Governor Kathy Hochul has announced the launch of an $8.5 million Food and Fiber Processing Grant program aimed at supporting New York’s agricultural sector. This new initiative is designed to help local agricultural operations expand their food and fiber processing capacity, bring more locally produced goods to market, and meet the requirements of state sourcing programs such as Executive Order 32, Farm-to-School, and Nourish NY.
Governor Hochul stated, “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. 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 program will be administered by the Farm and Food Growth Fund (FFGF) on behalf of the New York State Department of Agriculture and Markets. Funding will support both construction or renovation projects as well as equipment purchases for expanding or establishing processing facilities. The program prioritizes projects focused on fruits, vegetables, grains, beans for human consumption, and plant or animal fibers.
Richard A. Ball, Commissioner of Agriculture for New York State 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.”
Todd Erling, President and CEO of FFGF 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.”
Applicants can request between $250,000 and $2.5 million from the fund; $1 million is set aside specifically for projects using plant or animal fiber. All products developed through this grant must include at least 51% raw ingredients grown or raised within New York State.
Priority areas for funding include early-stage fiber processing techniques like retting or carding; edible produce processing; initiatives supporting Nourish NY or other state procurement efforts; products with a majority of New York-grown content; as well as increasing geographic diversity in processing capacity across the state.
Eligible projects may involve expanding food or fiber production facilities, improving storage or aggregation linked to larger expansions, boosting operational efficiency, or enhancing food safety standards.
Applications must be submitted by April 28, 2026 via the SMA system. More information about eligibility criteria is available on the Farm and Food Growth Fund website.
This grant aligns with Governor Hochul’s broader efforts to strengthen local supply chains by increasing demand for locally sourced products—such as her Executive Order 32 directing agencies to source at least 30 percent of their food purchases from within New York over five years—and complements other recent initiatives like grants supporting aquaculture infrastructure or fashion innovation using renewable fibers.
Senator Michelle Hinchey commented: “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.”