The Agriculture Department will launch a $250-million-dollar grant program this summer to support “independent, innovative and sustainable” fertilizer production at home and to reduce reliance on imports. The USDA also said it would launch a public inquiry into concentration in the seed and agricultural input, fertilizer and retail markets.
Fertilizer prices have doubled in the past year, due to global demand, limited supplies, high energy prices and lack of competition, as well as disruptions caused by the pandemic.
“As I talk to farmers, ranchers and agriculture and food companies about the recent market challenges, I hear significant concerns about whether large companies along the supply chain are taking advantage of the situation by increasing profits— not just responding to supply and demand or passing along the costs,” said Agriculture Secretary Tom Vilsack. The USDA inquiry flows from President Biden’s 2021 executive order for federal agencies to encourage competition.
Details of the grant program will be announced this summer and the first awards are expected by the end of the year, said the USDA. The grants will be aimed at American companies producing fertilizer domestically with the goals of boosting production by independent companies and reducing greenhouse gas emissions.