USDA awards $140M in grants to help lower food prices

In the days leading up to the presidential election on Nov. 5, the U.S. Department of Agriculture (USDA) announced over $140 million in grants aimed at helping farmers, increasing competition, and lowering food costs.

The USDA awarded more than $120 million to fund six fertilizer production projects in Arkansas, California, Illinois, South Dakota, Washington, and Wisconsin through the Fertilizer Production Expansion Program (FPEP). This program, funded by the Commodity Credit Corporation, provides grants to independent business owners to help modernize equipment, adopt new technology, build production plants, and more.

FPEP was created to address challenges facing U.S. farmers due to rising fertilizer prices, which more than doubled between 2021 and 2022 due to factors such as the war in Ukraine and a lack of competition in the industry, according to the USDA. To cover these increased costs, farmers have raised food prices.

To date, the USDA has invested over $368 million in 67 projects through FPEP, creating new jobs and boosting domestic fertilizer production across the country.

The USDA also announced $20.2 million in awards for 26 projects through the Local Meat Capacity (Local MCap) grant program, which aims to expand processing capacity within the meat and poultry industry.