Michigan Potash and Salt Co. in Evart, south of Cadillac, today announced the execution of an offtake agreement with an unnamed U.S.-based agricultural company to take and distribute 100 percent of its first phase potash fertilizer production.
Under the agreement, MPSC and the company will provide U.S. farmers with 650,000 tons annually of ultra-high grade white potash fertilizer helping to strengthen domestic food security. The deal comes at a critical time given Russia’s invasion of Ukraine, and the fact Russia is one of the world’s largest producers of potash.
“By partnering with an agricultural industry leader, Michigan Potash will help satisfy farmer requirements for potash as world supplies are unaffordable or utterly unavailable,” says Ted Pagano, founder and CEO of MPSC. “Together, we will create a new, complementary production, logistical, and sales powerhouse by supplying Michigan White Potash to the American farmer.”
According to the MPSC, the U.S. currently imports approximately 96 percent of the potash necessary for healthy crops — including 1 million short tons per year from Russia as per the Department of Interior. At full buildout, MPSC’s project stands ready to replace one-to-one for those Russian imports of potash with domestic production from Michigan.
“With foreign potash supply dramatically impacted by war, sanctions, tariffs, rail, and production challenges, MPSC represents a new, reliable, domestic source for U.S. producers,” says Ward Forquer, vice president of Potash Markets.
The MPSC is in the final stages of financing for the construction and operation of the U.S.’s largest potash and food-grade salt facility near Evart, home to one of the highest-quality natural potash and salt deposits in the world. Known as the U.S. Potash Project, the facility will strengthen and secure the supply of this critical mineral and fertilizer that only Michigan can supply domestically.
Creating more than 300 union construction jobs over three years and more than 180 full-time operations positions, the U.S. Potash Project represents more than a $1 billion capital investment on a more than 150 year resource base — making it one of the largest union-supported economic development projects in the country.