State Says $21.6M Dairy Modernization Program Delivering Results

Milk pours from a glass pitcher into a glass, outdoors with a blurred green and brown background.
Milk is poured from a pitcher into a glass, illustrating the dairy industry relevant to New York State.

Nearly all projects funded through New York’s $21.6 million Dairy Modernization Grant Program are either underway or complete, according to the state Department of Agriculture and Markets.

The announcement, made during June’s Dairy Month celebration, highlights progress on a program designed to help dairy farmers and cooperatives invest in equipment upgrades, expand milk storage capacity, and improve the resilience of their operations.

State officials say 103 dairy farms and cooperatives received funding through the program’s first round in 2025. Of those projects, 30 have been completed and 63 are currently underway, representing roughly 90% of all funded projects.

The grants, ranging from $50,000 to $250,000, have been used for improvements such as bulk milk tanks, milk silos, transport tankers, loading systems, and other infrastructure intended to strengthen the dairy supply chain and reduce the risk of milk waste during emergencies.

Agriculture Commissioner Richard Ball said the program is helping dairy farmers modernize their operations and remain competitive in a changing marketplace while improving their ability to respond to severe weather and other disruptions.

The state also announced that an additional $8.5 million in funding will be available through a second round of the Dairy Modernization Grant Program later this summer. A third round, providing nearly $13 million more for dairy farmers, was approved as part of the 2026-27 state budget.

The investment comes as New York continues to rank among the nation’s leading dairy-producing states. According to the Department of Agriculture and Markets, New York’s nearly 3,000 dairy farms produce more than 16 billion pounds of milk annually, making it the fifth-largest dairy state in the country and the largest in the Northeast.

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