US seeks to expand domestic fertilizer production with new grants

The US Department of Agriculture’s secretary, Tom Vilsack, announced on Monday that the agency, under the Fertilizer Production Expansion Program (FPEP), will award $52.6mn to 17 new fertilizer projects.

The USDA stated in a press release that the initiative – which was launched in 2022 following Russia’s market-disrupting invasion of Ukraine – initially sought to disburse $500mn to farmers and businesses with a view to stimulating domestic fertilizer production and creating jobs in rural communities.It said that in June of this year, due to high demand for grants, it increased that figure to $900mn.

The agency noted that since the FPEP was set up it has pledged to invest a total of $121mn in 33 projects. It added that it will announce further awards in the coming months.

Monday’s largest grant went to Bionutrients Ag LLC. The company, which will receive $5.5mn, plans to build a $50mn specialty fertilizer plant in Wabash, Indiana. It will use chicken manure, as well as other poultry waste, to produce fertilizer for grain and fruit crops.