USDA Announces Investment in American Made Fertilizer

Clint Thompson Fertilizer, USDA

Soaring fertilizer prices has many farmers concerned about the rising costs of production for many crops this year. The U.S. Department of Agriculture (USDA) announced last Friday it will support additional fertilizer production for American farmers to address the rising costs. Agriculture Secretary Tom Vilsack said $250 million will be made available through a new grant program this summer to support independent, innovative and sustainable American fertilizer production to supply farmers across the country.

During the Commodity Classic in New Orleans last week, Vilsack said, “Recent supply chain disruptions from the global pandemic to Putin’s unprovoked war against Ukraine have shown just how important it is to invest in this crucial link in the agricultural supply chain here at home.”

USDA Notes that fertilizer prices have more than doubled since last year due to many factors. Those include Putin’s price hike, a limited supply of the relevant minerals and high energy costs, high global demand and agricultural commodity prices, reliance on fertilizer imports and lack of competition in the fertilizer industry.

USDA’s Economic Research Service noted last month that U.S. farmers use three primary forms of nitrogen fertilizer: anhydrous ammonia, urea, and liquid nitrogen. They estimated an annual price increase of 235% for anhydrous ammonia, 149% for urea, and 192% for liquid nitrogen.