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Vilsack announces investment to expand U.S. fertilizer production

The USDA has announced a $250 million investment to support and expand American fertilizer production.  

Speaking during Commodity Classic, Ag Secretary Tom Vilsack said “we want to invest in fertilizer expansion in the U.S. that is Independently-produced, made in America. And, hopefully embrace new innovation and support sustainable farming operations.”

The USDA says it will address rising costs, including the impact of Russia’s price hike on farmers, and spur competition.

The investment will be made through a new grant program.

“We expect to have the application process available for applications sometime this summer and we hope to see awards at the end of the year,” Vilsack says.

USDA will use funds from the Commodity Credit Corporation (CCC) to develop a grant program that provides ‘gap’ financing to bring new, independent domestic production capacity on-line.

He says supply chain challenges and Russia’s attack on Ukraine highlight the need for investment in U.S. ag inputs.

“This is designed to reflect the fact that we have, within the U.S., consolidated ownership and we have a significant amount of this that’s dependent on outside sources, which because of the circumstances may very well be impacted by what’s going on in Ukraine,” he says.

The new program will support fertilizer production that is: independent, made in America, innovative, sustainable, and farmer-focused. And, to address growing competition concerns, the USDA says it will launch a public inquiry seeking information regarding seeds and ag inputs, fertilizer, and retail markets.