The on-again, off-again trade disputes brought by the Trump Administration have returned the spotlight to Evart, a rural town 20 miles northeast of Big Rapids.
Roughly 7,800 feet below the surface in Osceola and Mecosta counties lies a 15,000-acre white potash deposit — the purest known potash deposit on earth with a projected value of $65 billion. The potassium-rich rocks are a relic from the drying up of the Devonia Sea, a salt-rich sea like the Middle East’s Dead Sea that covered much of the Central Canada and the Northern U.S. 350 million years ago.
Potash is used by farmers as fertilizer, as it contains one of three critical macronutrients required to sustain plant life, and is used for table salt.
Michigan Potash and Salt Co. has been working to open the mine for 15 years. The nascent project is supported by a $1.26 billion loan guarantee from the U.S. Department of Energy and $225 million in grants and subsidies from Michigan legislature, all in hopes the lucrative mine can offset U.S. reliance on imported potash.
Roughly 90% of potash used in farming in the U.S. is imported and 80% of that comes from Canada.
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“Recent news of Canadian tariffs, including potash, has highlighted the need for a domestic supply of potash,” Ted Pagano, founder and CEO of MPSC, said in a statement to Crain’s. “The current project will produce close to 1 million tons per year, although production capacity can expand to three or four times this amount over time, allowing the project to make a substantial impact on the fertilizer supply chain. Our project will enable farmers to purchase it locally, rather than from foreign countries where it must be shipped long distances at higher costs.”
As the trade wars continue, the mine is still awaiting critical environment permits to move forward. For Evart — a town of 1,700 people — the project would be a considerable boon, effectively tripling Osceola County’s industrial tax base.
Freeing the farmer’s plight?
The Evart mine culminated out of foreign policy in 2022, as Russian soldiers stormed Ukraine’s borders.
The war followed months after the U.S. sanctioned Belarus Potash Co., an export subsidiary of the largest potash producer in the world Belaruskali OAO, for the country’s violent crackdown on political dissenters leading to a migrant crisis for neighboring Poland. The move was designed to put pressure on Belarus’ strongman leader Alexander Lukashenko to end the practice of sending dissenters to other countries.
The moves by the U.S., alongside the U.K. and European Union, triggered a massive surge in potash prices — up to $1,202 per short ton in April 2022; compared to just $202.50 in February 2021 — and gave control of the U.S. potash market to Canada. Saskatoon, Canada-based Nutrien Ltd. leapfrogged Belarus Potash Co. as the world’s largest producer of Potash, controlling 20% of the global market with $30 billion of revenue in 2023.
The troubles with Russia and Belarus triggered interest in the Evart mine project and led to the state funding in 2022. There are only two other major potash mines in the U.S. Potash mines in New Mexico and Utah are running low on the mineral salt high in potassium as both deposits have been mined since around World War I.
MPSC also inked in 2022 a deal to sell its entire potash production, about 800,000 short tons annually, to Chicago-based Archer-Daniels-Midland Co., one of the world’s largest food processors and commodity traders with $85 billion in revenue in 2024.
Potash pricing settled in last fall, reaching as low as $278.13 per short ton in October. But prices have begun to climb under President Trump as he spats with Canada over the border and trade.
Trump enacted 25% duties on most Canadian products last week before announcing a one-month reprieve on many goods, including fertilizers, days later.
Most potash, however, still faces a 10% tariff. Canada also said it would delay new retaliatory tariffs until April 2. Monday, Ontario raised power prices 25% for Michigan and two other U.S. states to which it exports electricity in retaliation to the tariffs, though that was suspended by Tuesday.
As of March 7, potash prices have risen to more than $450 per ton in the Midwest, according to a U.S. Department of Agriculture report. The prices are projected to climb another $100 if the tariffs are enacted.
Farmers are wrapped in uncertainty as trade disputes play out and how much financial strain they feel remains unknown, said Chuck Lippstreu, president of Lansing-based farm industry advocacy group Michigan Agri-Business Association.
“Looking at the broader agriculture system, including rural businesses that are part of the food chain, there is a lot of uncertainly,” Lippstreu said. “Whether that’s trade or staffing levels or funding programs; it’s something people in farm country are watching closely.”
The Trump administration fired thousands of USDA employees last month, jeopardizing some farm programs, and triggering some states to sue the administration. The USDA hired back many employees in recent weeks.
Crop sales are expected to fall 2.3% in 2025, according to the USDA, led by big decreases in corn and soybean sales — which are among Michigan’s largest farm sectors.
Water worry and Evart envy
Local potash production could buoy some of those losses, but despite government support, hurdles remain for MPSC.
The operation’s slow start is largely due to the potential environmental impact of the mining process. The company plans to drill holes to the deposit nearly 1.5 miles down and pump a brine solution to dissolve the potash, pump it back up to the surface and then allow it to dry and re-enter a solid state. The process is similar to oil and gas fracking.
A public hearing last month highlighted regional concern over the water used by MPSC.
The company will extract more than 1,000 gallons of water per minute. That’s about twice that of the annual water use of the water bottling plant in Evart formerly owned by Nestle and acquired in 2021 by BlueTriton Brands, the makers of Ice Mountain.
The Michigan Department of Environment, Great Lakes and Energy has yet to make a final decision on MPSC’s air pollution and wetlands permits.
Elected officials from the region continue to lean on the state to get the mine up and running.
“Potash is vital for Michigan’s agriculture industry and President Trump has made it a priority to decrease our reliance on foreign nations to meet the needs of the American people,” said U.S. Rep. John Moolenaar, a Republican representing the second district of Michigan, which includes Evart. “The proposed potash mine in Evart would have the capability to significantly contribute to our agriculture industry’s need for this critical resource domestically and will help reduce our dependence on other countries to mine or produce it.”
But whether MPSC could actually materially impact potash commodity prices is uncertain. At 1 million short tons, the Evart mine would only account for about 2% of global potash production. At its peak, it would account for less than 8% of global production.
John Ezinga, vice president of agronomy for Lansing-based Michigan Agricultural Commodities Inc., which supplies farmers with inputs like fertilizer and ships and sells their crops, said it’s unclear whether the tariffs will materially change potash prices but having a local supply is important to the region.
“1 million tons is fairly substantial and it’s great to have some American made potash,” Ezinga said. “If you look at potash deficient soils in America, it settles in the Chicago area and radiates out. So there’s great demand in the area.”
But, for now, the trade value of what’s under Evart is the beating drum of Lansing and Washington D.C. — and it’s a big get for the counties which the mining operation resides.
The mine project is expected to create 200 permanent jobs and another 1,400 construction jobs.
The company also plans to produce 1 million tons of food-grade salt at its evaporative salt facility in Evart.
Besides the water bottling plant and the mine, Evart is home to the state’s largest cannabis company Lume Cannabis Co. But it remains one of the poorest communities in Michigan.
Evart is home to three diners and a couple of fast-food restaurants. Its housing stock is old and in disrepair. Median individual income is $21,536; more than 42% below the state median of $37,246.
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