$8.5M Available to New York’s Agricultural Industry

Governor Kathy Hochul today announced the availability of $8.5 million through the new Food and Fiber Processing Grant program – the first of its kind in the state. The program provides funding to New York agricultural operations to expand food and fiber processing capacity, bring more local products to the marketplace, and help the State to meet the demands of local sourcing initiatives, such as the Governor’s groundbreaking Executive Order 32, the State’s Farm-to-School program, and Nourish NY. The program, first announced in the Governor’s 2025 State of the State, will position New York as a regional leader in the food and fiber industry.

“At the heart of New York’s economy is our agricultural industry and investing in food and fiber processing is essential to New York's agricultural future,” Governor Hochul said. “This new funding opportunity will empower our farmers and processors to innovate, grow, and build resilient, sustainable communities across the state. Together, we are cultivating opportunity and ensuring that New York remains an agricultural leader for generations to come."

The Food and Fiber Processing Grant Program, administered by the Farm and Food Growth Fund (FFGF) on behalf of the New York State Department of Agriculture and Markets, supports the scaling of existing and new products produced and harvested in New York State. Funding is available for the construction and renovation of facilities, as well as the purchase and installation of equipment. Priority will be given to projects that expand processing for fruits, vegetables, grains and beans for human consumption; plant and animal fibers.

New York State Agriculture Commissioner Richard A. Ball said,“The Food and Fiber Processing Grant program represents a significant step forward in bolstering New York’s agricultural industry. This investment supports the growth of local farms and producers, fosters innovation, and helps create jobs while making sure we are strengthening our local supply chain right here at home. We want to ensure we have the capacity we need to meet the growth of our local sourcing programs and keep our farmers and producers competitive in the marketplace.”

Farm and Food Growth Fund President and CEO Todd Erling said, “The size and scale of this investment will be transformational for our food system. Not only will it provide new processing capacity to serve market opportunities throughout the state, particularly important institutional markets, but it will allow New York to have the infrastructure and processing capabilities to serve as a leader in the region.”

Eligible applicants may apply for awards ranging from $250,000 to $2.5 million. Of the $8.5 million available, $1 million is reserved for projects that use plant and animal fiber. Processed products developed through the grant must contain a minimum of 51% raw agricultural ingredients grown or raised in New York State.

Funding priorities include:

• Early/initial stage processing for plant and animal fibers including retting, degumming, decortication, scouring, carding, and combing
• Edible fruits, vegetables, grains and beans for human consumption
• Projects focused on products that support the Nourish NY, Farm-to-School, and NYS 30% Initiative, or Executive Order 32
• Processed products containing large majority of New York State grown/harvested ingredients
• Further geographic diversity of New York State food processing capacity

Eligible projects may include, but are not limited to:

• Expansion of food and fiber processing and processed product creation
• Aggregation and storage, as part of a larger processing expansion project
• Operational efficiency improvements
• Improving food safety standards for processing facilities

The deadline to apply for funding is April 28, 2026, at 5 p.m. All applications must be submitted via the SMA system. Additional program details and the application are available at the Farm and Food Growth Fund website.

The Food and Fiber Processing Grant program is a part of Governor Hochul’s commitment to strengthen New York’s food supply chain, develop a more resilient local food supply, and bolster demand for local agricultural products. This includes the Governor’s Executive Order 32 directing State agencies to increase the percentage of food sourced from New York farmers and producers to 30 percent of their total purchases within five years.

It is one of a number of recent programs that work to increase processing capacity to further fuel the supply of diverse products for New York’s many local purchasing programs, such as the New York State Grown & Certified Infrastructure, Technology, Research, and Development (NYS G&C ITRD) grant program, The Long Island Aquaculture Infrastructure Grant Program, and the Resilient Food Systems Infrastructure (RFSI) Grant Program.

In addition, grants provided through The Fashion Innovation Center, created and funded through Empire State Development’s Division of Science, Technology and Innovation (NYSTAR), seeks to expand the use of renewable animal, plant and bio-manufactured fibers in the fashion industry, and bolster a resilient farm-to-fashion ecosystem throughout New York State, fostering innovation and sustainability in the sector.

The mission of the Farm and Food Growth Fund (FFGF) is to create employment and safe affordable housing, capital access opportunities for low and moderate income individuals, families and communities with a focus on farm and food-related industries located in the Northeast Foodshed encompassing parts of the greater Hudson Valley, western Connecticut, western Massachusetts, southern Vermont and eastern Pennsylvania by stimulating economic vitality through technical assistance services, community development and increasing the flow of capital.

State Senator Michelle Hinchey said, “Sourcing food from New York farmers to feed communities across our state strengthens our economy, supports public health, and builds a stronger food system, but limited processing capacity has often held back that potential. We’re thrilled that the first round of Food & Fiber Processing grants is now available to help farmers and producers expand infrastructure, grow their operations, and innovate. I thank Governor Hochul for her partnership in bringing more locally grown and produced products to New Yorkers.”

Assemblymember Donna Lupardo said, “I’m glad to see the Food and Fiber Grant Program getting underway. These funds will help open up opportunities for NY’s farmers and processors, especially in the fiber industry. These types of investments are needed to successfully build out our farm-to-table and farm-to-fiber supply chains. We know that customer demand is there for the type of high quality products NY is known for.”