U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that the Biden-Harris Administration is inviting U.S. farmers and agricultural producers to apply for grants under the Fertilizer Production Expansion Program. The Administration recently announced it is making $500 million in grants available through the program to increase American-made fertilizer production, spur competition and combat price hikes on U.S. farmers caused by the war in Ukraine.
“The Fertilizer Production Expansion Program is one of many ways the Biden-Harris Administration invests in the agricultural supply chain right here at home,” Vilsack said. “This funding will bring production and jobs back to the United States, promote competition and support American goods and services. Under the leadership of President Biden and Vice President Harris, USDA continues to create a resilient, secure and sustainable economy to support opportunities for local businesses and people across this nation. This program is a critical part of that effort.”
USDA begins accepting applications today via www.grants.gov. Applicants have two opportunities to submit their applications:
- Applicants may apply until Nov. 14, 2022, to receive priority for projects that increase the availability of fertilizer (nitrogen, phosphate or potash) and nutrient alternatives for agricultural producers to use in crop years 2023 or 2024.
- Applicants may apply until Dec. 29, 2022, to receive financial assistance to significantly increase American-made fertilizer production to spur competition and combat price hikes. This application window supports applicants who need more time to make additional capacity available.
Eligible entities are for‐profit businesses and corporations, nonprofit entities, Tribes and Tribal organizations, producer‐owned cooperatives and corporations, certified benefit corporations, and state or local governments. Private entities must be independently owned and operated to apply.
The maximum award is $100 million. The minimum award is $1 million. The grant term is five years.
Potential applicants and stakeholders may email questions to fpep@usda.gov. For more information, visit www.rd.usda.gov/fpep or https://www.farmers.gov/global-food-insecurity.
Background
Fertilizer prices have more than doubled since last year due to many factors, including price hikes caused by the war in Ukraine, a limited supply of the relevant minerals, high energy costs, high global demand and agricultural commodity prices, reliance on fertilizer imports, and a lack of competition in the fertilizer industry.
The Fertilizer Production Expansion Program is part of a whole-of-government effort to promote competition in agricultural markets. The funds are being made available through the Commodity Credit Corporation.
Grants will be used to support independent, innovative and sustainable American fertilizer production to supply American farmers. Funds also will expand the manufacturing and processing of fertilizer and nutrient alternatives in the U.S. and its territories.
The program will support fertilizer production that is: