,,ii #aaeth ,,congress #b;d ,session ,s4 #caac ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #ba1 #bjah ,ms4 ,baldwin introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,a ,,bill ,to promote dairy product innovation1 including in specialty cheese1 and value-added dairy product development for the economic benefit of ,united ,states dairy farmers and their communities4 #a4 ,short title ,this ,act may be cited as the ,dairy ,business ,innovation ,act of #bjah4 #b4 ,dairy product and business innovation initiatives 7a7 ,definitions ,in this section3 7#a7 ,dairy business ,the term dairy business means a business that develops1 produces1 markets1 or distributes dairy products4 7#b7 ,dairy product ,the term dairy product means a food that contains as a primary ingredient1 or is derived from1 the lacteal secretion1 practically free from colostrum1 obtained by the complete milking of one or more hooved mammals4 7#c7 ,initiative ,the term initiative means a dairy product and business innovation initiative established under subsection 7b74 7#d7 ,secretary ,the term ,secretary means the ,secretary of ,agriculture4 7b7 ,establishment ,the ,secretary shall establish not less than #c regionally located dairy product and business innovation initiatives for the purposes of-- 7#a7 utilizing regional milk production2 7#b7 creating higher-value uses for dairy products2 7#c7 promoting business development that diversifies farmer income through processing and marketing innovation2 and 7#d7 diversifying dairy product markets to reduce risk4 7c7 ,selection of initiatives ,an initiative-- 7#a7 shall be located in a region with a history of dairy farming2 7#b7 shall be positioned in proximity to existing dairy industry resources1 including research capacity1 academic and industry expertise1 a density of dairy farms or farmland suitable for dairying1 and dairy businesses2 7#c7 may serve a certain product niche1 such as artisanal cheese1 or serve dairy businesses with dairy products derived from a specific type of dairy animal2 and 7#d7 shall serve dairy businesses in other regions4 7d7 ,entities eligible ,to host initiative 7#a7 ,in general ,any of the following entities may submit to the ,secretary an application to host an initiative3 7,a7 ,a ,state department of agriculture or other ,state entity4 7,b7 ,a nonprofit entity with capacity to provide consultation1 expertise1 and grant distribution and tracking4 7,c7 ,an institution of higher education4 7,d7 ,a cooperative extension service4 7#b7 ,partners ,an entity described in paragraph 7#a7 may establish partners prior to the submission of the application under that paragraph1 or add partners on consultation with the ,secretary1 which may include-- 7,a7 a generic program to promote and provide research and information for dairy and dairy products 7commonly known as a dairy checkoff program72 7,b7 a foundation2 and 7,c7 any other entity described in subparagraphs 7,a7 through 7,d7 of that paragraph4 7e7 ,activities of initiatives 7#a7 ,direct assistance to dairy businesses ,an initiative shall provide assistance to dairy businesses in accordance with the following3 7,a7 ,provision of direct assistance ,assistance may be provided directly to dairy businesses in a private consultation or through widely available distribution1 and may be provided-- 7i7 directly by the entity that hosts the initiative under subsection 7d77#a72 7ii7 through contracting with industry experts2 7iii7 through the provision of technical assistance1 such as informational websites1 webinars1 conferences1 trainings1 plant tours1 and field days2 and 7iv7 through research institutions1 including cooperative extension services4 7,b7 ,types of assistance ,eligible forms of assistance include-- 7i7 business consulting1 including business plan development for processed dairy products2 7ii7 accounting and financial literacy training2 7iii7 market evaluation2 7iv7 strategic planning assistance2 7v7 product innovation1 including relating to value-added products2 7vi7 marketing and branding assistance1 including market messaging1 consumer assessments1 and evaluation of regional1 national1 and international markets2 7vii7 innovation in emerging market opportunities1 including agritourism1 and marketing communication methods2 7viii7 packaging1 distribution1 and supply chain innovation2 7ix7 food safety training2 7x7 dairy product production training1 including in new1 rare1 or innovative techniques2 and 7xi7 process and processing facility improvement1 including planning for and implementing plant upgrades1 food safety