§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), using Commodity Credit Corporation authority under 15 U.S.C. 714c, 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, nonprofit organizations, producer-owned cooperatives or corporations, certified benefit corporations, Indian Tribes or Tribal organizations, and state or local governments that are physically located in the United States (i.e., the 50 states, District of Columbia, territories, and Indian Tribe territories), comply with applicable regulations, and hold a market share below the fourth-largest in nitrogen, phosphate, potash, or combinations thereof.
In awarding grants and loans, the Secretary prioritizes projects that (1) improve fertilizer production methods and efficient use technologies to promote innovation in fertilizers, nutrient alternatives, and biostimulants; (2) dedicate additional capacity to U.S. agricultural commodity production; or (3) improve competition, increase options, and reduce prices or volatility of fertilizer products or nutrient alternatives for farmers.
Eligible activities include constructing or acquiring facilities; covering predevelopment costs; providing working capital; modernizing or expanding facilities and equipment; installing emissions-reduction, efficiency, or safety technologies; ensuring regulatory compliance; workforce development; increasing storage; and other Secretary-approved activities.
Grants are limited to $100 million per award with 1:1 non-Federal matching funds; 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)); and projects may last up to five years, with possible extensions.
Recipients must fully repay grants or loans if the developed company, facility, or assets are sold, transferred, or otherwise change ownership within 10 years to an entity holding a fourth-largest or greater market share in relevant fertilizers. Funds must supplement, not supplant, other sources, with coordination among federal, state, regional, and local agencies.