DHCR Makes Unprecedented Investment in Agri-Business in 2009

Nearly $3.3 Million in support of 11 Agriculture Businesses to Create Jobs in Rural New York

ALBANY, NY (01/14/2010)(readMedia)-- In 2009, the New York State Division of Housing and Community Renewal (DHCR) made an unprecedented investment in Rural New York, awarding New York State Community Development Block Grant (NYS CDBG) funds to more agri-business projects than at any time in the history of the program. Local communities received nearly $3.3 million to support the development and expansion of 11 agri-business enterprises, including family farms, food processors, and innovative agricultural endeavors.

These projects will provide at least 278 job opportunities Upstate, the vast majority of which will be made available to low- to- moderate income New Yorkers, while leveraging an additional $52 million in public and private resources.

Governor David A. Paterson said, "The agricultural industry contributed $4.4 billion to the state's economy in 2008. More than 36,000 farms utilize about a quarter of the state's total land area, making agriculture an important industry in New York. The unprecedented level of support agri-business received last year in New York State Community Development Block grants must be maintained so that we can secure the future of family farms and encourage entrepreneurship and innovation in agriculture."

DHCR Commissioner Deborah VanAmerongen said, "The importance of this industry is reflected in the number of economic development awards to agri-business this year-more than triple the average since the program's inception. These projects are building businesses, creating jobs, and making rural communities stronger."

The NYS CDBG program is federally funded and administered by DHCR's Office of Community Renewal. The NYS CDBG program provides resources to New York's small communities to enable the development of decent, affordable housing, create suitable living environments, and enhance economic opportunities across the state. Including this significant investment in Agri-business, 2009 saw more economic development activity for the Office of Community Renewal than any previous year in its existence.

Funding highlights include $100,000 in NYS CDBG Small Business Assistance Program resources recently granted to Wyoming County to assist in the expansion of Sregnouy Farms, a family dairy farm in the Town of Java. This expansion will create a Heifer raising enterprise and will allow the farm to retain six positions and create one part time position. All jobs are held by or made available to low- and moderate-income people.

The City of Johnstown received a $750,000 NYS CDBG grant to help yogurt manufacturer, Fage USA, expand its manufacturing facility in the Johnstown Industrial Park and create 50 jobs, 41 of which are available to low and moderate-income people.

A complete list of 2009 NYS CDBG awards for Agri-businesses is below:

2009 CDBG Awards
Agribusiness
Created Created Retained Retained
Awardee Project CDBG Total Project Total Jobs LMI Jobs Total Jobs LMI Jobs
Columbia County Local Ocean $175,000 $10,730,000 21 11
V. of Dundee Dundee Foods (infrastructure) $414,000 $300,000 16 16 18 18
Greene County Crossroads Brewery $216,000 $949,000 18 15
T. of Harpersfield Eklund's Processing $250,000 $930,100 20 13
C. of Johnstown Fage $750,000 $26,016,000 50 41
Livingston County Kraft Foods $139,000 $4,785,000 50 45
T. of Pembroke Yancy's Fancy $166,000 $763,387 15 12
V. of Waterloo Gharana Industries $495,000 $1,797,000 33 22
Wyoming County Sregnouy Farms $100,000 $342,700 1PT 1PT 6 6
Wyoming County McCormick Farms $211,000 $3,394,015 7 5 7 7
Wyoming County Marquart Farms $256,000 $2,016,000 16 12
Totals $3,172,000 $52,023,202 247 193 31 31