USDA is offering $500 million in grants to bolster U.S. fertilizer production to spur competition and combat price hikes caused by the war in Ukraine.

“Recent supply chain disruptions have shown just how critical it is to invest in the agricultural supply chain here at home, said USDA Secretary Tom Vilsack.

Grants from the Fertilizer Production Expansion Program will support independent, innovative and sustainable American fertilizer production to supply U.S. farmers, the agency stated in a press release.

Funds also will expand the manufacturing and processing of fertilizer and nutrient alternatives in the U.S. and its territories.

The investment will help spur competition in the domestic fertilizer market and allow U.S. farmers to fight back against rising input costs, Rep. David Scott, House Agriculture Committee chairman, said in a statement.

“The importance of American-made fertilizer production has never been clearer than it is now. The war in Ukraine and other challenges to our agricultural supply chain have been a hardship for our farmers and impacted access to critical production tools that will carry over into the next harvest season,” he said.

“I applaud Secretary Vilsack for exercising his discretionary authority to utilize Commodity Credit Corporation funds for such an important effort,” he said.

The Fertilizer Institute also praised USDA’s announcement, saying the U.S. fertilizer industry consists of at least 20 unique companies producing fertilizer products.

“They all play a critical role in suppling farmers with the nutrients required to grow the food that feeds the world,” said Corey Rosenbusch, the institute’s president and CEO.

“While a nitrogen plant can cost between $2 billion and $4 billion to construct, anything that helps strengthen domestic fertilizer production is a win for the industry, growers and consumers,” he said.

Innovative and sustainable are key requirements for the grant funding and that describes the industry well, he said.

“Innovation has been a hallmark of fertilizer producers as enhanced efficiency fertilizers and other new technologies play a big role in our ability to feed a growing population,” he said.

Sustainability is also a key focus of the industry and is supported by the 4R Nutrient Stewardship program, which focuses on the right fertilizer source, at the right place, at the right rate, and at the right time, the institute said in a statement.

“Modern fertilizer techniques, such as 4R Nutrient Stewardship, precision agriculture, and enhanced efficiency fertilizers, are an essential part of this sustainable future, and TFI applauds the USDA investment in strengthening domestic fertilizer production capabilities, innovation, technology and the responsible use of fertilizer by growers,” he said.

The five-year grants range from $1 million to $100 million. USDA will begin accepting applications shortly. The agency will also host informational webinars on the program on Oct. 4 and 6. Preregistration is required.

Visit www.rd.usda.gov/fpep or www.farmers.gov/global-food-insecurity .

Potential applicants and stakeholders can email questions to fpep@usda.gov.