North American producers, who had already been affected by the rise in fertilizers since last year, began to have even higher costs after the invasion of Ukraine by Russia.
To minimize these costs in the field, the USDA (United States Department of Agriculture) announced, this Friday (11), a plan to support independent fertilizer producers.
The money will come from a commodity credit fund, set aside for periods of market disruption. The amount of the subsidy will be US$ 250 million (R$ 1.2 billion) this summer.
For Agriculture Secretary Tom Vilsack, recent supply chain disruptions, due to the pandemic and the current war, have shown how important it is to invest in the agricultural supply chain in the United States.
According to Usda, the United States is very dependent on fertilizer imports, being the second or third largest world importer in the three main fertilizer components. China, Russia, Canada, Morocco and Belarus are the main world producers.
To receive the advertised subsidies, the fertilizer producer needs to be independent and not linked to current large suppliers. Usda wants to increase market competition.
In addition, the fertilizer must be produced in the United States and by American companies, with the aim of reducing foreign dependence.
Usda also wants the project to be innovative and to prepare the country for the new generation of fertilizers. It must be sustainable, reducing the impact of greenhouse gases in transport and production, seeking renewable energy sources.
Production projects must focus on the farmer, providing support and opportunities for agricultural commodity producers in the United States.
The government wants to improve competition in the agricultural market, and is seeking information on the impacts of concentration on fertilizers, seeds and other inputs, according to a USDA statement.
For Vilsack, concentration and anti-competitive practices leave farmers, companies and consumers under the effect of high costs and with fewer choices.​
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