During a visit to Dramm Corp., U.S. Department of Agriculture (USDA) Deputy Secretary Xochitl Torres Small announced substantial investments aimed at strengthening American farms and businesses. These initiatives will expand domestic fertilizer production and enhance independent meat and poultry processing capacity, ultimately increasing competition and lowering costs for farmers and consumers.
The USDA is awarding over $120 million to fund six fertilizer production projects across Arkansas, California, Illinois, South Dakota, Washington and Wisconsin through the Fertilizer Production Expansion Program (FPEP). This program, funded by the Commodity Credit Corporation, supports independent business owners in modernizing equipment, adopting new technologies and building production facilities.
In addition, the USDA has allocated $20.2 million to 26 projects under the Local Meat Capacity (Local MCap) grant program, aimed at expanding processing capabilities within the meat and poultry industry. These projects will not only create jobs in local communities but also provide producers with more options to bring their products to market.
“When we invest in domestic supply chains, we drive down input costs and increase options for farmers,” Deputy Secretary Torres Small stated. “Through today’s investments to produce more fertilizer and process meat locally, the Biden-Harris Administration is bringing jobs back to the United States, lowering costs for families, and supporting farmer income.”
Fertilizer production expansion program
During her visit, Deputy Secretary Torres Small highlighted Dramm Corp.'s previous FPEP grant of $776,000, which is being used to boost production capacity and reduce its carbon footprint. Dramm Corp. utilizes fish offal collected from commercial and sport fishermen to produce a liquid fish fertilizer, contributing to sustainable farming practices.
Among the six projects receiving funding are:
- Betley Farms LLC (WI): Awarded $3.5 million to install a nutrient concentration system, producing 39 million gallons of liquid fertilizer annually and creating nine new jobs.
- LSB Industries LLC (AR): Granted $77 million to expand its facility’s production capacity to 580,000 tons per year, which will serve approximately 450,000 producers in a four-state region and create 20 new jobs.
- Agtegra Cooperative (SD): Received $3 million to build a new fertilizer manufacturing facility, increasing production from 26,175 tons to 53,270 tons annually.
To date, USDA has invested over $368 million in 67 projects through FPEP to combat rising fertilizer prices, which doubled between 2021 and 2022 due to various global factors.
Local meat capacity grants
The USDA also announced $20.2 million in awards through the Local MCap grant program, which supports meat and poultry processors. The latest funding covers projects across 21 states, focusing on both simplified equipment purchases and processing capacity expansions.
Key projects include:
- Haen Meats (WI): Will purchase new equipment to increase processing capacity and engage 121 local producers while creating 12 new jobs.
- Granite State Packing Inc. (NH): Will enhance its pork slaughter and processing capacity, benefiting 100 local producers and creating 15 new jobs.
- Montana Premium Processing Cooperative (MT): Will increase production capacity by 225% with new equipment, supporting critical tribal slaughter needs and regional employment opportunities.
The Local MCap grant program aims to improve processing availability for local and regional livestock producers, fostering a more competitive market.
These initiatives are part of President Biden's Investing in America agenda, promoting fair and competitive markets for American farmers and ranchers. For more information about the Local MCap program and a complete list of awarded projects, visit USDA Agricultural Marketing Service.
