USA to invest more than R$ 1 billion in fertilizer production

The US Department of Agriculture (USDA) will invest US$250 million (R$1.2 billion) in the production of fertilizers in the United States. The announcement was made on the 11th.

According to the USDA, the goal is to reduce input costs, which have been strongly affected by the sanctions imposed on Russia and stimulate competition in the country.

These resources come from a credit fund created in September 2021 for emergencies in the market, called the Commodity Credit Corporation.

“Recent pandemic-caused disruptions to the supply chain, as well as the effects of the war, have shown the importance of investing in domestic fertilizer production,” said US Secretary of Agriculture Tom Vilsack.

According to Vilsack, fertilizer prices in the United States have more than doubled since last year due to the pandemic, limited mineral supply, and high energy costs.

Currently, the country is the second or third-largest importer of each of the three main fertilizer components: nitrogen, phosphorus, and potassium.

Major fertilizer producers include China, Russia, Canada, and Morocco; Belarus also supplies a significant share of potash.

Program

According to the USDA, the funds will be used to assist independent fertilizer producers in their efforts to increase competition in a “highly concentrated market.”

The resource will also only be available to American businesses; the USDA’s goal is to achieve independence and create jobs in the United States.

The program, still according to the USDA, will privilege innovative technologies and formulas. The idea is to ‘drive the next generation of fertilizers.’ The more sustainable, the greater the chance of the company receiving funds.

More details will be announced this summer, before the harvest.

“Concentrated market structures and potentially anti-competitive practices punish US farmers, businesses, and consumers, who have to face high costs, making life more difficult for those who grow our food,” says Secretary Vilsack.

Source: Canal Rural

To read the full original article, please go to:

https://www.canalrural.com.br/noticias/agricultura/estados-unidos-vao-fabricar-fertilizantes/

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