USDA Allocates $35 Million to Strengthen U.S. Fertilizer Production Capabilities

At the Farm Progress Show in Boone, Iowa, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced a significant new initiative aimed at boosting domestic fertilizer production. This program, in partnership with American business owners, is designed to create jobs in rural areas and support local economies. The USDA will allocate $35 million across seven states through the Fertilizer Production Expansion Program (FPEP), which is financed by the Commodity Credit Corporation. The grants will enable independent businesses to modernize their equipment, implement new technologies, and construct new production facilities.

This initiative aligns with President Biden’s Investing in America agenda, which focuses on stimulating economic growth from the middle out and the bottom up. Secretary Vilsack highlighted the administration’s commitment to innovative investments that benefit rural communities, farmers, ranchers, and small business owners. “The investments announced today will enhance domestic fertilizer production, strengthen our supply chain, and create well-paying jobs for Americans,” Vilsack said.

Since its inception, FPEP has already invested $286.6 million in 64 projects across 32 states, resulting in the creation of 768 new jobs and an increase in domestic fertilizer production by over 5.6 million tons. The latest funding round is set to further augment production and reduce costs for U.S. farmers.

Among the beneficiaries is Dramm Corp. in Wisconsin, which will receive a $776,000 grant to expand its production capacity. Dramm Corp. specializes in producing liquid fish fertilizer from fish offal, helping to minimize waste and support both organic and conventional farming practices. In Virginia, AdvanSix, a producer of ammonium sulfate, will obtain nearly $12 million to expand its facility, boosting its production capacity by 195,000 tons annually. This expansion is expected to benefit over 36,000 producers across the East Coast and Midwest.

Additional funding will be directed to facilities in California, Iowa, New York, Oregon, and Tennessee. The FPEP was established to address challenges faced by American farmers due to rising fertilizer prices, influenced by global factors such as the conflict in Ukraine and limited competition within the fertilizer industry. This program is part of the broader administration efforts to promote fair competition, foster innovation, and advance climate-smart agriculture, while also tackling global food insecurity.

The United States Department of Agriculture (USDA) is a federal executive agency dedicated to addressing the needs of commercial farming and livestock food production. It promotes agricultural trade and production, ensures food safety, safeguards natural resources, supports rural communities, and works to combat hunger both within the United States and globally.