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NYS Food and Fiber Processing Grant
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The New York State Department of Agriculture and Markets (AGM) and the Farm and Food Growth Fund (FFGF) are administrating the Food and Fiber Processing Grant program, which will provide funding assistance for capital expenses related to food and fiber processing projects, including construction and renovation of buildings and purchasing and installation of equipment.  Processed products developed through the grant must contain a minimum of 51% raw agricultural ingredients grown or raised in New York State. Processing facilities must be located in New York State.

The program seeks to expand and renew food and fiber processing to promote long term viability of the agriculture industry and support the scaling of existing and new products produced in New York State.

Funds provided by this grant will be used to invest in the cost of construction, renovation, alteration, rehabilitation, improvements, installation, acquisition, repair or replacement of, buildings, equipment, or permanent facilities to support the production, preparation, packaging, and distribution of New York State agricultural products.
 

Application period opens: January 26, 2026
Application deadline: April 28, 2026, 5:00 pm EST

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

This is a New York State funded program and is not affected by any federal actions.

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Priorities and Objectives

Project approaches must focus on creating food and fiber products for institutional, wholesale, and retail markets. The program will provide capital funding to continue to equip the State to meet the demands of local sourcing initiatives, such as Farm-to-School/NYS 30% Initiative, Nourish NY and Executive Order 32. Projects that will impact multiple farms and have an industry wide impact will be prioritized. Processed products developed through the grant must contain a minimum of 51% raw agricultural ingredients grown or raised in New York State.  Processing facilities must be located in New York State.

 

Priority will be given to projects that expand processing for the following commodities: edible fruits and vegetables, grains for human consumption, edible beans, and plant and animal fibers. Additional priority will be given to the location of awards throughout New York State to ensure geographic diversity to the extent possible.

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 marketed to the Nourish NY, Farm to School, or other institutional markets

  • Processed products containing large majority of New York grown/harvested ingredients

  • Further geographic diversity of New York State food processing capacity

 

Edible fruits and vegetables with significant production in New York State include: apples, cabbage, snap beans, sweet corn, squash, root vegetables, peas, and onions. Fruits and vegetables with demonstrated demand from institutional purchasers may also be considered significant. "Animal fiber" means natural fibers that have formed the covering, or fleece, of sheep or other hairy animals such as goats or alpacas. "Plant fiber" means natural fibers that are obtained from plants including, but not limited to, hemp.

 

Projects will focus on expanding processing capabilities; only expansions of existing processing capability or with demonstrated viability will be considered. Funding is available for projects related to the following activities:

  • 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

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Estimated Funding Timeline

NYS Food and Fiber Processing Grant 

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Grant Amount

At least $8,500,000 will be available to eligible applicants. An amount of $1,000,000 will be set aside specifically for projects utilizing plant and animal fiber. If there are not enough eligible plant and fiber applications to reach that amount, then that funding may be used for other eligible projects. More than $1,000,000 may be awarded to eligible plant and fiber applications, based on scoring.

  • Maximum award is $2,500,000. Applicants may not request more than this amount per project.

  • Minimum award is $250,000. Applicants must request at least this amount per project.

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There is a 50% match requirement for this program.

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Eligibility

Eligible applicants include the following entities that are in operation at the time of application:

  • For-profit businesses

  • Grower/Producer Cooperatives

  • Nonprofit organizations that are currently generating revenue through their processing-related activities

 

Municipal Governments and Educational Institutions are not eligible to apply.

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Startup enterprises are not eligible to apply and applicants must be in operation at the time of application.

 

All applicant types must produce food and fiber products in New York State and must comply with all Federal and New York State laws and regulations.

 

Group applications may be accepted but must designate a lead business (“prime sub-awardee”) who manages and signs the sub-award agreement and is responsible for coordinating and representing multiple eligible benefitting producers and growers. The lead organization is responsible for all contractual management and reporting, including collecting documents related to financial expenditures and performance data from the eligible benefitting producers and growers.

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What Is Eligible?

Eligible grant expenses will include the construction, renovation, adaptation, purchase, and/or installation of structures, equipment, supplies, and other expenses related to the processing and aggregation of food and fiber products. Items not included on the list below may be considered eligible only if they align with the objectives and goals of the program. Eligible project costs relating to building construction, building renovation, and/or equipment that costs over $5,000 must be supported by a current quote or estimate.

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  • Construction of new buildings or facilities

  • Renovation of buildings or facilities

  • Rehabilitation of buildings or facilities

  • Purchase, shipping and installation of equipment

  • Acquisition of equipment or facilities

  • Expansion of buildings or facilities

  • Professional Services: design, legal, permitting and other professional services related to assessing, designing, or approving the proposed project after grant award (pre-award costs are not allowable).

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Eligible Commodities

  • Fruit, vegetable, grains and beans for human consumption

  • Plant and animal fibers

  • Diary

  • Seafood, including aquaculture and fin fish

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Ineligible Activities

Municipal Governments and Educational Institutions are not eligible to apply. Startup enterprises are not eligible to apply. Applicants must be in operation at the time of application.

 

Ineligible expenses include, but are not limited to:

  • Projects by entities not in operation at the time of submission

  • Personnel and fringe expenses

  • Travel expenses, including that pertaining to equipment acquisition

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

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

  • Land purchases or leases

  • Equipment leases

  • Vehicles

  • Normal operating costs

  • Shared use kitchens

 

Ineligible Commodities

  • Meat/poultry

  • Alcoholic beverage products

  • Cannabis

  • Products not related to edible food or fiber
     

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 such as letters of support, letters of commitment, most recent passing operation inspection documentation, and any cost quotations as needed.

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To Apply:

  • Review the RFP for the Food and Fiber Processing Grant Program.

  • 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. Reference the How to Create an Account on Survey Monkey guide below.

  • Select the Food and Fiber Processing 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.

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Resources

 

For questions, please email us at food_and_fiber@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.

 

Beyond the NYS Food and Fiber Processing Grant program, FFGF and its affiliate organization the Hudson Valley AgriBusiness Development Corporation (HVADC) both offer numerous programs that are available for farms and food businesses to access. 

 

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

Affiliate Organization

FFGF is an equal opportunity employer. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Avenue,

S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6392 (TTD). USDA is an equal opportunity lender, provider and employer.

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