By Scout Nelson
Across the Midwest, efforts are rising to reduce synthetic fertilizer use and increase local production. North Dakota has taken the lead by offering strong incentives for both farmers and producers.
In response to growing concerns about rising fertilizer prices, supply chain issues, and environmental impacts, North Dakota lawmakers passed key policies in 2023. These measures aim to cut farming costs, protect water quality, and reduce greenhouse gas emissions.
The most notable step was North Dakota’s $125 million plan under HB 1546. This program supports projects that produce nitrogen fertilizers using water electrolysis — a process that uses water and renewable energy instead of natural gas. This method promises a cleaner way to make fertilizers while lowering transport costs and boosting the rural economy.
However, despite its potential, the program faced challenges. The main grant recipient later withdrew due to falling fertilizer prices and changes in federal hydrogen tax credits. Still, the move showed the state’s commitment to sustainable agriculture.
At the same time, states like Nebraska and Minnesota introduced incentives encouraging farmers to cut synthetic nitrogen use. Nebraska’s Nitrogen Reduction Incentive Act offers $10 per acre to farmers reducing fertilizer use by at least 15 percent. Similarly, Minnesota’s new law provides payments for verified fertilizer reductions.
These efforts reflect a broader push in the Midwest to make farming more sustainable while keeping production high. Synthetic nitrogen fertilizers are crucial for crop yields but also cause emissions and water pollution. They remain one of the largest expenses for farmers.
Federal support has also played a role. The U.S. Fertilizer Production Expansion Program invested nearly $500 million in 31 projects across 11 Midwest states. One notable project in Iowa opened in 2025, producing green ammonia with renewable energy.
With these combined state and federal actions, North Dakota stands out in pushing for a future where farmers balance productivity with environmental care and cost control.
Photo Credit: gettyimages-fotokostic
Categories: North Dakota, Crops, Corn, Soybeans