USDA Invests in Domestic Fertilizer Production to Lower Costs for Farmers and Consumers

The U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced a significant investment in domestic fertilizer production across nine states to boost competition, reduce fertilizer expenses for American farmers, and ultimately lower food costs for consumers.

Vilsack emphasized the importance of investing in domestic supply chains to drive down input costs, provide more options for farmers, and support the economy. Through the Fertilizer Production Expansion Program (FPEP), USDA is allocating over $116 million to aid eight facilities in California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Oklahoma, and Wisconsin to enhance their fertilizer production capabilities.

The FPEP, funded by the Commodity Credit Corporation, aims to assist independent business owners in upgrading equipment, adopting new technologies, and expanding production capacities to meet the growing demand for domestic fertilizer options.

With previous investments totaling $517 million in 76 fertilizer production facilities, USDA’s efforts will increase U.S. fertilizer production by 11.8 million tons annually and create more than 1,300 jobs in rural communities across 34 states and Puerto Rico.

Examples of Projects:

• California: Biofiltro USA Inc. will construct a new facility in Kingsburg using a $2.3 million grant to process dairy cow manure through vermifiltering techniques, yielding over 33,000 cubic yards of composted fertilizer alternative annually.
• Georgia: Reve Solutions Inc. will expand a biosolid fertilizer composter with a $1.3 million grant, increasing capacity and creating five new jobs.
• Kansas: The Farmers Cooperative Association will enhance an existing dry fertilizer facility with a $2.3 million grant, improving order processing efficiency and expanding services to include dust suppression.

President Biden and USDA initiated FPEP to address the challenges faced by American farmers due to soaring fertilizer prices, which doubled between 2021 and 2022 due to global factors such as the conflict in Ukraine and market monopolies.

The administration has committed up to $900 million through the Commodity Credit Corporation for FPEP to support long-term investments that strengthen supply chains, create economic opportunities, and promote climate-smart innovations.