SenateS. 5461119th Congress
Strategic Fertilizer Reserve Act of 2026
Full Text
Official text as published. Use Ctrl+F / Cmd+F to search within the document.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5461 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 5461
To require a study to evaluate the feasibility of establishing a
Strategic Fertilizer Reserve for the storage and management of
fertilizer products and fertilizer product inputs, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 23, 2026
Mr. Schumer (for himself and Ms. Klobuchar) introduced the following
bill; which was read twice and referred to the Committee on
Agriculture, Nutrition, and Forestry
_______________________________________________________________________
A BILL
To require a study to evaluate the feasibility of establishing a
Strategic Fertilizer Reserve for the storage and management of
fertilizer products and fertilizer product inputs, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strategic Fertilizer Reserve Act of
2026''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Agricultural cooperative.--The term ``agricultural
cooperative'' means an organization or association formed by
agricultural producers, operating for the mutual benefit of its
members, to collectively market agricultural products, purchase
inputs, or provide services.
(2) Board.--The term ``Board'' means the Board of Directors
of the Strategic Fertilizer Reserve Agency established under
section 5(b).
(3) Fertilizer product.--The term ``fertilizer product''
means--
(A) nitrogen, phosphate, or potash fertilizer; and
(B) such other plant nutrient products as the Board
may by regulation determine are essential to United
States agricultural production, taking into
consideration factors including--
(i) widespread use of the plant nutrient
product;
(ii) lack of substitute products available
on the market;
(iii) relative importance of the plant
nutrient product for the production of crops
grown in the United States;
(iv) vulnerability of the plant nutrient
product to supply chain disruptions; and
(v) potential economic harm to agricultural
producers if the plant nutrient product becomes
unavailable or severely restricted in supply.
(4) Fertilizer product input.--The term ``fertilizer
product input'' means--
(A) critical inputs necessary to make nitrogen,
phosphate, or potash fertilizer; and
(B) such other plant nutrient product inputs as the
Board may by regulation determine are essential to
United States agricultural production, taking into
consideration factors including the factors described
in clauses (i) through (v) of paragraph (3)(B).
(5) Reserve.--The term ``Reserve'' means the Strategic
Fertilizer Reserve established by section 6(a).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
SEC. 3. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) Fertilizer, including nitrogen, phosphate, and potash
products, is an essential agricultural input and vital to the
stability of domestic and global food supplies.
(2) Unstable fertilizer prices and supply disruptions in
recent years have significantly increased production costs for
farmers and ranchers and threatened food security and rural
economies.
(3) Rising fertilizer prices squeeze already thin farm
margins, forcing producers to cut back on inputs or acreage,
which can lower yields and ultimately drive up food prices for
United States consumers.
(4) Concentration in global fertilizer markets and reliance
on imports that transit chokepoints such as the Strait of
Hormuz heighten the vulnerability of the United States to
supply shocks and geopolitical risks.
(5) A federally managed strategic reserve of fertilizer
product inputs, similar to the Strategic Petroleum Reserve,
could help mitigate the impacts of severe supply disruptions,
price spikes, and other market emergencies, including those
caused or exacerbated by avoidable policy-driven conflicts.
(b) Purposes.--The purposes of this Act are--
(1) to require a study to evaluate--
(A) the feasibility of establishing a Strategic
Fertilizer Reserve for the storage and management of
fertilizer products and fertilizer product inputs;
(B) best practices for the locations, development,
operation, and maintenance of, and withdrawals from,
the Strategic Fertilizer Reserve;
(C) best practices relating to emerging fertilizer
technologies and nutrient management practices;
(D) the establishment of an independent agency of
the United States Government, to be known as the
``Strategic Fertilizer Reserve Agency'', to reduce the
impact of disruptions in supplies of fertilizer
products on United States agricultural producers and
consumers, including those arising from avoidable
policy-driven conflicts and mismanagement of foreign
policy; and
(E) means to ensure that the management and
operation of the Reserve are conducted with strict
conflict of interest safeguards and transparency; and
(2) to authorize the establishment of the Strategic
Fertilizer Reserve and the Strategic Fertilizer Reserve Agency.
SEC. 4. FEASIBILITY STUDY.
