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# USDA fertilizer funding unlocks $1.34B investment across 8 projects

Publication Date: 2026-10-26T15:00:00-04:00
Last Updated: 2026-10-25T01:44:45-04:00

Author: Kim Clarksen (https://www.fertilizerdaily.com/author/kimclarksen/)

Categories: [Markets](https://www.fertilizerdaily.com/markets/), [Production &amp; Supply](https://www.fertilizerdaily.com/markets/production/), [Trade &amp; Policy](https://www.fertilizerdaily.com/trade-and-policy/), [United States](https://www.fertilizerdaily.com/trade-and-policy/united-states/)

![Tractor Equipment Farming Ground Harvesting crops in fall Autumn with Teton Mountains in background agriculture](https://www.fertilizerdaily.com/wp-content/uploads/2026/10/istock-2223075240.jpg)

USDA selected eight projects spanning ammonia, phosphate, potash and sulfur production, with $573 million in proposed federal support and more than $1.34 billion in combined investment.

The U.S. Department of Agriculture has selected eight fertilizer manufacturing projects for federal support, outlining more than $1.34 billion in proposed investment and approximately $573 million in proposed USDA funding. The projects are expected to add or expand about 1.08 million tons of annual fertilizer production capacity across the United States.

Vice President JD Vance and Agriculture Secretary Brooke Rollins announced the selections in Nebraska on October 22. The awards are intended to expand domestic production and reduce the U.S. agricultural sector's exposure to concentrated fertilizer supply chains.

“I was proud to be in Nebraska today to announce 1.3 billion dollars of investment in domestic fertilizer manufacturing right here in the United States,” Vance said. Rollins said, “Farm security is national security. America cannot afford to depend on foreign nations for the fertilizer needed to grow our food and feed our families.”

## USDA fertilizer funding extends the FIELDS program

The selections are being made through the Fertilizer Production Expansion Program (FIELDS), a $500 million initiative launched by the Trump administration to increase U.S. fertilizer manufacturing. USDA said it is also making additional funding available from resources recovered from projects that failed under the previous administration's Fertilizer Production Expansion Program (FPEP).

The department's announcement did not specify how the approximately $573 million in proposed support would be divided between the original FIELDS allocation and recovered FPEP funds. The combined proposed project investment exceeds the original program's $500 million headline allocation, reflecting the use of private and other project financing alongside federal support.

USDA said fertilizer production in North America is highly concentrated. According to the department, four companies control about 77% of the region's nitrogen production capacity, while two companies account for more than 90% of phosphate capacity and two producers supply about 90% of North American potash.

The agency estimates that the selected projects could reduce nitrogen prices by 4.4% and potash prices by 5.3% once operational. It also projects a 3.7% increase in domestic nitrogen production and a nearly 40% increase in potash production. These are USDA estimates; the announcement did not provide the underlying modeling assumptions or a timeline for the projected market effects.

## Eight projects cover nitrogen, potash and specialty fertilizers

**TalusAg** has been selected for a proposed $99.8 million USDA contribution toward a $270.2 million project. The company plans to deploy 20 modular ammonia units at 11 locations across seven states: Iowa, Kentucky, Minnesota, Tennessee, Nebraska, Illinois and South Dakota. The project is expected to produce approximately 130,000 tons of anhydrous ammonia annually.

**Peace Valley** is slated to receive $19.9 million in proposed USDA support for a $50.6 million expansion in Bartow, Florida. The project is expected to add 250,000 tons per year of fertilizer containing nitrogen, phosphorus, potassium and sulfur.

**PCI Nitrogen** has been selected for $100 million in proposed federal support for a $200 million modernization program at facilities in Pasadena, Texas, and St. Helens, Oregon. The upgrades are expected to support annual production of 148,280 tons of fertilizer products, including ammonium sulfate and urea.

**Intrepid Potash** is slated to receive $139 million toward a $265 million project to build a sulfate of potash plant near Carlsbad, New Mexico. The proposed facility is expected to produce 220,000 tons annually, adding domestic capacity for a potassium fertilizer used in crops sensitive to chloride.

**AdvanSix** has been selected for $47.4 million in proposed USDA funding for a $98.1 million expansion of its ammonia facility in Hopewell, Virginia. The project is expected to increase anhydrous ammonia capacity by 84,000 tons per year.

**SUL4R-PLUS Illinois** is slated to receive $34.9 million toward a $69.7 million project to add a sulfur fertilizer production line in Marissa, Illinois, and upgrade storage and transportation infrastructure. The project is expected to deliver 100,000 tons of annual capacity.

**True Organic Products** has been selected for $15.3 million in proposed support for a $30.6 million expansion across facilities in Helm, California; Boardman, Oregon; and Arlington, Arizona. The projects are expected to add 142,805 tons of annual production capacity using agricultural byproducts.

**Agriculture Project Holdco** is slated to receive $116.9 million toward a $360 million project at facilities in Lewis, Kansas, and Fair Oaks, Indiana. The project would process dairy manure into liquid ammonium nitrate, with planned annual output of 4,100 tons.

## Domestic capacity gains will take time to reach the market

Together, the eight projects represent approximately 1.08 million tons of expected annual capacity, based on the production figures provided by USDA. The mix includes large-scale additions in potash and multi-nutrient fertilizers, as well as smaller projects focused on ammonia, nitrogen products and sulfur-based crop nutrition.

The projected price effects will depend on whether the projects secure final financing, complete permitting and construction, and reach commercial operation as planned. The USDA announcement describes the selections and proposed support; it does not establish that all funding agreements have been finalized or that the new capacity is already available.

The initiative builds on the department's earlier [launch of the $500 million FIELDS program](https://www.fertilizerdaily.com/20260701-usda-launches-500-million-fields-program-to-expand-u-s-fertilizer-production/). The latest selections indicate that USDA is seeking to use the program to support a broader range of domestic fertilizer supply, although the scale and timing of the eventual market impact will depend on project execution.

Source: [USDA Rural Development](https://www.rd.usda.gov/)

Tags: [AdvanSix](https://www.fertilizerdaily.com/tag/advansix/), [ammonia](https://www.fertilizerdaily.com/tag/ammonia/), [FPEP](https://www.fertilizerdaily.com/tag/fpep/), [Intrepid Potash](https://www.fertilizerdaily.com/tag/intrepid-potash/), [nitrogen](https://www.fertilizerdaily.com/tag/nitrogen/), [phosphate](https://www.fertilizerdaily.com/tag/phosphate/), [potash](https://www.fertilizerdaily.com/tag/potash/), [United States](https://www.fertilizerdaily.com/tag/united-states/), [USDA](https://www.fertilizerdaily.com/tag/usda/)

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