SB 323 — Relating to: establishing a dairy cattle innovation program. (FE)

- 2026 LEGISLATURE LRBs0125/1LRB-3400/2 MDE:klmMDE:klm&cjs SENATE SUBSTITUTEBILL AMENDMENT323 1,June TO12, SENATE2025 BILL- 323Introduced Octoberby 3,Senators 2025S -TAFSHOLT Offered, TESTIN, JAMES and Q UINN , cosponsored by SenatorRepresentatives STAFSHOLTM OSES , BEHNKE , BRILL, BROOKS , JOHNSON , K REIBICH , MELOTIK , MURSAU and P IWOWARCZYK .

AReferred N A CT to createCommittee 93.53on ofAgriculture theand statutes;Revenue.

A N A CT to create 238.165 of the statutes;

Analysis by the Legislative Reference Bureau This bill creates a dairy cattle innovation program, under which the DepartmentWisconsin ofEconomic Agriculture,Development TradeCorporation and Consumer Protection provides no-interest loans to eligible milk producers for certain activities.

A Xmilk“milk producerYproducer” is defined under current law to mean a person who owns or operates a dairy farm and who sells or distributes milk produced on that farm.

Under the bill, to be eligible for a no-interest loan under the program, an applicant[sapplicant’s dairy operation must include 999between or50 fewerand animal714 units.producing dairy cows.

maymust notemploy beonly theindividuals subjectwho ofare anlegally openauthorized bankruptcyto proceeding;work in this state;

mustand operatemay primarilynot asbe athe dairysubject farmof thatan keepsopen cowsbankruptcy forproceeding. the production of milk;

andA mustno-interest employloan onlyreceived individualsunder whothe aredairy legallycattle authorizedinnovation program may be used only to workimprove infarm thisefficiencies, state.animal care and health, or milk quality;

Ato no-interestreduce loanenvironmental receivedeffects underassociated thewith dairymanure cattlemanagement innovationor programother maydairy beactivities; used only for the following purposes as they relate to the production of cow[s milk:

1.or to rent or build buildings or technology necessary to expand the dairy operation’s capacity or its manure management systems.

ToThe improvebill farmrequires efficiencies,WEDC, animalin careawarding anda health,loan orunder milkthis quality.program, to give priority to applicants that propose to create new skilled jobs;

to improve practices - 2026 Legislature - 2 - LRBs0125/1LRB-3400/2 MDE:klmMDE:klm&cjs SECTIONSENATE BILL 323 S ECTION 1 2.related to milk production and manure management;

Toto reduce environmentalthe effectsdairy associatedoperation’s withenvironmental nutrienteffects managementper orfluid othergallon dairyof activities.milk produced;

3.or to improve labor efficiency associated with milk production and manure management.

ToUnder rentthe orbill, buildWEDC buildingsmay orconsult technologywith necessarythe toDepartment expandof theAgriculture, dairyTrade operation[sand capacityConsumer orProtection itsto nutrientadminister managementthe systems.requirements in the bill.

InFor applyingfurther for a loan under the bill, an applicant must provide DATCP with information relatedsee to the applicant[sstate needfiscal forestimate, thewhich loanwill andbe whatprinted theas applicantan plansappendix to purchasethis usingbill. moneys from the loan.

The bill requires DATCP, in awarding a loan under the bill, to give priority to applicants that propose to create new skilled jobs, improve practices related to milk production, or improve practices related to nutrient management.

A loan provided under the bill may not exceed the amount of costs for the eligible activities prescribed in the bill or $500,000, whichever is less.

No loan provided under the bill may be forgivable in whole or in part, and a loan provided under the bill must have a term of 10 years.

Finally, by no later than 90 days after the effective date of the bill, the bill requires DATCP to submit a request to the Joint Committee on Finance for the funding that was put in a JCF supplemental appropriation under 2025 Wisconsin Act 15, the biennial budget act, for dairy cattle innovation for fiscal year 2026-27.

The amounts received from the request may be used only for loans under the bill.

SECTIONS ECTION 1.

93.53238.165 of the statutes is created to read:

93.53238.165 Dairy cattle innovation program.

(a) XDairy“Milk farmYproducer” has the meaning given in s.

97.22 (1) (a).

(b) XMilk producerY has the meaning given in s.

(c)(b) XTechnologyY“Technology” means hardware, software, or digital services, including robotics and processes or systems that operate using computerized equipment or machinery.

(2) ELIGIBLEE RECIPIENTSLIGIBLE .RECIPIENTS.

The departmentcorporation shall establish and administer aan economic development program under which the departmentcorporation may,may fromprovide no- interest loans to milk producers for one or more of the appropriationeligible activities under s.sub.

20.115 (4) (d), provide no-interest loans of up to $500,000 to milk producers for one or more of the eligible - 2026 Legislature - 3 - LRBs0125/1 MDE:klm SECTION 1 activities under sub.

(a) At least 98 percent of the applicant[sapplicant’s employees work for an operation located in this state, or a number of the applicant[sapplicant’s employees representing at least 98 percent of the applicant[sapplicant’s total payroll expenses work for an operation located in this state.

(b) The applicant has not been the subject of any regulatory enforcement actions relating to a violation of any federal, state, or local law related to the - 2026 Legislature - 3 - LRB-3400/2 MDE:klm&cjs SENATE BILL 323 SECTION 1 environment, worker safety, food processing, or food safety within the previous 5 years.

(c) The applicant isemploys notonly theindividuals subjectwho ofare anlegally openauthorized bankruptcyto proceeding.work in this state.

(d) The applicant[sapplicant dairyis operationnot hasthe 999subject orof feweran animalopen units,bankruptcy asproceeding. calculated under s.

NR(e) 243.05.The applicant’s dairy operation has at least 50 but no more than 714 producing dairy cows.

(e)(3) TheE applicant[sLIGIBLE farmACTIVITIES. operates primarily as a dairy farm that keeps cows for the production of milk.

(f)A Themilk applicantproducer employsthat onlyreceives individualsa whono-interest areloan legallyunder authorizedthis section may use the loan only to workdo inone thisor state.more of the following:

(3)(a) ELIGIBLEIncorporate ACTIVITIE.methods and technologies into the person’s operation that do any of the following: