Dairy Business Innovation Initiatives Program (DBI) Fiscal Year 2026

The U.S. Department of Agriculture Agricultural Marketing Service is requesting applications for the Fiscal Year 2026 Dairy Business Innovation Initiatives Program under solicitation USDA-AMS-TM-DBI-G-26-0011. This non-competitive funding opportunity is restricted to four existing initiatives: the California State University Fresno Foundation, the University of Tennessee, the Vermont Agency of Agriculture, Food and Markets, and the University of Wisconsin. Approximately 12.65 million dollars is available to help diversify dairy product markets, promote business development to increase farmer income, and encourage regional milk production. The program requires recipients to provide direct technical assistance to dairy businesses and allocate at least 50 percent of their allotted funds as competitive subawards for modernization, value chain innovation, and product development. For the 2026 cycle, there is a strong emphasis on prioritizing subaward funding for equipment and infrastructure activities. The period of performance is expected to run from January 1, 2027, through December 31, 2029. Applicants must provide a mandatory 25 percent cost share of the requested federal funds from non-federal sources. Applications must be submitted electronically via Grants.gov by December 2, 2026, and must include a project narrative not exceeding 20 pages, letters of commitment from partners, and verification of cost share. All applicants must maintain an active SAM.gov account and a Unique Entity Identifier. Awards are subject to a risk review covering financial stability and management systems, and recipients must comply with 2 CFR Part 200 and specific environmental compliance requirements under NEPA, NHPA, and ESA for any construction or equipment purchases exceeding 10,000 dollars.