USDA today announced significant investments to boost domestic fertilizer production and increase competition in the fertilizer industry. USDA Secretary Tom Vilsack said USDA is awarding more than $116 million through the Fertilizer Production Expansion Program (FPEP) to support eight facilities in expanding innovative fertilizer production across nine states.
- Funding amount: Over $116 million
- Number of projects: 8 facilities
States benefiting: California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Oklahoma, and Wisconsin.
The primary goals of this investment are to:
- Increase domestic fertilizer production
- Enhance competition in the fertilizer market
- Lower fertilizer costs for American farmers
- Reduce food costs for U.S. consumers
Vilsack emphasized that these investments will drive down input costs, increase options for farmers, create jobs in the United States, and support farmer income.
The Fertilizer Production Expansion Program, funded by the Commodity Credit Corporation, provides grants to independent business owners for various purposes:
- Modernizing equipment
- Adopting new technologies
- Building production plants
- Expanding fertilizer production capacity
To date, USDA has made significant progress through the FPEP:
- Total investment: $517 million
- Number of projects: 76 fertilizer production facilities
- Geographic reach: 34 states and Puerto Rico
- Expected increase in U.S. fertilizer production: 11.8 million tons annually
- Job creation: More than 1,300 new positions in rural communities
USDA has committed up to $900 million through the Commodity Credit Corporation for FPEP. This funding aims to support long-term investments that will strengthen supply chains, create new economic opportunities for American businesses, and promote climate-smart innovation. The FPEP was created in response to the challenges faced by American farmers due to rising fertilizer prices. Between 2021 and 2022, fertilizer prices more than doubled, influenced by factors such as:
- The war in Ukraine
- Limited supply of relevant minerals
- High energy costs
- Increased global demand
- Reliance on imports
- Lack of competition in the fertilizer industry