WASHINGTON — The U.S. Department of Agriculture on Thursday, May 23, announced that fertilizer projects in Iowa, Minnesota and North Dakota were among the projects to receive a total of nearly $83 million in funding.
A news release from USDA said the funding in support of fertilizer projects through the Fertilizer Production and Expansion Program is meant to “strengthen competition for U.S. farmers, ranchers and agricultural producers.” The USDA under the Biden administration created FPEP in response to rising fertilizer prices. The administration committed up to $900 million through the Commodity Credit Corporation for the program.
In Iowa,
Return LLC,
a fertilizer manufacturer in Northwood, plans to use a $3.92 million grant to expand its current facility, to improve existing compost/fermenting site infrastructure and to purchase necessary equipment to transport materials and manufacture the finished product. Return’s current products include compost made from “locally-harvested, southern Minnesota turkey litter,” fertilizer listed for use in lawns, gardens and for perennials and annuals, potting mix and “Worm Poop” for use in gardens, raised beds, potted plants and lawns.
In Minnesota,
Sustane Natural Fertilizer Inc. — a family-owned natural fertilizer manufacturer in Cannon Falls
— plans to use a $2,397,792 grant to enhance and expand the current facility and purchase new equipment to increase fertilizer production. The company makes a variety of agricultural and home-use fertilizer and innoculant products.
In North Dakota, the Ray Farmers Union Elevator Company plans to use a $1,491,859 grant to assist with a dry fertilizer expansion. This project will increase dry fertilizer capacity by 7,025 tons, to a total of 11,425 tons. The company says the expansion will benefit new and existing customers in the North Dakota counties of Williams, Divide, Mountrail, Burke, and McKenzie, as well as improve fertilizer supply logistics.
Fertilizer prices began rising sharply in 2021, with
Producer Price Index industry data
from the U.S. Bureau of Labor Statistics showing April 2022 at the second highest level in two decades. Prices remained high throughout 2022 and began dropping throughout 2023, though they generally remain elevated compared to the years before the 2021 spike. Blame for the spike was placed on the war in Ukraine and Russia, as well as lack of competition in the fertilizer industry.
Other projects announced as receiving funding on Thursday
were in California, Florida, Hawaii, Illinois, Kansas, Kentucky, North Carolina, Oregon and Washington. The total awards announced Thursday were in the amount of $82,746,447. The projects announced Thursday put total FPEP funding at $251 million in 57 projects across 29 states.
“The Biden-Harris Administration and USDA are committed to bolstering the economy and increasing competition for our nation’s farmers, ranchers and small business owners,” said Agriculture Secretary Tom Vilsack said in a statement. “The investments announced today, made possible through the Commodity Credit Corporation, will increase domestic fertilizer production and strengthen our supply chain, all while creating good-paying jobs that will benefit everyone.”