2025 - 2026 LEGISLATURE
LRBs0149/1
MDE:klm
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 363
October 23, 2025 - Offered by Representative Moses.
AB363-ASA1,1,2
1An Act to create 93.53 of the statutes; relating to: establishing a dairy cattle
2innovation program. Analysis by the Legislative Reference Bureau
This bill creates a dairy cattle innovation program, under which the Department of Agriculture, Trade and Consumer Protection provides no-interest loans to eligible milk producers for certain activities. A “milk producer” 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’s dairy operation must include 999 or fewer animal units. In addition, the applicant must be located in this state; may not have been the subject of any regulatory enforcement actions in the past five years for a violation of environmental, worker safety, food processing, or food safety laws; may not be the subject of an open bankruptcy proceeding; must operate primarily as a dairy farm that keeps cows for the production of milk; and must employ only individuals who are legally authorized to work in this state.
A no-interest loan received under the dairy cattle innovation program may be used only for the following purposes as they relate to the production of cow’s milk:
1. To improve farm efficiencies, animal care and health, or milk quality.
2. To reduce environmental effects associated with nutrient management or other dairy activities.
3. To rent or build buildings or technology necessary to expand the dairy operation’s capacity or its nutrient management systems.
In applying for a loan under the bill, an applicant must provide DATCP with information related to the applicant’s need for the loan and what the applicant plans to purchase using 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. The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB363-ASA1,1
1Section 1. 93.53 of the statutes is created to read: AB363-ASA1,2,2293.53 Dairy cattle innovation program. (1) Definitions. In this section: AB363-ASA1,2,33(a) “Dairy farm” has the meaning given in s. 97.22 (1) (a). AB363-ASA1,2,44(b) “Milk producer” has the meaning given in s. 97.22 (1) (f). AB363-ASA1,2,75(c) “Technology” means hardware, software, or digital services, including 6robotics and processes or systems that operate using computerized equipment or 7machinery. AB363-ASA1,3,28(2) Eligible recipients. The department shall administer a program under 9which the department may, from the appropriation under s. 20.115 (4) (d), provide 10no-interest loans of up to $500,000 to milk producers for one or more of the eligible
1activities under sub. (3). An applicant may not receive a loan under this section 2unless the applicant meets all of the following conditions: AB363-ASA1,3,63(a) At least 98 percent of the applicant’s employees work for an operation 4located in this state, or a number of the applicant’s employees representing at least 598 percent of the applicant’s total payroll expenses work for an operation located in 6this state. AB363-ASA1,3,107(b) The applicant has not been the subject of any regulatory enforcement 8actions relating to a violation of any federal, state, or local law related to the 9environment, worker safety, food processing, or food safety within the previous 5 10years. AB363-ASA1,3,1111(c) The applicant is not the subject of an open bankruptcy proceeding. AB363-ASA1,3,1312(d) The applicant’s dairy operation has 999 or fewer animal units, as 13calculated under s. NR 243.05. AB363-ASA1,3,1514(e) The applicant’s farm operates primarily as a dairy farm that keeps cows 15for the production of milk. AB363-ASA1,3,1716(f) The applicant employs only individuals who are legally authorized to work 17in this state. AB363-ASA1,3,2018(3) Eligible activities. A milk producer that receives a no-interest loan 19under this section may use the loan only to do one or more of the following as they 20relate to the production of cow’s milk: AB363-ASA1,3,2221(a) Incorporate methods and technologies into the person’s operation that do 22any of the following: AB363-ASA1,3,23231. Improve farm efficiencies associated with milk production. AB363-ASA1,3,24242. Improve animal care and health. AB363-ASA1,4,1
13. Improve milk quality. AB363-ASA1,4,324. Reduce environmental effects associated with nutrient management or 3other dairy operation activities. AB363-ASA1,4,54(b) Rent or build buildings or technology necessary to expand the dairy 5operation’s capacity and its nutrient management systems. AB363-ASA1,4,96(4) Applications; awards; priority. (a) An applicant for a loan under this 7section shall apply to the department in the manner prescribed by the department. 8The department shall require an applicant to provide in its application for a loan 9under this section all of the following information: AB363-ASA1,4,11101. The name of the applicant and the physical address of the applicant’s dairy 11farm. AB363-ASA1,4,12122. The name of any person that owns the applicant’s dairy farm. AB363-ASA1,4,13133. The size of the applicant’s herd. AB363-ASA1,4,14144. A description of the applicant’s need for the loan. AB363-ASA1,4,17155. A description of what the applicant plans to purchase using moneys from 16the loan and an explanation of how each purchase will improve the applicant’s 17operations. AB363-ASA1,4,18186. A description of the applicant’s ability to repay the loan. AB363-ASA1,4,2119(b) A loan provided under this section may not exceed the amount of costs for 20eligible activities under sub. (3) that are included in the application or $500,000, 21whichever is less. AB363-ASA1,4,2222(c) No loan provided under this section may be forgivable in whole or in part. AB363-ASA1,4,2323(d) A loan provided under this section shall have a term of 10 years. AB363-ASA1,5,2
1(e) In awarding a loan under this section, the department shall give priority to 2applicants that propose to do any of the following: AB363-ASA1,5,331. Create new skilled jobs; AB363-ASA1,5,442. Improve practices related to milk production; or AB363-ASA1,5,553. Improve practices related to nutrient management. AB363-ASA1,5,127(1) Funding request. By no later than 90 days after the effective date of this 8subsection, the department of agriculture, trade and consumer protection shall 9submit a request to the joint committee on finance to supplement the appropriation 10under s. 20.115 (4) (d) for fiscal year 2026-27 with the funding that was provided in 11the joint committee on finance supplemental appropriation under s. 20.865 (4) (a) 12for dairy cattle innovation under 2025 Wisconsin Act 15. AB363-ASA1,5,1413(2) Use of funds. The amounts received under sub. (1) may be used only for 14loans awarded to milk producers under s. 93.53.
