The Dairy Business Innovation (DBI) Initiatives, Congressionally-allocated funds that support dairy businesses under the 2018 Farm Bill, are frozen under new government rules. Two Ohio grant recipients affected by the freeze share their concerns with Food Tank about job loss, interrupted growth, debt, and weakened local economies.
DBI grants are housed by four regional hubs, which distribute funds to over 400 dairy businesses nationwide. In the Midwest, this hub is called the Dairy Business Innovation Alliance (DBIA), administered by the Wisconsin Cheese Makers Association (WCMA) and the Center for Dairy Research in the Midwest. At the time of the funding freeze, the DBIA had 88 DBI awards in process including over US$6.5 million in outstanding promised reimbursements, according to the WCMA. Nationwide, dairy businesses have lost access to an estimated US$28.6 million in promised funds.
Alissa Vieira owns and runs Swanky Scoops, a small ice creamery in Toledo, OH. She had hoped to use her DBI award of about US$75,000 to purchase a new batch freezer, add and advertise a retail component, and hire and train new employees. While she was able to purchase some equipment, she says plans for retail may need to be pushed back due to the freeze.
“When I got the email, it was really shocking that this was now going to be affecting me, personally, and my business,” Vieira tells Food Tank. “You put all of these plans in place to grow your business and forecast and think about what the future holds. And then when you’re not able to grow the way you were expecting to, it’s just really disheartening.”
Sara Bornick, CEO of streetpops in Cincinnati, is in a different position: she had already spent most of her US$100,000 grant and is now unsure whether she will be receiving the promised reimbursement.
“We operated in good faith, trusting that the funds promised to us would be available as outlined,” Bornick wrote in a letter to the DBIA. “Now, with US$65,000 already spent out of pocket and no reimbursement, we’re left with outstanding financial obligations and no clarity on when or if the remaining US$35,000 will come through.”
Both Vieira and Bornick had hoped to use the grant money to strengthen local economies. “A key part of our plan was to source dairy directly from Ohio dairy farmers, strengthening the local supply chain while ensuring the highest quality ingredients for our pops,” says Bornick. “By doing so, we aimed to support regional agriculture, create economic opportunities for farmers, and provide consumers with delicious, farm-fresh frozen treats.”
“I really try to spend my money in ways that keep it as close to home as possible. I see a lot of other small businesses in Toledo do the same,” Vieira echoes. “Losing this grant funding is going to have a trickle-down effect on the money that I would be spending on my vendors that are here in this area. They’re losing my sales, potentially, in the future as well.”
Job creation is another key concern for both business owners. The WCMA reports that nearly 90 percent of DBIA funds have been awarded to businesses employing fewer than 50 people. Swanky Scoops, Vieira’s ice creamery, has only two year-round employees, expanding to about five employees in the summer months.
“It affects our ability to add more staff members,” Vieira explains. “One of the things I wrote about in my grant application was about looking forward to the opportunity to create jobs, and that would be impacted for sure.” Bornick also says streetpops’ ability to sustain jobs is at risk.
Swanky Scoops’ marketing director Lindsay Williams emphasizes the scale of the impact. “It’s my livelihood. But it’s 88 farmers in the Midwest, to the tune of US$6.5 million dollars, 400-plus across the country,” Williams tells Food Tank. “And you think about that ripple effect. If we can’t buy that new piece of machinery, that’s a salesperson that doesn’t get their cut, that’s a delivery driver that doesn’t get to drive the machine over. It’s bigger. It’s way bigger.”
After hearing about the freeze, Vieira and Bornick both took action. Swanky Scoops created a petition for their customers and invited community members to a letter-writing event. Bornick wrote a letter to the DBIA urging them to release the funds. The WCMA also created a petition and wrote a letter to U.S. Secretary of Agriculture Brooke Rollins.
“The funds provided through DBIs empower dairy farmers and processors to grow their capacity, explore new innovations, and become more resilient,” said Rebekah Sweeney, WCMA Senior Director of Programs & Policy. “These programs are much more than money—they strengthen the fabric of America’s dairy industry.”
The business owners hope to spread the word and connect with other affected grant recipients. “I hope that other businesses that are being affected will also make it public knowledge,” Vieira says. “So that we all know we’re not alone in this.”
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Photo courtesy of Alissa Vieira, Swanky Scoops
