$450 Million Louisiana Phosphate Plant Announced

CHS, a leading farmer-owned cooperative, and OCP North America, a subsidiary of the OCP Group, announced August 26 that they are taking a major step to strengthen domestic fertilizer production in the United States. Through a proposed joint venture, the two companies are preparing to build and operate a phosphate fertilizer production facility at the Cornerstone Energy Park in Waggaman, La. It will be the first new phosphate plant built in the United States since 1984.

The new plant, estimated to cost up to $450 million, is expected to produce more that 1 million metric tons of phosphate-based fertilizer annually. Once approved, the project is expected to create approximately 60 permanent, high impact jobs in Jefferson Parish along with 500 construction jobs. The parties estimate that the project will have a total job impact of 924 direct and service support jobs. Subject to project-related and funding approvals, construction is expected to take up to 24 months, with a tentative start-up date of late 2028.

The new fertilizer plant’s expected location within the Cornerstone Energy Park in Waggaman helps ensure access to raw materials and the ability to transport products via the Mississippi River system. Waggaman features a robust terminal and barge infrastructure, with active maritime businesses, including an ADM stevedoring operation, barge fleeting services like Carline Companies and a major barge-dismantling facility operated by Modern American Recycling Services (M.A.R.S.).

Fertilizer Relief

The move is in line with President Donald Trump’s administration’s efforts to re-shore fertilizer supply chains to help farmers and reduce dependence on volatile foreign sources of phosphates. The project has applied for potential funding under the U.S. Department of Agriculture’s newly launched FIELDS program (Fertilizer Investment & Expansion for Long-term Domestic Supply).

OCP North America is a subsidiary of OCP Group of Morrocco, the world’s single largest exporter of phosphates. Tariffs on Moroccan phosphates were lifted on June 29 for a period of eight months to provide relief to American farmers suffering from sky-high input costs.

U.S. phosphate reserves are declining, and today the U.S. imports approximately 40 percent of the phosphate-based fertilizer used to meet farmer demand. The company said the potential to bring this new capacity online could reduce U.S. dependency on imported phosphate-based fertilizer by more than 48 percent, significantly strengthening the domestic fertilizer supply chain.

‘Exciting Moment’

“This is an exciting moment for American agriculture,” said Jay Debertin, president and CEO of CHS. “As a farmer-owned cooperative, we exist to help farmers succeed. Together with OCP North America, we have the opportunity to build the first phosphate fertilizer plant in the U.S. in more than 40 years. This investment has the potential to create more value for our owners by bringing fertilizer production closer to the American farmer and the cooperative network.”

Agricultural analyst Jim Wiesmyer warned that the announcement by itself would not solve the fertilizer price crunch, although it might eventually ease supply concerns.

“Farmers should not interpret the announcement as meaning sharply cheaper phosphate is imminent,” he said in his newsletter on Ag Bull Media. “MAP prices at New Orleans averaged $778 per short ton during the second quarter, up 13 percent from $690 a year earlier, and traded above $800 at points during the quarter. Itafos (a pure-play phosphate company located in Houston, Texas) attributed the increase to supply disruptions related to the Iran conflict, reduced Chinese exports, high sulfur costs and production curtailments by major phosphate manufacturers.”

In connection with the proposed joint venture, the OCP Group will supply phosphoric acid to the facility, drawing on its global phosphate expertise and resources. Finished fertilizer products will be distributed through both OCP North America and CHS, which serves cooperatives, retailers and farmers across the United States through its extensive wholesale and retail crop nutrients network.

“This project represents a milestone in OCP North America’s commitment to serving American agriculture,” said Kevin Kimm, CEO of OCP North America. “Together with CHS, we aim to build lasting infrastructure that strengthens U.S. food security and delivers a reliable, domestically produced supply of the crop nutrients American farmers need.”

Featured photo caption: Special guests at the groundbreaking for a new phosphate fertilizer plant in Louisiana turn shovels full of dirt to mark the occasion. (Photo courtesy of CSH Inc.)