Dairy Farm Improvement & Modernization Grant

Dairy Farm Improvement & Modernization Grant is sponsored by Northeast Dairy Business Innovation Center (NE-DBIC) (Vermont Agency of Agriculture, Food & Markets). This grant funds projects to help dairy farmers in the Northeast improve their operations for long-term success, including modernizing outdated systems or introducing innovative solutions to improve farm viability, increase animal health and comfort, improve milk quality or valu…

Dairy Farm Improvement & Modernization Grant - Northeast Dairy Business Innovation Center Dairy Farm Improvement & Modernization Grant Grant Question and Answer Session: Join us for an online open forum to learn more about the new two-stage application process for this grant and ask questions. Thursday, November 12, 2026: 1:00 – 2:00 pm ET. Register here.

Pre-Applications for this grant will be open October 29, 2026 – December 17, 2026 at 2 pm ET. This grant will fund projects that help dairy farmers strengthen their operations for long-term success.

This grant supports projects that modernize outdated systems or introduce innovative solutions to improve farm viability, increase animal health and comfort, improve milk quality or value, improve worker conditions, and strengthen the farm’s ability to respond to challenges.

This is a competitive grant program and projects will be more likely to be selected if they involve expert guidance such as farm planners or technical assistance providers and/or show benefits to multiple businesses. All projects must show a strategic, systems-level approach to improving dairy production or handling on the farm. Projects that only replace old equipment without broader improvements to farm systems are not eligible.

Eligible applicants include dairy farmers, producer associations or technical service providers applying on behalf of groups of farmers, and milk buyers focusing on on-farm milk production or transfer. Grants are available to applicants in all Northeast states: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

Please note that this year, this program is moving to a two-stage application process because of high demand for grant funds. Applicants will submit a pre-application outlining their intended project. A subset of pre-applications will be invited to submit a full application.

Awards will range from $15,000 – $100,000 with a 25% in-kind and/or cash match contribution required. Total funds available: $1,000,000 Grants are available to applicants in all 11 Northeast states served by NE-DBIC: Connecticut, Delaware, Maine, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

Applicants eligible for these funds are one or more of the following: Are headquartered or based in the Northeast; Produce milk within the Northeast; Are licensed dairy operations in compliance with all required state and/federal standards; Are not primarily selling raw fluid milk intended for human consumption without processing or pasteurization.

Producer associations that represent, support, or promote dairy products originating from the Northeast. For the purposes of this grant, a producer association group, also known as a trade association, industry trade group, business association, sector association, or industry body, is an organization founded and funded by businesses that operate in a specific industry.

Producer associations are eligible if: The project will primarily benefit dairy farmers in the Northeast; At least two farmer partners are identified and provide letters of commitment at the full application stage; The majority of partner farms meet the eligibility requirements “Dairy Farmer” eligibility above; The association does not receive the majority of their funds from producer check-off dollars.

Technical assistance providers (e.g., university extension or viability organizations) are eligible to apply if: The project will primarily benefit dairy farmers in the Northeast; At least two farmer partners are identified and provide letters of commitment at the full application stage; The majority of partner farms meet “Dairy Farmer” eligibility above.

Milk buyers/processors are eligible to apply if: The project directly benefits farmers by improving milk production and/or transfer; At least one farmer partner is identified and provides a letter of commitment at the full application stage; The majority of partner farms meet “Dairy Farmer” eligibility above; The milk buyer/processor is located in the Northeast Grant-funded items or activities (e.g., tracking collars, chart recorders, workshops) are for farm use and benefit.

Projects that primarily result in processor-owned infrastructure or equipment (e.g., milk transport tanks) are not eligible. Review the Request for Pre-Applications (RFA) . This will contain the complete details on eligible projects/applicants and the full application process.

Register in WebGrants (may take up to two business days). Complete your application in WebGrants, once it opens, using our Application Guide . The pre-application period is October 29 to December 17, 2026 at 2:00 pm ET.

You must complete a pre-application to be considered for funding. Applicants who do not already have a Unique Entity Identifier (UEI) through SAM. gov are strongly encouraged to start this process during the application period to ensure a timely start to their grant, if awarded.

Have a Question about this Grant? If you have read through the RFA and have questions, contact Ben Eldredge: ben. eldredge@vermont.

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