(a) In General.--The Secretary shall conduct a study--
(1) to investigate current domestic fertilizer product
production capacity and vulnerabilities, such as import
dependency for fertilizer products, critical chokepoints in
fertilizer product distribution, and market concentration
risks;
(2) to investigate the feasibility of storing fertilizer
products in the Reserve, including shelf life and degradation
rates of stored fertilizer products and associated rotation and
drawdown protocols;
(3) to investigate the feasibility of storing fertilizer
product inputs in the Reserve, including shelf life and
degradation rates of stored fertilizer product inputs,
associated rotation and drawdown protocols, and necessary
blending and processing capacity;
(4) to investigate the optimal Reserve size;
(5) to investigate the effectiveness of the Reserve's price
stabilization;
(6) to investigate the type of organization or combination
of organizations that are best suited to operate the Reserve;
(7) to investigate the 1 or more locations best suited to
host the facilities of the Reserve, which shall consider
proximity to blending facilities, proximity to agricultural
producers, and the climate resilience of facility sites;
(8) to suggest the optimal organizational structure for the
Reserve;
(9) to investigate the situations in which withdrawals or
releases from the Reserve would help stabilize prices for
United States farmers;
(10) to suggest risk management measures for spills, leaks,
fires, and explosions;
(11) to estimate the cybersecurity and physical security
requirements for facilities of the Reserve;
(12) to estimate the costs necessary to set up the Reserve;
(13) to estimate the annual cost to maintain and operate
the Reserve;
(14) to investigate domestic fertilizer supply chains,
including regional disparities in access for United States
farmers; and
(15) to consider other factors that the Secretary considers
to be important in setting up, maintaining, and operating the
Reserve.
(b) Determination.--Based on the results of the study under
subsection (a), the Secretary shall determine whether to approve the
establishment of the Strategic Fertilizer Reserve Agency under section
5, the Strategic Fertilizer Reserve under section 6, and the Strategic
Fertilizer Reserve Fund under section 8.
(c) Report.--Not later than 180 days after the date on which funds
are made available to the Secretary to conduct the study under
subsection (a), the Secretary shall submit to the Committee on
Agriculture, Nutrition, and Forestry of the Senate and the Committee on
Agriculture of the House of Representatives a report describing the
findings of the study and the determination of the Secretary under
subsection (b).
SEC. 5. ESTABLISHMENT OF STRATEGIC FERTILIZER RESERVE AGENCY.
(a) Establishment.--On approval by the Secretary under section
4(b), there is established as an independent agency of the United
States Government a body corporate, to be known as the ``Strategic
Fertilizer Reserve Agency'', to develop and oversee the Reserve in
accordance with this Act and informed by the findings of the study
under section 4(a).
(b) Board of Directors.--
(1) In general.--There is established a Board of Directors,
which shall be the head of the Agency.
(2) Composition.--The Board shall be composed the following
9 voting members:
(A) The Secretary.
(B) 8 members, each of whom shall be appointed by
the President, by and with the advice and consent of
the Senate.
(3) Recommendations.--Before the initial appointment of the
members of the Board and before the appointment of any
individual to fill a vacancy on the Board, the Majority Leader
of the Senate and the Minority Leader of the Senate shall each
submit to the President 2 candidate recommendations.
(4) Qualifications.--
(A) In general.--Members of the Board--
(i) shall be individuals who, by reason of
their education, experience, and attainments,
are exceptionally qualified to serve; and
(ii) shall collectively bring substantial
expertise in agriculture, fertilizer markets
and supply chains, agricultural finance,
cooperative governance, labor, and rural
economic development.
(B) Sector representation.--In making appointments
under this section, the President shall, to the maximum
extent practicable, ensure representation from the
following sectors:
(i) Row crop farmers.
(ii) Specialty crop producers.
(iii) Livestock and dairy producers.
(iv) Beginning and young farmers.
(v) Small and mid-sized farmers.
(vi) Agricultural creditors.
(vii) Agricultural cooperatives.
(viii) Agricultural economists and supply
chain experts.
(C) Geographic representation.--In making
appointments under this section, the President shall,
to the maximum extent practicable, ensure diverse
geographic representation and make reasonable efforts
to encourage racial, ethnic, and gender diversity on
the Board.
