2007 Annual Report 1a.Objectives (from AD-416) Project seeks to create a chemical fertilizer alternative that is superior in performance, economically competive, and environmentally responsible. 1b.Approach (from AD-416) Research will be conducted to develop fertilizer formulations and to design polymer matrix for encapsulation. Subsequently, formulations will be optimized for sustained release of encapulated materials, and evaluated for the impact on the plants root development, growth, yield, and past resistence. 3.Progress Report This report serves to document research conducted under a reimbursable agreement between ARS and U.S. Agency for International Development (USAID). Additional research details can be found in the report for the parent CRIS, 5325-41000-044-00D, Development of Agriculturally-Derived Biopolymer Composites for Non-Food Applications. With the addition of a student intern to the research team, progress has been made on formulating matrix materials, which have been tested and proven as promising. As funding is received at the bench, technical assistance will be expanded. Good communication has been maintained between ARS researchers and their Pakistani collaborators via e-mails and phone conferences. The principal investigator has been invited to Pakistan in early 2008 to update collaborators.