USDA Secretary Tom Vilsack today announced that USDA is making domestic fertilizer production investments in nine states to increase competition, lower fertilizer costs for American farmers and lower food costs for U.S. consumers.
The U.S. Department of Agriculture (USDA) announced a significant investment of over $116 million to boost domestic fertilizer production in nine states.
This initiative, led by Secretary Tom Vilsack, seeks to enhance competition within the fertilizer industry, reduce costs for American farmers, and ultimately lower food prices for consumers across the United States.
The funding, part of the Fertilizer Production Expansion Program (FPEP), will support eight projects in California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Oklahoma, and Wisconsin.
According to a press release, these investments are designed to strengthen the domestic supply chain, creating new economic opportunities while driving down input costs for farmers.
The program is funded through the Commodity Credit Corporation and targets independent businesses looking to modernize equipment, adopt innovative technologies, and expand production capacities.
Secretary Vilsack emphasized the broader impact of these investments, stating:
“When we invest in domestic supply chains, we drive down input costs and increase options for farmers. Through today’s investments to make more fertilizer, USDA is bringing jobs back to the United States, lowering costs for families, and supporting farmer income.”
One notable project in California involves Biofiltro USA Inc., which will receive a $2.3 million grant to build a new facility in Kingsburg.
The facility will process dairy cow manure using vermifiltering techniques, producing over 33,000 cubic yards of composted fertilizer alternative annually.
In Georgia, Reve Solutions Inc. is set to receive $1.3 million to expand its biosolid fertilizer composter, increasing capacity and generating 30,000 tons of fertilizer nutrients, while creating five new jobs.
Similarly, the Farmers Cooperative Association in Kansas will use a $2.3 million grant to enhance a dry fertilizer facility’s storage and processing capacity, boosting production to 24,500 tons per year and improving operational efficiency.
These projects are part of a broader effort initiated by President Biden and USDA to address surging fertilizer costs that doubled between 2021 and 2022.
Factors such as the war in Ukraine and a lack of competition within the fertilizer market exacerbated these price hikes. In response, the Administration allocated up to $900 million through the Commodity Credit Corporation to support long-term investments in the fertilizer industry. These investments aim to stabilize supply chains, stimulate rural economies, and promote climate-smart agricultural practices.
The Fertilizer Production Expansion Program, since its inception, has provided $517 million to 76 facilities across 34 states and Puerto Rico. Collectively, these investments are expected to increase domestic fertilizer production by 11.8 million tons annually and generate over 1,300 jobs in rural areas.
Beyond immediate economic benefits, these investments align with the Biden Administration’s “Investing in America” agenda, which focuses on growing the economy from the middle out and bottom up. The program supports fairer and more competitive markets, providing American farmers and ranchers with more choices and reducing their reliance on foreign suppliers.
USDA’s Rural Development division plays a pivotal role in these efforts by offering loans and grants to improve infrastructure, support business development, and enhance the quality of life in rural communities. This assistance extends to housing, healthcare, education, public safety, and broadband access.
