USDA invests in U.S. fertilizer manufacturing

Vice President J.D. Vance and Secretary of Agriculture Brooke Rollins announced the selection of eight fertilizer manufacturing projects to receive funding through the U.S. Department of Agriculture’s Fertilizer Investment & Expansion for Long-Term Domestic Supply (FIELDS) Program.

According to a news release, the eight selected projects represent more than $1.34 billion in total proposed investment, including approximately $573 million in proposed USDA funding. It diverted some funding from the Biden administration’s Fertilizer Production Expansion Program for the effort.

A key difference between FIELDS and its predecessor, FPEP, is that FIELDS requires a mandatory 50% non-federal match that must be secured and documented. Private investment will be necessary to close the financing gap necessary to complete these projects.

The Trump administration said it wants to break up consolidation in the fertilizer industry to drive prices lower.

According to the USDA, four companies control 77% of nitrogen fertilizer production capacity in North America. The agency also identified two companies that account for 90% of phosphate production and two more that control 90% of potash production. Potash is the trade name for potassium-based fertilizer.

The USDA estimated that additional capacity could reduce nitrogen prices by 4.4% and potash prices by 5.3% once the projects are operational. The recent investments are expected to support nearly 1.1 million tons of annual domestic fertilizer production.

Each year, the U.S. imports about 20 million metric tons of fertilizer, which amounts to about $9 billion in annual foreign purchases, according to House Ag Committee research.

The USDA selected the following projects to receive FIELDS funding:

TalusAG: The Austin, Texas-based company plans to deploy 20 modular ammonia manufacturing units across 11 locations in seven states: Iowa, Kentucky, Minnesota, Tennessee, Nebraska, Illinois and South Dakota. In total, the locations are expected to produce 130,000 tons of anhydrous ammonia per year. The USDA allocated $99.8 million to the $270.2 million project.

Peace Valley: The company proposed to expand capacity at its fertilizer manufacturing plant in Bartow, Florida, to 250,000 tons per year. The USDA pledged $19.9 million to the $50.6 million project.

PCI Nitrogen: The Texas-based company plans to update and expand its fertilizer facilities in Pasadena, Texas, and St. Helens, Oregon, to support a total capacity of 148,280 tons per year, including ammonium sulfate and urea products. The USDA earmarked $100 million for the $200 million project.

Intrepid Potash: The company proposed building a sulfate and potash manufacturing facility near Carlsbad, New Mexico, with a capacity of 220,000 tons per year. The USDA allocated $139 million to the $265 million project.

AdvanSix: The company plans to update and expand its anhydrous ammonia manufacturing facility in Hopewell, Virginia, to support a proposed capacity of 84,000 tons per year. The USDA committed $47.4 million for the $98.1 million project.

Sul4r-Plus Illinois: The company pitched expanding its sulfur facility in Marissa, Illinois, by adding a production line and improving storage and transportation infrastructure to support a capacity of 100,000 tons per year. The USDA earmarked $34.9 million for the $69.7 million project.

True Organic Products: The California-based company plans to expand its facilities in Helm, California; Boardman, Oregon; and Arlington, Arizona. The project is expected to support 142,805 tons of annual fertilizer production using agricultural byproducts. The USDA allocated $15.3 million for the $30.6 million project.

Agriculture Project Holdco: The company proposed developing two manufacturing facilities in Lewis, Kansas, and Fair Oaks, Indiana, that would convert dairy manure into 4,100 tons of liquid ammonium nitrate fertilizer per year. The USDA committed $116.9 million to the $360 million project.

Earlier this year, USDA accelerated permitting for the Blue Point Project in Louisiana, a proposed $3.7 billion ammonia plant.