USDA awards US$11M to boost innovation in domestic dairy sector

USA – The U.S. Department of Agriculture (USDA) has announced it is awarding more than US$11 million in grant funding to strengthen the domestic dairy sector.

It will focus on boosting innovation, marketing, production, and distribution for small- and mid-sized dairy businesses and producers.

USDA is directing this capital noncompetitively to the four existing DBI host organizations: California State University, Fresno; University of Tennessee; Vermont Agency of Agriculture, Food & Markets; and University of Wisconsin.

These institutions serve as regional hubs offering technical assistance, business planning support, and subaward funds designed to help dairy businesses develop and grow their product portfolios.

The core of the program emphasizes practical support to help dairy enterprises refine business models, build stronger brand presence, explore new market opportunities, and scale production of value-added dairy products.

Technical assistance ranges from strategic planning and marketing guidance to access to advanced production and processing techniques that can increase economic viability.

USDA under Secretary for Marketing and Regulatory Programs Dudley Hoskins underscored that the funding reinforces ongoing USDA efforts to ensure affordable access to nutritious American dairy products while helping dairy enterprises innovate during times of economic challenge.

The announcement follows earlier investments and federal policies aimed at strengthening dairy supply-chain resiliency and market access.

USDA launches 2026 dairy margin coverage enrollment

The awards come after theUSA Secretary of Agriculture, Brooke Rollins, unveiled enrollment details for the 2026 Dairy Margin Coverage (DMC) program.

The USDA is preparing to buy US$80 million worth of specialty crops under Section 32 of the Agriculture Act of 1935, during an appearance at the 107th American Farm Bureau Federation Convention on Jan. 12.

DMC is a risk management program that offers assistance to producers whose margins between all-milk price and average feed cost fall under a certain level, the USDA explained.

Producers select their coverage in $.50 increments between $4.00-9.50 per hundredweight (cwt) of milk.

Applications are now open for the DMC program, ending Feb. 26, and dairy producers can secure coverage levels for 2026-2031 with a 25% discounted premium fee.

DMC offers various coverage tiers, with Tier 1 coverage expanding from 5 million pounds to 6 million pounds in 2026.

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