PolicyBrief
H.R. 985
119th CongressFeb 5th 2025
To amend the Agriculture Improvement Act of 2018 to reauthorize the dairy business innovation initiatives.
IN COMMITTEE

This bill amends the Agriculture Improvement Act of 2018 to reauthorize and expand dairy business innovation initiatives by increasing the number of initiatives and providing additional funding.

Derrick Van Orden
R

Derrick Van Orden

Representative

WI-3

LEGISLATION

Dairy Business Innovation Gets a Boost: Congress Expands Funding to $36 Million

Alright, here's the scoop on the latest update to the Agriculture Improvement Act of 2018, specifically Section 12513. The new bill is all about pumping more money and resources into dairy business innovation initiatives. Basically, it's a cash infusion and expansion for programs designed to help dairy businesses get creative and grow.

Udderly Innovative

The core change? The bill jacks up the funding for these initiatives from $20 million to a hefty $36 million. It also increases the number of regional initiatives that can get this funding, from three to four. This means more regions can tap into federal dollars to support their local dairy industries. For example, a cheese producer in Wisconsin could use these funds to develop a new, more efficient production method, or a small farm in Vermont could get help marketing a new line of artisanal yogurts. The goal is to foster innovation across the board, from farm to fridge.

Milking the Benefits

So, who benefits? Dairy farmers and businesses, obviously, but also the communities around them. More innovation can lead to new products, better processes, and, ideally, a stronger dairy economy. Think of a local creamery that can now afford to experiment with new flavors or packaging, drawing in more customers and boosting sales. That's good news for the business, its employees, and the local economy. It also means more jobs. The expanded funding and additional initiative locations will help to create new opportunities for dairy farmers and related businesses, especially in rural areas where these industries are critical. This isn't just about bigger companies; it's about giving smaller players a chance to compete and thrive.

Potential Churn

Of course, with more money comes the need for more oversight. While the bill's intent is good, there is a need to ensure that the funds are distributed fairly and used effectively. The bill doesn't specify exactly how 'innovation' is defined, which could leave the door open to projects that don't really move the needle. For example, what if a large company uses the funds for a minor packaging tweak instead of genuine product development? It will be crucial to make sure that the money goes to projects that truly benefit the dairy industry and the consumers. The text doesn't lay out precisely how the USDA will pick these "innovation" projects, so that's something to keep a close eye on. Clear guidelines and transparent reporting will be key to preventing misuse and ensuring that this boost in funding delivers real results for dairy communities and consumers alike.