Summary of Bill: S.4148 – Homegrown Fertilizer Act (119th Congress)

Purpose
- To direct the Secretary of Agriculture to provide grants and direct or guaranteed loans to increase domestic fertilizer production for United States farmers.
- Aims to boost domestic manufacturing, processing, and storage of fertilizer and nutrient alternatives, reducing reliance on foreign sources and promoting price stability and competition.

Key Provisions

1) Definitions and Scope
- Eligible Entity: Any entity eligible for a grant or loan under the section (see eligibility criteria below).
- Secretary: Secretary of Agriculture, acting through the Under Secretary for Rural Development.
- United States: Includes the 50 states, District of Columbia, U.S. territories, and Indian Tribes.
- The bill focuses on activities within the United States.

2) Grants and Loans
- The Secretary shall provide grants and direct or guaranteed loans to eligible entities to assist with increasing or expanding the manufacturing, processing, and storage of fertilizer and nutrient alternatives in the United States.

3) Eligible Entities and Eligibility Requirements
- Eligible Entities include:
- Independently owned and operated for-profit businesses or corporations.
- Nonprofit organizations.
- Producer-owned cooperatives or corporations.
- Certified benefit corporations.
- Indian Tribes or Tribal organizations.
- State or local governments.
- Eligibility Requirements:
- Must be physically located within the United States.
- Must comply with all federal, state, tribal, and local regulations governing fertilizer manufacturing, processing, storage, distribution, and waste management.
- Must certify that they do not hold a market share greater than or equal to the fourth-largest market share holder in nitrogen, phosphate, potash, or combinations thereof (i.e., no monopoly-like market dominance).

4) Priorities for Grants and Loans
- Preference given to projects that:
- Improve fertilizer production methods and efficiency technologies, promoting innovation in fertilizers, nutrient alternatives, and biostimulants.
- Expand capacity that will be dedicated to U.S. agricultural commodity production.
- Demonstrate improved competition, more options for farmers, and reduced prices or volatility of fertilizer products or nutrients.

5) Eligible Activities
- Projects may use funds for:
- Building a new facility, purchasing an existing facility, or acquiring land.
- Predevelopment costs (engineering, etc.).
- Working capital to expand capacity or outputs.
- Modernizing or expanding existing facilities, including new buildings on site.
- Purchasing or upgrading processing/manufacturing equipment.
- Developing and installing equipment to improve processing, worker conditions, or safety.
- Installing/updating equipment to reduce emissions, increase use efficiency, or improve air/water quality.
- Compliance with packaging, labeling, occupational, and safety regulations.
- Workforce recruitment, training, apprenticeships, and retention.
- Increasing domestic storage of fertilizer or nutrient alternatives.
- Other appropriate activities as determined by the Secretary.

6) Grant Amounts and Matching
- Grant Cap: Each grant may not exceed $100,000,000.
- Non-Federal Matching: Recipients must provide non-Federal matching funds equal to the amount of the grant.

7) Loan Terms
- Loans under this section follow the same terms and conditions as the business and industry direct or guaranteed loan under section 310B(g) of the Consolidated Farm and Rural Development Act, with standard federal loan practices applying.

8) Duration and Extensions
- Project duration: Grants or loans may cover projects not longer than 5 years.
- Extensions: The Secretary may extend the project period if appropriate.

9) Combination and Non-Supplanting of Funds
- Funds provided under this section must supplement, not supplant, other federal, state, or local funds.
- The Secretary must coordinate with other federal agencies (e.g., Department of Energy) and state/local authorities to allow bundled proposals to be considered under relevant authorities.

10) Conditions on Grant/Loan Recipients
- As a condition of receipt, any grant or loan recipient must repay the grant or loan in full if, within 10 years after project completion, any company or facility developed with the funds is sold or transferred to an entity that holds a market share at or above the fourth-largest share in nitrogen, phosphate, potash, or combinations thereof.

11) Funding Authority
- The Secretary may use funds from the Commodity Credit Corporation (CCC) Charter Act authorities (including transfer of funds from the CCC) as needed to carry out this section.

Who is Affected
- Eligible entities (for-profit, nonprofit, cooperatives, tribes, and state/local governments) seeking to expand domestic fertilizer capacity.
- U.S. farmers and agricultural producers who rely on fertilizer, potentially benefiting from increased domestic supply, competition, and price stability.

Timeline and Procedural Aspects
- Introduced in Senate: March 19, 2026.
- Referred to Committee on Agriculture, Nutrition, and Forestry.
- No specified enactment date; subject to committee action, Senate passage, House action, and presidential signature.

Notes
- The bill emphasizes domestic production and market diversification, with an emphasis on competitive practices and environmental/safety compliance.
- It leverages existing federal loan programs and CCC funding authority to finance projects up to $100 million per grant, with a 1:1 non-Federal match.