Vice President J.D. Vance and Secretary of Agriculture Brooke Rollins revealed on October 22 that the U.S. Department of Agriculture will provide financial support for eight projects aimed at boosting domestic fertilizer production, with total investments exceeding $1.3 billion.
Change in funding approach
The USDA has allocated $573 million from its Fertilizer Investment and Expansion for Long-Term Domestic Supply Program to back these initiatives, as stated in a recent news release. This move involves redirecting funds from the Biden administration’s Fertilizer Production Expansion Program to support the selected projects.
The chosen projects, located in key farming states, will enhance manufacturing capabilities for various fertilizers, including nitrogen, phosphorus, potassium, and sulfur. Notably, two facilities led by Agriculture Project Holdco in Kansas and Indiana will be developed to contribute to this effort.
Although the United States is a significant producer of fertilizer, ranking fifth globally according to the Fertilizer Institute, it still relies heavily on imports of certain nutrients, such as potassium. Farmers use a combination of fertilizers to enhance crop yields and quality, resulting in substantial imports.
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USDA data, last updated on October 7, shows that over 25 million tons of fertilizer have been imported into the country so far this year. Potassium and urea, which contains a high amount of nitrogen, are among the most in-demand ingredients.
Between April 2025 and March 2026, the U.S. imported approximately 8.7 million tons of potassium fertilizer, with nearly 90% of these imports coming from Canada, as reported by Investigate Midwest, citing USDA data. During the same period, around 6.1 million tons of nitrogen fertilizer were imported, with Russia and Canada accounting for half of the total.
Addressing industry concentration
The Trump administration aims to increase competition in the fertilizer industry by supporting new projects, which could lead to lower prices. Currently, four companies control 77% of nitrogen fertilizer production capacity in North America, while two companies account for 90% of phosphate production and another two control 90% of potash production.
According to the USDA, once these new production initiatives become active, they could lead to a 4.4% drop in nitrogen costs and a 5.3% decline in potash prices. These efforts are projected to boost domestic fertilizer output by roughly 1.1 million tons annually, cutting back on foreign imports.
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Administration’s goal to reduce import dependency
The Trump administration aims to boost domestic fertilizer production, reducing reliance on imports. Despite being a major global producer, the U.S. imports significant amounts of potassium and other nutrients.
This push seeks to decrease dependence on foreign supplies, with a focus on increasing local manufacturing capacity for various fertilizers.
By encouraging domestic production, the administration hopes to ensure a more stable supply of fertilizers, supporting farmers’ needs for crop yield and quality improvement.
Selected projects and funding
The USDA has selected the following projects to receive funding:
- TalusAG: This Austin, Texas-based company will deploy 20 modular ammonia manufacturing units across 11 locations in seven states, producing 130,000 tons of anhydrous ammonia per year. The USDA has allocated $99.8 million for the $270.2 million project.
- Peace Valley: The company plans to expand its fertilizer manufacturing plant in Bartow, Florida, to 250,000 tons per year, with the USDA pledging $19.9 million for the $50.6 million project.
- PCI Nitrogen: The Texas-based company will update and expand its fertilizer facilities in Pasadena, Texas, and St. Helens, Oregon, to support a total capacity of 148,280 tons per year. The USDA has earmarked $100 million for the $200 million project.
- Intrepid Potash: The company proposes building a sulfate and potash manufacturing facility near Carlsbad, New Mexico, with a capacity of 220,000 tons per year. The USDA has allocated $139 million for 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 has committed $47.4 million for the $98.1 million project.
- Sul4r-Plus Illinois: The company will expand 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 has 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, to support 142,805 tons of annual fertilizer production using agricultural byproducts. The USDA has allocated $15.3 million for the $30.6 million project.
- Agriculture Project Holdco: The company proposes developing two manufacturing facilities in Lewis, Kansas, and Fair Oaks, Indiana, to convert dairy manure into 4,100 tons of liquid ammonium nitrate fertilizer per year. The USDA has committed $116.9 million to the $360 million project.
