Empire State Today

The New York State Department of Agriculture and Markets has issued a reminder to dairy farmers and cooperatives about the ongoing Dairy Modernization Grant Program. This initiative offers over $21 million in funding to aid in expanding on-farm milk storage capacity and improving the transportation and storage of milk. Applications, which began on November 1, 2024, will be accepted until February 14, 2025.

The program was first introduced during Governor Hochul’s 2024 State of the State address. It aims to provide substantial support to New York's dairy farmers and enhance the efficiency of the dairy supply chain. Projects receiving grants between $50,000 and $250,000 will assist in covering costs for technology and infrastructure improvements, helping prevent raw milk dumping during emergencies.

Administered by the Farm and Food Growth Fund, eligible projects include expanding on-farm milk storage capacity, enhancing efficiencies, investing in milk transfer systems, and upgrading cooling technologies. Specific examples are purchasing or installing milk storage tanks, acquiring milk tankers for transport, setting up milk pipelines, upgrading glycol chillers, and implementing farm milk loading systems. Details on project eligibility and application submission can be found at ffgrowthfund.org/dairymodernization.

This funding aligns with Governor Hochul’s broader commitment to supporting the dairy industry as outlined in the FY25 Enacted Budget. The budget allocates funds for major dairy manufacturing facility projects and promotional efforts to educate consumers about New York dairy products. It also supports sustainability initiatives within agriculture through an $81.8 million allocation from the Environmental Protection Fund—an increase of $4 million from last year—to promote environmentally sustainable practices among farms.

These efforts lay a foundation for Governor Hochul's forthcoming 2025 State of the State proposal aimed at further advancing sustainability in New York's dairy community by researching and implementing climate-resilient practices.

New York is home to approximately 3,000 dairy farms that produce over 15 billion pounds of milk annually. The state ranks as the fifth-largest dairy producer nationwide with its largest agricultural sector contributing significantly to both the economy and community health through substantial agricultural receipts.