Hochul proposes $30 million in tariff relief for New York farmers in State of the State

BY Emily Kenny Central NY Spectrum News1

PUBLISHED 3:45 PM ET Jan. 13, 2026

As part of her annual State of the State address, Gov. Kathy Hochul proposed $30 million for farmers in New York who have been impacted by tariffs. 

“Agriculture is the cornerstone of New York’s economy, yet the federal government’s misguided tariff policy has threatened the competitiveness of our farmers. By inciting trade wars with key international partners like Canada and Mexico, federal actions have driven up the cost of essential resources like seeds, fertilizer and necessary machinery while creating market instability,” Hochul wrote in prepared remarks.  

The $30 million would be direct payments to specialty crop growers, livestock producers and dairy farmers. Hochul also proposed another round of funding for the Dairy Modernization Act, which gives funding to dairy farmers to make improvements to equipment. She wants to extend the refundable investment tax credit.

“Extending the refundable investment tax credit will also provide farmers with necessary financial support to offset the increased costs of doing business caused by federal tariff action,” she said.

Hochul said she wants to increase the state’s commitment to Agri-Business Child Development (ABCD) centers, which provide child care to farm families.

Dairy farmer and chairman of the Northeast Dairy Producers Association Keith Kimball said the investments from the state have been critical in the expansion of New York’s dairy industry.

“It’s been our priority from the start to make the investment tax credit permanent and the governor’s proposal to extend the [credit] is a significant step forward as it will support long-term investments that continue to improve farm efficiencies and milk production to meet demand,” Kimball said in a statement.

He also backed tariff relief as a way to help the state’s farmers.

“The [funding], which resulted from Gov. Hochul and [Commissioner of Agriculture Richard Ball] working with our industry to understand the economic impacts of tariffs, is a welcomed investment to help family farms working on razor-thin margins,” Kimball said. “These targeted investments are important not only to the viability of multi-generational dairy farms and all of our industry partners but to the next generation of farmers looking to strengthen their roots here in the Empire State.”