Tom Vilsack Secretary of U.S. Department of Agriculture (USDA) | Official Website
BOONE, IA, Aug. 28, 2024 – At the annual Farm Progress Show in Boone, Iowa, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced today that USDA is partnering with American business owners to expand innovative domestic fertilizer production. This initiative aims to create jobs in rural communities and strengthen local economies. The Department is awarding $35 million for seven projects across seven states through the Fertilizer Production Expansion Program (FPEP), funded by the Commodity Credit Corporation. The program provides grants to independent business owners to modernize equipment, adopt new technologies, build production plants, and more.
“The Biden-Harris Administration continues to make innovative investments that bolster rural communities and support farmers, ranchers and small business owners,” Secretary Vilsack said. “The investments announced today will increase domestic fertilizer production and strengthen our supply chain while creating good-paying jobs to benefit all Americans.”
To date, USDA has invested $286.6 million in 64 projects across 32 states through FPEP. These projects have created 768 new jobs nationwide and will increase domestic fertilizer production by over 5.6 million tons.
These investments are expected to boost domestic fertilizer production and lower costs for U.S. farmers. For example:
- Dramm Corp. in Wisconsin will use a $776,000 grant to increase their production capacity and expand their network of customers while reducing their carbon footprint and increasing employee safety.
- In Virginia, AdvanSix will expand a facility with an almost $12 million grant, increasing operational capacity by 195,000 tons per year.
USDA is also making awards to facilities in California, Iowa, New York, Oregon, and Tennessee.
President Biden and USDA created FPEP to address rising fertilizer prices due to factors such as the war in Ukraine and a lack of competition in the fertilizer industry. The Administration committed up to $900 million through the Commodity Credit Corporation for FPEP. Funding supports long-term investments that aim to strengthen supply chains, create new economic opportunities for American businesses, and support climate-smart innovation.
FPEP is part of a broader effort to help producers boost production and address global food insecurity while promoting fair competition and resiliency across food and agriculture sectors.
USDA Rural Development provides loans and grants aimed at expanding economic opportunities and improving quality of life in rural areas through infrastructure improvements; business development; housing; community facilities; high-speed internet access; among other initiatives.
For more information on USDA initiatives or to subscribe for updates from USDA Rural Development visit www.usda.gov or the GovDelivery subscriber page.
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