BISMARCK, N.D., May 23, 2024 – U.S. Department of Agriculture (USDA) Rural Development State Director Erin Oban today announced that USDA is investing in domestic fertilizer projects to strengthen production for a North Dakota agricultural producer.
This funding advances President Biden’s Investing in America agenda to grow the nation’s economy from the middle out and bottom up. It will create jobs and spur economic growth in rural communities by increasing competition in agricultural markets. Through these projects, President Biden is delivering on promises he made two years ago when he visited rural Illinois to announce the doubling of funding available through the Fertilizer Production and Expansion Program (FPEP).
“Challenges within our country’s supply chain have impacted all of us, including our ag producers,” said Oban. “This Administration’s focus on strengthening our supply chains through critical investments is supporting the production of domestic fertilizer right here in North Dakota. This nearly $1.5 million grant will assist the Ray Farmers Union Elevator in expanding its ability to serve farmers and co-op members in the entire northwest corner of the state and preventing those costs from being passed on to local producers and consumers.” Audio:MP3, 884KB, 0:37.
The Department is awarding $83 million in 12 states for projects through the Fertilizer Production Expansion Program (FPEP). This program provides grants to independent business owners to help them modernize equipment, adopt new technologies, build production plants and more.
In North Dakota, the Ray Farmers Union Elevator Company will use a $1,491,859 grant to assist with a dry fertilizer expansion. This project will increase dry fertilizer capacity by 7,025 tons, to a total of 11,425 tons. This will benefit new and existing customers in the North Dakota counties of Williams, Divide, Mountrail, Burke, and McKenzie, as well as improve fertilizer supply logistics.
President Biden and USDA created FPEP to combat issues facing American farmers due to rising fertilizer prices, which more than doubled between 2021 and 2022 due to a variety of factors such as war in Ukraine and a lack of competition in the fertilizer industry. The Administration committed up to $900 million through the Commodity Credit Corporation for FPEP. Funding supports long-term investments that will strengthen supply chains, create new economic opportunities for American businesses, and support climate-smart innovation.
FPEP is part of a broader effort to help producers boost production and address global food insecurity. It is also one of many ways the Administration is promoting fair competition, innovation and resiliency across food and agriculture while combating the climate crisis.
USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. To learn more, visit www.usda.gov. To subscribe to USDA Rural Development updates, visit the GovDelivery Subscriber Page.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
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