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$8.5 million available to boost New York’s Dairy Industry through round two of Dairy Modernization Grant Program

Published on August 20, 2026

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ALBANY, NY- $8.5 million is now available to dairy farmers and cooperatives as part of Round 2 of the New York State Dairy Modernization Grant Program.

“As New York State continues to be a powerhouse in dairy nationally, it’s important that our farmers have everything they need to run a successful operation,” said New York’s Agriculture Commissioner, Richard A. Ball.

First announced in Governor Hochul’s 2024 State of the State address, this grant program provides unprecedented support to New York’s dairy farmers and improves dairy supply chain efficiency.

The program helps New York’s dairy farmers and agricultural marketing cooperatives expand on-farm milk storage capacity and supports projects that will improve the transportation and storage of milk, particularly during emergency events.

This funding builds on the more than $21.6 million that was awarded to 103 farms across the state through Round 1 of the Dairy Modernization Program in 2025.

A third round of funding, an additional $12.75 million, was dedicated to the program through this year’s Budget, bringing the total committed to dairy infrastructure projects under the Governor’s leadership to $42.85 million.

The Dairy Modernization Grant Program is administered by the Farm and Food Growth Fund, in collaboration with the New York State Department of Agriculture and Markets.

Funding ranging from $50,000 to $250,000 will be awarded to eligible applicants for projects that expand on-farm milk storage capacity; improve efficiencies; and invest in milk transfer systems and cooling technologies.

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.

Applications are due by Wednesday, October 28, 2026.

More details are available online through the Dairy Modernization website.

New York State Department of Agriculture and Markets image.

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