Recently, USDA announced USD52.6m in awards under the Fertilizer Production Expansion Program (FPEP), which will fund 17 new projects to boost domestic fertilizer manufacturing, support innovative fertilizer technologies, and help lower costs for farmers.

FPEP is funded by USDA’s Commodity Credit Corporation and is part of a government-wide effort to spur domestic competition and combat an increase in fertilizer costs caused by the war in Ukraine.

“With President Biden’s leadership, USDA is creating a resilient, sustainable, and competitive agricultural economy, which allows farmers to continue doing what they do best by growing food for the rest of the world. Through a farmer-focused commitment, we will continue to build on our efforts to lower costs, bring made-in-America jobs to rural communities, and strengthen the agricultural supply chain and market opportunities to the benefit of producers,” U.S. Department of Agriculture (USDA) Secretary Tom Vilsack declared.

Fertilizer Production Expansion Program

To boost domestic fertilizer production and give American farmers more options while also generating jobs in rural areas, the USDA allocated USD500m under the FPEP in 2022. USDA expanded FPEP financing to up to USD900m in June 2023 in response to high funding demand.

For the program’s first two rounds, more than 350 businesses submitted proposals totaling USD3bn to the USDA. With the most recent announcement included, USDA has awarded 33 projects totaling over USD121m since the program’s announcement almost eighteen months ago. USDA is seeking public input on four projects through November 15, 2023, and anticipates announcing more project selections in the upcoming months.

In FY 2023, Consumption of Fertilizers Worldwide is Expected to Recover

IFA’s “Public Summary Medium-Term Fertilizer Outlook 2023 – 2027” states that global fertilizer consumption is predicted to rebound by 4% in FY 2023 to 192.5m metric tons, which is just above the level of 191.8m metric tons in FY 2019. It is anticipated that N use will recover by 3% to 109m tons, and P and K by 5% to 46 and 37m metric tons, respectively. All three nutrient consumption is expected to stay below record FY 2020 levels but rebound to or surpass FY 2019 levels.

Lower fertilizer affordability is the main factor behind the contraction in fertilizer consumption around the world between FY 2020 and FY 2022. Globally, fertilizer use decreased by close to 3% in FY 2021, reaching 194.7m metric tons, and by close to 5% in FY 2022, reaching 185.1m metric tons. Altogether, global fertilizer use was in FY 2022 15m metric tons lower than the record level of 200.2m metric tons reached in FY 2020.

“The contraction in fertilizer use in FY 2021 and FY 2022 combined is estimated at 7.6%, close to the 8.4% drop of FY 2008. While the primary factor driving fertilizer use down at that time was poor fertilizer affordability, in FY 2021-FY 2022, a secondary factor related to disruptions in K supply arose. Similar to the 2008 situation, demand destruction was greater for K than for P, and greater for P than for N. K consumption dropped by 12% in FY 2022 vs. FY 2020, compared to 9% for P and 5% for N. These differentiated declines by nutrient reflect the importance of N for crop yields, as well as the soil capacity to retain P and K. Farmers are more likely to skip P and K applications than N applications, particularly if applications of P and K have been adequate in previous years,” the International Fertilizer Association report also reveals.

P Amendments in the Potato Crops Can Account for 20–30% of the Total Production Costs

There are over 2700 potato fields in the Northeast U.S. and potato growers often over-apply nitrogen (N) fertilizer to ensure against loss of yield.

Tuber quality is crucial for processed potatoes, therefore growers must balance large yields with superior quality. The quest for fresh insights into potato production is centered around a few concerns about quality and productivity. The potato crop is the one that uses the most fertilizer, which drives up expenses.

According to experts, potatoes have a low efficiency of phosphorus usage, requiring considerable amounts of P amendments to be added every season. Twenty to thirty percent of the overall cost of producing potatoes can be attributed to these P modifications. Despite their greater prices, farmers are reportedly still applying additional P as a low-cost crop insurance.

A variety of mineral P fertilizers are commonly used in potato production including normal (ordinary) superphosphate (20% P), triple (concentrated) superphosphate (46% P), diammonium phosphate (46% P), and monopotassium phosphate (53% P).

Potassium (K) is the nutrient that the potato plant absorbs the most. K stimulates enzymes and aids in plant stress adaptation. It is necessary for respiration, nitrogen metabolism, and starch production. It is also crucial for preserving the vitality and tone of plants.

Three forms of potassium are available: nitrate, sulfate, and chloride. Because chloride is more concentrated and less expensive than nitrate, it is the form that is most frequently utilized. Like K, chlorine is taken by plants and is regarded as a micronutrient.

Many metabolites, such as proteins, co-enzymes, prosthetic groups, vitamins, amino acids, and secondary metabolites, require sulfur (S) for their formation. Regardless of the amount and kind of S fertilizer used, there was an increase in tuber production and P uptake.

“Sulfur deficiency has become a problem in agriculture over the last decades in many areas, and sulfur fertilization is required to ensure the yield, quality, and health of crops,” the Universidade Federal Rural do Semi-Árido experts wrote in one of their papers.