Bipartisan dairy bill aims to boost innovation and growth

On Thursday, U.S. Sens. Tammy Baldwin (D-Wis.) and Marsha Blackburn (R-Tenn.) introduced the Dairy Business Innovation Act of 2025, bipartisan legislation that they say would strengthen the Dairy Business Innovation Initiatives to help more American dairy farmers and processors add value to their businesses.

This includes creating new products, expanding markets, and modernizing production facilities. To date, the Baldwin-backed program has supported over 250 dairy farmers and processors in the Midwest, including 109 in Wisconsin.

“My Dairy Business Innovation Initiative has helped Wisconsin dairy farmers, producers, and cheesemakers grow their operations, tap into new markets, and innovate new products,” said Senator Baldwin. “From expanding facilities and growing their operations to improving packaging and lowering their shipping costs, this program has helped Wisconsin businesses grow their bottom lines and create jobs in our rural communities. I’m fighting to expand this vital program so more farmers, cheesemakers, and dairy processors have the tools to innovate and drive our rural economy forward.”

“The dairy industry is an essential part of the American economy. It is crucial that we provide the resources that dairies in Tennessee need to expand and create new products,” said Senator Blackburn. “With many small Tennessee dairies struggling to remain open, this bill will allow these businesses to diversify and expand their market competitiveness.”

The DBII program, created by Senator Baldwin in the 2018 Farm Bill, has led to the establishment of multiple dairy business and innovation centers across the country. These centers partner with dairy farmers and processors to foster innovation in dairy businesses, helping to develop new products and modernize existing plants. As a result, the program has increased the value of milk produced by American farmers and expanded their market access.

Each regional initiative offers assistance and grants to farmers and processors, including:

• Supporting new and expanding dairy businesses: Centers help with business plan development, accounting, market evaluation, and strategic planning.
• Promoting innovation in dairy products: Businesses receive assistance in product innovation, marketing, branding, packaging, distribution, supply chain innovation, food safety training, and production training.
• Assisting with dairy plant modernization and process improvement: Support is offered for plant upgrades, food safety modernization, energy and water efficiency, byproduct reprocessing, and waste treatment.

The Dairy Business Innovation Act of 2025 builds on this progress by increasing the program’s annual authorization from $20 million to $36 million.

The legislation has earned support from the International Dairy Foods Association, Midwest Dairy Coalition, National Milk Producers Federation, Organic Valley, Wisconsin Cheese Makers Association, and the Wisconsin Farm Bureau Federation.

“Dairy Business Innovation Initiatives have spurred both farm and processor business growth over the past five years, strengthening rural economies and creating career opportunities, but our work is far from done. Increased program funding is critical now as the dairy industry faces new market volatility, labor challenges, and inflation,” said Rebekah Sweeney, senior director of programs and policy for the Wisconsin Cheese Makers Association. “We’re deeply grateful for Sen. Baldwin’s championship of Dairy Business Innovation Initiatives and for the bipartisan coalition of lawmakers working hard to see this program continue.”

“We thank Senators Baldwin and Blackburn for their continued bipartisan leadership in strengthening the Dairy Business Innovation Initiatives program. Dairy has a storied history of pioneering effective new products and practices as dairy farmers and their cooperatives work to supply the U.S. and the world with nutritious, sustainably produced food. This program helps support researchers and their industry partners working to drive this innovation forward,” said Gregg Doud, President and CEO of the National Milk Producers Federation.

“Wisconsin dairy farmers are a mainstay of our state’s rural economy and it’s essential we continue to support innovation in an effort to keep it relevant,” said Wisconsin Farm Bureau President Brad Olson. “The Dairy Business Innovation Act of 2025 will increase the funding available to dairy farmers and processors to maintain Wisconsin’s place as a national and global leader. Wisconsin Farm Bureau appreciates Sen. Baldwin’s commitment to providing the necessary funding needed to help Wisconsin’s dairy industry develop new products and access emerging markets with the introduction of the Dairy Business Innovation Act of 2025.”