N.Y. to Give $21.6M for Dairy Supply Chain, Milk Tankers
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New York’s dairy farmers are getting a chance to modernize their operations as the state confronts mounting challenges from extreme weather and market pressures.
Gov. Kathy Hochul has announced a $21.6 million modernization fund that will provide grants up to $250,000 for milk tankers, farm loading systems and other supply chain improvements.
“New York’s dairy farms are the backbone of our agricultural industry, and they contribute so much to our communities, our economies, and our long legacy of agricultural excellence,” Hochul said Nov. 1. “I’m proud that the Dairy Modernization Grant Program will help our dairy farmers and processors make much-needed improvements to their technology and facilities, helping New York state to remain a powerhouse in dairy nationally and ultimately getting nutritious, locally produced dairy products to more New Yorkers statewide.”
Hochul unveiled the grant program in her 2024 State of the State address as a response to mounting challenges facing dairy farmers. The initiative aims to help farms and processors upgrade their technology and infrastructure, particularly to prevent milk dumping during winter emergencies when road closures can cut off transportation. The funding comes at a critical time for state dairy farmers, who are grappling with increasingly difficult market conditions.
While New York boasts nearly 3,000 dairy farms producing 15 billion pounds of milk annually, its operations tend to be smaller and less technologically advanced than those in other major dairy states. The state ranks fifth in U.S. milk production, behind California (No. 1), Wisconsin (No. 2), Idaho (No. 3) and Texas (No. 4). Together, these five states produce half of the nation’s milk supply, according to the U.S. Department of Agriculture’s Economic Research Service.
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“New York isn’t just an agriculture state — we’re a dairy state. Dairy is our largest agricultural sector and a powerful contributor to our economy, so supporting this leading industry needs to be a state priority,” said state Sen. Michelle Hinchey (D), adding that the grant allocations “will help our dairy farmers and processors modernize their operations, ensuring that high-quality New York dairy products remain fresh and flowing throughout our region. I’m proud to have played a role in advancing this program through our state agriculture budget as a meaningful investment in our family-run dairies and local processing businesses.”
The dairy industry is New York’s largest agricultural sector, generating nearly half of the state’s total agricultural receipts and providing some of the highest economic multipliers.
State Agriculture Commissioner Richard Ball said the grants will give “critical funding” to dairy farmers and cooperatives enabling them to upgrade agricultural facilities and buy modern equipment.
The New York State Department of Agriculture and Markets and the Farm and Food Growth Fund will distribute grants ranging from $50,000 to $250,000 for projects that increase on-farm milk storage volumes, improve operational efficiency and enhance 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; reclaim systems for water and watering systems (e.g., on-demand tanks); and more,” the governor’s office stated.
The deadline for grant proposal submissions is Feb. 14. Interested applicants can participate in virtual open office hours scheduled from 2 p.m. to 3 p.m. on Nov. 13, Dec. 8 and Jan. 15.
State Assembly Member Donna Lupardo (D) said the grant program directly addresses farmers’ feedback about expanding “on-farm milk storage capacity, investing in milk tankers for transport.”
Tonya Van Slyke, executive vice president of the Northeast Dairy Producers Association, noted that dairy farmers expressed concerns about needing solutions “to expand processing capacity, mitigate bottlenecks, and improve efficiencies. By implementing new technologies and processes with support through this grant program, nutritious milk and dairy products will continue to get to store shelves as efficiently as possible, resulting in time and cost savings along the dairy supply chain from farms to haulers and to processors.”
Todd Erling, president and CEO of the Farm and Food Growth Fund, predicted that stronger dairy operations will create a more resilient food system throughout the Northeast.
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