The Wisconsin Cheese Makers Association is calling on the U.S. Department of Agriculture to release federal funding for successful Dairy Business Initiatives (DBI) which were frozen last week.
The freeze jeopardizes $28.6 million in grant funding which impacts 420 dairy businesses nationwide. After speaking with a local dairy farmer, Marieke Penterman, the owner of Marieke Gouda, she says this funding is crucial to improve future projects.
“These funds are essential for farmers, it’s like. It’s more than fundings, it’s to make sure that they continue to be sustainable in the markets.” Penterman said.
Senior Director of Programs and Privacy for the Wisconsin Cheese Makers Association, Rebekah Sweeney, explained what the DBI is for.
“The Dairy Business Initiatives is a program that was authorized in the 2018 farm bill. With a goal of stabilizing and strengthening our dairy industry.” Sweeney said.
“The program offers both technical assistance and direct to business grants, and it serves the Midwest region.” Sweeney said.
She adds that DBI grants are reimbursable, which means “business pay up front, and then are reimbursed by the federal government.”
Until now, “They’re no longer going to see reimbursement while the federal government reviews this funding.” she said.
Sweeney adds that in many cases, farmers are approved for projects, execute the projects and spend the money. However with the freeze, farmers like Marieke Penterman are affected.
“We want to keep the diversity over here, there will be cuttings in diversity in the markets. There will be layoffs, this is, this is going to have a huge impact on all of us.” Penterman said.
Adding that she’s already seeing an impact after the funding freeze.
“For us, we’ll have to hold off on certain projects that we were planning to do that actually were creating jobs also, and open up new markets for us here in America. We were hoping to continue that growth, and we currently have a grant that is frozen.” she said.
As for those wondering, there have been calls to action to try and get these reimbursements back in order.
Sweeney says that officials with the WCMA “were out in Washington DC earlier this week, pleading with congressman and women to ask U.S.D.A. to release these funds. We’ve been in direct contact with U.S.D.A. officials as well emphasizing the urgency of their expedited review in release of these funds.”
She also says many are concerned with tariffs, labor shortages and now frozen grant funds adds that third pressure to an already stressed dairy industry.
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