MADISON, WI – The U.S. Department of Agriculture (USDA) is revising cost-share requirements for the Dairy Business Innovation (DBI) Initiatives program following engagement with the four DBI centers and dairy industry stakeholders, Wisconsin Cheese Makers Association (WCMA) noted today.
Under revisions to the 2026 Notice of Funding Opportunity (NOFO), the four DBI centers will no longer be required to provide cost share as part of their applications or for activities related to managing their programs, enabling them to continue operations as they have in the past. Subawards to dairy businesses, including both farmers and processors, will be subject to a new cost-share requirement, though USDA is allowing each DBI center the flexibility to establish the cost share within a range of 10% to 25% of the federal funds requested.
The changes represent an important step toward maintaining the flexibility and accessibility of a program that provides critical support to dairy farmers and processors across the country.
“USDA’s revisions recognize the unique structure of the Dairy Business Innovation Initiatives program and the important role these Centers play in serving dairy businesses of all sizes,” said Rebekah Sweeney, WCMA Senior Director of Programs & Policy. “We appreciate USDA’s willingness to listen to the dairy industry and make adjustments that will allow the program to continue serving businesses across the dairy supply chain.”
The changes follow discussions this fall between USDA, the Office of Management and Budget, the four DBI centers, and industry representatives regarding a proposed 25% cost-share requirement. The initial proposal would have, for the first time ever, applied a mandatory cost share to DBI funding more broadly, a change which would have jeopardized operation of the program.
The revised approach removes a cost-share requirement from the DBI centers themselves and from the administration of their subaward programs. It also gives each center discretion to establish an appropriate cost-share level for individual dairy business grants based on the needs of the businesses and the structure of their programs.
USDA’s amended 2026 NOFO also extends the application deadline to January 4, 2027, allowing centers time to adjust to this change and communicate with prospective grant applicants.
The four DBI centers, housed in California, Tennessee, Vermont, and Wisconsin, collectively serve dairy businesses across the United States through competitive grants, technical assistance, education, business development and other services. The program has become an important source of support for dairy businesses pursuing innovation, new products, market opportunities and investments in their operations.
“We are grateful for the tremendous effort of dairy business leaders, industry allies, and Congressional and state champions as we worked with agency leaders on a path forward for Dairy Business Innovation Initiatives,” said Sweeney. “Their collective engagement helped demonstrate the importance of maintaining a flexible, accessible grant program, and the positive impact these dollars make in strengthening dairy businesses, rural economies, and our nation’s food supply chain.”
WCMA will continue working with USDA, lawmakers and industry stakeholders to ensure that the DBI program remains accessible and effective for dairy businesses nationwide.