CHS and OCP North America plan to build the first phosphate fertilizer plant in the U.S. in more than 40 years.
The cooperative and the subsidiary of the OCP Group, a Moroccan enterprise, have announced that they are targeting Cornerstone Energy Park in Waggaman, Louisiana for the facility, which would produce more than 1 million tons a year of phosphate-based fertilizer.
“The potential to bring this new capacity online could reduce U.S. dependency on imported phosphate-based fertilizer by more than 48%, significantly strengthening the domestic fertilizer supply chain,” a press release says. The two entities have proposed a joint venture to advance the project and anticipate an investment of “up to” $450 million.
“This is an exciting moment for American agriculture,” said Jay Debertin, president and CEO of CHS. “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.”
Under the proposed joint venture, “the OCP Group will supply phosphoric acid to the facility, drawing on its global phosphate expertise and resources,” according to the news release. “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.”
The location of the facility “helps ensure access to raw materials and the ability to transport products via the Mississippi River system,” the release says.
“This project represents a milestone in OCP North America’s commitment to serving American agriculture,” Kevin Kimm, CEO of OCP North America, said in the release. “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.”
“Once approved, the project is expected to create approximately 60 permanent, high impact jobs in Jefferson Parish along with 500 construction jobs,” the release says. “The parties estimate that the project will have a total job impact of 924 direct and services-support jobs. This is expected to bring real, positive economic and community impact to the state of Louisiana. Subject to project-related and funding approvals, construction is expected to take up to 24 months.”
Increasing domestic capacity has been a goal of the Trump administration as it tries to address elevated fertilizer prices. In July, the administration announced a $500 million fertilizer grant program, just days after President Donald Trump suspended duties on phosphate shipments from Morocco, a move that had been sought by grower groups.
CHS and OCP’s release says the proposed project “aligns closely with the U.S. government’s priority to expand U.S. fertilizer production capacity to support America’s farmers. Reflecting this, an application has been submitted for potential funding through [USDA’s] Fertilizer Investment & Expansion for Long-term Domestic Supply (FIELDS) program.”
Average prices for diammonium phosphate (DAP) in the Corn Belt region “increased from $600-$700 per ton in 2024 and the first half of 2025 to around $850 per ton in the fall of 2025,” according to a farmdoc daily analysis. “Prices have increased from around $700 per ton in the early part of 2026 to current levels of around $850 per ton.”
More information about the project is here.
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*Sourced from Agri-Pulse.
