USDA Grant to Increase Domestic Fertilizer Production
The U.S. Department of Agriculture announced an investment of $500 million into the Fertilizer Investment & Expansion for Long-term Domestic Supply (FIELDS) Program. This competitive grant program is intended to expand, or bring into operation new, independent domestic fertilizer production capacity in order to provide agricultural producers with additional domestic fertilizer options and strengthen the U.S. fertilizer supply chain. Grant funds can be requested up to $100 million per award with a 50% matching requirement. The deadline to submit applications is August 17, 2026.
Who is eligible to apply?
Entities are eligible regardless of legal structure and may include Tribes, Tribal Entities, Alaska Native Corporations, for-profit entities, corporations, non-profit entities, producer-owned cooperatives and corporations, certified benefit corporations, and state or local government entities. Private entities must be independently owned and operated.
How can grant funds be used?
Grant funds must be used to increase or otherwise expand the manufacturing and processing of fertilizer and nutrient alternatives in the United States and its territories. Funds can support activities such as:
- Construction of a new facility or purchase of an existing facility for purposes of expanding capacity or increasing output, including the purchase of land;
- Pre-development costs including, but not limited to, engineering and other professional fees;
- Working capital to support expanded capacity or increased outputs;
- Modernizing or expanding an existing facility, including expansion and modifications to existing buildings and construction of new buildings at existing facilities;
- Purchasing new, or modernizing existing processing and manufacturing equipment;
- Customizing, and installing equipment, devices, and technology that improves processing functions, worker conditions, or safety;
- Ensuring compliance with packaging and labeling requirements under applicable law (including sealing, packaging, boxing, labeling, conveying, and product moving equipment);
- Ensuring compliance with occupational and other safety requirements under applicable law;
- Improving fertilizer logistics (e.g., distribution, transportation, and storage) to benefit producers in a cost-efficient manner.
What are the anticipated award amounts?
USDA expects to award grants in the range of $1 million to $100 million for grant periods of up to five years.
What are some other requirements?
FIELDS will expand domestic production capacity, promote competition, strengthen supply chain resilience, and increase fertilizer availability for U.S. farmers in support of agricultural productivity and the production of agricultural commodities. To meet this purpose, FIELDS will support the process manufacturing of fertilizer that is:
- Independent and outside the dominant fertilizer suppliers. The goal is to increase domestic competition. Accordingly, entities and affiliates that hold a market share, in production greater than or equal to the entity holding the fourth-largest share of the market for nitrogen, sulfur, phosphate, or potash, or any combination thereof, will not be considered for funding;
- Made in America. Produced within the United States and its territories or on Tribal Lands by entities operating within the United States and its territories or on Tribal Lands, thereby creating domestic jobs and reducing reliance on potentially unstable or inconsistent foreign supplies;
- Innovative. Designed to improve fertilizer production methods and enhanced-efficiency fertilizers in order to jump-start the next generation of fertilizer products;
- Energy Dominant and Secure. Supportive of domestic fertilizer production and critical agricultural input manufacturing and processing that strengthens U.S. supply chain resilience, advances energy dominance, reduces dependence on foreign adversaries, and protects the long-term security of American agriculture and food production; and
- Farmer-focused. Consistent with other CCC investments, designed to ensure that the additional domestic capacity supported by USDA is dedicated to U.S. agricultural commodity production and puts American farmers first.
When is the application timeline?
Applications are due August 17, 2026 with an anticipated award date of December 2026 to January 2027.
Projects may be between one and five years in duration. All award requests are subject to a matching requirement equal to 50 percent of total eligible project costs.
The full Notice of Funding Opportunity is available here.
Morrison has extensive experience writing successful applications for clients for USDA programs. For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at grants@morrisonco.net or call us at 530-893-4764.