U.S. Department of Agriculture unveils $140 million in agribusiness grants

The U.S. Department of Agriculture (USDA), represented by Deputy Secretary Xochitl Torres Small, has announced the allocation of over $140 million in grants to boost domestic production of fertilizer and expand processing capacities in the meat and poultry sectors. This federal funding is directed primarily at helping farmers and agribusinesses increase production, improve competition, and lower costs in the agricultural supply chain, ultimately benefiting consumers with more competitive prices for both fertilizer and food products.

Fertilizer production expansion grants: targeted investments across six states

The USDA’s Fertilizer Production Expansion Program (FPEP) is a central component of this funding package, allocating over $120 million to support six fertilizer production projects across Arkansas, California, Illinois, South Dakota, Washington, and Wisconsin. This initiative is aimed at mitigating fertilizer costs by expanding domestic production capacity, modernizing infrastructure, and promoting eco-friendly practices.

Among the significant beneficiaries is LSB Industries LLC, based in El Dorado, Arkansas, which has received $77 million to increase the output of its urea and ammonium nitrate facility to 580,000 tons annually. This expansion will enhance fertilizer availability for approximately 450,000 producers across four states and generate 20 new jobs.

Betley Farms LLC in Wisconsin will utilize a $3.5 million grant to implement advanced nutrient concentration systems that transform waste into valuable fertilizers, with an expected yield of 39 million gallons annually and the creation of nine new jobs. Meanwhile, Agtegra Cooperative in South Dakota will receive $3 million to build a new fertilizer manufacturing facility, aiming to increase its production capacity from 26,175 tons to over 53,000 tons per year.

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Local meat capacity grants: expanding processing to meet demand

In addition to FPEP awards, USDA has designated $20.2 million through the Local Meat Capacity (Local MCap) grant program, distributing funds across 26 projects aimed at strengthening small and mid-sized meat and poultry processors. This funding supports equipment purchases and facility upgrades that increase processing efficiency, create jobs, and provide local producers with additional market avenues.

Haen Meats, based in Wisconsin, will invest its Local MCap funding in modern processing equipment, enhancing capacity and engagement with over 120 local producers. Similarly, Granite State Packing Inc. in New Hampshire will use its grant to purchase new slaughter, cutting, and packaging equipment, which is expected to increase processing capacity and benefit 100 local producers, along with creating 15 new jobs.

The Montana Premium Processing Cooperative will also leverage Local MCap funding to enhance its production capacity by 225% through investments in new equipment, providing crucial tribal slaughter support and regional employment opportunities.

Strengthening agribusiness and supply chains with federal support

Since its inception, the FPEP has committed over $368 million in funding to projects that support the U.S. fertilizer sector. By increasing competition and enhancing domestic supply chains, these grants address a critical need in the agricultural industry, where fertilizer prices have fluctuated significantly due to global market instability and supply disruptions. By expanding local processing capacities in both fertilizer and meat production, these USDA-backed projects align with the goal of reinforcing the national food supply chain while creating economic opportunities in rural areas.

This infusion of federal support reflects a broader USDA mission to drive growth across agricultural markets, providing a foundation for local economies to thrive while supporting farmer income and sustainability goals.