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USDA Announces $500 Million for Domestic Fertilizer Production
The U.S. Department of Agriculture today announced $500 million in grants available to increase domestic fertilizer production through the Fertilizer Production Expansion Program.
The goal of the program is to promote competition in agricultural markets with the funds being made available through the Commodity Credit Corporation.
According to the USDA, “[g]rants will be used to support independent, innovative and sustainable American fertilizer production to supply American farmers.” The funds will also be used to “expand the manufacturing and processing of fertilizer and nutrient alternatives in the U.S. and its territories.”
Guidelines indicate that the program will support fertilizer production that is:
- Independent, and outside the orbit of dominant fertilizer suppliers. Because the program’s goal is to increase competition, market share restrictions apply.
- Made in America. Products must be produced by companies operating in the U.S. or its territories, to create good-paying jobs at home, and reduce the reliance on potentially unstable, inconsistent foreign supplies.
- Innovative. Techniques will improve fertilizer production methods and efficient-use technologies to jumpstart the next generation of fertilizers and nutrient alternatives.
- Sustainable. Ideally, products will reduce the greenhouse gas impact of transportation, production and use through renewable energy sources, feedstocks and formulations, incentivizing greater precision in fertilizer use.
- Farmer-focused. Like other Commodity Credit Corporation investments, a driving factor is providing support and opportunities for U.S. agricultural commodity producers.
Organizations that are eligible for the grant funding include:
- For-profit businesses and corporations
- Nonprofit entities
- Tribes and Tribal organizations
- Producer-owned cooperatives and corporations
- Certified benefit corporations
- State or local governments
Private entities must be independently owned and operated to apply.
The maximum award is $100 million. The minimum award is $1 million. The grant term is five years.
Applying for Funding:
The Department will begin accepting applications in the coming days via www.grants.gov. There will be two opportunities for submission.
The Department plans for a 45-day application window for applicants to receive priority for projects that increase the availability of fertilizer (nitrogen, phosphate or potash) and nutrient alternatives for agricultural producers to use in Crop Years 2023 or 2024.
The Department will also offer an extended application window, providing an additional 45 days (90-day application window) to receive applications for financial assistance to significantly increase American-made fertilizer production to spur competition and combat price hikes. This extended application window will support applicants who need more time to make additional capacity available.
USDA Informational Webinars:
The Department is hosting two informational webinars:
- Potential applicants and other interested parties are encouraged to attend a webinar on Oct. 4, 2022, to learn more about the program. Pre-registration is required. To register, visit here.
- Potential applicants and other stakeholders are also encouraged to attend a webinar on Oct. 6, 2022, to learn about application requirements. Pre-registration is required. To register, visit here.
Potential applicants and stakeholders may email questions to fpep@usda.gov.
Other Information from USDA:
Grants available through the Fertilizer Production Expansion Program are part of a broader effort to help producers boost production and address global food insecurity.
USDA’s Natural Resources Conservation Service is also improving opportunities for nutrient management. This includes targeting funding, increasing program flexibilities, launching a new outreach campaign to promote nutrient management’s economic benefits, and expanding partnerships to develop nutrient management plans.
TFI will remain engaged with the USDA regarding these grant funding opportunities and share information with TFI membership as it becomes available.
Please contact TFI Manager of Government Affairs Reagan Giesenschlag with any questions or comments.
