Dairy Business Innovation Initiatives
Dairy Business Innovation Initiatives support dairy businesses with technical assistance and subawards for production, processing, and marketing innovation to diversify markets and farmer income.
This grant was recently updated
DBI applications changed from closed to open, with a December 1, 2026 deadline. The FY2026 NOFO replaces the 2025 application guidance, cost-share verification is now listed as required, partner letters are required only if applicable, and equipment, renovation, and environmental-review terms also changed.
Funder: Department of Agriculture
Due Dates: December 1, 2026 (Federal application)
Funding Amounts: Approximately $12.65 million total; initiative awards of $2.3–$3.45 million over 36 months; business subawards up to $500,000
Summary: Supports dairy businesses through regional technical assistance and subawards for production, processing, product development, and marketing innovation.
Key Information: Only four existing DBI initiatives may apply directly to USDA; dairy businesses access assistance and subawards through those initiatives.
Description
The USDA Agricultural Marketing Service (AMS) administers the Dairy Business Innovation (DBI) Initiatives to support the development, production, marketing, and distribution of dairy products. The program aims to diversify markets, reduce risk, develop higher-value uses for dairy products, diversify farmer income, and encourage regional milk production. It includes niche products such as specialty cheese and products made from cow, sheep, and goat milk.
Regional initiatives combine technical assistance with dairy-business subawards. Assistance includes business consulting, strategic planning, marketing, product innovation, and distribution. Subawards support dairy-farm modernization, specialization and grazing transitions, processor facility and process updates, and product development, packaging, and marketing. For FY2026, AMS strongly encourages initiatives to prioritize equipment and infrastructure projects.
