Projects selected for fertilizer program as countries call for input cost relief

Eight projects have been selected to receive a total of $1.3 billion in proposed investment through the USDA’s Fertilizer Investment & Expansion for Long-Term Domestic Supply (FIELDS) Program.

USDA will fund approximately $573 million in the effort to strengthen domestic fertilizer manufacturing, reduce America’s dependence on foreign suppliers and increase long-term fertilizer availability for American farmers, according to a news release.

America’s fertilizer industry has become increasingly consolidated, leaving farmers with fewer suppliers and less competition. 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, according to the release.

Climbing diesel fuel costs are also challenging growers, who indicated in an April survey that ongoing international tensions had them worried about affording fertilizer for the rest of the year.

USDA economic analysis estimates that the additional production spurred by 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.

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

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 systems 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.

The FIELDS Program is administered by USDA Rural Development’s Rural Business-Cooperative Service using Commodity Credit Corporation authorities.

Additional information is available through USDA Rural Development at rd.usda.gov.

Farmers call for global input cost relief

As G7 agriculture ministers met in Paris last week, National Farmers Union (NFU) joined leading farmers’ organizations from across the G7 countries in a joint statement calling on governments to confront rising input costs, strengthen fair and competitive markets and work with farmers as key partners in addressing global food security challenges.

This effort builds on a previous statement outlining shared agriculture priorities among the world’s leading farm organizations earlier this year. 

This statement comes as conflict in the Middle East and disruptions to shipping through the Strait of Hormuz drive increases in energy and fertilizer prices, compounding pressure from tariffs, trade tensions, supply chain disruptions and increasingly frequent extreme weather. The organizations warn that farmers are struggling to maintain liquidity heading into the fall planting and input-purchasing season. 

“Family farmers in the United States and across the G7 are facing the same squeeze: input prices driven up by war, trade disruptions and a handful of corporations that control the fertilizer, seed and crop protection markets,” NFU president Rob Larew said. “Farm organizations around the world are united in calling for real competition in input markets, stable and fair trade relationships, and policies that ensure farmers earn a fair price for what they produce. Our governments need to treat farmers as key partners to addressing these challenges.” 

The statement (.pdf) was signed by NFU along with the Canadian Federation of Agriculture, Deutscher Bauernverband (Germany), FNSEA (France), Coldiretti (Italy), JA-Zenchu (Japan) and the National Farmers’ Union of England and Wales.