modernization1 energy and water efficiency1 byproduct reprocessing and use maximization1 and waste treatment4 7#b7 ,competitive grants to dairy businesses ,an initiative shall provide competitive grants for new and existing dairy businesses for the purposes of-- 7,a7 modernization1 specialization1 and grazing transition on dairy farms2 7,b7 value chain and commodity innovation and facility and process updates for dairy processors2 and 7,c7 product development1 packaging1 and marketing of dairy products4 7f7 ,distribution of funds 7#a7 ,in general ,of the funds made available to carry out this section1 the ,secretary shall provide not less than #c awards to eligible entities described in subsection 7d77#a7 for the purposes of carrying out the activities under subsection 7e74 7#b7 ,multiyear funding ,the ,secretary is encouraged-- 7,a7 to award funds under paragraph 7#a7 in multiyear funding allocations2 and 7,b7 to require frequent reporting1 as appropriate4 7#c7 ,use of funds 7,a7 ,in general ,the funds awarded to an eligible entity under paragraph 7#a7 may be used-- 7i7 for program administration of an initiative1 including staff costs2 and 7ii7 for workshops or other informational sessions that-- 7,i7 directly benefit dairy businesses and entrepreneurs2 or 7,,ii7 enhance the capacity of providers of technical assistance to dairy businesses4 7,b7 ,allocation ,not less than #ej percent of the funds awarded to an eligible entity under paragraph 7#a7 shall be allocated to directly benefit new dairy businesses or dairy businesses that wish to update their products or processes using a grant under subsection 7e77#b74 7#d7 ,priority ,an eligible entity shall give priority the provision of direct assistance under subsection 7e77#a7 and grants under subsection 7e77#b7 to-- 7,a7 small- and medium-sized dairy farms and dairy businesses2 7,b7 employee-owned dairy businesses2 7,c7 cooperatives2 7,d7 dairy businesses that establish contracting mechanisms that return profits to farmers who supply their milk2 7,e7 dairy businesses that1 in addition to salary and wage compensation1 return profits to employees2 and 7,f7 dairy businesses that seek to create dairy products that add substantial value in processing or marketing1 such as specialty cheeses4 7#e7 ,requirement ,in the case of direct assistance under subsection 7e77#a7 or a grant under subsection 7e77#b7 that is provided to a specific dairy business and does not benefit the general public1 as determined by the ,secretary1 the assistance or grant shall exclusively be available to dairy businesses owned in the ,united ,states4 7#f7 ,supplementation ,to the extent practicable1 the ,secretary shall ensure that funds provided to an initiative supplement1 and do not duplicate or replace1 existing dairy product research1 development1 and promotion activities4 7g7 ,matching funding 7#a7 ,in general ,the ,secretary shall encourage1 but not require1 an eligible entity described in subsection 7d77#a7 to provide matching funding to carry out this section4 7#b7 ,additional funding ,after an initial term of funding provided to an eligible entity described in subsection 7d77#a7 under this section1 the ,secretary is encouraged to work with the eligible entity to develop additional funding streams to supplement the ,federal investment1 including from funds of a generic program to promote and provide research and information for a specific agricultural commodity1 if the provision of funds is approved by the members of the generic program4 7h7 ,reporting 7#a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary shall submit to ,congress a report describing the implementation of this section4 7#b7 ,innovation reports ,the ,secretary1 in coordination with the ,chief ,economist1 shall publish an annual report on the status of-- 7,a7 innovation in dairy products2 7,b7 product development under the program under this section2 7,c7 growth areas for dairy product development2 and 7,d7 barriers inhibiting majority member-owned domestic dairy firms from-- 7i7 updating capacity2 7ii7 performing competitively in the marketplace2 and 7iii7 returning gains to members or reinvesting the gains in ways that benefit the long-term financial stability of the majority member-owned domestic dairy firm and the members of that firm4 7i7 ,funding 7#a7 ,mandatory funding ,of the funds of the ,commodity ,credit ,corporation1 the ,secretary shall use to carry out this section #ej1jjj1jjj1 to remain available until expended4 7#b7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #bj1jjj1jjj for each fiscal year4