Posted on March 12, 2026 by Will Bryant and Jasmine Yu
The United States (U.S.) has long been a global leader in agricultural innovation. That leadership is built on sustained investment in public research and development (R&D) to improve seed genetics, farm management practices and fertilizer efficiency. Together, these opportunities drive higher yields, greater efficiency and stronger farm profitability. These investments have delivered substantial economic returns, with every federal dollar spent on agricultural innovation generating an estimated twenty dollars $20 for the U.S. economy.
However, warning signs are emerging. U.S. agricultural productivity growth has slowed, and federal R&D investment levels now mirror those of the 1960s. Meanwhile, global competitors such as China and Brazil are accelerating their investments and outpacing the U.S. Without renewed federal leadership, particularly in fertilizer innovation, the U.S. risks falling further behind, when greater agriculture resilience, efficiency and productivity are urgently needed.
Fertilizer innovation represents a strategic opportunity to strengthen both farm economics and environmental performance. Fertilizer is one of the largest crop input costs for producers, and precision tools that improve nutrient management can reduce input expenses, stabilize yields and improve soil health. Emerging technologies, such as enhanced efficiency fertilizers and precision nutrient management systems, can significantly reduce nitrous oxide emissions while protecting farmers from volatile fertilizer prices. In doing so, these investments serve as both an emissions-reduction strategy and an economic growth lever, with the potential to add as much as $4.4 billion annually to U.S. farm receipts.
The U.S. also leads the world in voluntary conservation programs. The recent expansion of the Environmental Quality Incentives Program (EQIP) under the One Big Beautiful Bill Act (OBBBA) creates a timely opportunity to channel fertilizer innovation through proven conservation infrastructure. Within EQIP, the Conservation Innovation Grant (CIG) program is a competitive, cost-shared accelerator that funds pilots, field demonstrations and applied research to test and validate new technologies. By turning promising approaches into proven, scalable tools that can be incorporated into USDA conservation programs and standards, CIG bridges the gap between innovation and widespread adoption.
Programmatic reforms present a clear opportunity for the administration to reverse declining federal investment in innovations that strengthen U.S. agricultural competitiveness and reduce emissions, all while maintaining a strong focus on return on investment for taxpayers and agriculture producers alike.
Key Numbers-at-a-Glance
Policy recommendations include:
