|
USDA doubles
funding for American-made fertilizer production grants, applications
open soon
By USDA 9/27/2022
As a follow up to USDA Secretary Tom
Vilsack's announcements at the
2022 Commodity Classic, $500 million in grants are being made
available to increase American-made fertilizer production.
“Under the leadership of President Biden
and Vice President Harris, USDA is creating a resilient, secure and
sustainable economy, and this support to provide domestic, independent
choices for fertilizer supplies is part of that effort,” Vilsack said
in a recent statement. “USDA believes in the growth of innovative,
local businesses owned and shared by people who can best serve their
own unique community’s needs, fill gaps, and build opportunities.
Recent supply chain disruptions have shown just how critical it is to
invest in the agricultural supply chain here at home. The Fertilizer
Production Expansion Program is one example of many Biden-Harris
Administration initiatives to bring production and jobs back to the
United States, promote competition and support American goods and
services.”
Fertilizer Production Expansion Program is
part of a whole-of-government effort to promote competition in
agricultural markets. The funds are being made available through the
Commodity Credit Corporation.
Grants will be used to support
independent, innovative, and sustainable American fertilizer
production to supply American farmers. Funds also will expand the
manufacturing and processing of fertilizer and nutrient alternatives
in the U.S. and its territories.
The program will support fertilizer
production that is:
- Independent, and outside the
orbit of dominant fertilizer suppliers. Because the
program’s goal is to increase competition, market share restrictions
apply.
- Made in America. Products
must be produced by companies operating in the U.S. or its
territories, to create good-paying jobs at home, and reduce the
reliance on potentially unstable, inconsistent foreign supplies.
- Innovative. Techniques
will improve fertilizer production methods and efficient-use
technologies to jumpstart the next generation of fertilizers and
nutrient alternatives.
- Sustainable. Ideally,
products will reduce the greenhouse gas impact of transportation,
production and use through renewable energy sources, feedstocks and
formulations, incentivizing greater precision in fertilizer use.
- Farmer-focused. Like
other Commodity Credit Corporation investments, a driving factor is
providing support and opportunities for U.S. agricultural commodity
producers.
Eligible entities are: for-profit
businesses and corporations, nonprofit entities, Tribes and Tribal
organizations, producer-owned cooperatives and corporations, certified
benefit corporations, and state or local governments. Private entities
must be independently owned and operated to apply.
The maximum award is $100 million. The
minimum award is $1 million. The grant term is five years.
The Department will begin accepting
applications via www.grants.gov soon.
Notably, there will be two opportunities for submission.
The Department plans for a 45-day
application window for applicants to receive priority for projects
that increase the availability of fertilizer (nitrogen, phosphate or
potash) and nutrient alternatives for agricultural producers to use in
crop years 2023 or 2024.
The Department will also offer an
extended application window, providing an additional 45 days (90-day
application window) to receive applications for financial assistance
to significantly increase American-made fertilizer production to spur
competition and combat price hikes. This extended application window
will support applicants who need more time to make additional capacity
available.
USDA is hosting two informational
webinars for potential applicants:
- Potential applicants and other interested parties are encouraged
to attend a webinar on Oct. 4, 2022, to learn more
about the program. Pre-registration is required.
Click here to register.
- Potential applicants and other stakeholders are also encouraged
to attend a webinar on Oct. 6, 2022, to learn about
application requirements. Pre-registration is required.
Click here to register.
Potential applicants and stakeholders may
email questions to fpep@usda.gov.
For more information, visit www.rd.usda.gov/fpep or www.farmers.gov/global-food-insecurity.
House Agriculture Committee Chairman
David Scott applauded the grant program saying, “The importance of
American-made fertilizer production has never been clearer than it is
now. The war in Ukraine and other challenges to our agricultural
supply chain have been a hardship for our farmers and impacted access
to critical production tools that will carry over into the next
harvest season.”
Background
On March 11, 2022, USDA announced plans
for a $250 million investment in grants to support additional
fertilizer production for American farmers to address rising costs and
spur competition.
These grants are part of a broader effort
to help producers boost production and address global food insecurity.
USDA’s Natural Resources Conservation
Service is also improving opportunities for nutrient management. This
includes targeting funding, increasing program flexibilities,
launching a new outreach campaign to promote nutrient management’s
economic benefits, and expanding partnerships to develop nutrient
management plans. Meanwhile, USDA’s Risk Management Agency expanded
crop insurance options for double cropping to reduce risk for
producers raising two crops in the same year.
Fertilizer prices have more than doubled
since last year due to many factors, including price hikes caused by
the war in Ukraine, a limited supply of the relevant minerals, high
energy costs, high global demand and agricultural commodity prices,
reliance on fertilizer imports, and a lack of competition in the
fertilizer industry.
For these reasons, the Biden-Harris
Administration in May doubled
the program funding to $500 million.
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
exactrix@exactrix.com
|
