Summary of HR 8457 — Homegrown Fertilizer Act (Session 119)

Introduction
- Bill: HR 8457
- Title: Homegrown Fertilizer Act
- Purpose: Direct the Secretary of Agriculture to provide grants and direct or guaranteed loans to increase domestic fertilizer production for United States farmers.
- Introduced: April 22, 2026 by Rep. Sorensen (with multiple co-sponsors). Referred to the House Committee on Agriculture.

Key Provisions

1) Definitions and Scope
- Eligible Entity: An entity eligible for a grant or loan under the Act, including various organizational forms (for-profit, nonprofit, producer-owned cooperative, certified benefit corporation) and also Indian Tribes or Tribal organizations, or a State/local government.
- Secretary: Secretary of Agriculture, acting through the Under Secretary for Rural Development.
- United States: Includes 50 states, D.C., and U.S. territories and Indian Tribes.

2) Grants and Loans
- The Secretary must provide grants and direct or guaranteed loans to help eligible entities increase or expand the manufacturing, processing, and storage of fertilizer and nutrient alternatives in the United States.

3) Eligibility Criteria
- Location and Compliance: Projects must be physically located in the United States and comply with all applicable regulations governing fertilizer manufacturing, processing, storage, distribution, and waste management.
- Market Share Constraint: Applicants must certify that they do not hold a market share in nitrogen, phosphate, potash, or combinations thereof that is greater than or equal to the fourth-largest share in the relevant market. This is a competitive-diversity safeguard intended to prevent dominance by a single firm.

4) Priorities for Funding
- Priority is given to projects that:
- Improve fertilizer production methods and efficiency technologies (including innovations in fertilizers, nutrient alternatives, and biostimulants).
- Create additional domestic manufacturing, processing, or storage capacity for U.S. agricultural commodity production.
- Demonstrate improved competition, more options, and reduced prices or price volatility for fertilizer products or nutrient alternatives.

5) Eligible Activities Financed by Grants/Loans
Eligible uses include, but are not limited to:
- Building or acquiring a facility or land.
- Covering predevelopment costs (engineering, professional fees).
- Providing working capital to expand capacity or output.
- Modernizing or expanding existing facilities, including on-site construction.
- Purchasing or upgrading processing/manufacturing equipment.
- Developing and installing equipment/technology to improve processing, worker conditions, or safety.
- Installing/updating emissions-reducing or efficiency-enhancing equipment.
- Ensuring compliance with packaging, labeling, and regulatory requirements.
- Compliance with occupational and safety regulations.
- Workforce recruitment, training, apprenticeships, and retention.
- Increasing domestic storage of fertilizer or nutrient alternatives.
- Other activities deemed appropriate by the Secretary.

6) Grant Amounts and Matching
- Grant cap: Each grant may not exceed $100,000,000.
- Cost sharing: Grantees must provide non-Federal matching funds equal to the grant amount (1:1 match).

7) Loan Terms
- Loans under this Act use terms and conditions substantially the same as those for a business and industry direct or guaranteed loan under section 310B(g) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)).

8) Duration and Extensions
- Base project period: Grants/loans may cover projects up to 5 years.
- Extensions: The Secretary may extend the period if appropriate.

9) Coordination and Non-Supplanting
- Federal funds under this act must supplement, not supplant, funding from other Federal, State, or local laws.
- The Secretary must coordinate with other federal agencies (e.g., Department of Energy) and with state/regional/local entities to allow joint consideration of proposals under relevant authorities.

10) Ownership Change Condition (Repayment Trigger)
- As a condition of receiving a grant or loan, if any project-associated company or facility is sold or undergoes a change of ownership within 10 years after project completion to an entity with a market share at least as large as the fourth-largest in its market, the recipient must repay the grant or loan in full.

11) Funding Authority
- The Secretary may use authority under the Commodity Credit Corporation Charter Act to transfer funds from the CCC’s available borrowing authority to carry out this section, as determined appropriate.

Potential Impacts and Implications

• Purpose-driven shift toward domesticizing fertilizer production: Aims to reduce reliance on international suppliers and strengthen domestic agricultural supply chains.
• Competition and pricing: By limiting market concentration and encouraging new entrants, the bill seeks to foster competition and potentially reduce prices and volatility for farmers.
• Environmental and safety considerations: The Act incentivizes modernizing facilities with emissions-reducing and efficiency-improving technologies, potentially improving environmental footprints and worker safety.
• Workforce and regional benefits: Support for workforce development and domestic storage/storage capacity could create jobs and improve regional fertilizer resilience.
• Timeline and funding: Grants up to $100 million each, with a 5-year project horizon and required matching funds; contingent on coordination with other agencies and regulatory compliance.

Notes for Stakeholders
- Eligible applicants include a broad range of entities, from private firms to tribal governments and state/local governments.
- The 10-year post-completion ownership restriction is a significant compliance and monitoring aspect.
- Funding relies partly on CCC authorities, signaling integration with existing USDA and federal credit programs.