Wisconsin Offers $600,000 for Dairy Processor Grants in 2027

Background: Wisconsin, often referred to as America’s Dairyland, is home to a robust dairy sector that significantly contributes to the state’s economy, generating an impressive $52.8 billion each year. In recognition of this vital industry, the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) has announced the opening of the second application period for the 2027 Dairy Processor Grants. With a total of $600,000 in grant funding available, these grants are designed to assist local dairy processors in enhancing their operational effectiveness and expanding their market reach.

Context: The application deadline for these grants is set for noon on November 3, 2026, with individual project grants capped at $50,000. Each applicant is required to provide at least a 20% matching contribution towards their proposed project. This funding opportunity is pivotal for dairy processors statewide, allowing them to undertake essential improvements, from modernizing facilities to launching new products in an increasingly competitive market.

Governor Tony Evers underscored the importance of dairy in Wisconsin’s identity, stating, “Dairy will always be a central part of who we are as a state.” This sentiment reflects the deep-rooted significance of the dairy industry to the state's culture and economy, especially as it faces various challenges, including federal regulatory uncertainties and the overall economic landscape.

Since the inception of the Dairy Processor Grant Program in 2014, there has been a notable surge in interest, with 297 proposals submitted, requesting a total of over $12.5 million. To date, 158 of these proposals have been funded, totaling $4.2 million. As per the 2025-27 Biennial Budget, additional funding of $800,000 has been allocated to bolster this program, bringing the grand total to $1.2 million dedicated to supporting Wisconsin’s dairy processors during this biennium.

Procurement Implications: The second round of funding is critically positioned to support not only the dairy processors but also the contractors and service providers who work alongside them. Eligible projects include facility modernization, product development, and market expansion — all areas where local contractors can potentially engage and contribute. This presents a significant opportunity for those in the manufacturing, supply chain, and agricultural technology sectors to align with dairy processors looking to innovate and improve their operations.

In the first round of the Dairy Processor Grants, ten recipients were announced, signifying a diverse array of projects aimed at enhancing Wisconsin’s dairy processing capabilities. These included Foremost Farms USA, focusing on wastewater treatment modernization, and others such as Old Country Farms Co-op and UC Cheese LLC (Uplands Cheese), who are also poised to gain from these grants.