$21.6M Awarded to Support NY Dairy Farms

Governor Kathy Hochul today announced nearly $21.6 million has been awarded to 103 farms across the state through the Dairy Modernization Grant Program to support New York’s dairy industry. The funding, first announced in the Governor’s 2024 State of the State address, will help New York’s dairy farmers and dairy cooperatives invest in new equipment, expand storage capacity, and strengthen their operations, particularly as they face extreme weather events, providing a critical boost to New York’s dairy industry. The announcement comes as the State officially kicks off the celebration of Dairy Month this June.

“New York's dairy industry is the backbone of our agricultural economy, supporting thousands of jobs across our rural communities,” Governor Hochul said. “With this $26 million investment through the Dairy Modernization Grant Program, we're giving hardworking dairy farmers and cooperatives the tools they need to grow, innovate and lead in a changing market. This is how we honor our agricultural legacy — by making sure it has a strong and sustainable future.”

The awards were announced this morning at a special event at Glory Days Farm, a 120-cow dairy farm in Lowville, Lewis County. New York State Agriculture Commissioner Richard A. Ball was joined by partners from the Farm and Food Growth Fund (FFGF), who administer this grant program on behalf of the Department, in addition to other North Country dairy farm awardees, Lowville Producers Dairy Cooperative Inc., New York Farm Bureau, Cornell Cooperative Extension, the Lewis County Soil and Water Conservation District, and elected officials to celebrate these awardees.

As part of the program, Glory Days Farm, a New York State Grown & Certified participant, will now be able to install new equipment needed on the farm, including a 3,000-gallon bulk tank, washer, two new compressors, and a permanent generator to maintain power supply in the event of extreme weather. The project will improve storage capacity, which will prevent dumped milk and provide a cost savings to Glory Days Farm by allowing them to move to every-other-day milk pickup and reducing stop and hauling costs. New cooling technology will help the farm save energy and ensure milk quality, while the on-demand generator will allow for milk transfer in the event of disruptions.

A regional breakdown of the awards made across the State is listed below. A complete list of projects awarded for a total of $21.57 million can be found here.

• Capital Region: nine farms were awarded a total of nearly $1.8 million.
• Central New York: 18 farms were awarded a total of more than $3.9 million.
• Finger Lakes: 20 farms were awarded a total of more than $4.3 million.
• Mid-Hudson: One farm was awarded more than $147,000.
• Mohawk Valley: 11 farms were awarded a total of more than $2.1 million.
• North Country: 15 farms were awarded a total of more than $3.3 million.
• Southern Tier: 13 farms were awarded a total of nearly $2.6 million.
• Western New York: 13 farms were awarded a total of more than $2.7 million.

The Dairy Modernization Grant program awarded eligible applicants for projects to expand on-farm milk storage capacity, improve the transportation and storage of milk, and strengthen the dairy industry. The program supports the needs of dairy farmers by facilitating the installation of critical technological and infrastructural improvements that will improve dairy supply chain efficiency and avoid the need for raw milk dumping during emergency events.

Funding for the Dairy Modernization Grant Program is a part of Governor Hochul’s 2024 State of the State and her overarching commitment to the dairy industry, including additional funds dedicated in the FY26 Enacted Budget to support a $10 million second round of the program, and further funding dedicated to research and to implement climate-resilient practices on dairy farms.

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 FY26 Enacted Budget provides an additional $5.25 million from the Environmental Protection Fund over the previous year for agricultural programs and initiatives that also benefit New York dairy farms, such as the Climate Resilient Farming grant program and the Agricultural Non-Point Source Abatement and Control program, that are helping farms to implement environmentally sustainable practices and combat climate change. Additional allocations for the Farmland Protection Program and the State’s Soil and Water Conservation Districts will also support the New York dairy community.

