Photo by Brien Aho

USDA Secretary Brooke Rollins announced $500 million in new funding on Wednesday to expand domestic fertilizer production, responding directly to price shocks caused by Iran’s near-total closure of the Strait of Hormuz. The funding targets existing plant expansions and new construction through the new FIELDS program (Fertilizer Investment and Expansion for Long Term Domestic Supply), with priority given to projects that can deliver supply quickly and carry existing private-sector investment. The closure has cut U.S. fertilizer imports from Middle East ports to zero as of May, disrupting more than 30% of global fertilizer exports. The move follows President Trump’s Monday suspension of phosphate fertilizer duties from Morocco and an active FTC investigation into the price spike.

The FIELDS program is a meaningful step toward stabilizing one of the most volatile input cost variables farmers have faced in recent years. As domestic supply grows and import alternatives expand, there is real potential for price relief heading into the 2026/2027 season. For row-crop producers already protected by strong coverage plans, this added layer reinforces the kind of operating environment where risk management pays off and planning ahead matters.

Read more on the USDA announcement from Successful Farming.