This Act may be cited as the Strategic Fertilizer Reserve Act of 2026.

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.

(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.

(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).

(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.

(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.

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.

(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.

(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.

(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.

(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).

There are authorized to be appropriated such sums as are necessary to carry out this Act.