Since taking office, Governor Hochul has made significant strides in expanding the dairy manufacturing sector in New York. In the last few years, New York has celebrated investments across the state, including a $650 million fairlife production plant in Webster, the $518 million Great Lakes Cheese packaging and manufacturing facilities in Franklinville, and a $30 million expansion to the Agri-Mark cheese manufacturing facility in Chateaugay, helping New York continue to be the leading producer of milk in the Northeast. Most recently, the Governor announced Chobani, which opened its first U.S. plant in 2005 in New York, will build a 1.4 million square foot, $1.2 billion facility in Rome, Oneida County, capable of producing over one-billion pounds of high-quality dairy products per year. There are currently nearly 300 world-recognized dairy processing plants across New York.

New York State Agriculture Commissioner Richard A. Ball said, “I thank Governor Hochul for her continued support of New York agriculture and our state’s dairy industry, which is so critical to our agricultural economy. Our dairy farmers and processors are second to none when it comes to the care they give to the land and their animals and the quality of their milk products. I am so pleased to see this funding being awarded to these deserving farms, who will now have the additional resources they need to ensure that they can continue to provide the very best milk and dairy products, and keep operations and the supply chain going, even in the event of severe weather or emergency events.”

Farm and Food Growth Fund President and CEO Todd Erling said, “New York State is the country’s fifth largest dairy producing state, with almost 3,000 farms. The majority are family-run and generational operations which this grant program largely benefits. Ensuring efficient and updated infrastructures will not only strengthen and safeguard the supply chain, but will also help to build forward-looking opportunities for the next generation of dairy farmers. Thanks to our hard working farm families, and with the support of Governor Hochul, New York continues to be a leader in our regional food system.”

Glory Days Farm Owners The Beyer Family said, “Our aspiration is for our farm and farms like ours to remain viable for future generations. The Dairy Modernization Grant Program gives farms like ours the opportunity to progress and innovate, and continue being the lifeblood of our communities. This program encourages the adoption of efficient technology that improves food safety with more consideration to environmental impacts, securing the future of dairy in New York.”

State Senator Michelle Hinchey said, “New York is in the top five of dairy states producing some of the best products in the country. Dairy is our largest agricultural sector and a powerful contributor to our state and local economies, which is why supporting this leading industry is a major state priority. The Dairy Modernization Grant Program helps our dairy farmers and processors future-proof their operations, ensuring that New York dairy maintains its high standards while advancing efficiency and resiliency. I'm proud to have helped champion this grant program in our state agriculture budget and want to congratulate all of the local dairies and processors, including Uplands Farm in Millbrook, that received funding awards!"

Assemblymember Donna Lupardo said, “In order for New York to maintain its prominence as a leading dairy state, we have to make important infrastructure investments. The Dairy Modernization Grant Program provides needed technology and upgrades for our dairy farms and cooperative dairies. I am thankful that all of our partners in state government recognize and support the hardworking men and women who make up New York’s largest agricultural sector.”

Northeast Dairy Producers Association Executive Vice President Tonya Van Slyke said, “For generations, New York’s family dairy farms have been leaders in progressive, science-based management practices that improve efficiencies in the barns, the fields, and the milking parlors, along with storing and transporting milk. The Dairy Modernization Grant Program helps address challenges family dairy farms face and will make a significant impact by providing solutions for increased on-farm milk storage capacity, new technology, and improved efficiencies in transportation for the farms that were awarded grant opportunities. We appreciate the Governor’s continued investment in our family dairy farms, as we work together to protect New York’s food security and cement the state’s position as a leader in dairy.”

New York State Farm Bureau President David Fisher said, “New York’s dairy industry is critical to the agricultural and economic health of our state. The Dairy Modernization Grant Program is not only a significant step in improving operations for farmers across New York, but also in making a commitment to agricultural sustainability. With Dairy Month upon us, we celebrate dairy farms of all sizes and the farmers who bring fresh, nutritious products to the table every day.”

About the Dairy Industry in New York State

New York State has roughly 3,000 dairy farms that produce over 16 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.