The U.S. Department of Agriculture (USDA) has announced a significant investment of over $116 million to expand domestic fertilizer production across nine states. This funding, part of the Fertilizer Production Expansion Program (FPEP), aims to increase competition in the fertilizer market, reduce costs for American farmers, and ultimately lower food prices for consumers.
Secretary Tom Vilsack emphasized the importance of investing in domestic supply chains, stating, "When we invest in domestic supply chains, we drive down input costs and increase options for farmers." The grants will support eight facilities in California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Oklahoma, and Wisconsin, helping them modernize equipment, adopt new technologies, and build production plants.
Key points from the announcement include:
- The FPEP has now invested a total of $517 million in 76 fertilizer production facilities across 34 states and Puerto Rico.
- These investments are expected to increase U.S. fertilizer production by 11.8 million tons annually and create over 1,300 jobs in rural communities.
- Highlighted projects include a new vermifilitering facility in California, a biosolid fertilizer composter expansion in Georgia, and a dry fertilizer facility upgrade in Kansas.
The FPEP, funded by the Commodity Credit Corporation, was created in response to the sharp rise in fertilizer prices between 2021 and 2022. This initiative aligns with President Biden's Investing in America agenda, aiming to strengthen supply chains, create economic opportunities, and promote fair competition in agricultural markets.
