As the war in Iran continues to upend global fertilizer markets, Illinois Democratic Rep. Eric Sorensen introduced a bipartisan bill and submitted a farm bill amendment to provide USDA grants and low-interest loans to expand domestic production and improve storage capacity for companies.
The legislation, which also has the backing of House Ag Committee Ranking Member and Monopoly Busters Caucus Rep. Angie Craig of Minnesota, says the grants and direct or guaranteed loans up to $1 million must prioritize smaller domestic producers by excluding the top four fertilizer manufacturers, processors and storers from eligibility.
Currently the four largest global fertilizer companies are Nutrien, Yara International, The Mosaic Co. and CF Industries.
The submitted amendment will face the Rules Committee during a hearing as early as Monday or Tuesday next week, after which the full farm bill can be put to a floor vote. The deadline for submitting farm bill amendments is Wednesday at noon.
Republican Reps. Ashley Hinson of Iowa, Tracey Mann of Kansas, and Mike Bost of Illinois signed onto the measure, as well as Democrat Reps. Sharice Davids of Kansas and Nikki Budzinski of Illinois.
The National Corn Growers Association, Illinois Corn Growers Association, Illinois Soybean Association and Illinois Farm Bureau also support the legislation.
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Notably, the bill gives the agriculture secretary the ability to tap USDA's Commodity Credit Corporation for the needed funds.
The text says USDA should give priority to projects that promote innovation in fertilizers, nutrient alternatives, and biostimulants; dedicate additional fertilizer or nutrient alternative manufacturing, processing or storage capacity to U.S. commodity production; and demonstrate the project will improve competition, increase options, and reduce prices or volatility of fertilizer products or nutrient alternatives important for farmers.
Recipients would be required to repay the grant or loan in full if any company or facility developed through the project is sold, transferred to, or changes ownership to one of the companies that hold the fourth-largest share of the nitrogen, phosphate or potash market.
The bill's introduction comes as Agriculture Secretary Brooke Rollins has teased an announcement as early as this week to bring down fertilizer prices.
The administration has already taken some steps to ease fertilizer price pressures by easing domestic shipping requirements and loosening controls on Venezuelan fertilizer imports. Urea prices, however, are still up around 80% from the beginning of the year.
