“There is significant investment being made in dairy processing across New York – more than in any other state." - NEDPA Chair and Farmer Keith Kimball
The Northeast Dairy Producers Association (NEDPA), which represents family dairy farms that produce more than half the fluid milk in New York State, today released its 2026-2027 state budget and legislative priorities. NEDPA remains focused on supporting New York’s highly skilled and talented dairy workforce and is committed to science-based best practices that protect the state’s natural resources.
“There is significant investment being made in dairy processing across New York – more than in any other state, which means family farms will be stepping up to meet increased demand for our milk,” said NEDPA Chair and Farmer Keith Kimball. “That is exactly why a permanent Investment Tax Credit is more important now than ever before. It will allow both farmers and lenders to confidently plan for long-term investments that support our farmworkers, increase farm efficiencies, and improve overall productivity. With the Governor and Legislature’s continued support of our family farms as we work to keep pace with the expansion of dairy processing, New York can soon secure its place again as the No. 1 dairy-producing state in the country.”
According to the International Dairy Foods Association (IDFA), New York is experiencing the largest surge in dairy processing capacity growth and expansion, and anticipates nearly $2.8 billion in investment between 2025-2028 alone.
Kimball added, “The state’s investment in modernizing and expanding dairy processing capacity is not only boosting economic growth, job creation, and local food production – it is laying a foundation for future generations to continue farming here in the Empire State.”
To meet the increased demand for fluid milk resulting from these expansion projects, NEDPA is advancing the following priorities that will directly support family farms, farm employees, and industry partners.
NEDPA’s policy and additional funding requests:
Support Farm’s Efforts to Invest for the Future by making the Investment Tax Credit (ITC) Permanent. The current ITC is set to expire for projects not in service by December 31, 2027. Farms need more time to responsibly plan projects, source experts and skilled construction teams, and navigate ever-changing supply chain issues. Making the ITC permanent will keep projects moving forward, strengthen the foundation of New York’s dairy economy, and allow farms to meet the increased demand for milk.
Support Farm’s Efforts to Build and Provide Farmworker Housing.
Make Farm Provided Employee Housing Eligible for the ITC. This will allow farms to improve the recruitment and retention of skilled employees while managing rising construction costs.
Increase the NYS Farm Worker Housing Loan Program, which has been a successful revolving loan fund, supporting farms’ efforts to provide high-quality housing for employees. To meet growing demand, NEDPA requests state leaders:
Raise the maximum cap on each loan from $200,000 to $400,000.
Add $10M to the existing fund.
Establish a separate fund for new construction projects.
Invest $10M to Continue the Dairy Farm Modernization Grant Program to help farms invest in expanding on-farm milk storage capacity, improve efficiency, and implement technologies. The first year of the program was oversubscribed by more than double the available funds, demonstrating the need for this investment.
Invest in Research, Innovation, and Extension at Cornell University.
These investments directly support and inform farms, especially as they work to produce more milk to meet growing processor demand, while reducing environmental impact, including:
$500,000 for Cornell University Ruminant Center (CURC), an increase of $125,000. Research at CURC advances productivity and animal health and informs dairy farm decision-making.
$2.463M for PRO-DAIRY, an increase of $1 million to sustain vital programs, including the Climate Leadership Specialist position, and add new expertise in farm business management, dairy nutrition, animal well-being, and youth development, along with applied research and extension support.
New this year: Create a “One Stop Shop for Agriculture” at DEC. Agriculture intersects with multiple divisions within the Department of Environmental Conservation (DEC). Establishing a dedicated position focused on agriculture would help streamline communication, improve responsiveness, and ensure consistent interpretation of regulations. This will save farms and the agency time, reduce confusion, and strengthen environmental compliance.
Sustain funding for New York Center for Agricultural Medicine and Health (NYCAMH) to provide bilingual safety training for farm employees. Continued investment in farm safety, health, and workforce development ensures that employees are protected, skilled, and supported in their roles.
To view the full slate of budget and policy priorities, click here.