USDA builds up its fertilizer production expansion program with new $116M investment

On December 18, 2024, Tom Vilsack, Secretary of the U.S. Department of Agriculture (USDA), unveiled a series of investments aimed at bolstering domestic fertilizer production across nine states. New initiative involves the allocation of over $116 million.

The funds are being distributed through the Fertilizer Production Expansion Program (FPEP), which seeks to enhance competition, reduce fertilizer costs for American farmers, and subsequently lower food prices for consumers in the United States. This program is designed to assist independent business owners in modernizing equipment, adopting new technologies, constructing production plants, and more. To date, the USDA has channeled $517 million into 76 fertilizer production facilities through FPEP, enhancing the U.S. fertilizer production capacity by 11.8 million tons annually and creating over 1,300 jobs in rural areas.

Among the projects highlighted in the announcement, Biofiltro USA in California is set to construct a new facility in Kingsburg with a $2.3 million grant. This facility will utilize vermifiltration techniques to process manure from dairy cows, producing over 33,000 cubic yards of composted fertilizer alternatives each year.

In Georgia, Reve Solutions will expand its biosolid fertilizer composter with a $1.3 million grant, aiming to increase production capacity and create five new jobs. Meanwhile, in Kansas, the Farmers Cooperative Association will enhance an existing dry fertilizer facility, adding storage and processing capacity to boost production to 24,500 tons per year.

The FPEP initiative, created by President Joe Biden and the USDA, addresses the sharp rise in fertilizer prices, which more than doubled between 2021 and 2022 due to factors such as the war in Ukraine and limited industry competition. The Administration has committed up to $900 million to this program through the Commodity Credit Corporation, supporting long-term investments to fortify supply chains, stimulate economic opportunities for American businesses, and foster climate-smart innovation.