The United States Department of Agriculture (USDA) awarded Agtegra Cooperative a grant through the Fertilizer Production Expansion Program (FPEP). The grant enables awardees to increase or expand the manufacturing and processing of local fertilizer and nutrient alternatives for farmers.
Agtegra Cooperative in South Dakota is receiving a $3 million grant to build a new fertilizer manufacturing building and install two storage tanks with a combined capacity of 950,000 gallons. The project will also install a 500,000-gallon storage tank at each of its facilities in McLauglin and Kimball. The project is expected to increase fertilizer production from 26,175 tons to 53,270 tons per year.
Through this matching grant, Agtegra will be investing a total of $6 million in expanding its Prescription Agronomics business division. Prescription Agronomics consists of a starter fertilizer manufacturing facility located in Ipswich. This expansion will double the plant’s manufacturing capacity by expanding production and storage space, including the addition of a new container packaging line and additional warehouse storage. The funds will also be used to add one 500,000-gallon liquid fertilizer storage tank at each of Agtegra’s Kimball and McLaughlin agronomy facilities.
“Prescription Agronomics is an integral part of Agtegra Cooperative’s fertilizer business and the Ipswich community,” said Agtegra CEO Jason Klootwyk. “We look forward to starting construction on our Prescription Agronomics expansion project in 2025. Agtegra appreciates the financial support from USDA for this fertilizer expansion project, as well as all of the support from our strategic partners that assisted and supported Agtegra’s application for this grant.”
Agtegra partnered with the South Dakota Value Added Agricultural Development Center to apply for the FPEP grant and received letters of support from the Ipswich Development Corporation, mayor of Ipswich, South Dakota Department of Agriculture and Natural Resources, South Dakota Agri-Business Association, South Dakota Association of Cooperatives, South Dakota Corn Utilization Council, South Dakota Soybean Checkoff and South Dakota Soybean Association.
“The Ipswich Development Corporation is supportive of this project that will further Ipswich’s economic development,” said Ipswich Development Corporation President Scott Kilber. “We’re excited for the opportunity to expand this business in our rural community.”
In total, USDA is awarding over $120 million to fund six fertilizer production projects in Arkansas, California, Illinois, South Dakota, Washington and Wisconsin.
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