USDA awards more funding to increase fertilizer output

Market: Agriculture, Fertilizers
19/12/24

The US Department of Agriculture (USDA) awarded over $100mn this week across nine states to increase domestic fertilizer production as the effort to make farmer affordability more favorable continues.

About $116mn will be invested through the USDA's Fertilizer Production Expansion Program (FPEP) to help eight facilities expand output in California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Oklahoma and Wisconsin.

Recipients include the Michigan Potash Company, where the construction of a new facility should yield 400,000 metric tonnes (t) annually of high-grade potash, and Farmers Cooperative Association, where funding will expand its existing dry fertilizer facility with additional storage and processing capacity.

"When we invest in domestic supply chains, we drive down input costs and increase options for farmers," USDA secretary Tom Vilsack said.

Through the FPEP, the USDA has invested $517mn in 76 fertilizer production facilities across 34 states and Puerto Rico. President Joe Biden's administration committed up to $900mn in the program through the Commodity Credit Corporation, which is expected to support long-term investments by strengthening supply chains.

Higher US fertilizer prices throughout this year deterred fall demand as lower crop prices forced farmers to sell more of a crop to afford nutrients.

The last USDA FPEP funding announcement was in August, when $35mn was granted to boost seven domestic production projects.

By Taylor Zavala

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