Wisconsin Cheese Makers Say USDA Funding Match On Dairy Grants Could Kill Small Farms

By Avery Martinez

Some dairy farmers and cheese makers in Wisconsin are worried an abrupt change in a federal grant program could make it tough for small operators to survive.

The Dairy Business Innovation Initiative was created as part of the federal Farm Bill in 2018.

The program funnels grant money through four non-profit DBII distribution centers, including the one in Wisconsin, to help dairy farmers and processors. The grants are focused on helping the small businesses update facilities, diversify their products,or create new revenue streams.

This year a total of $12.65 million in federal funds is available for the program.

But a new requirement launched unexpectedly by the Trump administration last month, and announced by the U.S. Department of Agriculture, requires that the four distribution centers provide 25 percent matching funds for all grants.

Rebekah Sweeney, policy director at the Wisconsin Cheese Makers Association, said it’s never been a requirement of the program before — and nobody knew it was coming.