On March 16, 2026, the U.S. Government Accountability Office (GAO) published a report on engineered biofertilizers, which use genetic engineering and combine multiple strains of microbes to enhance their effectiveness. According to GAO, the opportunities of engineered biofertilizers include:
- Economic benefits: According to GAO, fertilizer costs have increased due to tight global supplies, energy shocks, and trade disruptions. GAO notes that increased crop yields and reduced fertilizer costs could mean more profit for U.S. farmers. GAO states that because biofertilizers can reduce the need for chemical fertilizers, they may reduce the effect of price volatility, including for nitrogen and other fertilizers that can be derived from critical minerals, such as potash and phosphate rock.
- Environmental benefits: According to GAO, biofertilizers may improve soil health and mitigate pollution by reducing the amounts of chemical fertilizers used and their associated runoff. Runoff can flow into rivers and oceans, causing harmful algal blooms and dead zones, which threaten human health and fisheries.
GAO notes the following challenges:
- Regulatory uncertainty: The United States lacks a clear regulatory definition for biofertilizers, leading to uncertainty about whether they are subject to existing regulations. Failing to follow regulatory requirements can be costly for manufacturers. GAO notes that in 2020, the U.S. Environmental Protection Agency (EPA) levied a $300,000 penalty under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) to one company selling an unregistered biofertilizer.
- Regulation of engineered microbe: GAO states that researchers believe that the current U.S. regulatory system is not well equipped to regulate genetically engineered microbes, leading to a large burden on industry, which may impede innovation and further complicate reviews of biofertilizers that use these microbes.
- Unclear cost-effectiveness: According to GAO, a 2023 industry survey found that farmers not using biofertilizers would use them if their profitability could be demonstrated. This survey also found that the lack of widespread acceptance of biofertilizers was associated with a need for further education.
GAO notes that policy questions include what could improve the quality and reliability of engineered biofertilizers, how effective are engineered biofertilizer products in protecting U.S. farmers from the impacts of fertilizer price increases and volatility, and to what extent can existing regulatory frameworks support effective development and use of new and existing engineered biofertilizers.
