Legislature hears agriculture budget: $364 million proposed, dairy grants and farmworker housing highlighted

Senators and assembly members heard a detailed presentation on the governor’s proposed fiscal 2026 budget for the Department of Agriculture and Markets at a Jan. 27 joint hearing of the Senate Finance Committee and the Assembly Ways and Means Committee in Albany.

Department of Agriculture and Markets Commissioner Richard Ball said the executive budget proposes $364 million for the department to “maintain our core functions and carry out initiatives” across New York’s food and farm system. The department briefed lawmakers on targeted funding in the proposal and on several programs that rely on federal or outside grants whose futures are uncertain.

Why it matters: The package aims to support New York’s farms, supply chains and food access programs at a time of tight farm margins, questions about federal support and growing concerns about farm labor, animal disease and loss of farmland.

What the budget proposes and what Ball emphasized - Dairy: The executive proposal would fund a second round of the dairy modernization grant program with $10 million to update on-farm milk storage and improve supply-chain efficiency, plus $1 million for dairy research and climate-resilient practices tied to dairies. - Climate and conservation: The governor’s plan would maintain a $400 million Environmental Protection Fund (EPF) that supports farmland and pollinator protection, soil and water conservation districts and the state’s Climate Resilient Farming program. Ball described these investments as central to reducing climate risks and protecting water and land. - Local food and school meals: The budget would expand support for local food and food access, including roughly $4 million for FreshConnect, a $5 million increase for Nourish New York, and another $10 million for the Regional School Food Infrastructure Grant Program to encourage fresh, local products in school meals. - Farmworker housing and child care: The governor proposes an additional $5 million for the farmworker housing revolving loan fund and $3.2 million to expand capacity at agribusiness child development centers, with a total of $13.5 million dedicated to those centers overall. - Small-scale processing and specialty crops: New grants and marketing investments aimed at fiber and maple industries, plus a $10 million small-scale food and fiber processing grant program.

Federal uncertainty and program pauses Ball told lawmakers the federal Climate Smart Commodities program — a $60 million project for New York developed with Cornell, DEC and SUNY ESF — has been paused by USDA. He said the pause does not equal cancellation but added that the department will monitor federal personnel and policy decisions closely and stand ready to adapt if funding is withdrawn.

Hemp processing and research Lawmakers pressed the department on hemp infrastructure. Ball said the department is working to bring the $5 million appropriated last year (administered through Cornell) into operation and that Cornell has developed New York varieties and technical capacity. He described an active hemp and fiber work group that meets regularly with the department.

Overtime tax credit for farms Lawmakers repeatedly asked about a statutory fix to the farm overtime tax credit the governor vetoed last year. Ball said the department and tax and finance are working with the industry to draft language that would make the refundable credit accessible across varied farm business structures (sole proprietors, partnerships, LLCs, S-corporations and management companies), and he described ongoing discussions with the industry to finalize the language.

Avian influenza and biosecurity Lawmakers asked about avian influenza (high-path H5) and its spread to dairy animals in other states. Ball said New York has not detected that dairy jump and that the department is working closely with USDA APHIS and state animal health staff to monitor and respond; he described the usual responses (depopulation, sanitation, indemnification) and emphasized rapid detection and interagency coordination.

Solar, agrivoltaics and farmland protection Several legislators pressed the department about solar installations on farmland and the related loss of actively farmed acres. Ball said the department has an MOU with NYSERDA and works with the Public Service Commission’s technical working groups to “avoid, minimize or mitigate” impacts to prime farmland, and that Cornell is receiving state funding to research agrivoltaic best practices. He said local land-trust capacity is an increasing implementation bottleneck for farmland easements.

What stayed unanswered or is in progress - The department said it is still finalizing the implementation of the $5 million hemp processing appropriation from last year and expects Cornell-led projects to come online. - The draft language to make the overtime tax credit broadly refundable is being negotiated with tax and finance and the industry; lawmakers were urged to expect a refined proposal in the near term. - The future of some federal programs and grants remains uncertain pending federal personnel and funding decisions.

Ending note: Lawmakers and the commissioner acknowledged funding gaps and the need for legislative follow-up. Several members asked for the overtime tax-credit fix in the 30-day amendment period or through the one-house budget process; Ball said the department is “working hot and heavy” with tax and finance to finish that language so the credit will work for all farms.

Speakers quoted or summarized in this article are listed in the article’s speakers section.