New York State Dairy Modernization Grant Program

The New York State Department of Agriculture and Markets (AGM) and the Farm and Food Growth Fund (FFGF) are administrating the Dairy Modernization Grant program, which will provide grants for on-farm milk storage and transfer technologies and infrastructure which will improve dairy supply chain efficiency and avoid raw milk dumping related to emergency events.

Donor Name: Farm and Food Growth Fund (FFGF)

State: New York

County: All Counties

Type of Grant: Grant

Deadline: 02/14/2025

Size of the Grant: $100,000 to $500,000

Grant Duration: 2 Years

Details:

Funds provided by this grant to farms and agricultural marketing cooperatives are intended be used for the services and expenses to expand on-farm milk storage capacity, improve efficiencies, invest in milk transfer systems, cooling technologies, or other purposes deemed necessary to further opportunities for dairy farmers to transport or store their products.

Priorities and Objectives

Funding is available for capital projects related to the following activities:
- Expansion of on-farm milk storage capacity
- Efficiency improvements
- Milk transfer systems
- Cooling technologies
- Other purposes deemed necessary to further opportunities for dairy farmers to transport or store their products
Project approaches must address at least two of the following funding priority areas. Projects that address additional priority areas will be awarded additional points.
- Project will expand, improve or install on farm storage capacity, milk transfer systems, and/or cooling technologies
- Project will increase energy efficiencies on farm(s)
- Project will improve food safety / quality measures
- Project will provide cost-savings to the farm(s)
- Project will decrease raw milk dumping
- Project increases farm’s resilience to changing market conditions, uncertain environmental conditions, and/or supply chain interruptions.

Funding Information

At least $21.6 million will be available across eligible applicants.

Maximum award is $250,000. Applicants may not request more than this per project.
Minimum award is $50,000. Applicants must request at least this much per project.

Grant Period

Projects must be completed within 24 months of execution of the grant agreement.

Eligible Activities

Funding is available for capital projects related to the following activities:
- Expansion of on-farm milk storage capacity
- Efficiency improvements
- Milk transfer systems
- Cooling technologies
- Other purposes deemed necessary to further opportunities for dairy farmers to transport or store their products
Examples of eligible equipment and expenses may include:
- Equipment, including but not limited to:
  - Milk storage tanks, including bulk tanks and milk silos
  - Milk tankers for transport
  - Milk pipelines
  - Upgraded glycol chillers
  - Farm milk loading systems, including:
    - Direct load systems, flow stream systems (e.g., Piper System) for improved the rate at which milk is loaded at the farm by installing systems that are equipped with high-speed pumps, In-line sampling systems for direct loading and in-line weight measuring systems
  - Reclaim systems for water and watering systems (e.g., on-demand tanks)
  - Cleaning upgrades/automated cleaning
  - Purchase or upgrade of cooling equipment
  - Plate coolers and heat exchangers
  - Equipment installation services (e.g., plumbing needed for equipment or hooking up electrical for the equipment purchased)
  - Supplies (any purchases that cost less than $5,000 per unit) serving as critical components to the overall project / system
  - E.g., hot water heater (tank style or on-demand), water filtration, milk pipeline, milk pump, clean-in-place system, sinks
  - Other: shipping costs, rental of general use equipment (not for construction)
- Any construction, renovation, preparation, and/or rehabilitation required for the installation or replacement of equipment
- Other related costs, such as:
  - Planning
  - Design
  - Engineering
  - Legal

Eligibility Criteria

Applicants eligible for these funds are existing dairy farmers (producers) and cooperatives that:
- are headquartered or based in New York State; and
- produce milk within New York State; and
- are licensed dairy operations in compliance with all required state and/federal standards.
Eligible applicants include:
- Agricultural Marketing Cooperatives
  - For the purposes of this grant program, a cooperative means an association or federation or cooperative of milk producers organized under the laws of New York State, having agreements with their producer members to market, bargain for or sell the milk of such producers, and is actually performing one or more of these services in the marketing of milk produced by their members, through the cooperative or through a federation of milk cooperatives in which the cooperative has membership.
- Dairy Producers, including dairy farmers and dairy farmer-processors
  - For the purposes of this grant program, a producer means any person in the State of New York who is engaged in the production of milk in a quantity which exceeds family and on-farm use or who causes milk to be produced for any market in this or any other state.