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USDA Starts $500 M Fertilizer Grant Application Process; TFI Praises

The USDA on Sept. 27 announced the application process for $500 million in grants that were announced earlier this year (GM May 13, p. 1; March 18, p. 27) to encourage domestic production of fertilizer.

“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,” said USDA Secretary Tom Vilsack.

“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,” he continued. “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.”

The USDA said the program is part of a whole-of-government effort to promote competition in agricultural markets. The funds are being made available through the Commodity Credit Corp.

Grants will be used to support independent, innovative, and sustainable American fertilizer production to supply American farmers. Funds also will expand the manufacturing and processing of fertilizer and nutrient alternatives in the US and its territories.

“The US has one of the strongest and most competitive fertilizer industries in the world, being one of only three nations that has at least 20 unique companies producing fertilizer products,” said TFI President and CEO Corey Rosenbusch. “The US fertilizer industry consists of large international corporations, small regional producers, and everything in between.

“They all play a critical role in supplying farmers with the nutrients required to grow the food that feeds the world,” he said. “While a nitrogen plant can cost between $2-$4 billion to construct, anything that helps strengthen domestic fertilizer production is a win for the industry, growers, and consumers.

“Innovative and sustainable are key requirements for the grant funding, and they describe the industry well,” added Rosenbusch. “Innovation has been a hallmark of fertilizer producers as enhanced efficiency fertilizers (EEFs) and other new technologies play a big role in our ability to feed a growing population.”

The grant program will support fertilizer production that is:

  • Independent, and outside the orbit of dominant fertilizer suppliers. Because the program’s goal is to increase competition, market share restrictions apply.
  • Made in America. Products must be produced by companies operating in the US or its territories, to create good-paying jobs at home and reduce the reliance on potentially unstable, inconsistent foreign supplies.
  • Innovative. Techniques will improve fertilizer production methods and efficient-use technologies to jumpstart the next generation of fertilizers and nutrient alternatives.
  • Sustainable. Ideally, products will reduce the greenhouse gas impact of transportation, production, and use through renewable energy sources, feedstocks, and formulations, incentivizing greater precision in fertilizer use.
  • Farmer-focused. Like other Commodity Credit Corp. investments, a driving factor is providing support and opportunities for US agricultural commodity producers.

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 www.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.

USDA is hosting two informational webinars:

  • Potential applicants and other interested parties are encouraged to attend a webinar on Oct. 4, 2022, to learn more about the program. Pre-registration is required. To register, visit: www.zoomgov.com/webinar/register/WN_dTRONOeRRVu2aTEvGjwx6A.
  • Potential applicants and other stakeholders are also encouraged to attend a webinar on Oct. 6, 2022, to learn about application requirements. Pre-registration is required. To register, visit: www.zoomgov.com/webinar/register/WN_dUsGJWFZQtGuh_BWcC7EZQ.

Potential applicants and stakeholders may email questions to fpep@usda.gov.

For more information, visit www.rd.usda.gov/fpep or www.farmers.gov/global-food-insecurity.

USDA said the grants are part of a broader effort to help producers boost production and address global food insecurity. USDA’s Natural Resources Conservation Service is also improving opportunities for nutrient management. This includes targeting funding, increasing program flexibilities, launching a new outreach campaign to promote nutrient management’s economic benefits, and expanding partnerships to develop nutrient management plans.

In addition, USDA’s Risk Management Agency expanded crop insurance options for double cropping to reduce risk for producers raising two crops in the same year.

Brazil Mining Rights Up for Bid

An auction will be held on Dec. 7 for the assignment of mining rights in areas with phosphate, kaolin, and copper, according to Bloomberg, citing a statement by Brazil’s Mines and Energy Minister.

Project Miriri (phosphate) is listed as having 115 million mt of phosphate ore and an average content of 4.19% P2O5, according to Brazil’s Geological Service, while Rio Capim has 800 million mt of kaolin and Bom Jardim has about 4.5 million mt of copper.

Russia AD Decision Expected by Nov. 9

The US Department of Commerce (DOC) is terminating the changed circumstances review (CCR) under the antidumping (AD) investigation of UAN from the Russian Federation in which DOC was examining whether Russia has remained a market economy (ME) country for the purposes of AD law. The US International Trade Commission found no injury in the UAN case, and the case did not proceed on to DOC for a ME decision.

