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NYS Dairy Modernization Grant

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Support is generally available during business hours: Monday - Friday (9:00 a.m. - 5:00 p.m. ET.)  Assistance may not be available shortly before deadlines.  

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. 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.

Grants are available to applicants throughout New York State.

Application period opens: November 1, 2024
Application deadline: February 14, 2025, 5:00 p.m. ET
No late submissions will be accepted. Incomplete submissions will not be considered.

Grants are available to applicants throughout New York State.

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

Estimated Funding Timeline

No late submissions will be accepted.  Incomplete submissions will not be considered.

Grant Amount

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.

There will be no Match Requirement.

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

Eligibility

Applicants eligible for these funds are existing dairy farmers (producers) and cooperatives that:

  1. are headquartered or based in New York State; and

  2. produce milk within New York State; and

  3. 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.  

What Is Eligible?

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

Eligible project costs relating to building construction, building renovation, and/or equipment that exceed $5,000 must be supported by a current quote or estimate.
 

Ineligible Activities

Ineligible expenses include, but are not limited to:

  • Projects not primarily located within New York State

  • Personnel and fringe expenses

  • Vehicles

  • Construction that is unrelated to the installation of new equipment

  • Supplies that are not critical components to the overall project / system

  • Travel expenses, including that pertaining to equipment acquisition

  • Training expenses, including for the use of new equipment or otherwise

  • Installations for overall farm production processes that are not specific to milk storage and handling

  • Expenses paid by the applicant before the start of the grant period

  • Any expenses for projects that solely support the production and/or sales of raw fluid milk meant for human consumption without pasteurization​​

Interested in Applying? Take these steps:

  1. Read the full RFP to learn about the application process and what you will be required to submit with your application.

  2. Gather documentation listed in the RFP to be submitted with your application including costs, letters of support, letters of commitment, Certificate of Insurance, Form W-9, Certificate of Status, most recent passing farm inspection documentation, and/or AGM Part 2 Processing Permits, and/or BTU or plant number(s), and any quotes or estimates as needed.

How To Apply:

  • Visit https://ffgf.smapply.us/res/p/Home-Page

  • If you do not already have an account with FFGF, set up an account by using the Register button in the top right-hand corner of the page.

  • Select the Dairy Modernization Grant program and proceed to begin your application.

  • You are not required to complete the application process in a single sitting. The form enables you to save your progress and resume at a later time or date from where you left off. It's important to note that none of your saved responses are final until you officially submit your application, allowing you to make changes or edits as needed.

Resources

Dairy Modernization Grant RFP

How to Guide for Applying

How to Create an Account on Survey Monkey

Step by Step Video: How to Complete the Application

Frequently Asked Questions

For questions, please email us at dairymodernization@ffgrowthfund.org

Support is generally available during business hours: Monday - Friday, 9:00 a.m. - 5:00 p.m. ET.  Assistance may not be available shortly before deadlines.

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