CHICAGO, July 1 (Reuters) – U.S. Agriculture Secretary Brooke Rollins announced $500 million in new funding on Wednesday to expand domestic fertilizer production after the Iran war drove up prices.
The funds will be used to expand existing U.S. fertilizer plants and build new ones, Rollins told reporters during a press conference.
“Our goal is simple. We want fertilizer plants built in America, and we are willing to prioritize it,” Rollins told reporters.
Fertilizer prices have soared since the U.S. and Israel launched the war, as more than 30% of global exports were caught in Iran’s near-total closure of the Strait of Hormuz. U.S. fertilizer imports from Middle East ports impacted by the closure fell to zero in May.
The price surge has heaped pressure on U.S. farmers, a key constituency for President Donald Trump, as they grapple with low grain prices, elevated costs for fuel and other farm inputs like seeds, and trade disruptions from Trump’s tariff battles.
The USDA’s Fertilizer Investment and Expansion for Long Term Domestic Supply, or FIELDS, program will prioritize domestic fertilizer production projects that can supply the market quickly and accelerate those that already have private-sector investment, Rollins said.
The announcement comes after Trump on Monday authorized the temporary suspension of certain duties on phosphate fertilizer imported from Morocco and as the U.S. Federal Trade Commission is investigating a spike in prices.
(Reporting by Karl Plume in Chicago; Editing by Mark Porter)
