US will invest $500 mln in expanding its own fertilizer production

The US Department of Agriculture has announced the allocation of $500 million for the development of domestic fertilizer production. The new funding is aimed at expanding the capacities of existing enterprises and building new plants within the framework of the FIELDS (Fertilizer Investment and Expansion for Long Term Domestic Supply) program.

As stated by US Secretary of Agriculture Brooke Rollins, the main goal of the initiative is to strengthen domestic production and reduce the country’s dependence on imports. According to her, the government seeks to make the construction of fertilizer plants one of the priorities of agricultural policy.

The impetus for the launch of the program was the sharp increase in fertilizer prices after the escalation of the conflict around Iran. Risks to shipping through the Strait of Hormuz have jeopardized more than 30% of global fertilizer exports, and in May, imports of these products to the US from Middle Eastern ports have practically ceased.

The rise in fertilizer prices has increased financial pressure on American farmers, who are already working in conditions of low grain prices, high fuel, seed and other production resources. An additional challenge for the agricultural sector remains trade restrictions related to the customs policy of the Donald Trump administration.

The announcement of new investments came shortly after the US president’s decision to temporarily suspend certain tariffs on phosphate fertilizer imports from Morocco. In parallel, the US Federal Trade Commission is conducting an investigation into the sharp increase in fertilizer prices to determine the reasons for their increase.

Tags: USA