Precision Technology and Management Grant
This funding opportunity provides financial support to licensed dairy businesses in the Southeastern U.S. and Puerto Rico to adopt precision technologies that improve sustainability, efficiency, and profitability in dairy operations.
The Precision Technology and Management Grant is a targeted funding opportunity offered through the Southeast Dairy Business Innovation Initiative (SDBII), which is housed at the University of Tennessee Institute of Agriculture. Supported by the USDA Agricultural Marketing Service (AMS), this program focuses on enhancing the sustainability, efficiency, and profitability of dairy operations across the Southeastern United States. The grant supports dairy producers in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia, and Puerto Rico. The SDBII initiative not only administers funding, but also provides access to technical support, industry workshops, and strategic tools to foster modernization in the dairy sector. Administered annually, the Precision Technology and Management Grant offers competitive, reimbursement-based awards with a maximum of $150,000 per project. Awardees are required to provide a 25% cash match of the requested funds. These funds must support allowable costs under USDA AMS guidelines and cannot include salaries, general building materials, or any construction-related expenses. Importantly, no purchases or contractual agreements should be made prior to formal notification of grant approval and the execution of a signed agreement with the University of Tennessee. Reimbursement eligibility strictly depends on proof of payment and valid documentation. The purpose of this funding is to encourage the use of precision technologies that make dairy operations more competitive, sustainable, and efficient. Funded projects must fall within one or more specific priority areas such as animal health and performance improvement, labor efficiency, environmental sustainability, land use optimization, or business operations enhancements. Technologies that qualify for funding include wearable animal trackers, robotic milking systems, GPS-enabled applications, genomic testing programs, and other specialized equipment used in dairy production and management. Applicants must justify their choice of technologies and demonstrate how the investment aligns with grant goals. Eligibility for the grant is limited to licensed dairy businesses within the designated Southeast states and Puerto Rico. These businesses must be actively engaged in the commercial production or processing of milk from various dairy species including cattle, sheep, goats, and others. Entities with family connections to the SDBII program staff or review committee are ineligible. Previous recipients are eligible to apply again, but no applicant may hold more than two active awards simultaneously or exceed $700,000 in combined funding over a three-year period. Priority is given to applicants who have previously received SDBII technical assistance or who demonstrate limited access to alternative support resources. To apply, applicants must complete a detailed grant application, including a project narrative, budget form, at least one letter of support from an industry collaborator, and supporting documentation such as equipment quotes and project plans. The application process is competitive, with scoring based on project feasibility, alignment with grant goals, potential for business impact, clarity of the budget, and the uniqueness of the proposal. Applications must be submitted through the SDBII grant portal by 5:00 p.m. ET on March 4, 2026. Applicants selected for funding must sign a contract with the University of Tennessee Office of Sponsored Projects and adhere to all award requirements. This includes submission of a six-month progress report, a final report at the end of the 12-month project period, and documentation of all reimbursable expenses. Award recipients may also be subject to equipment audits for purchases over $5,000. Non-compliance with reporting or other contractual obligations may impact eligibility for future SDBII grants. Additional support materials and reporting templates will be provided to ensure compliance and transparency throughout the grant cycle.
Award Range
Not specified - $150,000
Total Program Funding
Not specified
Number of Awards
Not specified
Matching Requirement
Yes - 25% of requested funds
Additional Details
Reimbursement basis; 25% cash match required; construction, labor, and general-purpose equipment purchases are unallowable. Equipment must be used directly for dairy operations.
Eligible Applicants
Additional Requirements
Eligible applicants are licensed dairy farm businesses in 13 Southeast states or Puerto Rico. Applicants must be permitted by federal and state authorities and must not be related to program staff. Must meet match requirement and may not have more than two active awards.
Geographic Eligibility
All
Clearly explain alignment with goals; justify all requested items with quotes; do not pre-purchase equipment; use precise, well-organized narrative.
Application Opens
Not specified
Application Closes
March 4, 2026
Grantor
Shep Stearns
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