(5) Terms.--
(A) In general.--Each voting member of the Board
shall be appointed for a term of 4 years, and may be
reappointed for not more than one additional
consecutive term.
(B) Staggered terms.--The terms of the members of
the Board shall be staggered so that the terms of not
more than 3 members expire in any single year.
(C) Holdover.--A member may continue to serve after
the expiration of the member's term until a successor
has been appointed and qualified.
(6) Chair and vice chair.--
(A) In general.--The Board shall elect a Chair and
a Vice Chair from among the members of the Board for 2-
year terms.
(B) Acting chair.--The Vice Chair shall act in
place of the Chair in the absence of the Chair.
(7) Quorum; voting.--
(A) Quorum.--A majority of the voting members of
the Board shall constitute a quorum.
(B) Voting.--Any action of the Board shall require
the affirmative vote of a majority of the members
present and voting.
(8) Removal.--
(A) In general.--Not later than 5 days after
removing a member of the Board from such position, the
President shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a
written statement of the reasons for removal of the
member.
(B) Hearings.--
(i) In general.--If the President fails to
timely submit a statement under subparagraph
(A), or if the statement does not set forth
specific, detailed reasons for removal of the
member of the Board, the committees described
in that subparagraph shall conduct joint
oversight hearings on the removal of the member
of the Board for which a statement was required
not later than 60 days after the missed
submission deadline.
(ii) Witnesses.--Any member of the Board
for which a statement was required under
subparagraph (A) but was not submitted, or
satisfactorily submitted, shall appear as a
witness during a joint hearing.
(iii) Rulemaking.--This subparagraph is
enacted as an exercise of the rulemaking power
of the House of Representatives and the Senate.
(9) Personnel.--
(A) In general.--The Board may appoint and fix the
pay of such staff as the Board considers necessary to
carry out the duties of the Board.
(B) Limitation.--No staff appointed under
subparagraph (A) may be compensated at an annual rate
exceeding the daily equivalent of the annual rate of
basic pay in effect for grade GS-15 of the General
Schedule.
(10) Compensation.--
(A) In general.--Members of the Board shall receive
compensation equivalent to the compensation paid for
positions in level IV of the Executive Schedule
described in section 5315 of title 5, United States
Code, prorated on a daily basis for time spent engaged
in the work of the Board.
(B) Travel expenses.--While engaged in the work of
the Board, a member of the Board shall be paid actual
travel expenses and per diem in lieu of subsistence
expenses when away from the member's usual place of
residence in accordance with subchapter I of chapter 57
of title 5, United States Code.
(C) Persons otherwise in government service.--Each
member of the Board who is otherwise in the service of
the Federal Government shall serve without compensation
in addition to that received for such other service,
but while engaged in the work of the Board shall be
paid expenses pursuant to subparagraph (B).
(D) Prior approval for outside compensation.--
(i) In general.--A member of the Board who
wishes to engage in outside employment shall
first obtain the approval, in writing, of the
Designated Agency Ethics Official of the Board.
(ii) Volunteer professional services.--The
Designated Agency Ethics Official of the Board
may generally approve in advance volunteer
professional services.
(iii) Standard for approval.--Approval
shall be granted by the Designated Agency
Ethics Official of the Board under this
subparagraph only on a determination that the
prospective outside employment is not expected
to involve conduct prohibited by statute or
Federal regulation, including part 2635 of
title 5, Code of Federal Regulations (or
successor regulations).
(iv) Changes in nature or scope.--On a
significant change in the nature or scope of
the outside employment approved under this
subparagraph or the official position of the
member of the Board, the member shall submit a
revised request for approval under this
subparagraph.
(v) Rulemaking.--Not later than 90 days
after the date on which the members of the
Board have been appointed, the Board shall
promulgate regulations to carry out this
subparagraph.
SEC. 6. ESTABLISHMENT OF STRATEGIC FERTILIZER RESERVE.
(a) Establishment.--On approval by the Secretary under section
4(b), there is established in the Strategic Fertilizer Reserve Agency a
Strategic Fertilizer Reserve for the storage and management of
fertilizer product inputs in accordance with this Act and informed by
the findings of the study under section 4(a).
