WASHINGTON—In the rolling hills of Wisconsin, where dairy farms dot the landscape like patches on a quilt, the future of small-scale cheesemakers hangs in the balance. For months, dairy producers and industry advocates have been calling on the U.S. Department of Agriculture (USDA) to release critical funding for the Dairy Business Innovation Initiatives (DBII) program, a lifeline for small and mid-sized dairy businesses navigating an increasingly competitive and volatile market.
The DBII program, established in 2019, provides grants to dairy businesses for innovation, product development, and market expansion. It has been hailed as a game-changer for an industry grappling with declining milk consumption, rising production costs, and consolidation. Yet, despite Congress appropriating $20 million for the program in fiscal year 2024, the funds remain in limbo—leaving dairy entrepreneurs in a state of uncertainty. These complications are in line with broader funding cuts accross USDA and the federal government.
The DBII Program: A Catalyst for Innovation
The DBII program operates through four regional initiatives, each serving as a hub for dairy innovation. These hubs—located in Wisconsin, Vermont, Tennessee, and California—provide technical assistance, grants, and resources to dairy businesses. Since its inception, the program has funded over 200 projects, ranging from the development of artisanal cheeses to the adoption of sustainable farming practices (Cheese Reporter, 2025). Yet, the delay in releasing the 2024 funds has left many projects in jeopardy.
The Economic Stakes: A $800 Billion in Economic Impact
The U.S. dairy industry generates close to $800 billion annually in economic impact and supports over 3 million jobs, according to the International Dairy Foods Association (IDFA, 2024). The U.S. dairy industry faces significant challenges, notably a decline in fluid milk consumption and the rise of plant-based alternatives. Per capita fluid milk consumption has been on a downward trend for over 70 years, with a sharper decline during the 2010s. From 2003 to 2018, Americans across all age groups drank less milk as a beverage, the primary mode of fluid milk consumption. While plant-based milk alternatives account for a small portion of this decline, other factors such as changing consumer preferences and dietary habits also play a role (USDA, 2025).
For small and mid-sized dairy businesses, these pressures are particularly acute. Unlike large-scale producers, they lack the economies of scale to absorb rising costs or invest in new technologies. The DBII program is designed to level the playing field, providing these businesses with the resources they need to innovate and compete.
The Funding Delay: A Bureaucratic Bottleneck
The delay in releasing the 2024 DBII funds has sparked frustration among industry stakeholders. In a letter to Agriculture Secretary Rollins, the Wisconsin Cheese Makers Association (WCMA) urged the USDA to expedite the process, warning that further delays could jeopardize the viability of small dairy businesses (WCMA, 2025).
The USDA has attributed the delay to administrative hurdles, including the need to finalize grant guidelines and review applications. However, critics argue that the agency has had ample time to address these issues, as the funds were appropriated months ago.
The Ripple Effect: From Farm to Table
The impact of the funding delay extends beyond dairy producers to the broader economy. In Wisconsin, where dairy accounts for 6.5% of the state’s GDP (University of Wisconsin, 2024), the DBII program has been a key driver of economic growth. The Wisconsin dairy sector adds almost $53 billion to the state GDP.
The delay also threatens to undermine the USDA’s broader goals of promoting sustainability and resilience in agriculture. Many DBII-funded projects focus on reducing the environmental impact of dairy production, from methane capture systems to regenerative grazing practices. Moreover, the USDA has invested over $64 million into more than 600 projects to enhance dairy supply chain resiliency and expand economic growth in rural economies. A funding delay could disrupt these efforts, undermining the USDA’s objectives of sustainability and resilience in agriculture (USDA, 2024). funding, these initiatives may stall, hindering progress toward the Biden administration’s climate goals.
A Call to Action: What’s at Stake
As the USDA drags its feet, dairy producers and advocates are ramping up their calls for action. In addition to the WCMA, organizations like the National Milk Producers Federation (NMPF) and the American Farm Bureau Federation (AFBF) have urged the USDA to release the funds without further delay.
The Path Forward: A Timeline for Action
The USDA has yet to provide a timeline for releasing the 2024 DBII funds, but pressure is mounting. Industry stakeholders are calling for immediate action, including the expedited review of grant applications and the allocation of interim funding to support urgent projects.
