds.”

State Senator Michelle Hinchey said, “New York isn’t just an agriculture state—we’re a dairy state. Dairy is our largest agricultural sector and a powerful contributor to our economy, so supporting this leading industry needs to be a state priority. The Dairy Modernization Grant Program will help our dairy farmers and processors modernize their operations, ensuring that high-quality New York dairy products remain fresh and flowing throughout our region. I’m proud to have played a role in advancing this program through our State Agriculture budget as a meaningful investment in our family-run dairies and local processing businesses.”

Assemblymember Donna Lupardo said, “The Dairy Modernization Program Grant Program is the direct result of feedback from NY’s dairy farmers who want to upgrade their facilities. They are interested in expanding their on-farm milk storage capacity, investing in milk tankers for transport and more. I’d like to thank the Governor and my colleagues for recognizing the importance of investing in NY’s dairy industry; the cornerstone of NY’s agricultural economy.”

Farm and Food Growth Fund President and CEO Todd Erling said, “These funds give us the capacity to invest in foundational needs and make improvements on New York farms, which are the critical base to support New York’s dairy processors and the regional Northeast market. The program will give businesses the ability to implement projects that will strengthen their operations while improving dairy supply chain efficiency and building a more resilient regional food system where New York plays a crucial role.”

Northeast Dairy Producers Association Executive Vice President Tonya Van Slyke said, “The Dairy Modernization Grant Program is a direct result of state leaders partnering with the dairy industry to find solutions to ongoing challenges, which were raised at a Dairy Transportation Summit co-hosted by the Northeast Agribusiness & Feed Alliance and NEDPA. Commissioner Richard Ball and other leaders from the administration heard concerns and potential solutions from family farms and processors, worked together with stakeholders, and developed strategies to expand processing capacity, mitigate bottlenecks, and improve efficiencies. By implementing new technologies and processes with support through this grant program, nutritious milk and dairy products will continue to get to store shelves as efficiently as possible, resulting in time and cost savings along the dairy supply chain from farms to haulers and to processors. We appreciate the Governor's investment in our dairy farms, farmworkers, and all of our industry partners.”

About the Dairy Industry in New York State
New York State has roughly 3,000 dairy farms that produce over 15 billion pounds of milk annually, making New York the nation’s fifth-largest dairy state. The dairy industry is the state’s largest agricultural sector, contributing significantly to the state’s economy by generating nearly half of the state’s total agricultural receipts and providing some of the highest economic multipliers. New York's unique and talented dairy producers and processors contribute significantly to the state’s agriculture industry, economy and the health of our communities.