PENNSYLVANIA FURNACE, PA — Pennsylvania is directing $9.7 million to 97 agricultural technology and modernization projects, including more than $2 million tied to Chester County, as the state uses public funding to accelerate automation, energy projects and other capital investments across one of its largest industries.
Gov. Josh Shapiro, Lt. Gov. Austin Davis and Agriculture Secretary Russell Redding detailed the second round of Agricultural Innovation Grant Program awards Thursday during Penn State’s Ag Progress Days. The grants are expected to leverage another $4.8 million in private investment from farms and agricultural businesses.
Demand substantially exceeded available funding. The Pennsylvania Department of Agriculture received more than $68 million in requests, while the state’s 2026-27 budget provides another $10 million for a third round of the program. Applications are scheduled to open Sept. 1.
The awards cover projects ranging from robotics and artificial intelligence to automated harvesting, renewable energy, waste reduction and precision agriculture. Grants reimburse expenses for project planning or completion and include individual projects as well as initiatives intended to have regional or statewide impact.
Chester County has one of the largest concentrations of projects in the latest round, with awards spanning the region’s mushroom, specialty crop, Christmas tree, dairy, energy and agricultural workforce sectors.
Pietro Industries will receive $129,597 for an automated mushroom harvesting and control system. Phillips Mushroom Farms was awarded $129,800 for an automated weighing line, while MYCOguard will receive $33,800 for automated phorid fly counting and monitoring.
Mushroom Supply & Services was awarded $310,000 for an automated mushroom harvesting system, and the American Mushroom Institute will receive $220,000 for phorid fly-control technology. Both projects are designated as having regional impact.
Laurel Valley Farms received the largest Chester County-listed award at $344,800 for an aeration system intended to mitigate hydrogen sulfide emissions on mushroom farms. The project is also classified as having regional impact.
Other Chester County awards include $129,800 to Gary Westlake Sr. for an advanced Danish Christmas tree harvesting system; $34,440 to Megan Storm for water, energy and automation upgrades to a specialty crop hoop house; and $31,500 to Thomas D. Parsons for agro-energy technology to power artificial intelligence.
AgriGates will receive $59,400 to plan on-site energy generation for a dairy artificial-intelligence system. The Chester County Economic Development Foundation was awarded $50,000 to study the feasibility of a farm training facility on the Chester County Prison campus.
Cheyney University of Pennsylvania was awarded $310,000 for a regional aquaculture automation and management system.
Another $231,743 award to HyO Technologies spans Chester and Indiana counties and will support hydrogen-rich irrigation technology for mushrooms and specialty crops.
The investment comes as Pennsylvania agriculture faces pressure to raise productivity while managing labor needs, input costs, environmental requirements and changing technology. The industry encompasses more than 48,800 farms, supports about 600,000 jobs and contributes $132.5 billion annually to the state economy, according to the administration.
“Agriculture is the backbone of our Commonwealth and this important funding will help Pennsylvania farmers, growers, and producers innovate and grow,” Shapiro stated, pointing to efforts to lower costs and expand markets.
Redding cited extreme weather, volatile supply costs, shifting consumer preferences and technological change among the pressures facing producers.
The latest awards are part of a broader package of agricultural spending in the 2026-27 state budget. That includes $10 million for Fruit Grower Freeze Impact Grants, $5 million from the existing Highly Pathogenic Avian Influenza fund for farmer education and $13.8 million in Pennsylvania Farm Bill investments.
The Agricultural Innovation Grant Program will enter its third year with another $10 million allocation. Applications for that funding are scheduled to begin Sept. 1.
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