The question now goes to another case, one involving imports of emulsion styrene-butadiene rubber (ESBR) from Russia. Notice of the transfer was published in the Sept. 23, 2002, edition of the Federal Register.

A DOC decision in the ESBR case is expected on Nov. 9, 2022. While DOC intends to complete the review of the ME status by that date, it does not intend to reconsider the calculation methodology used for determining AD margins in the decision, saying there will not be sufficient time to do so.

Meristem, 3Bar Biologics Partner on Biological Delivery Systems

Meristem Crop Performance Group, Columbus, Ohio, and 3Bar Biologics, Powell, Ohio, announced on Sept. 20 that they have joined forces to develop new delivery systems to dramatically increase the performance of a broad range of biologicals.

They said the partnership brings together 3Bar’s packaging design development and manufacturing expertise to bear against Meristem’s BIO-CAPSULETM delivery system technology to support Meristem’s expanding biologicals portfolio.

“3Bar’s ability for developing new, innovative ways to protect and deliver microbes to the farm is unique to the industry – and makes them a perfect partner helping us to move quickly to the market with BIO-CAPSULETM,” said Mitch Eviston, Founder and CEO of Meristem Crop Performance. “Teaming with 3Bar will further boost our ability to bring more innovative biological products to more farmers and more acres faster.”

 “We’re excited to partner with Meristem to revolutionize seed lubricants as a delivery vehicle for biologicals at planting,” said Bruce Caldwell, Founder and CEO of 3Bar Biologics. “Our package solution now provides Meristem the ability to streamline their biological inputs into a simple product format that’s better for the microbes and easier to use by the farmer.”

The partners said the development of BIO-CAPSULETM Planter Box Delivery System is the first outcome of the partnership. BIO-CAPSULETM is a packaging system designed to carry, protect, and dispense a multitude of biologicals into a seed lubricant blend plus micronutrients. Manufactured by 3Bar, it will be launched commercially in crop-year 2023 as part of Meristem’s REVLINE HOPPER THROTTLETM product evolution.

The Fertilizer Institute – Management Brief

The Fertilizer Institute (TFI) announced on Sept. 28 that Tom Lynch will serve as the organization’s new Head of Government Affairs, effective Oct. 3rd. “Tom brings with him a wealth of knowledge and experience that is especially well-suited for representing the fertilizer industry,” said TFI President and CEO Corey Rosenbusch. “Fertilizer plays a critical role in feeding our growing world, and more and more our issues are becoming front and center. Tom’s expertise spans many issues that are of strategic importance to the industry and spans everything from environment to rail.”

Prior to coming to TFI, Lynch was the Vice President of Congressional Affairs for the American Short Line and Regional Railroads Association and General Counsel for the National Tank Truck Carriers. Before working in the private sector, he served in Senator Mac Baucus’s office before serving as Staff Director for the Senate Environment and Public Works Subcommittee.

TFI also announced the retirement of long-time Economist Dr. Harry Vroomen.

“TFI was lucky to have Harry over the past 29 years,” said Rosenbusch. “There aren’t many, if any, people out there that understand the economic dynamics of the fertilizer industry as well as Harry. The good news is that he will stay with TFI as an economic consultant.”

TFI Director of Market Intelligence Jason Troendle will be promoted to the role of economist effective immediately.

“Jason was a big part of our outreach effort to commodity groups and policymakers when fertilizer markets began to show volatility in 2020,” said Rosenbusch. “He has a knack for taking numbers and trends and translating that data to easily understood and digestible information.”

In addition, Dr. Leanna Nigon has been named Director of Agronomy.

“Leanna comes to us from Wisconsin and has agriculture in her blood from growing up on a no-till farm,” said Rosenbusch. “She earned her undergraduate degree in Agronomy and Life Sciences from the University of Wisconsin, and both her M.S. in Applied Plant Sciences and PhD in Soil Science from the University of Minnesota. She brings with her a wealth of knowledge in nutrient management, and we are excited to have her on the TFI team.”

GOP Lawmakers Warn EPA, Corps Against WOTUS Changes Until Supreme Court Rules

A group of Republican lawmakers on Sept. 20 sent a letter to the US Environmental Protection Agency (EPA) and the US Army Corps of Engineers urging the federal agencies to delay rulemaking on defining Waters of the United States (WOTUS) until the US Supreme Court issues a ruling in an upcoming Clean Water Act (CWA) case.

