Amendment ASA2-AB363

2025 - 2026 LEGISLATURE

LRBs0315/1

MDE:emw

ASSEMBLY SUBSTITUTE AMENDMENT 2, TO ASSEMBLY BILL 363

February 3, 2026 - Offered by Representatives Tranel and VanderMeer.

AB363-ASA2,1,2 An Act to create 93.53 of the statutes; relating to: establishing a dairy and beef cattle innovation program.

Analysis by the Legislative Reference Bureau

This bill creates a dairy and beef cattle innovation program, under which the Department of Agriculture, Trade and Consumer Protection provides no-interest loans to eligible milk producers and beef 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. A “beef producer” is defined in the bill to mean an owner of a livestock premises registered with DATCP that keeps beef cattle for the production of meat.

Under the bill, to be eligible for a loan under the program, an applicant’s dairy farm or livestock premises 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 last 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 or as a livestock premises that primarily keeps beef cattle for the production of meat; must commit to provide matching funds equal to or greater than 10 percent of the applicant’s total loan amount; and must employ only individuals who are legally authorized to work in this state.

A loan received under the dairy and beef cattle innovation program may be used only for the following purposes as they relate to the production of cow’s milk or the keeping of beef cattle for the production of meat:

1. To improve farm efficiencies, milk quality, or animal care, health, or welfare.

2. To reduce environmental effects associated with nutrient management or other dairy farm or livestock premises activities.

3. To rent or build buildings or technology necessary to expand the dairy farm’s or livestock premises’ capacity or nutrient management systems.

4. To establish livestock infrastructure, including physical and virtual fencing, water systems, and cattle lanes; managed and rotational grazing systems, including pasture and forage establishment; or perennial forages and continuous cover for grazing or supplemental feed.

5. To incorporate farm efficiency, modernization, and operational improvements or technical planning for improvements or system development.

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 or meat 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 funding in an amount equal to what 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-ASA2,1 Section 1. 93.53 of the statutes is created to read:

AB363-ASA2,2,3 93.53 Dairy and beef cattle innovation program. (1) Definitions. In this section:

AB363-ASA2,3,2 (a) “Beef producer” means an owner of a livestock premises registered under s. 95.51 that keeps beef cattle for the production of meat.

AB363-ASA2,3,3 (b) “Dairy farm” has the meaning given in s. 97.22 (1) (a).

AB363-ASA2,3,4 (c) “Milk producer” has the meaning given in s. 97.22 (1) (f).

AB363-ASA2,3,7 (d) “Technology” means hardware, software, or digital services, including robotics and processes or systems that operate using computerized equipment or machinery.

AB363-ASA2,3,12 (2) Eligible recipients. The department shall administer a program under which the department may, from the appropriation under s. 20.115 (2) (a), provide no-interest loans of up to $500,000 to milk producers or beef producers for one or more of the eligible activities under sub. (3). An applicant may not receive a loan under this section unless the applicant meets all of the following conditions:

AB363-ASA2,3,16 (a) At least 98 percent of the applicant’s employees work for a dairy farm or livestock premises located in this state, or a number of the applicant’s employees representing at least 98 percent of the applicant’s total payroll expenses work for a dairy farm or livestock premises located in this state.

AB363-ASA2,3,20 (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 environment, worker safety, food processing, or food safety within the previous 5 years.

AB363-ASA2,3,21 (c) The applicant is not the subject of an open bankruptcy proceeding.

AB363-ASA2,3,23 (d) The applicant’s dairy farm or livestock premises has 999 or fewer animal units, as calculated under s. NR 243.05, Wis. Adm. Code.

AB363-ASA2,4,2 (e) The applicant’s farm operates primarily as a dairy farm that keeps cows for the production of milk or as a livestock premises that keeps beef cattle for the production of meat.

AB363-ASA2,4,4 (f) The applicant commits to provide matching funds equal to or greater than 10 percent of the applicant’s total loan amount.

AB363-ASA2,4,6 (g) The applicant employs only individuals who are legally authorized to work in this state.

AB363-ASA2,4,10 (3) Eligible activities. A milk producer or beef producer that receives a loan under this section may use the loan moneys only to do one or more of the following as they relate to the production of cow’s milk or the keeping of beef cattle for the production of meat:

AB363-ASA2,4,12 (a) Incorporate methods and technologies into the dairy farm or livestock premises that do any of the following:

AB363-ASA2,4,14 1. Improve farm efficiencies, productivity, and sustainability associated with milk production.

AB363-ASA2,4,15 2. For a milk producer, improve milk quality.

AB363-ASA2,4,16 3. Improve animal care, health, and welfare.

AB363-ASA2,4,18 4. Reduce environmental effects associated with nutrient management or other dairy farm or livestock premises activities.

AB363-ASA2,4,21 (b) Rent or build buildings or technology necessary to expand the capacity and nutrient management systems of the milk producer's dairy farm or beef producer's livestock premises.

AB363-ASA2,4,23 (c) Establish livestock infrastructure, including physical and virtual fencing, water systems, and cattle lanes.

AB363-ASA2,5,2 (d) Establish managed and rotational grazing systems, including pasture and forage establishment.

AB363-ASA2,5,4 (e) Establish perennial forages and continuous cover for grazing or supplemental feed.

AB363-ASA2,5,5 (f) Incorporate farm efficiency, modernization, and operational improvements.

AB363-ASA2,5,6 (g) Incorporate technical planning for improvements or system development.

AB363-ASA2,5,10 (4) Applications; awards; priority. (a) An applicant for a loan under this section shall apply to the department in the manner prescribed by the department. The department shall require an applicant to provide in its application for a loan under this section all of the following information:

AB363-ASA2,5,12 1. The name of the applicant and the physical address of the applicant’s dairy farm or livestock premises.

AB363-ASA2,5,14 2. The name of any person that owns the applicant’s dairy farm or livestock premises.

AB363-ASA2,5,15 3. The size of the applicant’s herd.

AB363-ASA2,5,16 4. A description of the applicant’s need for the loan.

AB363-ASA2,5,19 5. A description of what the applicant plans to purchase using moneys from the loan and an explanation of how each purchase will improve the applicant’s operations.

AB363-ASA2,5,20 6. A description of the applicant’s ability to repay the loan.

AB363-ASA2,5,23 (b) A loan provided under this section may not exceed the amount of costs for eligible activities under sub. (3) that are included in the application or $500,000, whichever is less.

AB363-ASA2,5,24 (c) No loan provided under this section may be forgivable in whole or in part.

AB363-ASA2,6,1 (d) A loan provided under this section shall have a term of 10 years.