Farm Infrastructure Improvement Grant

The Farm Infrastructure Improvement Grant is administered by the Southeast Dairy Business Innovation Initiative (SDBII), a program headquartered at the University of Tennessee Institute of Agriculture’s Center for Dairy Advancement and Sustainability. With funding provided by the USDA Agricultural Marketing Service (AMS) through the 2018 Farm Bill, SDBII’s mission is to enhance the profitability and sustainability of dairy producers and processors in the southeastern United States. The initiative supports this mission by delivering technical assistance, educational workshops, decision-making tools, and—critically—grant funding to eligible dairy businesses. This particular grant opportunity is open to licensed dairy farms located in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia, and Puerto Rico. Applicants must be permitted to operate under relevant state and federal authorities. Eligible species include cattle, sheep, goats, water buffalos, camels, and others used in commercial milk production. However, projects related to the sale of raw milk for human or pet consumption are not allowed. Previous recipients may reapply, but no more than two awards may be active simultaneously per applicant, and a lifetime funding cap of $700,000 within three years is enforced. The Farm Infrastructure Improvement Grant aims to modernize and improve on-farm infrastructure and processes. Up to $100,000 in reimbursement-based funding is available per applicant, contingent upon providing a 25% cash match based on the requested amount. This funding must support improvements such as cow cooling systems, storage and transportation efficiency, milk harvest modernization, feed and forage management, animal housing, and waste management. Notably, construction costs, salaries, and acquisition of land or buildings are unallowable, though rental agreements terminating within the grant period may be considered. Applicants must submit a complete package that includes a detailed narrative, budget form, at least one vendor quote for equipment costing over $5,000, a letter of support from a relevant partner, and any additional supporting documentation such as conceptual drawings or business plans. Applications are due by 5:00 PM ET on March 4, 2026. Awardees will be reimbursed only for purchases made after execution of the grant contract and will be required to submit both mid-year and final reports, including financial documentation, performance outcomes, and descriptions of implemented improvements. Applications will be competitively evaluated by a panel of external dairy and agricultural experts based on alignment with program goals, feasibility, budget justification, and projected business impact. Projects that demonstrate clear strategies for increasing operational efficiency, worker welfare, and long-term viability are likely to score higher. Further, applicants who have received SDBII technical assistance or who lack other forms of funding access may be prioritized. Finally, awardees will be subject to rigorous compliance and reporting requirements, including equipment audits for items with a unit value of $5,000 or more. These audits will be conducted annually throughout the equipment’s useful life. All reporting materials and instructions will be provided post-award, and recipients are advised to begin acquiring a Unique Entity Identifier (UEI) as early as possible due to processing delays.

Clearly link outcomes to dairy efficiency; provide vendor quotes; align with program goals; justify costs.