The Supreme Court is hearing oral arguments on Oct. 4 in Michael Sackett v. EPA, a pivotal case that involves an Idaho couple that for 15 years has been prevented from building a home on their 0.63-acre property in Priest Lake, Idaho, because EPA claims part of the property contains wetlands and is therefore subject to regulation under the CWA.

In their letter to EPA Administrator Michael S. Regan and Assistant Secretary of the Army for Civil Works Michael Connor, 15 GOP Ranking Members on various House committees and subcommittees warned the two federal agencies of their regulatory limits, citing a recent Supreme Court decision in West Virginia v. EPA.

The GOP lawmakers said this decision suggests a “reason to hesitate” with any attempt to advance a new WOTUS definition due to “the history and breadth of the authority asserted and the economic and political significant of that assertion.” The letter also demands that EPA and the Corps, by no later than Oct. 4, provide a list to the lawmakers of all pending and expected rulemakings concerning WOTUS and the specific congressional authority for each rulemaking.

“As Ranking Members of several House Committees, including those overseeing your agencies, we intend to exercise our robust investigative and legislative authority to not only forcefully reassert our Article I responsibilities, but to ensure the Biden administration does not continue to exceed Congressional authorizations,” the letter states.

The Supreme Court ruling in the Sackett case will likely outline more clearly the scope of federal regulatory authority under the CWA, and answer questions that have been lingering since a 2006 decision in Rapanos v. US.

In that landmark case, the court failed to reach a majority, instead issuing a plurality opinion. Four judges, led by the late Justice Antonin Scalia, concluded that navigable waters and wetlands with a “continuous surface connection” should be subject to CWA regulation. Justice Anthony Kennedy, however, wrote a separate concurring opinion indicating that wetlands should be regulated if they have a “significant nexus” to navigable waters and would potentially affect them, even if they are not directly connected.

It was Kennedy’s “significant nexus” standard that drove the Obama administration’s 2015 WOTUS redefinition (GM June 1, 2015), which was almost immediately challenged by 31 states and numerous stakeholders in multiple lawsuits, prompting the Sixth Circuit in October 2015 to issue a nationwide stay (GMOct. 19, 2015). That stay was lifted in January 2017, when the Supreme Court determined that review of the rule falls within the jurisdiction of the district courts.

The Trump administration then tried to delay the 2015 rule’s compliance deadline while it worked on a new version (GMJune 30, 2018) that hued more closely to Scalia’s WOTUS definition, but those delays were challenged in court (GMAug. 24, 2018). Subsequent decisions by a number of US district courts left a patchwork of enforcement, with the 2015 rule enjoined in 28 states and in effect for the remaining 22 states.

The Trump administration then announced in September 2019 that it was repealing the 2015 rule (GMSept. 13, 2019) entirely and replacing it with the Navigable Waters Protection Rule (NWPR), which drastically scaled back the types of waters falling under CWA jurisdiction. While heavily criticized by environmental groups, the NWPR was strongly supported by both The Fertilizer Institute (TFI) and the Agricultural Retailers Association (ARA) upon its publication in early 2020 (GMJan. 24, 2020).

Under the Biden administration, however, EPA and the Corps announced in June 2021 (GMJune 11, 2021) that they intended to draft yet another WOTUS definition that builds upon the pre-2015 rule, the Obama-era rule, and the Trump-era NWPR.

To that end, both agencies announced in January 2022 that they had halted implementation nationwide of the NWPR (GM Jan. 28, p. 1), and would rely in the interim on WOTUS standards in place prior to the 2015 framework developed under the Obama administration. EPA Agriculture Advisor Rod Snyder said in April that the agency was working toward proposing a new WOTUS definition later this year.

Progress Made in Rail Contract Negotiations; Three of 12 Unions Vote to Ratify

Three unions have now voted to ratify the tentative contract agreement negotiated on Sept. 15 between the six US Class 1 freight railroads and labor unions representing 125,000 rail workers (GM Sept. 16, p. 1).

