U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced today that the USDA will invest in domestic fertilizer production in nine states to promote competition, reduce fertilizer costs for U.S. farmers, and ultimately lower food prices for consumers. Vilsack emphasized that investing in domestic supply chains helps drive down input costs for farmers while creating jobs and supporting income growth. This move is part of the USDA’s broader strategy to strengthen local industries, reduce dependence on foreign sources, and support American agriculture.

The USDA is allocating over $116 million through its Fertilizer Production Expansion Program (FPEP) to enhance fertilizer production capabilities at eight facilities located in California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Oklahoma, and Wisconsin. The initiative, funded by the Commodity Credit Corporation, aims to help independent businesses modernize equipment, adopt new technologies, and expand production capacity. With this latest round of funding, the USDA has invested $517 million in 76 fertilizer facilities across 34 states and Puerto Rico. These investments are expected to increase U.S. fertilizer production by 11.8 million tons annually, creating more than 1,300 new jobs, particularly in rural communities.

Some of the projects receiving funding include a $2.3 million grant to Biofiltro USA Inc. in California, which will use innovative vermifiltration techniques to process dairy manure into an alternative composted fertilizer, benefitting local farmers. In Georgia, Reve Solutions Inc. will receive a $1.3 million grant to expand its biosolid fertilizer composter, increasing capacity and creating five new jobs while producing over 30,000 tons of fertilizer. In Kansas, the Farmers Cooperative Association will use a $2.3 million grant to upgrade its dry fertilizer facility, improving storage and processing capabilities and enhancing its service efficiency. This expansion will allow the facility to produce 24,500 tons of fertilizer annually.

The Fertilizer Production Expansion Program was created by President Biden and the USDA to address challenges faced by American farmers due to skyrocketing fertilizer prices, which more than doubled between 2021 and 2022 due to supply chain disruptions, the war in Ukraine, and limited competition in the fertilizer industry.

The USDA is investing up to $900 million in FPEP, supporting long-term strategies to strengthen agricultural supply chains, create new economic opportunities, and promote sustainable practices. This initiative also aligns with the President’s broader economic agenda, which focuses on boosting the economy through fair and competitive markets and creating opportunities for farmers and rural communities. USDA Rural Development plays a key role in these efforts by providing loans and grants that support infrastructure, business development, and community services in rural and underserved areas.