USDA Providing $2 Billion In Discrimination Payments

Reuters’ Leah Douglas reported Wednesday that “the U.S. Department of Agriculture said on Wednesday it has issued $2 billion of financial assistance to more than 43,000 farmers, ranchers and forest landowners who experienced past discrimination in the agency’s farm lending programs.”

“The Inflation Reduction Act allocated $2.2 billion for the discrimination payments. For decades, Black farmers and other under-represented groups in farming have alleged bias in the agency’s farm loan programs,” Douglas reported. “The recipients of the payments include more than 23,000 people who have or previously had a farming operation, and another 20,000 who reported they were unable to have a farming operation because of discrimination in USDA’s loan process.”

“Farm loans from the USDA are often considered a last resort for farmers who have difficulty accessing credit from traditional banks,” Douglas reported. “Examples of types of discrimination faced by farmers could include receiving higher interest rates, having a loan approved too late in the farming season, or a lack of assistance from loan officers, Agriculture Secretary Tom Vilsack told reporters on a conference call.”

The Associated Press’ Summer Ballentine reported that “the USDA has a long history of refusing to process loans from Black farmers, approving smaller loans compared to white farmers, and in some cases foreclosing quicker than usual when Black farmers who obtained loans ran into problems.”

“National Black Farmers Association Founder and President John Boyd Jr. said the aid is helpful. But, he said, it’s not enough,” Ballentine reported. “‘It’s like putting a bandage on somebody that needs open-heart surgery,’ Boyd said. ‘We want our land, and I want to be very, very clear about that.'”

More Than Half of Payments to Mississippi and Alabama

Progressive Farmer’s Chris Clayton reported Wednesday that “farmers, ranchers and forest landowners in Mississippi and Alabama make up over half of the people receiving a share of more than $2 billion in payments over historic discrimination through USDA’s farm-loan programs.”

“While the payments are spread across all 50 states and territories, farmers and ranchers in Mississippi and Alabama make up more than 24,000 individuals who are receiving payments under the relief program, according to a USDA website tracking payments by state,” Clayton reported.

“USDA stated more than 23,000 people who already had farming or ranching operations would receive anywhere from $10,000 to $500,000 under the program with an average payment of nearly $82,000. Another 20,000 people who were trying to start farming or ranching operations would receive payments between $3,500 to $6,000 with an average payment of $5,000,” Clayton reported. “Mississippi has the most people receiving payments at 13,283 individuals, followed by Alabama with 10,907 people receiving payments. Combined, they account for roughly 56% of all the farmers, ranchers and other people collecting payments under the program. The next highest state for payments is Oklahoma with 2,926 people.”

Biden Administration Leaders Comment

In a press release on Wednesday, President Joe Biden said that “farmers and ranchers work around the clock to put food on our tables and steward our Nation’s land. But for too long, many farmers and ranchers experienced discrimination in farm loan programs and have not had the same access to federal resources and support.”

In the same press release, Agriculture Secretary Tom Vilsack said that “the completion of the Discrimination Financial Assistance Program is an important moment in USDA’s history, and in our journey to becoming a department that truly serves everyone who wants to participate in agriculture. While this financial assistance is not compensation for anyone’s losses or pain endured, it is an acknowledgement. My hope is that this will ensure that many farmers can stay on their farms, contribute to our nation’s food supply, and continue doing what they love.”