USDA Announces $29 Million to Increase American-Made Fertilizer Production

WASHINGTON, DC - U.S. Department of Agriculture (USDA) Secretary Tom Vilsack recently announced that the Department received $3 billion in applications from more than 350 independent businesses from 47 states and 2 territories for the first two rounds of a new grant program to add innovative domestic fertilizer production capacity.

The cost of fertilizer has been a significant issue for American farmers in recent years. Many industry analysts say if more fertilizer were produced domestically, the cost should come down and supply-chain issues would possibly be avoided.

USDA also announced the first $29 million in grant offers under the first round that focused on projects that can come online in the near term. The grants will help independent businesses increase production of American-made fertilizer, which will spur competition, give U.S. farmers more choices and fairer prices and reduce dependence on unreliable foreign sources like Russia and Belarus. Vilsack made the announcement at the 2023 Commodity Classic, the same event where he first unveiled the program a year earlier.

“I know that increased costs for fertilizer and other inputs have put a strain on farmers and cut into the bottom line. The Biden-Harris Administration and USDA understand the importance of taking on the root causes and need to invest in the agricultural supply chain here at home to create a resilient, secure and sustainable economy for the long haul,” Vilsack said. “By expanding the production of domestic fertilizer supplies, we can grow independent local businesses, bring production and jobs to rural communities and support fair prices for our farmers.”

The Biden-Harris Administration’s Fertilizer Production Expansion Program is part of a government-wide effort to promote competition in agricultural markets. The program supports fertilizer production that is independent, made-in-America, innovative, sustainable and farmer-focused.