The U.S. Department of Agriculture (USDA) announced a proposal to invest roughly $573 million in eight projects to boost the domestic fertilizer industry.
The projects are expected to improve fertilizer manufacturing in the United States, increase long-term fertilizer availability for farmers, and reduce the country’s dependence on foreign suppliers, USDA said in an Oct. 22 statement.
The total proposed investment, including USDA funding, is expected to exceed $1.34 billion.
One of the sector’s main issues is that the domestic fertilizer industry has become highly consolidated, leaving fewer suppliers and less competition, USDA said.
Four companies control roughly 77 percent of North American nitrogen fertilizer production capacity, and two companies produce around 90 percent of potash output. Moreover, two companies account for more than 90 percent of U.S. phosphate fertilizer production capacity.
The selected projects “are expected to help reverse this trend by increasing domestic fertilizer production and strengthening competition,” the department said.
Another issue is the dependence on foreign suppliers. According to a 2025 report from the American Farm Bureau Federation, the United States imported 97 percent of its potassium fertilizer.
While the United States has strong production capabilities for certain fertilizers, it still imports roughly 25 percent of its fertilizer needs.
If access to these imports were cut off, the productivity of various crops would decline, threatening national food security.
Another major issue is fertilizer costs. At a July 29 press conference, Agriculture Secretary Brooke Rollins highlighted the issue, noting that the cost of fertilizers such as urea, ammonia, and potash rose rapidly in 2022–2023.
Rollins said the high cost of inputs is straining America’s agricultural economy.
“We want fertilizer plants built in America, and we are willing to prioritize it,” she said, adding, “We want fertilizer delivered in America to American farmers. By opening up the market, prices will come down for our farmers.”
President Donald Trump declared an emergency in late June over concerns about fertilizer supplies.
The administration said disruptions in the Middle East and trade actions by major fertilizer-producing countries have strained supplies, raising costs for farmers. This has happened while domestic production remains insufficient to meet agricultural demand.
Trump suspended duties on imports of certain Moroccan phosphate fertilizers, which will remain in effect for up to eight months or until the emergency ends.
In a June 29 statement, the American Soybean Association welcomed the temporary suspension of duties on phosphate imports.
“Suspending import taxes on this critical farm resource will improve fertilizer availability and help reduce input costs at a time when farmers begin to plan for the 2027 crop while tackling increasingly challenging financial decisions,” the association’s president, Scott Metzger, said in the statement.
Fertilizer Projects
The eight projects selected by USDA span 16 states—Iowa, Kentucky, Minnesota, Tennessee, Nebraska, Illinois, South Dakota, Florida, Texas, New Mexico, Virginia, California, Oregon, Arizona, Kansas, and Indiana—USDA said.
The investments are expected to support about 1.08 million tons of domestic fertilizer production and capacity annually, with a focus on expanding production of nitrogen, potassium, sulfur, and phosphorus fertilizers.
USDA expects additional production to potentially lower nitrogen fertilizer and potash prices by 4.4 and 5.3 percent, respectively, while increasing domestic production by 3.7 percent and nearly 40 percent, respectively, once the projects become operational.
“Farm security is national security. America cannot afford to depend on foreign nations for the fertilizer needed to grow our food and feed our families,” Rollins said in the statement.
“Under President Trump’s leadership, we are taking decisive action to rebuild America’s fertilizer manufacturing base and bring critical production back to American soil.”
In an Oct. 22 post on X, Rollins said that the eight projects cover 22 fertilizer manufacturing locations.
The department will provide the proposed funding through its Fertilizer Investment & Expansion for Long-Term Domestic Supply (FIELDS) Program, announced in July.
The FIELDS initiative offers funding for companies that build new fertilizer facilities, invest in fertilizer terminals, and invest in transportation infrastructure.
