§2. Fertilizer for American farmers
This section establishes a grant and direct or guaranteed loan program administered by the Secretary of Agriculture (through the Under Secretary for Rural Development) to assist eligible entities in increasing or expanding the manufacturing, processing, and storage of fertilizer and nutrient alternatives in the United States.
Eligible entities include independently owned and operated for-profit businesses or corporations, nonprofits, producer-owned cooperatives or corporations, certified benefit corporations, Indian Tribes or Tribal organizations, and state or local governments that are physically located in the U.S., comply with relevant regulations, and hold a market share below the fourth-largest in nitrogen, phosphate, potash, or any combination thereof.
In awarding grants and loans, the Secretary prioritizes projects that (1) improve fertilizer production methods and efficient use technologies (including for nutrient alternatives and biostimulants), (2) dedicate additional capacity to U.S. agricultural commodity production, or (3) enhance competition, increase options, and reduce prices or volatility for farmers.
Grant recipients may use funds for up to $100 million per grant (with 1:1 non-Federal matching funds) on eligible activities such as constructing or modernizing facilities; purchasing equipment, land, or working capital; emissions reductions; workforce training; and domestic storage expansions. Loans follow terms of business and industry direct or guaranteed loans under section 310B(g) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)); projects last up to 5 years (extendable).
Recipients must fully repay assistance if the project, company, or most assets are sold or transferred within 10 years of completion to an entity holding the fourth-largest or greater market share in nitrogen, phosphate, potash, or any combination thereof. Funds supplement (not supplant) other sources, with coordination across federal, state, and local agencies; funding uses Commodity Credit Corporation authority under section 5, in addition to other available funds.