In the meantime, dairy producers are exploring alternative strategies to stay afloat. Some are turning to crowdfunding platforms to finance innovation projects, while others are partnering with local businesses to expand their markets. Yet, these efforts are no substitute for the comprehensive support provided by the DBII program.
Conclusion: A Test of Commitment
The delay in releasing DBII funding is more than a bureaucratic misstep; it’s a test of the USDA’s commitment to the dairy industry and rural America. As small and mid-sized dairy businesses struggle to adapt to a changing market, the stakes could not be higher.
Supplemental Information
USDA Dairy Business Innovation Initiatives (DBII) Funding Crisis: FAQs & Key Insights
What is the Dairy Business Innovation Initiatives (DBII) Program?
The Dairy Business Innovation Initiatives (DBII) program was established in 2019 under the 2018 Farm Bill to support dairy farmers, processors, and cooperatives in innovation, market expansion, and sustainability efforts. The program provides grants for equipment upgrades, product development, and climate-smart practices to help dairy businesses remain competitive. Congress allocated $20 million for DBII in FY 2024, but those funds are currently delayed. (USDA, 2024)
Why Is DBII Funding Delayed?
Despite Congress approving $20 million for the DBII program in 2024, the USDA has not yet released the funds, leading to uncertainty for dairy producers. The delay is reportedly due to budget constraints, policy reviews, and internal USDA restructuring. Industry leaders warn that prolonged inaction could stall economic growth and sustainability initiatives. (Wisconsin Cheese Makers Association, 2024)
How Much Does Dairy Contribute to the U.S. Economy?
The U.S. dairy industry generates over $794 billion in economic output and supports more than 3.2 million jobs nationwide. In states like Wisconsin, dairy contributes 6.5% of the state’s GDP, making funding initiatives like DBII crucial for rural economies. (International Dairy Foods Association, 2024)
Has U.S. Milk Consumption Declined?
Yes. Since 1975, per capita milk consumption in the U.S. has declined by 42%, due to changing dietary habits, lactose intolerance awareness, and the rise of plant-based alternatives. While dairy remains a key industry, producers are being forced to diversify—one of the key goals of DBII funding. (USDA Economic Research Service, 2024)
How Does DBII Support Sustainable Dairy Farming?
Many DBII-funded projects focus on reducing the environmental footprint of dairy farms, including:
• Methane capture systems to reduce greenhouse gas emissions
• Regenerative grazing practices to improve soil health
• Energy-efficient equipment upgrades to lower operational costs
• Development of lactose-free and value-added dairy products to meet changing consumer demand
Without these funds, climate-smart dairy farming initiatives may be delayed or canceled, affecting progress toward the Biden administration’s climate goals. (Civil Eats, 2024)
How Are Dairy Farmers Affected by the DBII Funding Freeze?
Small and mid-sized dairy farms rely on DBII grants for innovation and expansion. The funding delay could result in:
• Canceled sustainability projects (e.g., methane reduction systems)
• Missed business growth opportunities (e.g., developing new dairy products)
• Increased financial strain on small dairy farms already struggling with inflation and market pressures
• Job losses in rural communities that depend on dairy processing and distribution
What Happens If DBII Funding Is Not Released Soon?
If DBII funding remains frozen, dairy farmers and processors may lose access to critical grant opportunities, forcing them to either seek alternative financing or abandon planned expansions. Industry leaders have urged the USDA to immediately release the $20 million to prevent further economic disruption. (Wisconsin State Journal, 2024)
Where Can I Learn More or Take Action?
• Follow USDA updates on DBII funding (USDA DBII Page)
• Advocate for DBII funding through industry groups like the International Dairy Foods Association (IDFA) and National Milk Producers Federation (NMPF)
• Stay informed with industry reports from Dairy Herd Management, Farm Bureau, and the Wisconsin Cheese Makers Association
Final Thought: The DBII program is critical to the future of dairy farming, innovation, and sustainability. With $20 million in limbo, dairy businesses face uncertainty and financial hardship. Stay informed, take action, and demand that USDA releases these funds to support America’s dairy industry.