USDA Awards $52.6 M to 17 Fertilizer Projects

USDA on Oct. 16 announced $52.6 million in awards under the Fertilizer Production Expansion Program (FPEP), which will fund 17 new projects to boost domestic fertilizer manufacturing, support innovative fertilizer technologies, and help lower costs for farmers.

FPEP is funded by USDA’s Commodity Credit Corp. and is part of a government-wide effort to spur domestic competition and combat an increase in fertilizer costs caused by the war in Ukraine.

State CompanyAmountPurpose
Ariz./Wash.Bio-Gro Inc.    $3 million    Humic Acid
Ariz.    Grower’s Market Inc. $2.4 million Eco-Friendly Fert.
Ariz.    The Fairfax Co. LLC $810,225     Compost-Based Fert.
Calif.   Farm Fuel Inc. $2.05 million Organic Fert.
Calif./Ore. True Organic Products  $5 million Organic Fert.
Fla.  GreenTechnologies LLC $2.4 million Bio-Based Fert.
Ind.  Bionutrients Ag LLC $5.53 million Organic Fert.
Mich. Scenic View Dairy LLC $2.26 million Biofertilizer
Minn.  Northstar Lime LLC $4.41 million Lime Pellets
Ohio  Growers Mineral Corp.  $3.94 million  10-20-10 Fert.
Ohio  Quasar Energy Group $3.96 million Biofertilizer
Penn./Iowa  Holganix LLC  $3.45 million Microbial
Penn./Ohio EnviroKure Inc.    $2.04 million Biofertilizer/Stimulant
PR Colon Pan American $3.84 million Ag Gypsum
Texas  BioXRG LLC     $3.78 million Liquid Potassium Fert.
Utah Aqua Yield Operations  $1.26 million  Nano-Based Liquid Fert.
Wisc.  Dairy Dreams LLC  $2.53 million Organic Fert.

USDA expects to announce additional project selections in the coming months and is inviting public comments on four projects through Nov. 15, 2023. They include:

State   Company    Purpose
Iowa    Quality Flow Environmental  Carbon and Fert. Products
Maryland  Compost Crew Inc.    Compost
Nebraska Viridis Chemical NE Asset Co. 2  Ammonia Plant
Virginia  AdvanSix Inc.  Ammonium sulfate

Major winners to date have included specialty fertilizer manufacturers Ostara Ltd., St. Louis, Mo, which received $7.57 million, and Pursell Agri-Tech LLC, Sylacauga, Ala., which received $5 million (GM March 17, p. 1).

In 2022, USDA made $500 million available under the FPEP to increase innovative domestic fertilizer production, creating jobs in rural communities and providing more options to US farmers. Due to strong demand, USDA in June 2023 increased the funding available for FPEP to up to $900 million.

USDA received requests for $3 billion in applications from more than 350 businesses for the first two rounds of the program. Including the Oct. 16 announcement, USDA has awarded 33 projects for a total of more than $121 million invested since the program was announced roughly 18 months ago.