The National Carriers’ Conference Committee (NCCC), which represents most Class I freight railroads in national collective bargaining, announced on Sept. 27 that members of the International Brotherhood of Electrical Workers (IBEW) voted to ratify the agreement, joining the Transportation Communications Union (TCU) and Brotherhood Railway Carmen (BRC).

In addition, one union that had rejected the earlier agreement – the International Association of Machinists and Aerospace Workers – has now also reached a five-year contract with the railroads, according to a Sept. 27 statement by officials with the International Association of Machinists and Aerospace Workers, which represents 4,900 locomotive machinists, track equipment mechanics, and facility maintenance personnel.

According to Railway Age, only one remaining union – the District 19 Machinists – has yet to sign on to the tentative agreement reached on Sept. 15, which includes a 24% wage increase over five years, retroactive to Jan. 1, 2020; an immediate bonus payout of $11,000 upon ratification; and amended attendance policies, allowing workers three extra unpaid days off per year for doctor’s appointment without penalty.

The latest agreement with the International Association of Machinists and Aerospace Workers also included a reported cap in healthcare costs, a “single room occupancy” agreement that guarantees roadway mechanics their own sleeping rooms while on travel, and a guarantee from the NCCC to bargain over travel expenses and per diem.

All of the tentative agreements contain “me too” clauses, which means the terms reached during each bargaining session will apply to all unions across the board upon ratification. The ratification process will continue into at least mid-November, Railway Age reported, with all 12 unions agreeing to maintain the status quo until all union ratification votes are completed, regardless of the voting outcome.

The Brotherhood of Locomotive Engineers and Trainmen (BLET), which was one of the three largest unions that agreed to the tentative contract on Sept. 15, told members on Sept. 27 that “should the tentative agreement fail ratification, [national officers] will be on the picket line with membership” when the latest cooling-off period ends on Dec. 9.

FTC, States, Sue Syngenta, Corteva Over “Pay to Block” Scheme

The Federal Trade Commission and 10 states have sued agricultural giants Syngenta AG and Corteva Inc. for giving incentives to distributors of pesticides designed to block sales of cheaper generic products, according to a Bloomberg report.

The FTC claims the two companies operate “loyalty programs” where distributors are paid to keep their purchases of generic versions of six types of pesticides below a certain threshold. The programs lead to higher food prices for consumers, the agency said, since farmers can’t purchase cheaper pesticides.

The agency claims the companies’ programs violate federal antitrust law and consumer protection laws in 10 states.

“By paying off distributors to block generic producers from the market, these giants have deprived farmers of cheaper and more innovative options,” said FTC Chair Lina M. Khan in a statement.

Corteva denied any wrongdoing.

The company said in a statement that its “customer marketing programs are fully compliant with the antitrust laws and are, in fact, pro-competitive programs that benefit both channel partners and farmers.”

It said the lawsuit threatens the investments it makes and that growers rely on to protect their crops.

Syngenta didn’t immediately respond to a request for comment.

The Biden administration has made competition and antitrust enforcement a key priority, focusing particularly on farmers and workers. On Sept. 26, the administration proposed new regulations to strengthen competition rules in poultry and livestock markets aimed at protecting farmers and ranchers in dealing with the companies that process their products.

Azomureş SA – Management Brief

Romania’s biggest fertilizer producer, Azomureş SA, has announced the resignation of General Manager Harri Kiiski for personal reasons. Kiiski has been with the company for almost five years.

Beginning Oct. 1, Josh Zacharias will take over the position as General Manager while also coordinating commercial activity, a position he has held since Jan. 2020.

Kiiski and Zacharias will work together for the month of October to ensure a smooth transition.

SABIC Agri-Nutrients Co. Ltd. – Management Brief

SABIC Agri-Nutrients Co. Ltd. Riyadh, announced the resignation of its Chairman of the Board, Yousef Bin Abdullah Al-Benyan, on Sept. 27, following his appointment as Saudi Arabia’s Minister of Education as of Sept. 28. Al-Benyan, a representative of Saudi Basic Industries Corp. (SABIC), has also resigned from the company’s Board.

SABIC Agri-Nutrients Co.’s Board has approved the appointment of Abdulrahman Bin Saleh Al-Fageeh, also a representative of SABIC, as the new Chairman. Al-Fageeh’s appointment is effective Sept. 28.

SABIC owns a 50.1% stake in SABIC Agri-Nutrients Co.