The U.S. Department of Agriculture received $3 billion in applications during the first two rounds of a new grant program to increase domestic fertilizer production.
The first round received $29 million in grant offers, according to a March 10 news release. Applications came from more than 350 businesses from 47 states and two territories over the two rounds.
“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,” USDA Secretary Tom Vilsack said in the release.
These funds are intended to give American businesses a boost in domestic fertilizer production, which will help increase competition, give U.S. farmers more options and fairer prices and reduce dependence on foreign sources like Russia and Belarus, the release reported.
“I know that increased costs for fertilizer and other inputs have put a strain on farmers and cut into the bottom line," Vilsack said in the release. "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."
The Fertilizer Production Expansion Program’s first round of $29 million will be offered to eight businesses in Alabama, Colorado, Massachusetts, Missouri, Ohio and Washington, the release said. The first round of funding was focused on projects that could increase fertilizer capacity for the 2023 or 2024 crop years, to have a near-term impact.
“The grants will help businesses modernize equipment, advance climate-smart practices and build production plants, among other activities,” the release said.
The initial announcement to dedicate $250 million was made at the 2022 Commodity Classic, according to the release. Vilsack then announced the first round of awards at the 2023 Classic.
