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.