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BOONE, IA, August 28, 2024 – During the annual Farm Progress Show in Boone, Iowa, U.S. Secretary of Agriculture Tom Vilsack revealed that the USDA is teaming up with American entrepreneurs to enhance domestic fertilizer manufacturing. This initiative aims to generate employment opportunities in rural areas and bolster local economies. The USDA is allocating $35 million for seven projects spread across seven states through the Fertilizer Production Expansion Program (FPEP), which is financed by the Commodity Credit Corporation. This program offers grants to independent businesses to modernize their equipment, implement new technologies, construct production facilities, and more. These investments support President Biden’s Investing in America strategy to stimulate economic growth from the middle out and bottom up.

“The Biden-Harris Administration remains committed to making strategic investments that uplift rural communities while assisting farmers, ranchers, and small business entrepreneurs,” Secretary Vilsack stated. “Today’s announced investments will boost domestic fertilizer production, strengthen our supply chain, and create high-wage job opportunities that benefit all Americans.”

To date, the USDA has invested $286.6 million into 64 projects across 32 states via FPEP. These initiatives have resulted in the creation of 768 jobs and are projected to enhance domestic fertilizer production by over 5.6 million tons.

This funding aims to increase the U.S. fertilizer supply and reduce costs for American farmers. Here are a couple of examples:

  • Dramm Corp. in Wisconsin has received a grant of $776,000 to boost its production capabilities and expand its customer network, all while minimizing environmental impact and enhancing worker safety. Utilizing fish offal sourced from recreational and commercial fishermen, Dramm produces a liquid fish fertilizer that caters to both organic and conventional farming practices, while keeping millions of pounds of waste from contaminating landfills and waterways.
  • In Virginia, AdvanSix, a producer of ammonium sulfate, will expand its facility with nearly $12 million in funding. Currently serving 31,400 agricultural producers in the East Coast and Midwest, this project will increase their operational capacity by an additional 195,000 tons per year, thereby supporting more than 36,000 producers.

The USDA is also distributing funds to facilities in California, Iowa, New York, Oregon, and Tennessee.

In response to escalating fertilizer costs—more than doubling from 2021 to 2022 due to factors like the ongoing conflict in Ukraine and insufficient competition within the industry—the Biden Administration and the USDA established FPEP. They committed up to $900 million from the Commodity Credit Corporation to support this initiative. Funding seeks to promote long-term investments that will fortify supply chains, forge new economic opportunities for American businesses, and endorse climate-smart innovations.

FPEP is part of a wider strategy aimed at helping producers increase their output and combat global food insecurity. This initiative reflects the Administration’s commitment to fostering fair competition, innovation, and resilience within the agricultural sector while addressing climate challenges.

The USDA Rural Development program offers loans and grants to enhance economic opportunities, generate jobs, and elevate living standards for millions in rural communities. This support spans infrastructure upgrades, business growth, housing, and vital community facilities such as educational institutions, healthcare services, and high-speed internet access in rural, tribal, and economically challenged areas. For insights on the impact of these investments in rural America, visit the Rural Data Gateway. Explore more at www.usda.gov. To receive updates from USDA Rural Development, visit the GovDelivery subscription page.

USDA has a daily impact on the lives of Americans through numerous beneficial programs. Under the Biden-Harris Administration, USDA is fundamentally reshaping the food system to emphasize more resilient regional food production, fairer market conditions for all producers, and ensuring access to nutritious food across various communities. It also aims to create new income streams for farmers and producers through climate-smart practices, make significant investments in infrastructure and renewable energy in rural areas, and commit to equity by dismantling systemic barriers while cultivating a workforce reflective of America. For further information, please visit www.usda.gov.

To stay updated on USDA Rural Development initiatives, please visit the GovDelivery subscription page.

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USDA is an equal opportunity provider, employer, and lender.

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