USDA on Jan. 22 announced it is investing $207 million in domestic fertilizer and renewable energy projects. Fertilizer Production Expansion Program (FPEP) projects will receive $50 million and include seven projects in seven states, while Rural Energy for America Program (REAP) projects will take $157 million with money going to 675 projects in 42 states.
Biogas Corp. received the largest award of $32.3 million, which will be used to purchase and install a new anaerobic digestion facility in Monroe County, N.C. The new facility will produce 50,000 st of organic fertilizer and ammonium sulfate annually. It will also generate 55,000 megawatts of clean energy per year to be purchased and distributed through Duke Energy Carolinas. This project is expected to create 19 additional positions.
UPL NA Inc. will receive $4 million to acquire a seaweed extraction facility in Kingstree, S.C., which will produce and distribute 131,041 gallons of seaweed bio-stimulant fertilizer per year. The project will create nine positions.
California Safe Soil LLC gains $3.98 million to expand an existing dry fertilizer facility in McClelland, Calif. The expansion is expected to create 10,000 st of organics annually to produce 1 million gallons per year of H2H ™ liquid fertilizer. Nine positions will be created.
ARE Properties will receive $3.96 million to build a fully automated fertilizer facility in Sydney, Neb., designed to manufacture custom products based on the results of plant tissue and soil samples. All equipment in the facility will run on natural gas with the long-range strategy to retrofit the facility for alternative energy sources.
Town & Country Supply Assoc. is granted $3 million to expand its Billings, Mont., facility. The expansion includes an additional 27,000 square foot product processing and storage facility and the construction of two railyard tracks for railcar storage. The expansion will increase the domestic availability of conventional fertilizers. Eight jobs are expected to be added.
Heliae Development LLC will receive $2.3 million to increase production capabilities to support the manufacturing of a new algae-based soil amendment and seed treatment. Production will increase from 8,000 gallons per week to 10,500 gallons per week. The project will help the company expand into nine western states.
Bandana Ag Inc. will use $800,999 to expand an existing dry fertilizer facility in Kevil, Ky. The expansion is expected to yield 17,000 st of dry packaged fertilizer annually. Two positions will be created.
The
announcement was made by Secretary Tom Vilsack at the 105th annual
American Farm Bureau Federation convention in Salt Lake City.
“President Biden and USDA are ensuring farmers, ranchers, and small businesses
are not only a part of the clean energy economy, but directly benefitting from
it,” he said. “The investments announced will expand access to renewable energy
infrastructure and increase domestic fertilizer production, all while creating
good-paying jobs and saving people money on their energy costs that they can
then invest back into their businesses and communities.”
President Biden committed up to $900 million through the Commodity Credit Corp. for FPEP. Since the start of the Biden administration, USDA has invested more than $166 million in 40 projects nationwide to boost domestic fertilizer production through FPEP (GM Oct. 20, 2023; July 7, 2023; March 17, 2023).
USDA has also taken steps to support producers in leveraging these tools through nutrient management assistance and climate-smart management practices. During that same time, USDA has invested more than $1.6 billion through REAP in 5,457 renewable energy and energy efficiency improvements that will help rural business owners lower energy costs, generate new income, and strengthen their resiliency of operations.
FPEP was created to combat issues facing American farmers due to rising fertilizer prices, which more than doubled between 2021 and 2022 due to a variety of factors. It provides grants to independent business owners to help them modernize equipment, adopt new technologies, build production plants, and more.
USDA said the funding is to help boost domestic fertilizer production, strengthen competition, and lower costs for farmers. USDA said FPEP is part of a broader effort to help producers increase production and address global food insecurity.