USDA Funds for Fertilizer Projects

OMAHA (DTN) -- The Trump administration on Thursday announced $573 million in grants to help boost construction of eight new domestic fertilizer facilities under USDA's Fertilizer Investment & Expansion for Long-Term Domestic Supply (FIELDS) Program.

USDA launched the FIELDS Program to expand domestic fertilizer manufacturing following the spike in fertilizer prices last spring driven by the war with Iran that cut off global fertilizer from the Strait of Hormuz.

The eight projects selected for funding combine for more than $1.34 billion in domestic investments in fertilizer production across as many as 18 states.

Combined, the new facilities could add as much as 5% in domestic fertilizer supplies. USDA projected the projects could reduce nitrogen fertilizer prices by 4.4% and potash prices by 5.3%, while increasing domestic nitrogen production by 3.7% and potash production by nearly 40% once the projects are operational."

Vice President J.D. Vance, who was in North Platte, Nebraska, on Thursday to campaign for Republican Sen. Pete Ricketts, participated in the announcement.

"1.87 million farmers who are farming over 8.74 million acres all across the United States of America are going to have fertilizer at lower costs that is made by Americans," Vance said.

Agriculture Secretary Brooke Rollins said farmers can't afford to rely on foreign fertilizer, though the administration has increased imports over the past six months from Venezuela, Morocco and Russia to help reduce fertilizer prices. Rollins also criticized a similar fertilizer production program under the Biden administration, arguing the new projects would build out investments faster.

"Under President Trump's leadership, we are taking decisive action to rebuild America's fertilizer manufacturing base and bring critical production back to American soil," Rollins said. "By redirecting funding from failed Biden-era projects toward financially viable, shovel-ready investments, we are putting taxpayer dollars to work for American farmers, strengthening our national security, and ensuring that the next generation of producers has access to a reliable domestic fertilizer supply."

The announcement comes as the Trump administration has launched a flurry of announcements over the past two weeks as officials seek to boost Republican candidates in the midterm elections. Rollins earlier this week announced USDA would create an $8 billion program to help farmers offset higher diesel costs as well.

USDA said one of the issues with the fertilizer industry is that it has become increasingly consolidated. Four companies control approximately 77% of North American nitrogen fertilizer production capacity, two companies account for more than 90% of phosphate production capacity, and two companies produce approximately 90% of North America's potash, USDA stated.

"The Trump administration is working to reverse decades of consolidation by supporting new domestic manufacturing capacity and expanding competition for American farmers," USDA stated.

The selected FIELDS projects are expected to help reverse this trend by increasing domestic fertilizer production and strengthening competition.

The projects will support new and expanded manufacturing capacity for nitrogen, phosphorus, potassium and sulfur fertilizers across the United States. These investments are expected to support approximately 1.08 million tons of annual domestic fertilizer production and capacity across the selected projects.

Overall, USDA cites U.S. farmers use 19-20 million metric tons of fertilizer annually.

Looking at DTN Fertilizer Trends this week, anhydrous ammonia is about $149 a ton higher, about 18%, compared to a year ago.

Separately, The Fertilizer Institute (TFI) on Thursday also expressed support for the Bipartisan American Affordability and Jobs Act of 2026 (BAAJA), a bill that would reform permitting laws and regulations and make it easier for fertilizer manufacturers to expand domestic production.

"Permitting reform is essential to strengthening America's fertilizer supply chain and increasing domestic production for American growers," said TFI President and CEO Corey Rosenbusch. "Unfortunately, the system today is too often defined by years-long delays and significant uncertainty. What we need is a system that allows manufacturers to make long-term investments, including in new and expanded fertilizer production, with confidence."

The eight projects selected to move forward in the FIELDS funding process include:

-- TalusAg -- Iowa, Kentucky, Minnesota, Tennessee, Nebraska, Illinois, and South Dakota: Selected for approximately $99.8 million in proposed USDA funding toward a $270.2 million project to deploy 20 modular ammonia manufacturing units across 11 locations in seven states. The units are expected to produce approximately 130,000 tons of anhydrous ammonia annually, bringing domestic fertilizer manufacturing closer to the farmers who depend on it.

-- Peace Valley -- Florida: Selected for approximately $19.9 million in proposed USDA funding toward a $50.6 million project to expand fertilizer manufacturing in Bartow, Florida. The project is expected to produce approximately 250,000 tons annually of nitrogen-, phosphorus-, potassium-, and sulfur-containing fertilizer products.

-- PCI Nitrogen -- Texas and Oregon: Selected for approximately $100 million in proposed USDA funding toward a $200 million project to modernize fertilizer manufacturing facilities in Pasadena, Texas, and St. Helens, Oregon. The improvements are expected to support approximately 148,280 tons of annual fertilizer production, including ammonium sulfate and urea.

-- Intrepid Potash -- New Mexico: Selected for approximately $139 million in proposed USDA funding toward a $265 million project to construct a sulfate of potash manufacturing facility near Carlsbad, New Mexico. The proposed facility would produce approximately 220,000 tons annually and establish an additional domestic source of this important specialty fertilizer.

-- AdvanSix -- Virginia: Selected for approximately $47.4 million in proposed USDA funding toward a $98.1 million project to modernize and expand an existing ammonia manufacturing facility in Hopewell, Virginia. The project is expected to produce approximately 84,000 tons of anhydrous ammonia annually.

-- SUL4R-PLUS Illinois -- Illinois: Selected for approximately $34.9 million in proposed USDA funding toward a $69.7 million project to expand an existing sulfur fertilizer manufacturing facility in Marissa, Illinois. The project will add a manufacturing line and improve storage and transportation infrastructure to support approximately 100,000 tons of annual sulfur fertilizer production.

-- True Organic Products -- California, Oregon, and Arizona: Selected for approximately $15.3 million in proposed USDA funding toward a $30.6 million project to expand fertilizer manufacturing at facilities in Helm, California; Boardman, Oregon; and Arlington, Arizona. The project is expected to support approximately 142,805 tons of annual fertilizer production using agricultural byproducts.

-- Agriculture Project Holdco -- Kansas and Indiana: Selected for approximately $116.9 million in proposed USDA funding toward a $360 million project to develop two fertilizer manufacturing facilities in Lewis, Kansas, and Fair Oaks, Indiana. The facilities would convert dairy manure into approximately 4,100 tons of liquid ammonium nitrate fertilizer annually, creating additional domestic fertilizer production capacity.

Also see, "UAN32, UAN28 and Anhydrous Lead Fertilizer Prices Higher," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

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