Dairy Business Builder Grants

The Dairy Business Builder Grants program is designed to support small-to-medium-sized dairy farms and processing businesses located within an 11-state region in the Midwest. Administered by the Dairy Business Innovation Alliance (DBIA), the program aims to strengthen the regional dairy supply chain through value-added projects, farm diversification, and export program development. The initiative serves dairy farmers and manufacturers in Illinois, Iowa, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin. Applicants must be for-profit businesses with a manufacturing presence in at least one of these states. The program encourages innovative proposals that align with DBIA’s mission to enhance the sustainability and profitability of the regional dairy industry. The grant offers reimbursable awards of up to $150,000 per project. Funding is intended to support eligible expenses related to value-added product development, on-farm diversification, and dairy commodity enhancements. Large equipment expenditures may be funded up to the program cap, acknowledging the increasing costs of such investments. Funds are distributed on a reimbursement basis and require documentation such as canceled checks and paid invoices. Applicants cannot seek reimbursement for expenses incurred before the award date. All reimbursements must be submitted within 12 months of the award date. Additionally, grantees are obligated to complete performance surveys at six and twelve months post-award. In cases where equipment purchased through the grant exceeds $5,000 in value, USDA disposition instructions must be sought before transfer or sale of such items. Applications for the Spring 2026 cycle became available on February 23, with a submission deadline set for April 22. Award notifications are expected by June 2026. A webinar to provide application guidance is anticipated but has not yet been scheduled. The application process requires applicants to submit detailed proposals that demonstrate how their project meets one or more of the DBIA's goals: product development, specialization, packaging, marketing, or export expansion. Previous DBIA grantees may reapply, provided they propose a new or distinct project. However, applicants with active grants that are less than 50% reimbursed are not eligible to apply in the current cycle. Eligible applicants must hold an Employer Identification Number (EIN), be in good standing with the IRS, and have no conflicts of interest involving DBIA, the Center for Dairy Research (CDR), or the Wisconsin Cheese Makers Association (WCMA). Projects must comply with all applicable state and federal regulations, including milk quality standards for beverage products. Reviewers will consider whether the proposed activity constitutes a continuation of a previous DBIA-funded initiative and assess the applicant’s grant history accordingly. Allowable expenses under the program include personnel salaries and wages proportional to time spent on the project, special-purpose equipment, certain marketing activities aligned with grant goals, and professional consulting services within USDA salary caps. Costs associated with acquiring buildings or vehicles, general-purpose equipment, or promotional items are ineligible. Software purchases exceeding $5,000 are also considered unallowable as they are categorized as capital equipment. Applicants in need of support to complete the application or unable to submit online are encouraged to contact Tanya Carney, the DBIA Program Coordinator, via email or phone. The program emphasizes a clear alignment between proposed activities and the legislated intent of the grant. To ensure accountability and compliance, funded entities must follow the guidelines issued by the USDA Agricultural Marketing Service (AMS), including documentation requirements and cost eligibility standards.