Dairy Business Innovation Initiatives Program (DBI) Fiscal Year 2026
Open Posted
- Opportunity number
- USDA-AMS-TM-DBI-G-26-0011
- Agency
-
Agricultural Marketing Service
Department of Agriculture
- Applications due
- Award size
- $2,300,000 to $3,450,000
Opportunity facts
- Assistance listings
- Funding instrument
- Grant
- Category
-
- Agriculture
- Eligible applicants
-
- Other
- Points of contact
- Full announcement
Opportunity details come from Grants.gov. Updated .
About this opportunity
The U.S. Department of Agriculture Agricultural Marketing Service is soliciting applications for fiscal year 2026 from four existing Dairy Business Innovation Initiatives to fund dairy business development, with applications due December 1, 2026. This is a non-competitive opportunity restricted to California State University Fresno Foundation, University of Tennessee, Vermont Agency of Agriculture Food and Markets, and University of Wisconsin—the sole eligible applicants.
Approximately $12.65 million is available: $2.3 million for California State University Fresno Foundation, and $3.45 million each for University of Tennessee, Vermont Agency of Agriculture Food and Markets, and University of Wisconsin. Awards fund 36-month project periods from January 1, 2027, through December 31, 2029, with no renewal eligibility, though a one-year extension may be requested upon approval.
Applicants must provide a 25 percent cost share from non-federal sources (cash and/or in-kind contributions). Federal funds must allocate at least 50 percent to competitive subawards to dairy businesses, with a maximum subaward of $500,000 per entity. The program strongly prioritizes subaward funding for equipment and infrastructure activities. Allowable costs include special purpose equipment for dairy production and processing, building alterations and repairs not exceeding 10 percent of replacement value, and infrastructure investments for modernization, specialization, and product development. General purpose equipment and lease-to-own arrangements are prohibited; new facility construction is unallowable.
Program objectives include diversifying dairy product markets, promoting processing and marketing innovation, and encouraging regional milk production. Direct technical assistance to dairy businesses is required. AMS prioritizes assistance to dairy farms and businesses with limited access to other resources, employee-owned businesses, cooperatives, and businesses creating substantial value-added products.
Applications submitted through Grants.gov must include SF-424 and SF-424A forms, a DBI Project Narrative (maximum 20 pages), letters of verification for cost share commitments, letters of commitment from project partners, and a current Negotiated Indirect Cost Rate Agreement if applicable. The program uses a three-step merit review process: Initial Qualification Screening, Competitive Review by external peer panels, and Administrative Review. CFDA 10.176.
Synopsis
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.
Eligibility
The U.S. Department of Agriculture (USDA), Agricultural Marketing Service (AMS), requests applications for the fiscal year (FY) 2025 only from the existing four 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.
Files
| File | Type | Posted |
|---|---|---|
| FY26DBIProjectNarrative.docx | DOCX document | |
| DBI_Specific_Terms_and_Conditions_Updated.pdf | ||
| FY2026_DBI_Notice_of_Funding_Opportunity.pdf | ||
| PKG00294277.pdf |
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