New York is putting new money behind local food and fiber production as part of a broader push to strengthen the state’s agricultural supply chain.
Governor Kathy Hochul announced Tuesday that $8.5 million is now available through the new Food and Fiber Processing Grant program. The first-of-its-kind initiative aims to expand processing capacity, support local sourcing, and help more New York-grown products reach the market.
The program was first unveiled in the Governor’s 2025 State of the State address and supports initiatives like Farm-to-School, Nourish NY, and Executive Order 32, which directs state agencies to source 30 percent of their food from New York producers within five years.
“This new funding opportunity will empower our farmers and processors to innovate, grow, and build resilient, sustainable communities across the state,” Hochul said. “Together, we are cultivating opportunity and ensuring that New York remains an agricultural leader for generations to come.”
What the funding supports
The Food and Fiber Processing Grant program provides funding to agricultural operations to scale up or launch food and fiber processing projects. Eligible uses include facility construction or renovation and the purchase and installation of equipment.
Priority will go to projects that expand processing for fruits, vegetables, grains, beans, and plant or animal fibers. All processed products must contain at least 51 percent raw agricultural ingredients grown or raised in New York.
Awards range from $250,000 to $2.5 million. Of the total funding, $1 million is reserved specifically for plant and animal fiber projects.
Strengthening local supply chains
State officials say limited processing capacity has often slowed the growth of local food systems. The new grants aim to close that gap while supporting jobs and keeping more agricultural dollars in-state.
“This investment supports the growth of local farms and producers, fosters innovation, and helps create jobs while making sure we are strengthening our local supply chain right here at home,” said Agriculture Commissioner Richard A. Ball.
The Farm and Food Growth Fund is administering the program on behalf of the state Department of Agriculture and Markets.
Who can apply
Eligible projects include processing expansions, aggregation and storage tied to processing growth, food safety improvements, and operational efficiency upgrades. The state is also prioritizing projects that improve geographic diversity in processing capacity across New York.
“The size and scale of this investment will be transformational for our food system,” said Todd Erling, president and CEO of the Farm and Food Growth Fund.
Applications are due by April 28 at 5 p.m. and must be submitted through the SMA system. Program details and application materials are available through the Farm and Food Growth Fund.
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