(CASS CITY) -- Dairy Farmers of America broke ground Thursday on a $40 million ingredient processing facility in Cass City. The plant will provide a local home for members' milk and answer the growing need for Michigan plant capacity. The Michigan Strategic Fund approved a $500,000 Michigan Business Development Program grant and a $1 million Community Development Block Grant, while the Michigan Economic Development Corporation is contributing $300,000 in corporate funds towards the facility. The Michigan Strategic Fund also awarded Tuscola County and the Village of Cass City a new 15-year Agriculture Processing Renaissance Zone designation for the project. The Village of Cass City is providing revenue bonding valued at approximately $6.7 million for a wastewater pre-treatment system and public infrastructure improvements. At least 25 full-time positions will be created at the 33,000 square foot facility, which is expected to be complete next fall. It will process up to 3 million pounds of fresh milk each day, which will be supplied by Dairy Farmers of America member farms in the Thumb.