Alltech awarded $2.34 million USDA grant to expand biological fertilizer production in Kentucky

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Alltech, a global leader in agriculture, has been awarded a $2.34 million grant from the USDA’s Fertilizer Production Expansion Program (FPEP) to bolster Alltech Crop Science’s (ACS) biological fertilizer production. The funding will support the construction of a new $4.6 million, 15,000-square-foot manufacturing facility dedicated to producing biological fertilizers and crop inputs.

Located on the campus of Alltech’s global headquarters in Nicholasville, Kentucky, this state-of-the-art facility — ACS’s first U.S. production plant dedicated solely to crop science — will produce more than 66,000 gallons of biological fertilizers per shift per month and create six new full-time jobs. Made with beneficial microorganisms, biofertilizers improve soil fertility, stimulate root development, enhance nutrient uptake and support a healthier soil microbiome. These biological solutions offer farmers an environmentally responsible alternative to traditional chemical fertilizers, helping reduce reliance on synthetic inputs.

Modeled after the company’s crop science production facilities in Brazil and Spain, the new manufacturing plant will produce more than 30 products that help farmers enhance soil and crop vitality and reduce chemical inputs.

The USDA’s $500 million FPEP initiative was launched in 2022 in response to supply chain disruptions and rising fertilizer prices. It aims to increase the production, availability and affordability of domestic fertilizer and nutrient alternatives and reduce reliance on imported synthetic fertilizers. The ACS project was selected for its innovative approach to soil and crop health.

“This USDA grant is a major step forward for farmers seeking natural, science-based solutions,” said Dr. Steve Borst, vice president of Alltech Crop Science. “By expanding our production capabilities here in Kentucky, we are investing in our local economy, providing farmers with high-quality biological solutions that improve soil and crops and contributing to a more resilient agricultural system.”

ACS is the agronomic division of Alltech, which leverages unmatched expertise in microbial fermentation and nutrigenomic research to produce science-backed biological solutions that foster soil balance, maximize crop yields, improve plant health and resilience, and promote stewardship and value creation across the food chain.

In addition to helping U.S. farmers reduce their dependence on imported fertilizers, the new crop science facility enables ACS to offer more of its natural agronomic technologies and fertilizers both domestically and internationally. The project aligns with Alltech’s vision of “Working Together for a Planet of Plenty,” which unites the agri-food community in creating science-based solutions that provide nutrition for all, revitalize local economies and replenish the planet’s natural resources.

“We are proud to expand our presence here in Kentucky, where Alltech was founded and continues to thrive,” said Dr. Mark Lyons, president and CEO of Alltech. “Our deep expertise in microbial fermentation has revolutionized crop nutrition, delivering solutions that improve soil and plant health, activate plants’ natural defense systems, boost productivity and reduce agriculture’s environmental footprint. This investment in U.S. production scales the accessibility of our natural solutions, contributing to the long-term health of our soils, crops and ecosystems, and human nutrition and well-being.”

Alltech’s grant application was supported by numerous Kentucky leaders, including Gov. Andy Beshear, Congressman Andy Barr and Sen. Mitch McConnell, as well as local leaders Nicholasville Mayor Alex Carter and Jessamine County Judge-Executive David West.

“Kentucky’s manufacturing and agriculture sectors have been crucial in contributing to our state’s recent economic momentum,” said Gov. Beshear. “We continue to see global companies like Alltech invest and reinvest in the commonwealth and our communities, providing quality jobs for Kentuckians. I want to thank Alltech’s leaders for their years of commitment and investment in Kentucky and congratulate the company on receiving this award from the USDA. I look forward to seeing Alltech’s successful expansion in Nicholasville.”

“Alltech is a global leader in agricultural innovation and the largest employer in the city of Nicholasville,” said Congressman Andy Barr, who sent a letter of support to the USDA for this federal grant application. “Expanding Alltech’s presence with this grant is a huge win for Jessamine County. I want to commend Dr. Mark Lyons and the Alltech team for working with us in a multi-year process to get this grant. So much work went into getting to the finish line, and now we have the resources to boost presence, production, and jobs in the region.”

“Alltech Crop Science’s expansion is a win for Kentucky agriculture and for the future of sustainable farming in America,” Carter said. “This investment brings a new facility that will create good jobs, drive innovation and provide our farmers with the tools they need to thrive. I’m proud to support a project that strengthens food security and promotes innovation right here in Nicholasville, Kentucky.”

“We are exceedingly pleased for this expansion, for the opportunity it provides for employment and betterment for Jessamine County,” West said. “We were honored to support Alltech in this endeavor.”

Alltech plans to break ground on the new crop science facility in October.