The U.S. Department of Agriculture (USDA) invites U.S. farmers and agricultural producers to apply for grants under the Fertilizer Production Expansion Program. The current 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,” USDA Secretary Tom Vilsack said. “This funding will bring production and jobs back to the United States, promote competition and support American goods and services.” 

USDA is accepting applications 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 

The program will support fertilizer production that is: 

  • Independent, and outside the orbit of dominant fertilizer suppliers. Because the program’s goal is to increase competition, market share restrictions apply. 
  • Made in America. Products must be produced by companies operating in the U.S. or its territories, to create good-paying jobs at home, and reduce the reliance on potentially unstable, inconsistent foreign supplies. 
  • Innovative. Techniques will improve fertilizer production methods and efficient[1]use technologies to jumpstart the next generation of fertilizers and nutrient alternatives. 
  • Sustainable. Ideally, products will reduce the greenhouse gas impact of transportation, production and use through renewable energy sources, feedstocks and formulations, incentivizing greater precision in fertilizer use. 
  • Farmer-focused. Like other Commodity Credit Corporation investments, a driving factor is providing support and opportunities for U.S. agricultural commodity producers. The 

 

Department is hosting two informational webinars: