Homegrown Fertilizer Act
Sen. Klobuchar Introduces Homegrown Fertilizer Act to Lower Costs for Farmers
The Homegrown Fertilizer Act is currently in the early stages of the legislative process. It was recently sent to the Senate Committee on Agriculture, Nutrition, and Forestry for review. No further actions are scheduled at this time, and the bill is waiting for the committee to decide on its next steps.
Legislative Progress
Key Points
- The bill directs the Secretary of Agriculture to provide grants (up to $100 million each) and direct or guaranteed loans to help companies increase domestic fertilizer production, processing, and storage. This aims to reduce U.S. dependence on foreign fertilizer supplies.
From policy text
“The Secretary shall provide grants and direct or guaranteed loans to assist eligible entities in increasing or expanding the manufacturing, processing, and storage of fertilizer and nutrient alternatives in the United States.”
View in full text - Only independent, smaller companies can qualify. Large corporations that hold a market share equal to or greater than the fourth-largest player in nitrogen, phosphate, or potash markets are excluded, which is designed to boost competition and prevent further consolidation.
From policy text
“certify to the Secretary that the entity does not hold a market share (in manufacturing, processing, or distribution) greater than or equal to the entity that holds the fourth-largest share of that market for nitrogen, phosphate, potash, or any combination of thereof.”
View in full text - Funds can be used for a wide range of activities, from building new facilities and buying equipment to workforce training and installing technology that reduces emissions or improves air and water quality.
From policy text
“installing or updating equipment that reduces emissions, increases fertilizer use efficiency, or improves air and water quality”
View in full text - Grant recipients must provide dollar-for-dollar matching funds, and if a funded facility is sold to a major market player within 10 years, the full grant or loan must be repaid. This anti-consolidation provision protects the public investment.
From policy text
“the grant or loan recipient shall repay the grant or loan in full if any company or facility developed through the project using the grant or loan, or most or all of the assets of such company or facility, is sold, is transferred, or otherwise changes ownership, during the 10-year period beginning on the completion of the project, to an entity that holds a market share (in manufacturing, processing, or distribution) greater than or equal to the entity that holds the fourth-largest share of that market”
View in full text - The bill allows the Secretary to use Commodity Credit Corporation funds to pay for the program, meaning it could be implemented without a separate congressional appropriation. Priority goes to projects that improve competition, reduce fertilizer prices, or promote innovation.
From policy text
“the Secretary may use the authority under section 5 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c) to transfer such sums of the funds of the Commodity Credit Corporation from available borrowing authority as the Secretary determines to be appropriate to carry out this section.”
View in full text
Impact Analysis
Personal Impact
Milestones
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Introduced in Senate
Related News
3 articles
Midwest senators introduce fertilizer bills to boost transparency, expand U.S. production
The Homegrown Fertilizer Act, sponsored by U.S. Senators Roger Marshall and Amy Klobuchar, would establish USDA grants and loans to expand domestic fertilizer production and storage capacity to reduce reliance on global supply chains and lower input costs for farmers.
Senators Marshall & Klobuchar Introduce Bipartisan Bill to Boost Domestic Fertilizer Production
The legislation prioritizes investments in small and mid-sized domestic fertilizer producers, encourages innovation in next-generation nutrient alternatives, and increases competition to help lower costs for farmers across the country.
Klobuchar Introduces Bipartisan Legislation to Lower Fertilizer Costs
The Homegrown Fertilizer Act will create a grant and loan program to expand domestic fertilizer production. Senator Marshall stated the bill invests in American manufacturing and puts more options in farmers' hands going into the spring growing season.
Source Information
Document Type
Congressional Bill
Official Title
Homegrown Fertilizer Act
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.