NYS Dairy Modernization Grant

The NYS Dairy Modernization Grant Round 2 is a New York State-funded grant program administered by the New York State Department of Agriculture and Markets and the Farm and Food Growth Fund. The program is intended to strengthen New York's dairy industry by supporting on-farm milk storage and transfer technologies and infrastructure that improve dairy supply chain efficiency and help prevent raw milk dumping during emergency events. Funding may be used to expand on-farm milk storage capacity, improve efficiencies, invest in milk transfer systems and cooling technologies, and support other purposes considered necessary to improve dairy farmers' ability to transport or store their products. At least $8.5 million is available across eligible applicants in Round 2. Funding is available for capital projects involving expansion of on-farm milk storage capacity, efficiency improvements directly related to milk storage or transportation, milk transfer systems, cooling technologies, and related purposes. Eligible equipment and costs include milk storage tanks and silos, milk tankers for transport, milk pipelines, upgraded glycol chillers, farm milk loading systems, high-speed pumps, in-line sampling and weight measuring systems, automated cleaning upgrades, cooling equipment, plate coolers, heat exchangers, installation services, critical supplies costing less than $5,000 per unit, shipping, certain equipment rentals, and construction or renovation necessary for equipment installation or replacement. Planning, design, engineering, and legal costs related to eligible projects may also be supported. Building construction, building renovation, and equipment costs exceeding $5,000 must be supported by a current quote or estimate. Projects must address at least two program funding priority areas, and projects addressing additional priorities will receive additional points. Priorities include expanding, improving, or installing on-farm storage capacity, milk transfer systems, or cooling technologies; increasing operational efficiencies; improving food safety or quality measures; providing cost savings; decreasing raw milk dumping; and increasing farm resilience to changing market conditions, uncertain environmental conditions, or supply chain interruptions. Ineligible expenses include personnel and fringe costs, vehicles, unrelated construction, noncritical supplies, travel, training, installations unrelated to milk storage and handling, barn or infrastructure improvements associated with feeding or milking, milking equipment such as robots and stalls, expenses incurred before the grant period, projects not primarily located in New York State, and projects solely supporting production or sale of raw fluid milk intended for human consumption without pasteurization. Eligible applicants are existing dairy farmers or producers and agricultural marketing cooperatives that are headquartered or based in New York State, produce milk within New York State, operate as licensed dairy operations in compliance with required state and federal standards, and did not receive funding through NYS Dairy Modernization Program Round 1. For this program, an agricultural marketing cooperative is an association, federation, or cooperative of milk producers organized under New York law or registered as a foreign business corporation with the New York State Department of State that has agreements to market, bargain for, or sell members' milk and actually performs one or more of those services. Eligible dairy producers include dairy farmers and dairy farmer-processors. The program defines a producer as a person in New York State engaged in milk production exceeding family and on-farm use or causing milk to be produced for a market in New York or another state. The minimum grant request is $50,000 and the maximum award is $250,000 per project. Applicants may not request less than $50,000 or more than $250,000 per project. There is no match requirement. Projects must be completed within 24 months after execution of the grant agreement. Applicants should review the full RFP and gather required application documentation, which may include project costs, letters of support, letters of commitment, a Certificate of Insurance, Form W-9, Certificate of Status, the most recent passing farm inspection documentation, AGM Part 2 Processing Permits, BTU or plant numbers, and applicable quotes or estimates. Applications are submitted through the Farm and Food Growth Fund application website at https://ffgf.smapply.us/res/p/Home-Page. Applicants without an FFGF account must register, select the Dairy Modernization Grant Program Round 2, and begin the application. Applications can be saved and resumed before final submission, and saved responses can be changed until the application is officially submitted. The application period opened August 19, 2026 and closes October 28, 2026 at 5:00 p.m. ET. No late submissions will be accepted and incomplete submissions will not be considered. Virtual open office hours are scheduled for September 9, 2026 at 12:00 p.m., and award announcements are expected in 2027. Questions may be sent to dairymodernization@ffgrowthfund.org, with support generally available Monday through Friday from 9:00 a.m. to 5:00 p.m. ET. Spanish-language information may be requested from Linnette Diaz at ldiaz@ffgrowthfund.org.

Address at least two funding priority areas and address additional priorities for additional points; provide current quotes or estimates for eligible building construction, renovation, or equipment costs exceeding $5,000; ensure the submission is complete because incomplete submissions will not be considered; submit by October 28, 2026 at 5:00 p.m. ET because late submissions will not be accepted; limit requested funding to $50,000-$250,000 and exclude ineligible costs