USDA to fund $1.3B in fertilizer projects to boost domestic production

The U.S. Department of Agriculture (USDA) is funding eight fertilizer manufacturing projects totaling more than $1.3 billion, according to Manufacturing Dive. The initiative aims to expand domestic production capacity to lower prices and reduce dependence on foreign nutrient imports.

The USDA highlighted that while the U.S. is the fifth-largest global fertilizer producer, it still imports significant amounts of potassium and other nutrients essential for crop yields. In the period from April 2025 to March 2026, the U.S. imported about 8.7 million tons of potassium fertilizer, mostly from Canada, and 6.1 million tons of nitrogen fertilizer, with Russia and Canada supplying half of that total.

The Trump administration is pushing to break up industry consolidation, as four companies control 77% of nitrogen fertilizer capacity in North America, and two companies dominate 90% of phosphate and potash production, the USDA noted. The new projects are expected to add nearly 1.1 million tons of annual domestic fertilizer production.

The USDA estimates that the increased capacity could reduce nitrogen fertilizer prices by 4.4% and potash prices by 5.3% once the projects become operational. This effort reflects a broader goal to strengthen U.S. manufacturing and agricultural supply chains.

A political figure cited by Manufacturing Dive expressed frustration with reliance on foreign sources for fertilizer and food production, emphasizing the need for domestic manufacturing growth.