Seventeen new projects will receive funding from a $900 million grant program created to expand U.S. fertilizer production in the wake of Russia’s invasion of Ukraine.
Seventeen new projects will receive funding from a $900 million grant program created to expand U.S. fertilizer production in the wake of Russia’s invasion of Ukraine, announced Agriculture Secretary Tom Vilsack on Monday. Fertilizer prices soared on fears of wartime disruptions in shipments from Russia, the world’s largest fertilizer exporter. membrane bio reactor
Vilsack announced the grants, totaling $52.6 million, while visiting a farm near Kankakee in northeastern Illinois. President Biden visited a farm in the same area in May 2022 to announce an additional $250 million for the Fertilizer Production Expansion Program and a 50 percent expansion in the number of counties where farmers can buy insurance for double cropping.
“Through a farmer-focused commitment, we will continue to build on our efforts to lower costs, bring made-in-America jobs to rural communities, and strengthen the agricultural supply chain and market opportunities to the benefit of producers,” said Vilsack.
Through two rounds of awards, $121 million has been granted to 33 projects to begin or expand independent and innovative domestic production of fertilizer. More awards are expected in coming months, said the USDA. The maximum grant is $100 million.
The largest award on Monday was $5.5 million to Bionutrients Ag LLC, which announced plans in 2022 for a $50 million specialty fertilizer plant employing 45 people in Wabash, in northern Indiana. The plant will process chicken manure and other wastes from egg production into fertilizer for grain and fruit crops.
True Organic Products Inc. was awarded $5 million to expand production of organic fertilizer at its Boardman, Oregon, facility by 15,000 tons a year. The company converts local waste byproducts into pelleted fertilizer for producers in the Pacific Northwest. Pan American Grain Co. was offered $3.8 million to offset the costs of repairing facilities in Puerto Rico damaged by Hurricane Maria in 2017 and an earthquake.
Global fertilizer prices have declined since the outbreak of warfare in the Black Sea region but ticked upward this fall, said the Agricultural Market Information System, supported by international groups. The price of inputs such as natural gas rose due to concerns over supplies. “Ammonia prices surged in September, supported by major plant outages,” said AMIS. Nitrogen and phosphorus fertilizer prices increased in reaction to restrictions on exports from China.
mbbr reactor A list of projects in the second round of grants is available here.