U.S. Department of Agriculture Awards $300 Million to Expand Independent Domestic Fertilizer Plants

WASHINGTON, DC — The United States Department of Agriculture (USDA) announced $300 million in grant awards through the Fertilizer Product Expansion Program (FPEP), funding the construction and modernization of 24 independent, American-made fertilizer production plants in 18 states.

Lowering Input Costs for American Family Farmers

The funding packages provide capital grants to farmer-owned agricultural cooperatives and clean tech manufacturing startups utilizing domestic natural gas, dairy anaerobic digester biogas, and recovered industrial phosphates to manufacture high-grade nitrogen and phosphorus fertilizers. USDA economic modeling indicates the domestic manufacturing expansion will lower crop nutrient input costs for 75,000 grain and livestock producers by 20% while eliminating reliance on foreign fertilizer cartels.

USDA leadership stated that expanding domestic fertilizer manufacturing creates good-paying manufacturing jobs in rural America and protects food security against global supply chain shocks.

National Farmers Union and Farm Bureau Praise

The National Farmers Union (NFU) and American Farm Bureau Federation commended the investments, highlighting that competition among fertilizer manufacturers breaks concentrated market monopolies.

Environmental scientists praised the deployment of green ammonia technology utilizing renewable power.

Plant Commissioning Schedule

Grant-funded fertilizer facilities will commence construction in autumn 2026, with initial commercial batches shipping in spring 2027.