The New York State Department of Agriculture and Markets today reminded dairy farmers and cooperatives to apply for the Dairy Modernization Grant Program. Over $21 million is available through the 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. Applications opened on November 1, 2024, and will be accepted through 3 p.m. on February 14, 2025.
First announced in Governor Hochul’s 2024 State of the State address, this grant program was created to provide unprecedented support to New York’s dairy farmers and improve dairy supply chain efficiency. Awarded projects ranging from $50,000 to $250,000 will help offset costs of critical technology and infrastructure that will improve storage solutions and avoid the need for raw milk dumping during emergency events.
The Dairy Modernization Grant program is being administered by the Farm and Food Growth Fund. Funding 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; and more. Full details regarding project eligibility and directions to submit applications can be found at ffgrowthfund.org/dairymodernization. In addition, a new Frequently Asked Questions document is also available here: ffgrowthfund.org/_files/ugd/bf84f0_5914119d38e0487692750351ef125b25.pdf
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.
It also lays the groundwork for the Governor’s 2025 State of the State proposal for dairy, which includes additional funding to research and implement climate-resilient practices on dairy farms, advancing the sustainability of New York’s dairy community.
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.
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