USDA picks eight fertilizer plants for $573 million to cut reliance on a few suppliers

The U.S. Department of Agriculture has selected eight fertilizer manufacturing projects to share about $573 million in proposed federal funding, Vice President JD Vance and Agriculture Secretary Brooke Rollins announced Thursday.

The projects carry more than $1.34 billion in total proposed investment, according to USDA. The money comes through a new program called FIELDS, short for Fertilizer Investment & Expansion for Long-Term Domestic Supply. USDA said it is also redirecting unused money from projects under an earlier program created during the Biden administration.

Why it matters to farmers

USDA said the fertilizer market is highly concentrated. Four companies control about 77% of North American nitrogen capacity, and two each control roughly 90% of phosphate and potash capacity, according to the department.

Once the plants are running, a USDA analysis projects:

• Nitrogen prices down 4.4% and potash prices down 5.3%
• Domestic nitrogen output up 3.7%
• Domestic potash output up nearly 40%
• About 1.08 million tons of added yearly capacity

USDA did not give construction or opening dates.

The projects

Figures are rounded as reported by USDA.