New York has set aside $8.5 million to support food and fiber processing in a first-of-its-kind grant for the state, New York Governor Kathy Hochul announced in late January.
The Food and Fiber Processing Grant helps agricultural operations to scale existing and new products produced and harvested in the state, with funding available to construct or renovate facilities, and to purchase and install equipment, a release on the grant says. The program is administered by the Farm and Food Growth Fund on behalf of the New York State Department of Agriculture and Markets.
“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,” 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 grant allows eligible applicants to apply for funding between $250,000 and $2.5 million out of the $8.5 million total. To be eligible for the grant, processed products must contain a minimum of 51% raw agricultural ingredients grown or raised in New York State.
Projects eligible for the grant may include, but are not limited to, expansion of food and fiber processing and processed product creation, aggregation and storage of products as part of a larger processing expansion project, operational efficiency improvements, and food safety improvements at processing facilities.
The state is prioritizing funding for various types of operations, with those most pertinent to food processors including:
- Edible fruits, vegetables, grains, and beans meant for human consumption.
- Processed products with a large majority of ingredients grown or harvested in New York State.
- Projects that further geographic diversity of food processing capacity in the state.
- Projects focused on products supporting state initiatives including Nourish NY, Farm-to-School, and NYS 30% Initiative, or Executive Order 32.
The deadline to apply for the Food and Fiber Processing Grant is April 28, 2026, at 5 p.m. Companies can submit their applications through the SMA system, and additional grant details and the application are available at the Farm and Food Growth Fund website.
“The size and scale of this investment will be transformational for our food system,” says Todd Erling, President of the Farm and Food Growth Fund. “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.”
