AGM Celebrates Success of Dairy Modernization Grant Program

The New York State Department of Agriculture and Markets today, during Dairy Month, announced significant progress of on-farm projects awarded through Round 1 of the $21.6 million Dairy Modernization Grant Program, with 90 percent of the projects currently underway or completed. The funding, first announced in the Governor’s 2024 State of the State address, provides unprecedented support to the dairy industry in New York, helping New York’s dairy farmers and dairy cooperatives invest in new equipment, expand storage capacity, and strengthen their operations. Another $8.5 million will be available through Round 2 of the program later this summer, and Round 3, which will provide an additional, nearly $13 million to dairy farmers, was approved in the final 2026-27 Enacted Budget.

State Agriculture Commissioner Richard A. Ball said, “New York has a long legacy as a leading dairy state, and the Dairy Modernization Grant Program aims to protect that legacy by giving our hardworking dairy farmers and cooperatives the tools they need to grow, innovate, and lead in a changing market. As we celebrate June is Dairy Month, it’s the perfect time to spotlight the projects that will help deserving farmers continue to provide the very best milk and dairy products while keeping up with operations, even in the event of severe weather or emergency events. I’m proud to see how much progress is already underway and look forward to announcing another round of funding through this critical program soon.”

In June 2025, New York State announced that 103 dairy farms and cooperatives were awarded nearly $21.6 million through Round 1 of the Dairy Modernization Grant Program, which is being administered by Farm and Food Growth Fund.   Projects range from $50,000 to $250,000 and include priorities such as the purchase/installation of milk storage tanks, including bulk tanks, and milk silos; milk tankers for transport; milk pipelines; farm milk loading systems, and more. The goal of the projects is to facilitate 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.  To date, 30 projects have been completed and 63 are underway.  The few remaining projects will begin later this year. A video about the impact of the Dairy Modernization Grant Program can be found here.

Farm and Food Growth Fund President and CEO Todd Erling said, “With the majority of the New York's dairy farms being family-run and generational operations, the impact of this grant program is significantly forward-reaching. Providing the next generation with the technology to be able to safeguard their product and improve efficiencies with expanded storage and milking systems will improve their ability to be competitive and sustainable. Thanks to the inclusion of a Round 3 in the State Budget, we will be able to continue to support this important segment of the state’s agro- economy.”

This investment builds on the commitment that Governor Hochul has made to support New York’s dairy industry, including dedicating record funding to programs 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.  New York State has also supported the expansion of the dairy manufacturing sector in New York, celebrating a number of recent investments across the state, including the $650 million fairlife production plant in Webster, a $30 million expansion to the Agri-Mark cheese manufacturing facility in Chateaugay, and Chobani’s $1.2 billion facility in Rome, helping New York continue to be the leading producer of milk in the Northeast. There are currently nearly 300 world-recognized dairy processing plants across New York.

In recognition of New York’s hardworking dairy producers, cooperatives and processors, the Governor issued a Proclamation declaring June as Dairy Month.  In addition, the Department of Agriculture and Markets encouraged New Yorkers to buy local dairy products and announced new promotions at the State’s Taste NY Markets located in the State’s Welcome Centers.  All Taste NY Markets are featuring New York dairy products throughout the month of June, with some holding additional special sampling events highlighting New York dairy producers, such as Dygert Farms Creamery, Argyle Cheese Farmer, Stoltzfus Family Dairy, Chaseholm Farm, Ronnybrook Farm Dairy, Yancey’s Fancy (cheese), Muranda Cheese, and many more.

For a schedule of sampling events through the end of June at each of the participating Taste NY Markets, visit taste.ny.gov.

Sarena Brown, Taste NY Assistant Manager, Mohawk Valley Welcome Center operated by Liberty ARC of Montgomery County, said, “National Dairy Month to the Mohawk Valley Welcome Center means promoting local dairy farms, such as Dygert Farms Creamery, one of our oldest vendors to date. They are a 300-year-old farm, with over 13 generations. The owner even delivers their product to us, giving a sort of personal feel to their farm and business.” 

Amy Slick-Willis, Taste NY Market Manger, Taste NY at Front Street and the Southern Tier Welcome Center (Director of Food Systems Projects, CCE Broome County), said, “As Taste NY observes June as Dairy Month, we recognize New York farmers in shaping dairy as one of the States' most important agricultural commodities. Their dedication to producing nutritious products, supporting local jobs, and strengthening rural communities is a testament to the value of agriculture in New York. We celebrate their achievements and thank them for their dedication as we showcase their items in our stores not only this month but every month.”

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.