True Organic Products of Spreckels, Calif., has received a $5 million USDA grant to expand its organic fertilizer plant in Boardman, Ore.

The grant, announced in October, was part of $52.6 million in awards from the federal Fertilizer Production Expansion Program.

Another California company, Farm Fuel of Watsonville, received a $2.05 million grant to offset costs of purchasing equipment, securing inventory of raw materials and for working capital. The woman-led corporation produces organic fertilizer primarily from mustard seed meal left after the oil is extracted, according to the USDA.

Farm Fuel representatives could not be reached for comment.

True Organic Products’ expansion will allow the company to manufacture an added 15,000 tons of pelleted organic fertilizer from local waste byproducts to better serve Pacific Northwest farmers.

The company can use the funds for construction, equipment, site work and architectural and engineering fees, according to the USDA.

True Organic Products must contribute $3.33 million toward the expansion project.

The company declined to comment.

The effort to increase innovative domestic fertilization is part of a government-wide effort to spur domestic competition and combat an increase in fertilizer costs caused by the war in Ukraine.

In 2022, the USDA made $500 million available under the Fertilizer Production Expansion Program. In June 2023, the agency increased the funding available to up to $900 million.

The USDA received requests from more than 350 businesses for $3 billion in funding through the program.

During the first two rounds of the Fertilizer Production Expansion, the agency has awarded $121 million to 33 projects.

The USDA expects to announce additional project selections in the coming months.