USDA Secretary Tom Vilsack has introduced the Fertilizer Production Expansion Program (FPEP) as part of President Biden's Investing in America Agenda. This visionary initiative aims to foster innovative domestic fertilizer production by collaborating with American businesses. With rising costs of critical inputs like fertilizer, Secretary Vilsack emphasized the urgency to strengthen agricultural supply chains.
The USDA allocated an initial $500 million in 2022 for the FPEP to combat soaring fertilizer expenses resulting from the Ukrainian conflict. Over 350 businesses enthusiastically responded, seeking to expand their fertilizer production capacities. Today, the USDA celebrates the first round of grants, providing $30 million to support farmers in Florida, Iowa, Louisiana, Minnesota, Montana, Texas, and Wisconsin in enhancing their independent, domestic fertilizer production capabilities.
Wisconsin-based recipients include Black's Valley Ag Supply Inc., receiving $4,919,743 to construct a cutting-edge dry fertilizer production and storage facility in Durand. This endeavor is expected to increase fertilizer production by 33 percent annually. Similarly, The Delong Co., Inc. secured $4,563,744 to replace their existing facility with a state-of-the-art one, enabling custom blending of fertilizers and delivering positive environmental impacts.
Wisconsin State Director Julie Lassa, coming from a small family farm background, lauds the FPEP's potential to alleviate budgetary constraints, expand marketplace competition, and offer diverse fertilizer options for farmers. The program's intervention is crucial as fertilizer prices doubled between 2021 and 2022 due to various factors, including the Ukrainian conflict, limited mineral supplies, high energy costs, and reliance on imports.
With overwhelming demand, totaling $3 billion in requests from businesses across 47 states and two territories, the USDA is considering an additional $400 million in funding. This significant investment underscores the government's commitment to revive the agricultural sector, fortify supply chains, and bolster the nation's economy while empowering farmers and promoting sustainable practices.
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Categories: Wisconsin, Crops