Food and Fiber Processing Grant Program

The Food and Fiber Processing Grant Program is a newly established funding opportunity launched by Governor Kathy Hochul as part of the 2025 State of the State initiatives. With a total funding pool of $8.5 million, this program is designed to enhance food and fiber processing infrastructure across New York State. It marks a strategic investment in expanding local sourcing capabilities, supporting sustainability, and driving economic growth in New York’s agricultural sector. The program is intended to help meet the requirements of landmark policies such as Executive Order 32, the State’s Farm-to-School program, and Nourish NY, by increasing the availability of locally grown and processed products in the marketplace. Administered by the Farm and Food Growth Fund (FFGF) on behalf of the New York State Department of Agriculture and Markets, the grant program targets scaling efforts for both new and existing agricultural operations within the state. Eligible projects may include construction and renovation of facilities, installation of equipment, aggregation and storage improvements, and efforts to raise food safety standards. A key priority is supporting early-stage processing techniques for plant and animal fibers, including activities such as retting, decortication, and carding. Projects that promote the processing of edible fruits, vegetables, grains, and beans for human consumption, particularly those aligning with state-run food procurement initiatives, will be given preferential consideration. Grants will range between $250,000 and $2.5 million, with $1 million specifically reserved for projects focusing on plant and animal fiber processing. All processed products resulting from the funding must consist of at least 51% New York State-grown or -raised ingredients. The program aims to boost regional processing capacity and encourage geographic diversification of food systems across the state, helping to alleviate current bottlenecks and respond to growing demand for local agricultural goods. The application process is hosted via the SMA system and follows a two-step submission pathway. Applicants must first complete a short questionnaire to confirm eligibility. Once eligibility is confirmed, they can proceed to the full application and budget form. The platform allows applicants to save their progress and return at a later time, offering flexibility throughout the process. However, final submission is required before the deadline for consideration. No pre-application such as a Letter of Intent is required. Evaluation will prioritize proposals that demonstrate clear alignment with New York State food initiatives and those that contribute to the resiliency and expansion of local processing capabilities. The program also aims to support job creation, innovation, and supply chain stability in the state’s agricultural economy. Final applications must be submitted by April 28, 2026 at 5:00 PM EDT. For inquiries, applicants may contact the FFGF via email at [email protected]. The program is non-recurring and specific to this allocation cycle. It complements other recent initiatives intended to develop the farm-to-fashion and local sourcing ecosystem in New York, such as the NYS Grown & Certified ITRD program and the Fashion Innovation Center. These collective efforts reflect a broader commitment by New York State to enhance agricultural competitiveness, food security, and community well-being through targeted investment in infrastructure and innovation.