Opportunity Information: Apply for USDA AMS TM DBI G 26 0011
The Dairy Business Innovation Initiatives Program (DBI) Fiscal Year 2026 funding opportunity is a mandatory USDA grant competition administered by the Agricultural Marketing Service (AMS) to support and expand dairy-focused innovation work already being carried out by four established regional DBI initiative operators. For FY 2026, AMS is only accepting applications from the existing DBI initiatives hosted by the California State University Fresno Foundation, the University of Tennessee, the Vermont Agency of Agriculture, Food and Markets, and the University of Wisconsin. These initiative operators function as regional hubs that use federal funds to strengthen dairy businesses, often by running programs that provide technical assistance and, importantly, subawards to dairy farmers, processors, and related businesses across their service areas.
The core purpose of the program is to make the dairy sector more resilient and competitive by pushing beyond traditional commodity channels and supporting higher-value, diversified market opportunities. AMS frames the initiative around three main goals: diversifying dairy product markets to reduce business risk and create higher-value uses for milk and dairy components; promoting business development that helps farmers and dairy businesses diversify income through processing and marketing innovation; and encouraging the use of regionally produced milk, which can reinforce local supply chains and keep more economic activity within dairy-producing regions. In practice, this can include efforts such as new or expanded dairy product lines, value-added processing, branding and market development, and other innovations that help dairy businesses reach new customers or improve margins.
For FY 2026, AMS indicates that approximately $12.65 million is available in total to fund these initiatives, with an expectation of four awards, aligning with the four eligible initiative operators. The listed award ceiling is $3,450,000 per award, suggesting each of the four initiative organizations may receive up to that amount depending on AMS decisions. As context for the scale of funding, AMS notes that in the FY 2025 cycle it funded four applications from these existing initiatives for a combined total of $11,040,000, which signals that FY 2026 funding is anticipated to be somewhat higher overall than the prior year.
A key emphasis in this FY 2026 notice is AMS encouragement for the DBI initiative operators to prioritize subaward funding for projects that include equipment and infrastructure components. The notice points applicants to the DBI Specific Terms and Conditions for the rules that govern what is allowable in terms of equipment purchases and construction-related costs. The rationale is that targeted investments in equipment and infrastructure are seen as especially important for building long-term capacity in dairy processing, product development, and supply chain strength, and AMS highlights that DBI is currently in a unique position to offer this kind of focused support.
Administratively, this opportunity is identified as Funding Opportunity Number USDA AMS TM DBI G 26 0011, categorized as a grant under the agriculture activity category (CFDA 10.176). The opportunity lists an original closing date of December 1, 2026, and a creation date of September 30, 2026. While the notice text contains a stray reference to FY 2025 language, the title, funding number, and the main narrative make clear the opportunity is intended to support FY 2026 awards and continues the same structure of restricting eligibility to the four existing DBI initiative entities that then carry out regional programming and subaward distribution.Apply for USDA AMS TM DBI G 26 0011
- The Agricultural Marketing Service in the agriculture sector is offering a public funding opportunity titled "Dairy Business Innovation Initiatives Program (DBI) Fiscal Year 2026" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.176.
- This funding opportunity was created on 2026-09-30.
- Applicants must submit their applications by 2026-12-01. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $3,450,000.00 in funding.
- The number of recipients for this funding is limited to 4 candidate(s).
- Eligible applicants include: Others.
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Frequently Asked Questions (FAQs) - Dairy Business Innovation Initiatives (DBI) Program, FY 2026
What is the Dairy Business Innovation Initiatives (DBI) Program FY 2026 funding opportunity?
The DBI Program Fiscal Year (FY) 2026 funding opportunity is a mandatory USDA grant competition administered by the Agricultural Marketing Service (AMS). The funding supports dairy-focused innovation work that is already being carried out by four established regional DBI initiative operators that function as regional hubs.
Who is administering this grant competition?
The competition is administered by the USDA Agricultural Marketing Service (AMS).
