Bozeman, Mont., June 23, 2023 – U.S. Department of Agriculture (USDA) Rural Development in Montana State Director Kathleen Williams announced today USDA is partnering with a Circle, Montana, business to increase innovative domestic fertilizer production, create jobs in rural communities, and provide more options to local farmers.
Farmer’s Union Oil Company in Circle, Montana, received a $3,390,973 grant through the Fertilizer Production Expansion Program (FPEP) for expansion of a fertilizer processing facility. This project will provide a local and affordable option for agriculture producers in a four-county area looking for a custom formulated fertilizer product that is produced domestically.
"Increasing domestic capacity in the production of agricultural products and investing in strengthening our supply chain is critical to lowering costs for producers, advancing innovation in the fertilizer industry, and sustaining rural economies here in Montana and across the nation,” said Williams.
The Montana award is just one of several under Round One of funding, with $30 million being awarded in seven states.
In 2022, USDA made $500 million available under FPEP to stimulate domestic competition and address rising fertilizer costs caused by the war in Ukraine. The Department received applications from more than 350 businesses seeking to increase fertilizer production.
New Projects Under Consideration for Round Two
Because of strong demand for this program, the Commodity Credit Corporation is providing up to $400 million in additional funding to finance more projects that will promote competition in agricultural markets.
As part of this effort, USDA is asking for public comments on 66 projects eligible to receive grants to increase fertilizer production. Montana currently has one project listed for consideration during Round Two.
The Department will only consider projects that adhere to federal policies designed to protect the environment and historic properties.
USDA is seeking comments that assess how well each applicant plans to:
- Incorporate social, economic, and environmental considerations into decision-making and planning processes.
- Protect cultural and historic properties, including those on Tribal lands, from potential impacts.
Comments must be submitted to FPEP@usda.gov by July 22. For more information, visit https://www.rd.usda.gov/resources/environmental-studies/fpep-environmental-review-comments.
USDA expects to announce final project selections in the coming months.
For more information, visit www.rd.usda.gov/fpep or https://www.farmers.gov/global-food-insecurity.
The Fertilizer Production Expansion Program is one way the Biden-Harris Administration is promoting fair competition, innovation and resiliency across food and agriculture and combating the climate crisis by conserving and protecting our nation’s lands, biodiversity, and natural resources, including soil, air, and water.
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USDA is an equal opportunity provider, employer, and lender.
USDA Rural Development has six offices in Montana – Billings, Bozeman, Great Falls, Helena, Kalispell, and Missoula. To learn more about investment resources for rural areas in Montana, call (406) 585-2587 or visit www.rd.usda.gov/mt.