In a major move to support its largest agricultural sector, New York State has awarded nearly $21.6 million in grants to 103 dairy farms through the Dairy Modernization Grant Program. The funding, first introduced in Governor Kathy Hochul’s 2024 State of the State address, aims to equip dairy farms with modern infrastructure and technology to enhance efficiency, improve milk storage and transportation, and safeguard operations against extreme weather disruptions.
The announcement coincides with the launch of Dairy Month in New York and underscores the state’s commitment to strengthening its dairy industry. The grant program, administered by the Farm and Food Growth Fund (FFGF) in collaboration with the Department of Agriculture and Markets, is designed to help farms expand on-farm milk storage capacity, reduce raw milk waste, and adopt energy-efficient cooling systems and backup power solutions.
One such beneficiary, Glory Days Farm in Lewis County, will install new milk storage and cooling equipment, including a 3,000-gallon bulk tank, upgraded compressors, and a permanent generator. These improvements are expected to reduce milk handling costs and increase resilience during power outages.
Regional breakdowns of the funding demonstrate broad support across the state:
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Capital Region: 9 farms, nearly $1.8 million
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Central New York: 18 farms, over $3.9 million
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Finger Lakes: 20 farms, over $4.3 million
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Mid-Hudson: 1 farm, $147,000
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Mohawk Valley: 11 farms, over $2.1 million
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North Country: 15 farms, over $3.3 million
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Southern Tier: 13 farms, nearly $2.6 million
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Western New York: 13 farms, over $2.7 million
The Dairy Modernization Grant Program is part of a broader push by the state to support long-term sustainability in agriculture. The FY26 Enacted Budget allocates an additional $10 million for a second round of funding, along with increased support for environmental programs such as the Climate Resilient Farming initiative and Soil and Water Conservation Districts.
This latest investment builds on recent momentum in New York’s dairy processing sector, including high-profile projects like the $1.2 billion Chobani facility in Rome and expansions by Agri-Mark and Great Lakes Cheese. Today, the state boasts nearly 300 dairy processing plants and produces over 16 billion pounds of milk annually, making it the fifth-largest dairy producer in the country.
The Dairy Modernization Grant Program reflects New York’s effort to help family-run farms remain competitive and resilient, ensuring that the dairy industry continues to play a vital role in rural economies and food security across the state.
