Dive Brief:
- The U.S. Department of Agriculture pledged to fund eight fertilizer manufacturing projects that bolster domestic production and represent more than $1.3 billion in investments, Vice President J.D. Vance and Secretary of Agriculture Brooke Rollins announced Oct. 22.
- The agency committed $573 million in proposed funding from its Fertilizer Investment and Expansion for Long-Term Domestic Supply Program for the projects, according to a news release. It diverted some funding from the Biden administration’s Fertilizer Production Expansion Program for the effort.
- The agency selected projects in major farming states that support new and expanded manufacturing capacity for nitrogen, phosphorus, potassium and sulfur fertilizers, including the development of two facilities led by Agriculture Project Holdco in Kansas and Indiana.
Dive Insight:
The Trump administration is pushing to increase domestic fertilizer capacity and reduce the nation’s reliance on supplies from other countries. Although the United States produces most of its own fertilizer — considered to be the fifth-largest producer globally by the Fertilizer Institute — the country is still a big importer of potassium and other nutrients as farmers rely on a mix of fertilizers to improve crop yields and quality.
More than 25 million tons of fertilizer have entered the country this year so far, according to USDA data last updated Oct. 7. Of the ingredients imported, potassium and urea, which contains a high amount of nitrogen, remain some of the most sought after.
Between April 2025 and March 2026, the U.S. imported about 8.7 million tons of potassium fertilizer. Nearly nine out of every 10 tons came from Canada, Investigate Midwest reported, citing USDA data. During the same period, about 6.1 million tons of nitrogen fertilizer entered the country, with Russia and Canada supplying half of the total.
With its recent investment, the Trump administration said it wants to break up consolidation in the fertilizer industry to drive prices lower.
According to the USDA, four companies control 77% of nitrogen fertilizer production capacity in North America. The agency also identified two companies that account for 90% of phosphate production and two more that control 90% of potash production. Potash is the trade name for potassium-based fertilizer.
The USDA estimated that additional capacity could reduce nitrogen prices by 4.4% and potash prices by 5.3% once the projects are operational. The recent investments are expected to support nearly 1.1 million tons of annual domestic fertilizer production.
“I am sick of relying on everybody else to make our stuff and grow our food,” Vance said at a midterm political rally in North Platte, Nebraska. “We got to do it right here at home.”
The USDA selected the following projects to receive FIELDS funding:
TalusAG: The Austin, Texas-based company plans to deploy 20 modular ammonia manufacturing units across 11 locations in seven states: Iowa, Kentucky, Minnesota, Tennessee, Nebraska, Illinois and South Dakota. In total, the locations are expected to produce 130,000 tons of anhydrous ammonia per year. The USDA allocated $99.8 million to the $270.2 million project.
Peace Valley: The company proposed to expand capacity at its fertilizer manufacturing plant in Bartow, Florida, to 250,000 tons per year. The USDA pledged $19.9 million to the $50.6 million project.
PCI Nitrogen: The Texas-based company plans to update and expand its fertilizer facilities in Pasadena, Texas, and St. Helens, Oregon, to support a total capacity of 148,280 tons per year, including ammonium sulfate and urea products. The USDA earmarked $100 million for the $200 million project.
Intrepid Potash: The company proposed building a sulfate and potash manufacturing facility near Carlsbad, New Mexico, with a capacity of 220,000 tons per year. The USDA allocated $139 million to the $265 million project.
AdvanSix: The company plans to update and expand its anhydrous ammonia manufacturing facility in Hopewell, Virginia, to support a proposed capacity of 84,000 tons per year. The USDA committed $47.4 million for the $98.1 million project.
Sul4r-Plus Illinois: The company pitched expanding its sulfur facility in Marissa, Illinois, by adding a production line and improving storage and transportation infrastructure to support a capacity of 100,000 tons per year. The USDA earmarked $34.9 million for the $69.7 million project.
True Organic Products: The California-based company plans to expand its facilities in Helm, California; Boardman, Oregon; and Arlington, Arizona. The project is expected to support 142,805 tons of annual fertilizer production using agricultural byproducts. The USDA allocated $15.3 million for the $30.6 million project.
Agriculture Project Holdco: The company proposed developing two manufacturing facilities in Lewis, Kansas, and Fair Oaks, Indiana, that would convert dairy manure into 4,100 tons of liquid ammonium nitrate fertilizer per year. The USDA committed $116.9 million to the $360 million project.
