MADISON, Wis. (July 3, 2025) — The Wisconsin Dairy Products Association (WDPA) highlighted dairy industry and rural Wisconsin investments included in the newly signed 2025-27 Wisconsin State Budget that will benefit the state’s dairy processors, farmers, and rural communities. The budget reflects bipartisan recognition of dairy’s critical role in Wisconsin’s economy, while also identifying areas where continued advocacy and innovation will be necessary.
“We are grateful to the Wisconsin Legislature and Governor Evers for recognizing the importance of dairy to Wisconsin’s economy and the need to support our rural communities,” said Amy Winters, Executive Director of WDPA. “While this budget takes meaningful steps, there is still work to do to ensure that dairy processors and the rural communities that support them can thrive.”
Continuation of Essential Investments — Funding Maintained or Reduced:
- Dairy Innovation Hub: Continued funding at approximately $7.8 million annually to sustain dairy research and workforce development.
- Export Competitiveness: The Wisconsin Initiative for Agricultural Exports (WIAE) was not expanded or made permanent despite its success. The Wisconsin Cheese Makers Association, WDPA and other partners, had requested an increase to $2 million annually, with permanent program authorization, to build on export growth and create sustained market opportunities for Wisconsin dairy. While we are disappointed that the program was continued as a one time appropriation at previous funding levels, we are thankful that the program is able to continue.
- Agricultural Road Improvement Program (ARIP): Reauthorized at $150 million for the biennium, including $30 million dedicated to rural bridges and culverts—reflecting steady but not expanded investment.
- CDL Driver Training Grants: Reauthorized Funding of $500,000 through the Department of Workforce Development, continuing support for driver training to strengthen supply chain resilience for dairy transport.
- World Dairy Expo: Continued modest support of $40,000 over the biennium without an increase; WDPA will continue advocating for sustained and enhanced funding for this globally recognized event and WDPA partner.
- Meat Processor Grants: Reduced to $1.6 million over the biennium ($800,000 annually), down from approximately $2 million total in the previous biennium. The program continues to provide essential support for small and mid-sized meat processors who are critical to Wisconsin’s agricultural infrastructure.
- Meat Talent Development Program (MTDP): Continued with $810,800 in base funding for FY 2026–27. While the Governor proposed expanding the program following its initial $5 million ARPA investment, the final budget maintains only base-level support. This program helps address shared workforce challenges in both the meat and dairy processing sectors—particularly as more dairy farms adopt beef-on-dairy genetics to meet market demand and ensure processing capacity for cull cows and dairy-beef crosses.
Modest but Meaningful Increases:
- Dairy Processor Grant Program: Increased to $600,000 annually, a $100,000 annual increase over the previous budget. This will help fund an estimated two to three additional grants each year. WDPA, along with the Wisconsin Cheesemakers Association, Dairy Business Association, and other partners, had requested an increase to $1.2 million annually to meet growing demand for plant modernization and safety improvements.
- County Conservation Staffing: Nearly $30 million to sustain and strengthen county-level conservation efforts. This supports soil and water management that directly benefits dairy farmers and processors by preserving land and water quality essential to agriculture.
- General Transportation Aids: A 3% annual increase, adding approximately $43 million statewide to help maintain local roads critical to the transport of dairy products.
- BadgerCare and Rural Health Investments: Over $1.1 billion in funding to bolster healthcare services in rural areas. This amount includes a Medicaid Hospital Assessment Increase, which adjusts the hospital assessment rate to 6%, securing more than $1.5 billion in federal matching funds to help keep rural hospitals viable and accessible.
- New Investments:
- Dairy Cattle Innovation Grant: $20 million in new funding to advance dairy research, herd management, and production innovation—helping ensure Wisconsin’s dairy sector remains competitive.
- Local Roads Improvement Program (LRIP): $100 million dedicated to enhancing transportation infrastructure, consistent with the supplemental investments made in the previous biennium.
- Harbor Assistance Program: $50 million to improve port infrastructure
- Food Security Grants: $10 million dedicated to expanding access to local foods, including dairy products, for food-insecure populations. WDPA and coalition partners had advocated for $30 million over the biennium to better meet increasing food bank needs and support the inclusion of locally produced dairy.
- DATCP Animal Health Staffing: New funding to increase veterinary and animal health preparedness, vital in light of disease threats like H5N1.
- EmployerSponsored Child Care Grant Program: $162,400 in FY 2026 and $5.35 million in FY 2027 for grants for businesses establishing or supporting child care services for employees. The program’s structure, eligibility criteria, and award sizes will be developed by the Department of Administration. This funding may help address accessibility challenges in rural areas and support dairy processors that rely on shift work and 24/7 operations
Items Advocated for but not included
- Veterinarian Loan Repayment Program: WDPA along with the rest of the ag coalition advocated for a pilot program to provide $5 million over the biennium to help qualified large animal veterinarians offset a portion of the debt incurred in pursuit of their veterinary medicine degrees in return for their full-time employment as a veterinarian for at least four (4) years in a rural area in Wisconsin. We will continue to advocate for this program and funding to address ongoing shortages of rural large animal veterinarians—shortages that directly impact dairy farms and processors.
“We are proud to work alongside state leaders, farmers, and processors to advance Wisconsin’s dairy industry,” Winters added. “WDPA will continue to advocate for solutions that strengthen our rural communities, support innovation, and ensure Wisconsin remains America’s Dairyland for generations to come.”
