Bipartisan legislation introduced February 5 in the U.S. Senate aims to help more American dairy farmers and processors add value to their businesses.
The Dairy Business Innovation Act of 2025, introduced by Tammy Baldwin (D-Wis.) and Marsha Blackburn (R-Tenn.) would strengthen the Dairy Business Innovation Initiatives (DBII) which has, to date, supported more than 250 dairy farmers and processors in the Midwest.
“My Dairy Business Innovation Initiative has helped Wisconsin dairy farmers, producers, and cheesemakers grow their operations, tap into new markets, and innovate new products,” Baldwin said in a press release. “From expanding facilities and growing their operations to improving packaging and lowering their shipping costs, this program has helped Wisconsin businesses grow their bottom lines and create jobs in our rural communities. I’m fighting to expand this vital program so more farmers, cheesemakers, and dairy processors have the tools to innovate and drive our rural economy forward.”
After the DBII program was created in the 2018 farm bill, multiple dairy business and innovation centers were established to serve producers across the country. These centers, in partnership with dairy farmers and processors, are spurring innovation in dairy businesses, fostering the development of new dairy products and modernizing existing dairy plants. As a result, the program has gone on to add value to the milk produced by American farmers and expand their market access.
“The dairy industry is an essential part of the American economy. It is crucial that we provide the resources that dairies in Tennessee need to expand and create new products,” Blackburn said in a press release. “With many small Tennessee dairies struggling to remain open, this bill will allow these businesses to diversify and expand their market competitiveness.”
Each regional initiative is tasked with providing technical assistance and grants to farmers and processors, including:
- Supporting new and expanding dairy businesses: Centers provide assistance with business plan development, accounting, market evaluation, and strategic planning.
- Promoting innovation in dairy products: Dairy businesses receive assistance with product innovation, marketing and branding, packaging, distribution, supply chain innovation, food safety training and consultation, and dairy product production training.
- Assisting with dairy plant modernization and process improvement: Dairy businesses receive assistance with processing facility improvement, including assistance with plant upgrades, food safety modernization, energy and water efficiency, byproduct reprocessing and use maximization, and waste treatment.
The Dairy Business Innovation Act of 2025 builds on the support for regional dairy research and innovation centers across the country by raising the program’s annual authorization from US$20 million to US$36 million.
