KEY POINTS
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USDA selected eight fertilizer manufacturing projects representing more than $1.34 billion in proposed investment and about $573 million in proposed federal funding.
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The portfolio includes new facilities, modular ammonia units, plant expansions and upgrades in multiple states.
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USDA estimates the projects could support about 1.08 million tons of annual fertilizer production capacity once operational.
Eight fertilizer manufacturing projects selected by the U.S. Department of Agriculture (USDA) represent more than $1.34 billion in proposed investment, including about $573 million in proposed USDA funding.
In an Oct. 22 announcement, the USDA said the projects would add or expand domestic production capacity for nitrogen, phosphorus, potassium and sulfur fertilizers.
USDA estimates the selected projects could support approximately 1.08 million tons of annual production capacity once operational.
What the USDA Announcement Covers
The announcement covers a mix of suppliers' new construction, expansions and modernization work. The USDA said the funding will "strengthen domestic fertilizer manufacturing, reduce America’s dependence on foreign suppliers, and increase long-term fertilizer availability for American farmers." It did not provide a construction start date or completion schedule for the eight projects.
The Fertilizer Institute estimates that fertilizer supports about half of the world’s food supply. Macronutrients make up most fertilizer production and provide plants with essential building blocks. Secondary nutrients are needed in smaller amounts, while micronutrients are required only in trace quantities. Though small in quantity needed, they are still essential to plant growth.
ConstructConnect Chief Economist Michael Guckes reported this week that US Manufacturing construction starts are down 5.3% for the period January through September 2026 versus the same time period in 2025.
Where Are the Projects Proposed
The proposals span projects in the Midwest, South, West and Pacific Northwest.
TalusAg’s largest multi-site project would deploy 20 modular ammonia manufacturing units across 11 locations in seven states: Iowa, Kentucky, Minnesota, Tennessee, Nebraska, Illinois and South Dakota.
USDA listed a $270.2 million proposed project with about $99.8 million in proposed federal funding.
Other proposals focus on existing facilities, including:
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Peace Valley plans to expand fertilizer manufacturing in Bartow, Florida.
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AdvanSix would modernize and expand an ammonia facility in Hopewell, Virginia.
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PCI Nitrogen would upgrade plants in Pasadena, Texas, and St. Helens, Oregon.
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SUL4R-PLUS Illinois would add a manufacturing line and improve storage and transportation infrastructure in Marissa, Illinois.
The USDA announcement also identified:
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A proposed sulfate-of-potash facility near Carlsbad, New Mexico, from Intrepid Potash.
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Expansions at True Organic Products facilities in California, Oregon and Arizona.
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Two proposed fertilizer plants in Lewis, Kansas, and Fair Oaks, Indiana, from Agriculture Project Holdco.
What the Funding Supports
The projects vary in scale and output. USDA said Intrepid Potash’s proposed $265 million New Mexico facility, including about $139 million in proposed USDA support, could produce approximately 220,000 tons of sulfate of potash annually.
The Peace Valley expansion is projected to produce 250,000 tons of fertilizer products per year, while PCI Nitrogen’s upgrades are expected to support 148,280 tons of annual production.
Other projected capacity includes 130,000 tons of ammonia from TalusAg’s modular units, 100,000 tons of sulfur fertilizer from SUL4R-PLUS Illinois, 84,000 tons of ammonia from AdvanSix and 142,805 tons of fertilizer from True Organic Products.
USDA listed Agriculture Project Holdco’s two facilities as supporting about 4,100 tons of liquid ammonium nitrate annually.
These are project-level estimates reported by USDA, that is, they are not measured production, and they depend on the projects being built and becoming operational.
What Does Selection Mean for Construction
USDA described the projects as selected to move forward through the Fertilizer Investment & Expansion for Long-Term Domestic Supply, or FIELDS, funding process. The department’s announcement lists proposed federal funding amounts. However, it does not establish that all funding has been finalized or disbursed.
The USDA said that "FIELDS emphasizes financially viable, implementation-ready projects with committed private investment, demonstrated market demand, and measurable production outcomes." The agency wrote that the program is "Unlike previous federal fertilizer investments that struggled to reach construction and operation."
The projects include new plants as well as work at existing facilities, but the release did not provide procurement status, construction contracts, permitting milestones or start dates for individual sites. It also did not specify when each project is expected to reach commercial production.
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