By Julie Tomascik
Editor

A Texas fertilizer manufacturing facility is among eight projects selected for federal funding to expand domestic fertilizer production and help lower costs for American farmers and ranchers.

The U.S. Department of Agriculture (USDA) announced Oct. 22 that PCI Nitrogen was selected for about $100 million in proposed funding to modernize fertilizer manufacturing facilities in Pasadena, Texas, and St. Helens, Oregon.

The $200 million project is expected to support about148,280 tons of annual fertilizer production, including ammonium sulfate and urea.

The Texas project is part of a nationwide investment of more than $1.34 billion in domestic fertilizer manufacturing.

The eight projects were selected through USDA’s Fertilizer Investment & Expansion for Long-Term Domestic Supply (FIELDS) Program, which was established earlier this year to expand domestic production and reduce reliance on foreign fertilizer suppliers.

“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,” U.S. Secretary of Agriculture Brooke Rollins said.

The investments are expected to support about 1.08 million tons of annual domestic fertilizer production and capacity.

USDA estimates the additional production could reduce nitrogen fertilizer prices by 4.4% and potash prices by 5.3% once the projects are operational. Domestic nitrogen production could increase by 3.7%, and potash production could increase by nearly 40%, according to USDA’s economic analysis.

The investments target a fertilizer industry that has become increasingly concentrated among a small number of manufacturers.

USDA reports four companies control about 77% of North American nitrogen fertilizer production capacity. Two companies account for more than 90% of phosphate production capacity, and two companies produce about 90% of North America’s potash.

The administration said expanding domestic manufacturing could increase competition and improve fertilizer availability for farmers and ranchers facing high production costs.

Other selected projects include new ammonia manufacturing facilities in seven states, expanded fertilizer production in Florida and Virginia and a new potash manufacturing facility in New Mexico.

The FIELDS Program initially launched with $500 million in funding. USDA is also redirecting unused funding from projects under the previous Fertilizer Production Expansion Program to support the newly selected investments.

The program prioritizes financially viable projects that are ready for implementation and have committed private-sector investment.

More information is available at www.rd.usda.gov.