USA – The U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced a significant investment in domestic fertilizer projects to enhance competition for U.S. farmers, ranchers, and agricultural producers.
This initiative is part of President Biden’s Investing in America agenda, which focuses on economic growth from the middle out and bottom-up, creating jobs and stimulating rural economies by increasing agricultural market competition.
This investment delivers on promises made by President Biden two years ago in rural Illinois, where he announced the doubling of available funding through the Fertilizer Production and Expansion Program (FPEP).
The USDA is allocating US$83 million to projects across 12 states through FPEP, facilitating modernized equipment, new technologies, and production plant construction.
Key examples of these projects include California’s 4420 Serrano Drive LLC, which received a US$25 million grant to build a food waste upcycling facility in Jurupa Valley. This facility is expected to produce 11,400 tons of organic nutrient fertilizer annually for approximately 90 regional producers.
In Florida, Cog Marketers LTD, also known as AgroLiquid, was awarded US$4 million to construct a manufacturing facility in Lake City. This facility is anticipated to produce 2 million gallons of fertilizer components annually for over 200 independent retailers across six states.
In Iowa, Return LLC will use US$4 million to expand its Northwood facility, improving infrastructure and equipment for manufacturing and transport, thereby boosting domestic fertilizer production and supporting local farmers.
The USDA’s investments span across California, Florida, Hawaii, Iowa, Illinois, Kansas, Kentucky, Minnesota, North Carolina, North Dakota, Oregon, and Washington. To date, the USDA has invested US$251 million in 57 projects across 29 states through FPEP.
President Biden and the USDA initiated FPEP in response to rising fertilizer prices, which more than doubled between 2021 and 2022 due to factors such as the war in Ukraine and limited competition in the fertilizer industry.
The administration committed up to US$900 million through the Commodity Credit Corporation for FPEP, supporting long-term investments that bolster supply chains, create economic opportunities, and promote climate-smart innovation.
“The Biden-Harris Administration and USDA are committed to bolstering the economy and increasing competition for our nation’s farmers, ranchers and small business owners,” said Secretary Vilsack. “The investments announced today, made possible through the Commodity Credit Corporation, will increase domestic fertilizer production and strengthen our supply chain, all while creating good-paying jobs that will benefit everyone.”
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