(b) Policy.--It is the policy of the United States to provide for
the creation and maintenance of, and timely withdrawals from, the
Reserve--
(1) to reduce the impact of disruptions in supplies of
fertilizer products;
(2) to promote the stability of fertilizer product prices
paid by United States agricultural producers;
(3) to reduce the impact rising input costs have on the
cost of food for United States consumers; and
(4) to support the food security and national security of
the United States.
(c) Locations.--
(1) In general.--The Reserve may consist of storage and
related facilities located at 1 or more sites within the United
States, as determined by the Board, including facilities owned
by the United States and facilities owned by third parties
under contract with the Board.
(2) Requirement.--The location of the facilities described
in paragraph (1) shall ensure that the fertilizer product
inputs stored in the facilities may be accessed to manufacture
fertilizer product blends not later than 14 days after the date
on which the Board authorizes a withdrawal from the Reserve.
SEC. 7. AUTHORITIES OF THE BOARD.
To develop and oversee the Reserve, the Board shall--
(1) issue such rules, regulations, and orders as the Board
considers necessary, with consideration of the recommendations
of the study under section 4(a);
(2) acquire, by purchase, lease, condemnation, or
otherwise, land or interests in land for the location of
storage and related facilities;
(3) construct, purchase, lease, or otherwise acquire
storage and related facilities for fertilizer product inputs;
(4) use, lease, maintain, sell, or otherwise dispose of
land or interests in land, or of storage and related
facilities, under such terms and conditions as the Board
considers necessary and appropriate;
(5) execute any contracts necessary to develop, operate, or
maintain the Reserve, including contracts for storage,
transportation, blending, packaging, and related services;
(6) ensure that all storage, handling, and transportation
activities associated with the Reserve comply with applicable
Federal, State, and local laws governing safety, health, labor,
and the environment; and
(7) take such other actions as are necessary and proper to
carry out this Act.
SEC. 8. STRATEGIC FERTILIZER RESERVE FUND.
(a) Establishment.--On approval by the Secretary under section
4(b), there is established in the Treasury of the United States a
separate account, to be known as the ``Strategic Fertilizer Reserve
Fund'' (referred to in this section as the ``Fund''), which shall be
administered by the Board in consultation with the Secretary of the
Treasury.
(b) Deposits.--There shall be deposited into the Fund--
(1) such amounts as may be appropriated to carry out this
Act;
(2) amounts received from the sale or exchange of
fertilizer product inputs from the Reserve; and
(3) such other amounts as may be authorized by law.
(c) Availability.--Amounts in the Fund shall be available to the
Board, without further appropriation or fiscal year limitation, for--
(1) the acquisition, storage, rotation, and maintenance of
fertilizer product inputs in the Reserve;
(2) the construction, lease, operation, and maintenance of
storage and related facilities; and
(3) administrative and oversight expenses related to the
Reserve.
SEC. 9. CONFLICTS OF INTEREST AND ETHICS REQUIREMENTS.
(a) Definitions.--In this section:
(1) Covered contract.--The term ``covered contract'' means
a contract with the Board for--
(A) the construction, ownership, operation, or
management of any storage or related facility used for
the Reserve; or
(B) the supply, transportation, or handling of
fertilizer product inputs for the Reserve.
(2) Covered entity.--The term ``covered entity'' means any
entity that enters into a covered contract.
(3) Covered official.--The term ``covered official''
means--
(A) the President;
(B) the Vice President;
(C) any individual serving in a position in the
Executive Office of the President;
(D) any member of the Board;
(E) any officer or employee of the Strategic
Fertilizer Reserve Agency; and
(F) any other employee of the Strategic Fertilizer
Reserve Agency designated by the Board by regulation as
having significant decision making authority with
respect to the Reserve.
(4) Financial interest.--The term ``financial interest''
includes equity, stock, partnership shares, limited liability
company interests, options, warrants, beneficial interests held
through a trust or investment vehicle (other than a widely held
mutual fund or index fund), or any other arrangement under
which the applicable covered official or immediate family
member may derive pecuniary benefit from the performance of a
covered entity.
(5) Immediate family member.--The term ``immediate family
member'' means a spouse, domestic partner, parent, child, or
sibling, including any such relation by marriage.
