Illinois Fertilizer & Chemical Association
Supply · Service · Stewardship

USDA Announces $500 Million for Domestic Fertilizer Production

The U.S. Department of Agriculture recently announced that $500 million in grants is available to increase domestic fertilizer production through the Fertilizer Production Expansion Program. The goal of the program is to promote competition in agricultural markets with the funds available through the Commodity Credit Corporation.
According to the USDA, “[g]rants will be used to support independent, innovative and sustainable American fertilizer production to supply American farmers.” The funds will also “expand the manufacturing and processing of fertilizer and nutrient alternatives in the U.S. and its territories.”
Guidelines indicate that the program will support fertilizer production that is:
  1. Independent, and outside the orbit of dominant fertilizer suppliers. Because the program’s goal is to increase competition, market share restrictions apply.
  2. 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.
  3. Innovative. Techniques will improve fertilizer production methods and efficient-use technologies to jumpstart the next generation of fertilizers and nutrient alternatives.
  4. 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.
  5. Farmer-focused. Like other Commodity Credit Corporation investments, a driving factor is providing support and opportunities for U.S. agricultural commodity producers.

Organizations that are eligible for the grant funding include:

•            For-profit businesses and corporations
•            Nonprofit entities
•            Tribes and Tribal organizations
•            Producer-owned cooperatives and corporations
•            Certified benefit corporations
•            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.
Applying for Funding:

The Department will begin accepting applications in the coming days via 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 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.