The USA has included eight investment projects in its scope of support to increase fertilizer production and expand farmers' supply opportunities.
US Vice President J.D. Vance and Secretary of Agriculture Brooke Rollins announced that the projects were selected for the funding process under the FIELDS program.
The total proposed investment of the eight projects exceeds $1.34 billion. Approximately 573 million dollars of this amount is expected to be provided by the US Department of Agriculture.
The Ministry stated that additional resources will be allocated to the program, which was initially launched with a budget of 500 million dollars. The additional funding will come from funds recovered from failed projects under the previous administration's Fertilizer Production Expansion Program.
Expectation of a decrease in fertilizer prices
According to the ministry's economic analysis, once the projects become operational, additional production can reduce nitrogen fertilizer prices by 4.4 percent and potash prices by 5.3 percent.
It is estimated that with the investments, US nitrogen fertilizer production can increase by 3.7 percent and potash production can increase by approximately 40 percent.
The projects, which include nitrogen, phosphorus, potassium and sulfur fertilizers, are expected to support annual production and capacity of approximately 1.08 million tons.
High concentration in production
According to data shared by the ministry, four companies control approximately 77 percent of the nitrogen fertilizer production capacity in North America.
More than 90 percent of the phosphate production capacity is in the hands of two companies. Two companies carry out approximately 90 percent of the potash production in the region.
The management aims to increase the number of suppliers and competition with the new production capacity.
Vance said that the investments aim to provide farmers with lower-cost domestic fertilizer. Rollins, on the other hand, considered fertilizer supply as part of national security.
Different production models in eight projects
The projects selected for the financing process are as follows:
TalusAg: It is planned to install 20 modular ammonia production units at 11 locations in seven states. A public support of $99.8 million is proposed for the $270.2 million project, which is expected to produce approximately 130 thousand tons of anhydrous ammonia annually.
Peace Valley: $19.9 million support is anticipated for the $50.6 million capacity increase project in Florida. It is expected to produce approximately 250 thousand tons of fertilizer containing nitrogen, phosphorus, potassium and sulfur annually.
PCI Nitrogen: Approximately 100 million dollars of support is proposed for the 200 million dollar project, which includes the modernization of facilities in Texas and Oregon. It is aimed to support the annual production of approximately 148 thousand 280 tons of fertilizer.
Intrepid Potash: It is planned to establish a potassium sulphate facility in New Mexico that can produce approximately 220 thousand tons annually. Approximately 139 million dollars of support is anticipated for the 265 million dollar investment.
AdvanSix: $47.4 million support is proposed for the $98.1 million project, which includes the modernization and expansion of the ammonia plant in Virginia. Approximately 84 thousand tons of anhydrous ammonia production is expected annually.
SUL4R-PLUS Illinois: 34.9 million dollars of support is anticipated for the 69.7 million dollar project covering the expansion of the sulfur fertilizer facility in Illinois. It is planned to support approximately 100 thousand tons of annual production with new production line and logistics investments.
True Organic Products: Fertilizer production from agricultural byproducts will be increased at facilities in California, Oregon and Arizona. 15.3 million dollars of public resources are proposed for the 30.6 million dollar project, which is expected to support an annual production of approximately 142 thousand 805 tons.
Agriculture Project Holdco: Two facilities are planned in Kansas and Indiana that will convert animal manure from dairy farms into liquid ammonium nitrate fertilizer. A support of 116.9 million dollars is proposed for the 360 million dollar project, with an annual production of approximately 4 thousand 100 tons.
The Ministry stated that it focuses on projects that have a private investment commitment during the financing process, are ready for implementation and whose production results can be measured.
