New York Opens $8.5M Dairy Modernization Grant Program

By Blake Jackson

New York Governor Kathy Hochul has announced $8.5 million in funding for the second round of the New York State Dairy Modernization Grant Program, continuing the state's efforts to strengthen dairy infrastructure and support dairy producers.

First introduced in the Governor’s 2024 State of the State agenda, the program helps farmers and agricultural cooperatives expand milk storage capacity and improve transportation and handling systems across the dairy supply chain.

“New York’s dairy industry continues to be the driver of New York’s agricultural economy. We must ensure that our hard-working dairy farmers have the resources, technology and equipment they need and deserve to continue to meet the demands of the marketplace," Governor Hochul said.

"Round 2 of the Dairy Modernization Grant will do just that, helping our dairy farmers modernize and make the necessary investments to not only maintain but to also grow their operations,” She continued.”

The new funding builds on the program’s successful first round, which awarded more than $21.6 million to 103 farms statewide in 2025. An additional $12.75 million was approved in this year’s state budget, bringing total state commitments for dairy infrastructure projects to nearly $42.9 million.

“New York’s demand for milk and dairy products continues to grow, with some of the industry’s leading manufacturers responding by expanding their operations here in the state. As New York State continues to be a powerhouse in dairy nationally, it’s important that our farmers have everything they need to run a successful operation," State Agriculture Commissioner Richard A. Ball said.

"Round 1 of the Dairy Modernization Grant Program was a success, and I expect Round 2 to bring even more support for our dairy farmers. I encourage all eligible farmers to take advantage of this opportunity and apply,” Commissioner Richard A. Ball added.

Administered by the Farm and Food Growth Fund in partnership with the New York State Department of Agriculture and Markets, the program offers grants ranging from $50,000 to $250,000.

Eligible projects include milk storage tanks, milk silos, transport tankers, pipelines, cooling equipment, and loading systems that improve efficiency and strengthen emergency preparedness.

Applications opened on August 19, 2026, and must be submitted by October 28, 2026. A virtual information session for applicants is scheduled for September 9, 2026.

For more information, visit https://www.ffgrowthfund.org/dairymodernization-old.

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