Baldwin Demands Trump’s USDA Restart Payments Guaranteed to 88 Wisconsin Dairy Farmers

WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) demanded the United States Department of Agriculture (USDA) restart payments already committed to Wisconsin Dairy Business Innovation (DBI) Initiative recipients. Baldwin’s call comes as bipartisan federal funding that was approved by Congress, signed into law, and already awarded to farmers has been halted at the direction of the Trump Administration – leaving 88 dairy businesses in Wisconsin waiting on a collective $6.5 million for reimbursement.

“The uncertainty surrounding DBI funding is incredibly alarming because it threatens the future of many dairy businesses that were promised this support to grow and remain competitive,” wrote Senator Baldwin in a letter to Secretary Rollins. “Many of the farmers and processors operate with limited resources and cannot afford disruptions in funding. Therefore, this unnecessary and ill-advised disruption could have widespread economic consequences, particularly, for small dairy operations in Wisconsin that drive our rural economies”

In addition to the 88 dairy businesses in Wisconsin waiting on a collective $6.5 million in reimbursements for funds appropriated in Fiscal Year 2023, the Wisconsin Initiative has been told they may not receive funding they were guaranteed for Fiscal Year 2024 – despite having already expended nearly $500,000.

“Given the importance of this program to dairy businesses across the country, I urge you to provide immediate clarification on the status of DBI Initiatives funding to the program’s stakeholders, as well as ensure that funds are reimbursed expeditiously,” Baldwin concluded.

Senator Baldwin successfully created the DBI program in the 2018 Farm Bill. To date, the Baldwin-backed program has supported over 250 dairy farmers and processors in the Midwest, including 109 in Wisconsin. Earlier this month, Senators Baldwin and Blackburn (R-TN) introduced the Dairy Business Innovation Act of 2025, bipartisan legislation that builds on the support for regional dairy research and innovation centers across the country by raising the program’s annual authorization from $20 million to $36 million.

A full version of Baldwin’s letter is available here and below.

Dear Secretary Rollins,

I am writing to express my deep concern that the United States Department of Agriculture (USDA) has halted payments promised to farmers and processors through the Dairy Business Innovation (DBI) Initiatives. This federal funding commitment to dairy businesses has been approved by Congress and signed into law. The program has bipartisan support because of the critical role it plays in supporting small- to medium-sized dairy processors and family farm operations in the development, production, marketing, and distribution of dairy products. I urge you to restart these payments without delay, as farmers in my state wait to be repaid for investments they have already made in line with the active grant awards.

The Dairy Business Innovation Act has become, and remains, a success story for the dairy industry since its enactment into law in the 2018 Farm bill. I have been proud to lead a bipartisan coalition to secure annual appropriations dedicated to the four DBI Initiatives that provide services across the country, including in Wisconsin. To date, the program has supported over 100 dairy farmers and processors in Wisconsin and over 250 across the Midwest.

I understand that funding appropriated in Fiscal Year (FY) 2023 for Dairy Business Innovation Initiatives has not been reimbursed to the Wisconsin Initiative at the direction of the Trump Administration. This means that 88 dairy businesses in Wisconsin are waiting on a collective $6.5 million for reimbursement. The Wisconsin Initiative has now been told they may not be reimbursed for FY2024 at all after expending nearly $500,000, even after USDA’s earlier directive for the Centers to move forward with selecting awards with those appropriated funds. This federal funding has been promised to dairy farmers who anticipated using the funds to help grow their businesses, and many have already made financial commitments based on this expected support. It is imperative that these commitments are honored to avoid undue financial hardship for these farmers and their family-owned small businesses.

At a time when it is needed most, the DBI Initiatives have been a vital lifeline to farmers and processors because they are designed to strengthen the dairy industry by:

• Diversifying dairy product markets to reduce risk and create higher-value uses for dairy products.
• Promoting business development strategies that increase farmer income through processing and marketing innovations.
• Encouraging the use of regional milk production to strengthen local economies.

These initiatives support dairy farmers and processors through direct farm technical assistance, business consulting, strategic planning, marketing, product development, and distribution. Additionally, a significant portion of DBI funds are dedicated as small dollar grants to small- and medium-sized, family-owned businesses.

The uncertainty surrounding DBI funding is incredibly alarming because it threatens the future of many dairy businesses that were promised this support to grow and remain competitive. Many of the farmers and processors operate with limited resources and cannot afford disruptions in funding. Therefore, this unnecessary and ill-advised disruption could have widespread economic consequences, particularly, for small dairy operations in Wisconsin that drive our rural economies.

Given the importance of this program to dairy businesses across the country, I urge you to provide immediate clarification on the status of DBI Initiatives funding to the program’s stakeholders, as well as ensure that funds are reimbursed expeditiously. I appreciate your urgent attention on this matter.

Sincerely,

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.