Fertilizer market sources unsure about USDA news of financial aid

US fertilizer market sources on Oct. 23 expressed uncertainty about when $3 billion in US Department of Agriculture assistance would become available, and about the impact the funds would have, a day after Agriculture Secretary Brooke Rollins said the USDA would provide them.

"If it's this year, then that should do well for fall, but I'm just not sure when the money comes," a fertilizer trader said.

A fertilizer producer, meanwhile, said he thought "farmers with financial clout will take a portion of the proceeds and prepay some of their inputs, anticipating further price increases."

The USDA is opening its Farm Service Agency offices to provide the funds as the federal government shutdown continues, Rollins said on X, formerly known as Twitter.

"Thanks to the leadership of [President Donald Trump], all 2,100 Farm Service Agency (FSA) offices will be open and staffed across the country to ensure essential services and disaster relief make it to our farmers and ranchers!" Rollins posted.

The USDA said the reopening of the FSA offices is to allow staff to process loan applications, disaster assistance, and conservation contracts that had been stalled since the shutdown began. These payments, funded through existing programs, are critical for many producers managing harvest operations and facing tightening cash flows.

The federal shutdown had prompted the USDA to pause key financial support programs under its FY2026 Lapse of Funding Plan. According to the plan, the agency has suspended processing annual federal Conservation Reserve Program contract payments and Agriculture Risk Coverage/Price Loss Coverage payments, along with "implementation and processing of disaster assistance payments."

These programs typically deliver crucial funding to farmers during October and November, providing financial resources that support fertilizer purchases in preparation for spring planting.

"No demand at all," a trader contacted by Platts, part of S&P Global Energy, said prior to Rollins' announcement. "Farmers are holding their cash for now," he added, highlighting how the payment pause was contributing to an already subdued fertilizer market.

The announcement of the reopening comes as US farmers approach the 2026 planting season under increasing financial pressure. Sources have reported that fertilizer costs remain high while grain margins face continued pressure, creating a challenging environment for agricultural producers to secure necessary inputs.