S 4906 — Milk From Family Dairies Act of 2026

(a) Definitions In this section: (1) Beginning farmer or rancher The term “beginning farmer or rancher” has the meaning given the term in section 1991(a) of this title. (2) Direct producer-to-consumer marketing The term “direct producer-to-consumer marketing” has the meaning given the term “direct marketing from farmers to consumers” in section 3002 of this title. (3) Family farm The term “family farm” has the meaning given the term in section 1632a(a) of this title. (4) Food council The term “food council” means a food policy council or food and farm system network, as determined by the Secretary, that— (A) represents— (i) multiple organizations involved in the production, processing, and consumption of food; and (ii) local, Tribal, or State governments; and (B) addresses food and farm-related issues and needs within city, county, State, Tribal region, multicounty region, or other region designated by the food council or food system network. (5) Majority-controlled producer-based business venture (A) In general The term “majority-controlled producer-based business venture” means a venture greater than 50 percent of the ownership and control of which is held by— (i) 1 or more producers; or (ii) 1 or more entities, 100 percent of the ownership and control of which is held by 1 or more producers. (B) Entity described For purposes of subparagraph (A), the term “entity” means— (i) a partnership; (ii) a limited liability corporation; (iii) a limited liability partnership; and (iv) a corporation. (6) Mid-tier value chain The term “mid-tier value chain” means a local or regional supply network that links independent producers with businesses and cooperatives that market value-added agricultural products in a manner that— (A) targets and strengthens the profitability and competitiveness of small and medium-sized farms and ranches that are structured as a family farm; and (B) obtains agreement from an eligible agricultural producer group, farmer or rancher cooperative, or majority-controlled producer-based business venture that is engaged in the value chain on a marketing strategy. (7) Partnership The term “partnership” means a partnership entered into under an agreement between— (A) 1 or more eligible partners (as defined in subsection (e)(1)); and (B) 1 or more eligible entities (as defined in subsection (e)(1)). (8) Program The term “Program” means the Local Agriculture Market Program established under subsection (b). (9) Regional food chain coordination The term “regional food chain coordination” means coordination and collaboration along the supply chain to increase connections between producers and markets. (10) Secretary The term “Secretary” means the Secretary of Agriculture. (11) Socially disadvantaged farmer or rancher The term “socially disadvantaged farmer or rancher” has the meaning given the term in section 2003(e) of this title. (12) Value-added agricultural product The term “value-added agricultural product” means any agricultural commodity or product that— (A) (i) has undergone a change in physical state; (ii) was produced in a manner that enhances the value of the agricultural commodity or product, as demonstrated through a business plan that shows the enhanced value, as determined by the Secretary; (iii) is physically segregated in a manner that results in the enhancement of the value of the agricultural commodity or product; (iv) is a source of farm- or ranch-based renewable energy, including E–85 fuel; or (v) is aggregated and marketed as a locally produced agricultural food product; and (B) as a result of the change in physical state or the manner in which the agricultural commodity or product was produced, marketed, or segregated— (i) the customer base for the agricultural commodity or product is expanded; and (ii) a greater portion of the revenue derived from the marketing, processing, or physical segregation of the agricultural commodity or product is available to the producer of the commodity or product. (1...

(a) Definitions In this section: (1) Dairy business The term “dairy business” means a business that develops, produces, markets, or distributes dairy products. (2) Initiative The term “initiative” means a dairy product and business innovation initiative established under subsection (b). (b) Establishment The Secretary shall establish not less than 3 regionally-located dairy product and business innovation initiatives for the purposes of— (1) diversifying dairy product markets to reduce risk and develop higher-value uses for dairy products; (2) promoting business development that diversifies farmer income through processing and marketing innovation; and (3) encouraging the use of regional milk production. (c) Selection of initiatives An initiative— (1) shall be positioned to draw on existing dairy industry resources, including activities conducted by the National Dairy Promotion and Research Board and other dairy promotion entities, research capacity, academic and industry expertise, a density of dairy farms or farmland suitable for dairying, and dairy businesses; and (2) may serve a certain product niche, such as specialty cheese, or serve dairy businesses with dairy products derived from the milk of a specific type of dairy animal, including dairy products made from cow milk, sheep milk, and goat milk. (d) Entities eligible to host initiative (1) In general Subject to paragraph (2), any of the following entities may submit to the Secretary an application to host an initiative: (A) A State department of agriculture or other State entity. (B) A nonprofit organization. (C) An institution of higher education. (D) A cooperative extension service. (2) Capacity of eligible entity Any entity described in subparagraphs (A) through (D) of paragraph (1) shall be eligible to submit an application under that paragraph if the entity has— (A) a capacity to provide consultation and expertise necessary to advance the purpose and activities of the proposed initiative; and (B) expertise in grant distribution and tracking. (3) Ineligible entity A dairy promotion program shall not be eligible to host an initiative under this section. (e) Partners (1) In general An entity described in subsection (d)(1) may establish as a partner an organization or entity described in paragraph (2)— (A) prior to the submission of the application under that subsection; or (B) after approval of the application, in consultation with the Secretary. (2) Partner described A partner under paragraph (1) shall be an organization or entity with expertise or experience in dairy, including the marketing, research, education, or promotion of dairy. (f) Activities of initiatives (1) Direct assistance to dairy businesses An initiative shall provide nonmonetary assistance directly to dairy businesses through private consultation or widely available distribution— (A) by the entity that hosts the initiative under subsection (d)(1); (B) through contracting with industry experts; (C) through the provision of technical assistance, such as informational websites, webinars, conferences, trainings, plant tours, and field days; or (D) through research institutions, including cooperative extension services. (2) Types of assistance Eligible forms of assistance include— (A) business consulting, including business plan development for processed dairy products, strategic planning assistance, and distribution and supply chain innovation; (B) marketing and branding assistance, including market messaging, packaging innovation, consumer assessments, innovation in emerging market opportunities, and evaluation of regional, national, and international markets; (C) assistance in product innovation, including the development of value-added products, innovation in byproduct reprocessing and use maximization, and dairy product production training, including in new, rare, or innovative techniques; and (D) other nonmonetary assistance, as determined by the Secretary. (3) Grants to dairy businesses (A) In...