Title Governor Hochul Announces Significant Investments in New York’s Agricultural Industry as Part of FY 2025 Budget

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Governor Kathy Hochul today announced significant investments in New York’s agricultural industry as part of the FY 2025 Budget. The Budget includes support in key areas to continue to strengthen the agricultural community, provide a boost to New York’s farmers, and create a stronger, more resilient food supply chain. This includes first time investments of $55 million to bolster New York’s dairy industry, over $60 million in local assistance to support farmers and producers, $50 million for the continuation of the successful Nourish NY program, a five-year extension of the sale of to-go alcoholic beverages at restaurants and bars, $19.5 million to expand the New York State Animal Heath Diagnostic Center at Cornell University, and $15 million to grow New York's bioeconomy and further other key agricultural initiatives. Under Governor Hochul, investments in New York State’s agricultural priorities and its farmers have gone up by 60 percent since 2022.

“From the dairy farms of Wyoming County to the fisheries off the shores of Long Island, agriculture plays a critical role in New York’s economy," Governor Hochul said. “We are making key investments to lift up every corner of this industry and support hardworking families. The agricultural community is essential to building a stronger, more resilient future for New York State and I will continue make investments that move this industry forward."

Supporting New York Restaurants and Bars

The FY 2025 Budget grants restaurants and bars the authority to sell alcoholic beverages to-go for another five years. To-go drinks were a critical lifeline for the hospitality industry during the pandemic, and it has continued to be successful for bars, restaurants, and everyday New Yorkers since then. The current provision was set to expire in April 2025, but will now expire in 2030.

Bolstering New York’s Dairy Industry

With dairy being the largest sector of the agricultural industry, the FY 2025 Budget invests $55 million in two initiatives that will support dairy farm modernization and ensure a more reliable supply chain. The Budget includes $34 million in capital funding over two years for on-farm fluid milk storage technologies and processing infrastructure to mitigate transportation issues during periods of intense winter weather and road closures, which will increase dairy supply chain efficiency and avoid raw milk dumping related to emergency events.     

Additionally, to help farmers mitigate the impacts of climate change and reduce their carbon footprint, the Budget includes $21 million for a new Alternative Waste Management and Enhanced Precision Feed Program. This will further the mitigation of agricultural greenhouse gas emissions, provide opportunities to sequester carbon, and scale assistance to meet unmet farmer demands.  

Investing In Nourish NY Program

Nourish NY continues to connect New York’s farm products to New York families in need. The FY 2025 Budget funds the program with an additional $50 million to help families access fresh food and support local farmers. In 2021, Governor Hochul signed legislation to codify Nourish NY into law. This critical program helps people who are food insecure access the nourishment that they need, while providing a market for farmers to sell their products. A total of $147 million has been dedicated to the program so far.

Local Assistance

The FY 2025 Budget builds on Governor Hochul’s support for the agricultural industry by including over $60 million in total local assistance to support local farmers and producers through key programs focused on research, education, and marketing. This year, this includes funding for the FFA youth leadership conference, workforce programming and guidance, and on-farm health and safety programs through the New York Center for Agricultural Medicine and Health.

New York State Animal Heath Diagnostic Center at Cornell University

The FY 2025 Budget includes $19.5 million to expand the New York State Animal Heath Diagnostic Center at Cornell University to increase the facility’s capacity, expand programs in eDNA, AMR and Genomic surveillance, and meet the lab’s growing demand, which has nearly doubled since it was built in 2010. The Vet Lab is a critical component of the State’s efforts to protect New York from new and emerging threats from animal disease outbreaks.

Other FY 2025 Budget investments include:

• $7 million to grow New York’s bioeconomy and leverage existing opportunities to develop bioproduction within the agriculture and forestry sectors.
• $5 million to launch New York’s Blue Food Transformation to bolster marine agriculture, promote a healthy natural environment, and provide New Yorkers with a nutritious source of locally grown seafood.
• $1.2 million for the Eastern Finger Lakes Coalition of Soil and Water Conservation Districts to build professional capacity and accelerate agricultural and resiliency-related projects on farms of all types.

In addition, the Budget:

• Continues the multi-year $50 million investment to support kitchen facilities that prepare meals for K-12 schools from New York State farm products.
• Advances New York’s agricultural workforce and helps agricultural employers and employees adapt to changing work landscapes.
• Boosts agricultural education and builds on the state’s commitment to creating a strong agricultural workforce pipeline.
• Provides continued support for local fairs through $2 million in marking initiatives, including a County Fairs Passport Program.
• Doubles funding for Cornell University’s Integrated Pest Management Program to $4.25 million. The additional funding will support growers through field trials and the implementation of alternative practices to address pest solutions as part of the transition from treated seeds.
• Continues funding for key programs that assist New York’s farms and protect the environment, including Cornell Soil Health, the Soil and Water Conservation Districts, which are seeing an increase of $1.2 million this year, and the Climate Resilient Farming grant program.