ORLANDO, Fla. – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced on Friday that the Department received $3 billion in applications from more than 350 independent businesses from 47 states and 2 territories for the first two rounds of a new grant program to add innovative domestic fertilizer production capacity.
USDA also announced the first $29 million in grant offers under the first round that focused on projects that can come online in the near term. The grants will help independent businesses increase production of American-made fertilizer, which will provide U.S. farmers more choices and fairer prices and reduce dependence on unreliable foreign sources like Russia and Belarus.
USDA photo by Tom Witham
“I know that increased costs for fertilizer and other inputs have put a strain on farmers and cut into the bottom line. The Biden-Harris Administration and USDA understand the importance of taking on the root causes and need to invest in the agricultural supply chain here at home to create a resilient, secure and sustainable economy for the long haul,” Vilsack said. “By expanding the production of domestic fertilizer supplies, we can grow independent local businesses, bring production and jobs to rural communities and support fair prices for our farmers.”
First Award Offers
The first round of the program was focused on projects that could increase fertilizer capacity for the 2023 or the 2024 crop year, to prioritize projects with near-term impact. In January, a list of 21 potentially viable projects from the first round was released with a request for public comment. The $29 million announced by Secretary Vilsack will be offered to eight independent businesses in Alabama, Colorado, Massachusetts, Missouri, Ohio and Washington. The grants will help businesses modernize equipment, advance climate-smart practices and build production plants, among other activities.
For example:
- In Sylacauga, Alabama, Pursell Agri-Tech LLC, a manufacturer of controlled-release fertilizer (CRF), is being offered $4.9 million to assist with working capital that will increase its inventory by 40,000 tons per year. Each ton of CRF effectively doubles the nutrient benefit of a ton of fertilizer, making this 40,000 ton increase of CRF equivalent to 80,000 tons of uncoated fertilizer per year. These funds could be put to use beginning in spring 2023 with farmers realizing the benefit of increased fertilizer availability almost immediately.
A full list of offers announced today is available at www.rd.usda.gov/media/file/download/usda-rd-nr-fpep-chart03092023.pdf