(b) Prohibition on Financial Interests.--No covered official, and
no immediate family member of a covered official, may hold, directly or
indirectly, any financial interest in any covered entity.
(c) Certification; Disclosures.--
(1) In general.--Before entering into a covered contract,
the Board shall require the covered entity--
(A) to certify that, to the best of its knowledge
and belief, no covered official or immediate family
member of any covered official holds a financial
interest in the covered entity prohibited by subsection
(b); and
(B) to fully disclose all lobbying activities and
lobbyist engagements related to the program under this
Act or any other matter involving the Board or other
Federal agencies that have a direct and predictable
effect on the covered contract.
(2) Disclosure reports.--The Board shall require each
covered official, on an annual basis and on assuming a position
as a covered official, to file a confidential report disclosing
any financial interests that may be relevant under subsection
(b).
(d) Recusal and Divestiture.--
(1) In general.--Any covered official who becomes aware
that the covered official or an immediate family member of the
covered official holds a financial interest prohibited by
subsection (b) shall promptly--
(A) notify the designated agency ethics official of
the Board; and
(B) either--
(i) divest of the financial interest; or
(ii) recuse himself or herself from any
official action affecting the covered entity in
which the financial interest is held, in
accordance with applicable ethics laws
(including regulations).
(2) Regulations.--The Board shall issue regulations
establishing procedures and timelines for divestiture and
recusal under clauses (i) and (ii) of paragraph (1)(B).
(e) Enforcement.--
(1) Covered officials.--A knowing and willful violation of
subsection (b), (c)(2), or (d) by a covered official--
(A) shall be grounds for disciplinary action, up to
and including removal from office; and
(B) may be referred to the Office of Government
Ethics and appropriate law enforcement authorities for
investigation and potential prosecution under
applicable criminal or civil conflict of interest
statutes, including sections 201 through 209 of title
18, United States Code, and related provisions.
(2) Covered entities.--A knowing and willful false
certification or disclosure by a covered entity under
subsection (c)(1)--
(A) shall constitute a material breach of the
covered contract; and
(B) may result in suspension, debarment, civil
penalties, or other remedies as provided by law.
(f) Public Transparency.--To the extent consistent with law and the
protection of confidential business information, the Board shall make
publicly available--
(1) a list of covered entities; and
(2) a general description of the ethics and conflict of
interest policies applicable to the Reserve.
SEC. 10. REPORTS TO CONGRESS.
(a) Annual Report.--Not later than 1 year after the date of
establishment of the Reserve, and annually thereafter, the Board shall
submit to the Committee on Agriculture, Nutrition, and Forestry of the
Senate and the Committee on Agriculture of the House of Representatives
a report that--
(1) describes the inventory of fertilizer product inputs in
the Reserve, by product type and location;
(2) summarizes any acquisitions, sales, exchanges, or other
releases of fertilizer product inputs during the preceding
year;
(3) evaluates the condition and capacity of storage and
related facilities;
(4) describes any withdrawal events and their effects on
fertilizer availability and prices; and
(5) provides information on compliance with the
requirements under section 9.
(b) GAO Review.--Not later than 5 years after the date of
establishment of the Reserve, the Comptroller General of the United
States shall--
(1) conduct a review of the effectiveness of the Reserve in
meeting the purposes of this Act; and
(2) submit to the committees described in subsection (a) a
report describing the findings of the review under paragraph
(1) and any recommendations.
SEC. 11. REGULATIONS.
(a) In General.--Not later than 180 days after the date of
establishment of the Reserve, the Board shall promulgate such
regulations as are necessary to carry out this Act, including
regulations establishing--
(1) protocols for acquisition, maintenance, and rotation of
fertilizer products or fertilizer product inputs to be stored
in the Reserve;
(2) criteria and procedures for determining when a
withdrawal and release of the Reserve is warranted;
(3) technical and safety standards for storage and handling
of fertilizer product inputs; and
(4) detailed ethics and conflict of interest procedures
consistent with section 9.
(b) Consideration.--In promulgating the regulations under
subsection (a), the Board shall consider the recommendations of the
study conducted under section 4(a).
SEC. 12. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are necessary
to carry out this Act.
<all>