New subsidy program will spur competition and help U.S. farmers meet rising costs
WASHINGTON, September 27, 2022 – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced today that the Biden-Harris administration is making $500 million in grants available to increase production of U.S.-made fertilizers to spur competition and fight price hikes for American farmers caused by the war in Ukraine.
“Under the leadership of President Biden and Vice President Harris, the USDA is creating a resilient, secure, and sustainable economy, and this support to provide national, independent choices for fertilizer supply is part of that effort,” said said Vilsack. “USDA believes in growing innovative local businesses owned and shared by people who can best meet the unique needs of their own community, fill gaps, and create opportunity. Recent supply chain disruptions have shown how critical it is to invest in the agricultural supply chain at home. The fertilizer production expansion program is one example of the Biden-Harris administration’s many initiatives aimed at bringing production and jobs back to the United States, promoting competition, and supporting American goods and services.
The Biden-Harris administration’s fertilizer production expansion program is part of a whole-of-government effort to promote competition in agricultural markets. Funds are made available through the Commodity Credit Corporation.
Grants will be used to support independent, innovative and sustainable U.S. fertilizer production to supply U.S. farmers. The funds will also help expand the manufacturing and processing of alternative fertilizers and nutrients in the United States and its territories.
The program will support the production of fertilizer that is:
- Independent and outside the orbit of mainstream fertilizer suppliers. Since the objective of the program is to increase competition, market share restrictions apply.
- Made in America. Products must be manufactured by companies operating in the United States or its territories, to create well-paying jobs in the country and reduce dependence on potentially unstable and inconsistent foreign supplies.
- Innovative. The techniques will improve fertilizer production methods and efficient use technologies to launch the next generation of fertilizer and nutrient alternatives.
- Sustainable. Ideally, products will reduce the greenhouse gas impact of transport, production and use through renewable energy sources, raw materials and formulations, prompting greater precision in the use of fertilizers.
- Focused on farmers. Like other investments by the Commodity Credit Corporation, one of the driving factors is to provide support and opportunities for US producers of agricultural commodities.
Eligible entities are for-profit businesses and corporations, not-for-profit entities, tribes and tribal organizations, cooperatives and producer-owned corporations, certified charitable corporations, and state or local governments. . Private entities must be independently owned and operated to apply.
The maximum reward is $100 million. The minimum reward is $1 million. The duration of the grant is five years.
The Department will begin accepting applications in the coming days through www.grants.gov. In particular, there will be two submission options.
The Department provides a 45-day application window for applicants to receive priority for projects that increase the availability of fertilizers (nitrogen, phosphate or potash) and nutrient replacement solutions that agricultural producers can use during harvest years 2023 or 2024.
The Department will also offer an extended application window, offering an additional 45 days (90-day application window) to receive applications for financial assistance to significantly increase production of American-made fertilizers to stimulate competition and fight against price increases. This extended application window will help applicants who need more time to provision additional capabilities.
The Department is organizing two informative webinars:
Prospective applicants and stakeholders may email questions to [email protected]
For more information, visit www.rd.usda.gov/fpep or www.farmers.gov/global-food-insecurity.
On March 11, 2022, the USDA announced plans to invest $250 million in subsidies to support incremental fertilizer production for U.S. farmers to meet rising costs and stimulate competition.
These grants are part of a larger effort to help producers increase production and address global food insecurity.
The USDA’s Natural Resource Conservation Service also improves nutrient management opportunities. This includes targeting funding, increasing program flexibility, launching a new awareness campaign to promote the economic benefits of nutrient management, and expanding partnerships to develop nutrient management plans. nutritious. Meanwhile, the USDA’s risk management agency has expanded crop insurance options for double cropping to reduce risk for growers who grow two crops in the same year.
Fertilizer prices have more than doubled since last year due to many factors including price increases caused by the war in Ukraine, limited supply of relevant minerals, high energy costs, global demand and commodity prices. high agricultural outputs, dependence on fertilizer imports and a lack of competition in the fertilizer industry.
For these reasons, the Biden-Harris administration in May doubled funding for the program to $500 million.
The USDA is committed to a whole-of-government effort to address the climate crisis and conserve and protect our nation’s land, biodiversity, and natural resources, including our soil, air, and water. Addressing these challenges successfully will require coordination and partnerships with stakeholders along the supply chain, such as the planned investment in the production of innovative domestic fertilizers. The effort is also part of the Biden-Harris administration’s whole-of-government approach to promoting competition, including in agricultural markets.
Under the Biden-Harris administration, Rural Development provides loans and grants to help expand economic opportunity, create jobs and improve the quality of life for millions of Americans in rural areas. This aid supports the improvement of infrastructure; Business development; lodging; community facilities such as schools, public safety and health care; and high-speed Internet access in rural, tribal and very poor areas. For more information, visit www.rd.usda.gov. If you would like to subscribe to USDA rural development updates, visit our GovDelivery subscriber page.
The USDA touches the lives of all Americans every day in so many positive ways. Under the Biden-Harris administration, the USDA is transforming the U.S. food system with a greater emphasis on more resilient local and regional food production, promoting competition and fairer markets for all producers, ensuring the access to safe, healthy and nutritious food in all communities, building new markets and income streams for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and capacity of clean energy in rural America, and committing to equity across the department by removing systemic barriers and creating a workforce that is more representative of America. To learn more, visit www.usda.gov.
The USDA is an equal opportunity provider, employer and lender.