Governor Hochul announces 8.5 million dollars in funding to strengthen New York’s agricultural industry and expand food and fiber processing across the state

New York – Governor Kathy Hochul unveiled a major funding initiative aimed at boosting New York State’s agricultural processing capabilities, announcing that $8.5 million is now available through the newly established Food and Fiber Processing Grant program. The program, the first of its kind in the state, is designed to provide agricultural operations with the resources needed to expand the production and processing of locally grown food and fiber products.

The announcement highlights the administration’s ongoing commitment to supporting New York’s farmers, increasing local sourcing, and strengthening supply chains that bring New York-grown products directly to consumers, schools, and institutions. The program also ties into several statewide initiatives, including the Governor’s Executive Order 32, the Farm-to-School program, and Nourish NY, all aimed at increasing the percentage of food sourced from local producers.

“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 is administered by the Farm and Food Growth Fund (FFGF) on behalf of the New York State Department of Agriculture and Markets. It provides funding for a wide range of projects, including the construction and renovation of facilities, the purchase and installation of new processing equipment, and improvements to operational efficiency and food safety standards. By supporting both new and existing operations, the program aims to enhance the state’s capacity to process fruits, vegetables, grains, beans, and plant and animal fibers for human consumption and industrial use.

“The Food and Fiber Processing Grant program represents a significant step forward in bolstering New York’s agricultural industry,” said New York State Agriculture Commissioner Richard A. Ball. “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.”

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Todd Erling, President and CEO of the Farm and Food Growth Fund, added, “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 for the program may request awards ranging from $250,000 to $2.5 million. Of the total $8.5 million, $1 million is specifically reserved for projects that focus on plant and animal fiber processing. All processed products developed through the program must include at least 51 percent raw agricultural ingredients grown or raised in New York State, ensuring that local producers directly benefit from the investment.

Funding priorities have been clearly outlined, with emphasis on early-stage processing for fibers, edible fruits, vegetables, grains, and beans, as well as products aligned with Nourish NY, Farm-to-School, and Executive Order 32 initiatives. The program also encourages projects that broaden the geographic diversity of food processing operations across the state, ensuring that resources reach farms and producers in all regions, from urban centers to rural communities.

Eligible projects may include a wide array of activities. These range from expanding processing capacity and creating new processed products, to aggregation and storage as part of a larger processing expansion effort. Projects can also focus on improving operational efficiency, enhancing food safety measures in processing facilities, and implementing innovative technologies that strengthen local supply chains.

Applications must be submitted via the SMA system by April 28, 2026, at 5 p.m., and additional program details are available on the Farm and Food Growth Fund website. Officials stress that timely submissions are essential for full consideration, as demand is expected to be strong among New York’s agricultural community.

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The program aligns with Governor Hochul’s broader vision to strengthen New York’s food supply chain and build resilience in local production. Executive Order 32, for instance, directs state agencies to increase the proportion of food sourced from New York producers to 30 percent of their total purchases within five years, emphasizing the importance of local sourcing for schools, hospitals, and other state institutions.

This grant initiative is part of a wider effort to expand processing capacity across the state. Other recent 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, all support the expansion of local processing and the development of products for state purchasing programs.

The Fashion Innovation Center, created through Empire State Development’s Division of Science, Technology, and Innovation (NYSTAR), also complements these efforts. It focuses on expanding the use of renewable plant and animal fibers in the fashion industry and building a resilient farm-to-fashion ecosystem throughout New York State. Together, these programs illustrate a comprehensive approach to supporting both food and fiber industries while fostering innovation, sustainability, and economic growth.

The mission of the Farm and Food Growth Fund is rooted in creating employment opportunities, providing safe and affordable housing, and improving access to capital for low- and moderate-income individuals and communities. The fund specifically targets farm and food-related industries across the Northeast Foodshed, which includes parts of the greater Hudson Valley, western Connecticut, western Massachusetts, southern Vermont, and eastern Pennsylvania. By stimulating economic vitality through technical assistance, community development, and increased capital flow, the FFGF aims to strengthen the agricultural economy across multiple states while benefiting local communities.

State Senator Michelle Hinchey praised the initiative, emphasizing its potential impact on local sourcing. “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 also spoke in support of the program, noting the specific benefits for the fiber industry. “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.”

With these grants, New York State aims not only to increase processing capacity but also to strengthen the infrastructure needed to handle growing demand for local products. By focusing on food safety, operational efficiency, and the development of new products, the program will help farmers and processors remain competitive while meeting the requirements of state purchasing programs and local markets.

The Food and Fiber Processing Grant program also emphasizes sustainability and innovation, providing resources for modernizing facilities and equipment. Projects that implement environmentally friendly practices, improve energy efficiency, or create new uses for plant and animal fibers are particularly encouraged. By funding both traditional and innovative approaches, the state hopes to enhance its position as a regional leader in agricultural production and processing.

In addition to increasing capacity and sustainability, the program has a strong economic development component. Investments in processing facilities are expected to create jobs, support local communities, and provide training opportunities in the agricultural and food production sectors. This will allow New York to retain talent, attract new workers, and ensure that the state’s agricultural economy remains robust and competitive.

Governor Hochul has consistently emphasized the importance of supporting farmers and local producers. By providing these funds, the state is reinforcing its commitment to resilient food systems, strong local economies, and public health. The Food and Fiber Processing Grant program represents a tangible investment in New York’s agricultural future and the communities that depend on it.

In the coming months, eligible applicants will be able to apply for grants, with funding decisions expected to prioritize projects that align with the state’s broader objectives of local sourcing, sustainability, and infrastructure expansion. The initiative underscores New York’s leadership in creating comprehensive programs that address both the economic and social dimensions of food and fiber production.

By combining technical assistance, capital support, and strategic investments, the state aims to ensure that New York farmers and producers have the tools they need to grow their operations and bring more locally produced food and fiber products to market. With a clear focus on sustainability, quality, and local sourcing, the Food and Fiber Processing Grant program is poised to transform the agricultural landscape across New York State.

As the state continues to implement programs such as this, New York’s farmers, processors, and local communities stand to benefit from increased opportunities, enhanced infrastructure, and stronger connections to markets. The $8.5 million available through the first round of grants represents just the beginning of a comprehensive effort to strengthen the state’s agricultural economy, expand local production, and ensure that New York remains a leader in both food and fiber industries for years to come.