Dairy Business Innovation Initiatives Program (DBI) Fiscal Year 2026
🏛 Agricultural Marketing Service (USDA-AMS)
✓ Free, no account · Source: Grants.gov · Last verified Oct 10, 2026
Can you apply?
This grant is for established Dairy Business Innovation initiatives only. Eligible applicants are limited to four existing institutions: California State University Fresno Foundation, University of Tennessee, Vermont Agency of Agriculture Food and Markets, and University of Wisconsin. These initiatives must focus on diversifying dairy markets, developing higher-value dairy uses, and promoting regional milk production. Equipment and infrastructure investments are prioritized for FY2026 funding.
⚖️ Cost sharing / matching required — applicants must contribute their own funds.
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Program description
The U.S. Department of Agriculture (USDA), Agricultural Marketing Service (AMS), requests applications for fiscal year (FY) 2026 from existing initiatives of the Dairy Business Innovation (DBI) Initiatives Program: the California State University Fresno Foundation, the University of Tennessee, the Vermont Agency of Agriculture, Food and Markets, and the University of Wisconsin.
These initiatives serve to:
• Diversify dairy product markets to reduce risk and develop higher value uses for dairy products;
• Promote business development that diversifies farmer income through processing and marketing innovation; and
• Encourage the use of regional milk production.
Approximately $12.65 million is available to fund these initiatives. In the FY 2025 application cycle, AMS funded four applications from the existing initiatives awarding a total of $11,040,000.
AMS strongly encourages DBI initiatives to prioritize subaward funding for projects that request equipment and infrastructure activities in their proposals for these FY2026 funds. See the DBI Specific Terms and Conditions for guidance on allowable equipment and construction costs. Equipment and infrastructure investments are critical to strengthening the dairy industry and overall dairy businesses capacity and DBI is currently uniquely positioned to offer such targeted funding opportunities.
Who can apply
Eligible applicants
How to apply
Application links
Key dates & requirements
Required documents
- SF-424 (Application for Federal Assistance)
- Project narrative describing dairy market diversification strategy
- Budget and budget narrative with cost-sharing documentation
- DBI Specific Terms and Conditions compliance statement
- Institutional commitment letters from co-applicants
Program contact
- 👤 Agricultural Marketing Service
- 📧 IPPGrants@usda.gov
- 📞 202-260-8449
Funding track record
Recent awards under CFDA 10.176 from the last 3 years — real organizations that won funding through this same program.
Top 10 Largest Recent Awards
-
$7,053,333
-
$7,053,333
-
$7,053,333
-
$6,040,669
-
$3,450,000
-
$3,450,000
-
$3,450,000
-
$3,450,000
-
$3,450,000
-
$3,450,000
Top States by Funding
- WI 5 awards $20.3M
- TN 3 awards $14.0M
- VT 3 awards $14.0M
- CA 3 awards $3.2M
Source: USAspending.gov — federal spending transparency. Data covers last 3 years.
Funding history
Annual funding for this program — Federal obligations (CFDA 10.176). How funding has trended year over year.
| 2024 | $11,000,000 | |
| 2025 | $11,000,000 | |
| 2026 est. | $11,000,000 |
FAQ
Who can apply for this grant?
Only four existing DBI initiatives can apply. These are California State University Fresno Foundation, University of Tennessee, Vermont Agency of Agriculture, and University of Wisconsin.
What is the deadline and funding amount?
The deadline is December 1, 2026. Individual awards typically range from $2.3 million to $3.45 million.
What types of projects are funded?
Projects must diversify dairy markets, support business development through processing/marketing innovation, or encourage regional milk production. Equipment and infrastructure projects are strongly prioritized.
Is cost-sharing required?
Yes, cost-sharing is required for this grant. Budget planning must include applicant contributions.
Can I reapply if my application is rejected?
As an existing initiative, you may reapply in future funding cycles, though this should be confirmed with AMS.
💡 Tips for applicants
- Emphasize equipment and infrastructure investments in your proposal. AMS has signaled this is a priority for FY2026 funding.
- Document your regional dairy market strategy clearly. Show how your project reduces farmer risk and increases profitability.
- Plan your cost-sharing commitment carefully. Build strong institutional support for the match requirement.
- Review the DBI Specific Terms and Conditions for allowable equipment and construction costs before budgeting.
- Highlight innovation in dairy processing or marketing. Focus on business development that creates sustainable farmer income diversification.
⚠️ Common mistakes
Underestimating the importance of equipment/infrastructure—AMS prioritized this for FY2026. Weak regional milk production focus—proposals must connect to local dairy sourcing. Insufficient cost-share documentation—ensure institutional commitment and financial feasibility are clearly demonstrated.
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