Is this opportunity open to the public or to all dairy businesses?
No. For FY 2026, AMS is only accepting applications from the existing DBI initiatives hosted by four specific organizations. The broader dairy community typically engages with DBI through the regional hubs (for example, via technical assistance programs and subawards) rather than applying directly to AMS under this notice.
Which organizations are eligible to apply to AMS under this FY 2026 notice?
AMS is only accepting applications from the existing DBI initiatives hosted by:
- California State University Fresno Foundation
- University of Tennessee
- Vermont Agency of Agriculture, Food and Markets
- University of Wisconsin
What role do the DBI initiative operators play?
The initiative operators act as regional hubs. They use federal funds to strengthen dairy businesses in their service areas, often by running programs that provide technical assistance and by issuing subawards to dairy farmers, processors, and related dairy businesses.
What is the core purpose of the DBI Program?
The core purpose is to make the dairy sector more resilient and competitive by supporting innovation that moves beyond traditional commodity channels and helps create higher-value, diversified market opportunities.
What are the main goals of the DBI initiative as described by AMS?
AMS frames the initiative around three main goals:
- Diversifying dairy product markets to reduce business risk and create higher-value uses for milk and dairy components
- Promoting business development that helps farmers and dairy businesses diversify income through processing and marketing innovation
- Encouraging the use of regionally produced milk to reinforce local supply chains and keep more economic activity in dairy-producing regions
What kinds of activities or projects might DBI support?
In practice, DBI-supported work can include activities such as new or expanded dairy product lines, value-added processing, branding and market development, and other innovations that help dairy businesses reach new customers or improve margins.
How much total funding is expected to be available for FY 2026?
AMS indicates that approximately $12.65 million is available in total for FY 2026 to fund these initiatives.
How many awards does AMS expect to make?
AMS indicates an expectation of four awards, aligning with the four eligible initiative operators.
What is the maximum award amount (award ceiling) per award?
The listed award ceiling is $3,450,000 per award.
How does FY 2026 funding compare to FY 2025?
As context, AMS notes that in FY 2025 it funded four applications from these existing initiatives for a combined total of $11,040,000. FY 2026 funding is anticipated to be somewhat higher overall, with approximately $12.65 million available.
What is AMS encouraging DBI initiative operators to prioritize in FY 2026?
A key emphasis in the FY 2026 notice is AMS encouragement for DBI initiative operators to prioritize subaward funding for projects that include equipment and infrastructure components.
Does the notice provide rules about equipment purchases or construction-related costs?
Yes. The notice points applicants to the DBI Specific Terms and Conditions for the rules governing what is allowable related to equipment purchases and construction-related costs.
Why is there an emphasis on equipment and infrastructure investments?
AMS highlights that targeted investments in equipment and infrastructure are considered especially important for building long-term capacity in dairy processing, product development, and supply chain strength. The notice also indicates DBI is currently in a unique position to offer this type of focused support.
What is the Funding Opportunity Number for this FY 2026 DBI notice?
The Funding Opportunity Number is USDA AMS TM DBI G 26 0011.
What is the CFDA number and activity category associated with this opportunity?
The opportunity is categorized as a grant under the agriculture activity category, with CFDA 10.176.
What are the listed key dates for this opportunity?
The opportunity lists a creation date of September 30, 2026, and an original closing date of December 1, 2026.
The notice mentions FY 2025 language in one place. Is this still an FY 2026 opportunity?
Yes. While the notice text contains a stray reference to FY 2025 language, the title, funding number, and the main narrative indicate the opportunity is intended to support FY 2026 awards and continues the same eligibility structure.
Who ultimately receives the AMS awards under this notice?
The AMS awards under this notice are expected to go to the four eligible DBI initiative operators (the regional hub organizations).
How do dairy farmers, processors, and related businesses benefit if they cannot apply directly to AMS under this notice?
The notice explains that the initiative operators function as regional hubs that provide technical assistance and distribute subawards to dairy farmers, processors, and related businesses across their service areas.
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