NYS Agricultural Resiliency Against Tariffs Program: Is it enough to support the dairy and specialty crop sectors in New York?

On January 13, 2026, New York State Governor Kathy Hochul proposed the Agricultural Resiliency Against Tariffs Program, a $30 million initiative aimed at supporting farmers and agricultural businesses in New York hit by the ongoing effects of federal tariffs. The program is designed to provide direct payments to specialty crop growers, livestock producers, and dairy farmers—sectors that have often been left out of federal assistance programs.

According to the press release, these payments are intended to provide financial support that the USDA’s national relief programs fail to deliver, especially for specialty crops and dairy farms, which the announcement notes receive “no meaningful support.”

This statement likely references the Farmer Bridge Assistance (FBA) Program, a one-time federal relief program announced on December 8, 2025. While the FBA provides $12 billion in one-time direct payments to farmers nationwide, assistance is not available to dairy farms and merely $1 billion is available to specialty crops and sugar nationwide. Additionally, the FBA payments are capped at $155,000 per producer, limiting assistance for mid-size and large farms. With this context, Governor Hochul’s program attempts to fill a noticeable gap for New York farmers…but is $30 million enough to make a meaningful difference?

In New York, the dairy industry is the largest single segment of the agriculture industry. The nearly 3,000 dairy farms in New York produce the largest quantity of yogurt and cottage cheese in the United States and is the fifth largest dairy state. The dairy industry has seen significant change in New York over the past ten years, with the number of dairy farmers dropping from 4,955 in 2014 to 2,864 in 2024. However, over the same 10-year span, the average number of cows in the state has increased from 615,000 to 630,000. These statistics indicate that small farms are closing, and larger farms are increasing in capacity. This trend, known as farm consolidation, reflects broader pressured on family farms that are struggling to survive in a rapidly changing agricultural economy.

According to the New York State Tariff Disruptions Report, over 20% of a farmer’s income typically depends on exports. The report also highlights that over 80% of agrochemical imports and 70% of farm machinery are imported from countries subject to the administration’s tariffs. Farmers income reliance on exports may lead to heightened revenue volatility and retaliatory tariffs may raise production costs through raising the price of importing machinery, seeds, fertilizer, and other necessary equipment. Smaller farms that operate on thin margins often with less access to capital are left particularly vulnerable. If tariffs persist, these pressures could accelerate consolidation even further, leaving fewer, larger farms controlling even more of the state’s dairy sector.

To provide context for the Agricultural Resiliency Against Tariffs Program, there are approximately 2,800 dairy farms in New York state, not including specialty crop growers. When the proposed $30 million in direct payments is divided amongst just the dairy farms, each operation would receive roughly $10,000. Once specialty crop growers are factored in, the assistance will be significantly lower. While the assistance will likely be welcomed by farmers, will it be enough to make a meaningful impact? It may provide temporary relief in the industry, but any long-term benefits seem unlikely, especially with no end in sight of the tariff war.

 

Beyond immediate financial relief, the Agricultural Resiliency Against Tariffs Program demonstrates tension between state-level intervention and federal trade policy. Negative impacts from tariffs, such as increased input costs, are often disproportionately felt at local levels. While direct payments from the government can temporarily offset losses caused by retaliatory tariffs or increased import costs, they do not address underlying structural pressures. Smaller farms continue to face rising input costs, labor shortages, and operational challenges that may not be alleviated by one-time or short-term payments.

The central policy question is not merely whether $30 million is sufficient in the short term to bolster the dairy, livestock, and specialty crops sectors in New York, but also whether state-level relief facilitate industry resilience without broad reforms. Ultimately, state-level measures to support farms can mitigate, but not fully counteract, the effects of federal trade decisions.