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USDA launches $500 million fertilizer program

The FIELDS Program aims to expand domestic fertilizer production and strengthen supply chains for U.S. agriculture.

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The U.S. Department of Agriculture has announced the Fertilizer Investment & Expansion for Long-term Domestic Supply (FIELDS) Program, offering at least $500 million to support projects that increase domestic fertilizer manufacturing capacity and improve supply chain efficiency.

Program goals and funding

The FIELDS Program is designed to expand or bring into operation new independent domestic fertilizer production facilities. Funding supports expansions or upgrades of existing plants, construction of new facilities, shovel-ready projects that can rapidly increase supply, and on-site fertilizer terminals and transportation infrastructure.

Individual awards can reach up to $100 million. Eligible uses include construction or purchase of facilities, pre-development costs such as engineering fees, modernization of equipment, and improvements to fertilizer logistics like distribution and storage. Working capital is allowed but cannot be the primary use of funds.

Who can apply

Eligible applicants include Tribes, Tribal entities, Alaska Native Corporations, for-profit and non-profit entities, producer-owned cooperatives, certified benefit corporations, and state or local government entities. Private entities must be independently owned and operated.

Applicants must operate within the U.S. or its territories and propose projects physically located in these areas. They must be domestically owned and comply with all relevant federal, state, Tribal, and local regulations governing fertilizer manufacturing.

Applicants and their affiliates must not hold a market share equal to or greater than the entity with the fourth largest market share for nitrogen, sulfur, phosphate, potash or any combination thereof.

Complementary policy actions

The FIELDS Program supports long-term domestic production capacity while the administration has taken steps to address immediate supply concerns. On June 29, President Donald J. Trump signed a proclamation temporarily suspending countervailing duties on certain phosphate fertilizer imports.

The duty suspension is expected to reduce phosphate fertilizer prices by approximately 22 percent, saving farmers an estimated $1.82 billion annually. Current USDA analysis indicates the action will benefit more than 100,000 farms across 97 million planted acres nationwide.

Program authority and implementation

The FIELDS Program is authorized under section 5(b) of the Commodity Credit Corporation Charter Act, which allows funds to support materials and facilities needed for agricultural commodity production and marketing. The Commodity Credit Corporation is working with the Rural Business Cooperative Services to implement the program.

Together, these initiatives aim to bolster domestic fertilizer supply chains, reduce reliance on foreign sources, and provide American farmers with more reliable and affordable fertilizer options.

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