The USDA selected eight fertilizer manufacturing projects to receive $573 million in funding through its FIELDS program, aiming to increase domestic production capacity by 1.08 million tons annually and reduce fertilizer prices for American farmers while decreasing reliance on foreign suppliers.
- Eight fertilizer projects representing $1.34 billion in total proposed investment received USDA funding selections, with $573 million coming from federal sources.
- Projects are expected to reduce nitrogen fertilizer prices by 4.4% and potash prices by 5.3% once operational, benefiting 1.87 million farmers across 874 million acres.
- Current market concentration shows four companies control 77% of North American nitrogen capacity, while two companies each dominate phosphate and potash production.
- Selected projects include nitrogen expansion in seven states, potash production in New Mexico, sulfur manufacturing in Illinois and Florida, and organic products facilities across three western states.
- FIELDS program emphasizes implementation-ready projects with committed private investment and demonstrated market demand, unlike previous federal fertilizer initiatives.
Speaking in Nebraska, Vice President JD Vance joined Agriculture Secretary Brooke Rollins on Thursday to announce eight fertilizer manufacturing projects selected to move forward under USDA's Fertilizer Investment & Expansion for Long-Term Domestic Supply program, or FIELDS.
The eight projects represent more than $1.34 billion in proposed total investment, including about $573 million in proposed USDA funding, according to the department's announcement. USDA expects them to support about 1.08 million tons of annual domestic production and capacity for nitrogen, phosphorus, potassium and sulfur fertilizers.
"Farm security is national security. America cannot afford to depend on foreign nations for the fertilizer needed to grow our food and feed our families," Rollins said.
Price and output estimates
USDA's economic analysis estimates the added production could reduce nitrogen fertilizer prices by 4.4% and potash prices by 5.3% once the projects are operating. The same analysis projects a 3.7% increase in domestic nitrogen production and a nearly 40% increase in domestic potash production.
The department framed the program around supplier concentration. According to USDA, four companies control about 77% of North American nitrogen fertilizer production capacity, two companies account for more than 90% of phosphate capacity and two companies produce about 90% of North America's potash.
"1.87 million farmers who are farming over 874 million acres all across the United States of America are going to have fertilizer at lower costs that is made by Americans," Vance said.
Where the money comes from
USDA launched FIELDS with $500 million. It is adding money recovered from failed projects under the Biden administration's Fertilizer Production Expansion Program, and USDA said it is redirecting those dollars toward projects with stronger financial viability, private investment and measurable manufacturing outcomes. The release did not say how much was recovered.
That distinction is central to how USDA is pitching the program. The department said earlier federal fertilizer investments struggled to reach construction and operation, while FIELDS emphasizes implementation-ready projects with committed private investment and demonstrated market demand. USDA Rural Development's Rural Business-Cooperative Service administers the program using Commodity Credit Corporation authorities.
Ammonia and nitrogen projects
Three selections target nitrogen. TalusAg was selected for about $99.8 million toward a $270.2 million project to deploy 20 modular ammonia units at 11 locations in Iowa, Kentucky, Minnesota, Tennessee, Nebraska, Illinois and South Dakota. The units, which use energy, air and water, are expected to produce about 130,000 tons of anhydrous ammonia a year.
AdvanSix was selected for about $47.4 million toward a $98.1 million project to modernize and expand its ammonia plant in Hopewell, Virginia, which is expected to produce about 84,000 tons of anhydrous ammonia annually. PCI Nitrogen was selected for about $100 million toward a $200 million project to modernize plants in Pasadena, Texas, and St. Helens, Oregon, supporting about 148,280 tons of annual production, including ammonium sulfate and urea.
Agriculture Project Holdco was selected for about $116.9 million toward a $360 million project to build two plants in Lewis, Kansas, and Fair Oaks, Indiana, that would convert dairy manure into about 4,100 tons of liquid ammonium nitrate fertilizer a year.
Potash, sulfur and blended products
The largest single USDA share went to Intrepid Potash, selected for about $139 million toward a $265 million sulfate of potash plant near Carlsbad, New Mexico. The plant would produce about 220,000 tons a year.
SUL4R-PLUS Illinois was selected for about $34.9 million toward a $69.7 million expansion in Marissa, Illinois, adding a manufacturing line and storage and transportation infrastructure to support about 100,000 tons of sulfur fertilizer a year. Peace Valley was selected for about $19.9 million toward a $50.6 million expansion in Bartow, Florida, expected to produce about 250,000 tons a year of nitrogen-, phosphorus-, potassium- and sulfur-containing products.
True Organic Products was selected for about $15.3 million toward a $30.6 million project at plants in Helm, California; Boardman, Oregon; and Arlington, Arizona. It is expected to support about 142,805 tons of annual production made from agricultural byproducts.
The selections advance the projects in the FIELDS funding process, and USDA described all funding amounts as proposed. The release did not give construction schedules, start-up dates or a timeline for finalizing awards.
