Ag News

U.S. suspends tariffs on some fertilizer imports

USDA launches program to develop expanded domestic fertilizer production

On June 29, President Donald Trump signed a proclamation temporarily suspending countervailing duties (CVDs) on phosphate fertilizer imports from Morocco.

The temporary suspension is expected to increase phosphate fertilizer availability, improve competition, and help lower one of agriculture’s largest production expenses while supporting a stable and reliable fertilizer supply ahead of future planting seasons.

Skyrocketing fertilizer costs have contributed to rising expenses for farmers who were already struggling after years of inflation, depressed commodity markets and high interest rates. In fact, 7 out of 10 farmers said, in a Farm Bureau survey this spring, that they would not be able to afford enough fertilizer for this year.

USDA analysis indicates American farmers could save approximately $1.82 billion annually through lower phosphate fertilizer costs as additional supplies enter the U.S. market. The action is expected to reduce phosphate fertilizer prices by approximately 22 percent, benefiting more than 100,000 farms across 97 million planted acres nationwide.

Meanwhile, on July 1, the USDA announced the launch of the $500 million Fertilizer Investment & Expansion for Long-Term Domestic Supply (FIELDS) Program, a new initiative administered through USDA Rural Development to expand domestic fertilizer manufacturing, strengthen America’s fertilizer supply chain, and improve long-term affordability for American farmers

Utilizing the authorities of the Commodity Credit Corporation (CCC), USDA will make $500 million available through the FIELDS Program to support construction and expansion of domestic fertilizer production facilities. The program prioritizes shovel-ready, financially viable projects capable of increasing production of critical crop nutrients.

Administered by USDA Rural Development’s Rural Business-Cooperative Service, the FIELDS program will support projects that expand domestic production of nitrogen, phosphate, potash, sulfur, and other critical crop nutrients, strengthen competition, improve supply chain resilience, and increase fertilizer availability for American farmers.

Individual awards will range from $15 million to $150 million, with funding focused on projects that strengthen domestic fertilizer manufacturing and deliver meaningful benefits to American agriculture.

Applications must be submitted electronically through Grants.gov by 11:59 p.m. on Aug. 15. Additional information, including eligibility requirements and application materials, is available through USDA Rural Development at www.rd.usda.gov and on https://Grants.gov.

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