NEW YORK (WWTI) – Governor Kathy Hochul announced the availability of $8.5 million in Round 2 of the New York State Dairy Modernization Grant Program, aimed at aiding dairy farmers and cooperatives in enhancing milk transportation and storage technologies.
This initiative, part of the 2024 State of the State address, is designed to improve supply chain efficiency for dairy products, particularly during emergencies. It builds on the over $21.6 million previously awarded in Round 1 to 103 farms in 2025. The New York state budget also includes an additional $12.75 million for Round 3, bringing total commitments for dairy infrastructure to $42.85 million.
“New York’s dairy industry continues to be the driver of New York’s agricultural economy,” Governor Hochul said. “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. 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.”
The Dairy Modernization Grant Program, managed by the Farm and Food Growth Fund in conjunction with the New York State Department of Agriculture and Markets, offers funding of $50,000 to $250,000 to eligible applicants for enhancing milk storage capacity, improving efficiencies, and investing in milk transfer systems and cooling technologies. Eligible projects include purchases and installations of bulk tanks, milk silos, transport tankers, milk pipelines, glycol chillers, and loading systems.
The request for proposals opens on August 19, 2026, with virtual open office hours for applicants scheduled for September 9, 2026. Applications must be submitted by October 28, 2026. Detailed information on project eligibility and application directions is available HERE, alongside a new FAQ document in the Resources section.
This program is part of Governor Hochul’s commitment to the dairy industry, with the FY 26-27 Enacted Budget allocating an additional $12.75 million for Round 3 of the Dairy Modernization Program and an extra $5.25 million from the Environmental Protection Fund, which supports various agricultural initiatives aimed at promoting environmentally sustainable practices and combating climate change. Further financial support is also directed towards the Farmland Protection Program and Soil and Water Conservation Districts.
Furthermore, New York State has been proactive in expanding the dairy manufacturing sector, highlighted by investments such as the $650 million Fairlife production plant in Webster, a $30 million expansion of Agri-Mark’s facility in Chateaugay, and Chobani’s $1.2 billion facility in Rome, reinforcing New York’s status as the leading milk producer in the Northeast, supported by nearly 300 internationally recognized dairy processing plants in the state.
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