New York State dairy farms and agricultural marketing cooperatives can apply through Oct. 28 for grants of $50,000 to $250,000 to expand milk storage and improve transportation, cooling and transfer systems.
The state opened the second round of its Dairy Modernization Grant Program on Wednesday with $8.5 million available. The Farm and Food Growth Fund administers the program in collaboration with the state Department of Agriculture and Markets.
Eligible projects include milk storage tanks and silos, milk tankers, pipelines, glycol chillers and farm milk-loading systems. The program is intended to increase on-farm storage, improve operational efficiency and make milk transportation and storage more resilient during emergencies.
Virtual office hours for prospective applicants are scheduled for noon Sept. 9. Program details, application directions and a frequently asked questions document are available through the Farm and Food Growth Fund's Dairy Modernization program.
The first round awarded more than $21.6 million to 103 farms in 2025. The 2026-27 state budget dedicated another $12.75 million for a third round, bringing the state's total commitment to dairy infrastructure projects under the program and related rounds to $42.85 million.
The budget also added $5.25 million from the Environmental Protection Fund for agricultural programs that include climate-resilient farming and agricultural runoff controls, according to the governor's office. Separate allocations support farmland protection and soil and water conservation districts.
New York has about 2,700 dairy farms producing more than 16.6 billion pounds of milk annually, making it the nation's fifth-largest dairy state, according to the state. Dairy generates nearly half of New York's agricultural receipts, and nearly 300 dairy processing plants operate statewide.
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