USDA makes $500 million available for fertilizer production

Agriculture Secretary Tom Vilsack on Tuesday announced that the Biden-Harris administration is making $500 million in grants available to increase American-made fertilizer production to spur competition and combat price hikes on U.S. farmers caused by the war in Ukraine.

“Under the leadership of President Biden and Vice President Harris, USDA is creating a resilient, secure and sustainable economy, and this support to provide domestic, independent choices for fertilizer supplies is part of that effort,” Vilsack said. “USDA believes in the growth of innovative, local businesses owned and shared by people who can best serve their own unique community’s needs, fill gaps, and build opportunities. Recent supply chain disruptions have shown just how critical it is to invest in the agricultural supply chain here at home. The Fertilizer Production Expansion Program is one example of many Biden-Harris administration initiatives to bring production and jobs back to the United States, promote competition and support American goods and services.”

Eligible entities are for‐profit businesses and corporations, nonprofit entities, tribes and tribal organizations, producer‐owned cooperatives and corporations, certified benefit corporations, and 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.

USDA will begin accepting applications in the coming days via grants.gov. There will be two opportunities for submission.

USDA 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.

USDA 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.

The department is hosting two informational webinars:

▪ Potential applicants and other interested parties are encouraged to attend a webinar at 2 p.m. ET Oct. 4 to learn more about the program. Pre-registration is required. Click here to register.

▪ Potential applicants and other stakeholders are also encouraged to attend a webinar at 4 p.m. ET Oct. 6 to learn about application requirements. Pre-registration is required. Click here to register.

–The Hagstrom Report