Direct payouts from the Biden administration will be allocated to Black farmers who have faced discrimination.
ABC News reports Black farmers acknowledge that they have been discriminated against by the U.S. Department of Agriculture (USDA) when it comes to loans. The outlet notes many had been denied loans or received loans that were less than their white counterparts. Some that did receive loans had even reported having their property foreclosed on sooner than was typical when they experienced issues paying.
Denial was the case for Wardell Carter, whose family has owned 85 acres of land in Mississippi since 1939. Yet despite their longevity, they have never been able to access a loan application. Instead, they were greeted by USDA loan officers with a slammed door, and if they persisted they were faced with the reality of having a cop called to their home, he says.
Due to these challenges, it prevented the family from purchasing a tractor for years. So, they had to rely on a horse and mule. This also meant they were unable to maximize the use of their land, only utilizing 40 acres. This had an impact on the farm’s profitability, and when they did get the chance to obtain a bank loan, the interest rate was 100%.
“We face blatant, in-your-face, real discrimination,” National Black Farmers Association (NBFA) Founder and President John Boyd Jr. told ABC News. “And I did personally. The county person who was making farm loans spat tobacco juice on me during a loan session.”
Now some farmers will be able to receive relief from the federal level. According to farmers who faced discrimination from the USDA, they will be paid from a pool of $2.2 billion. The San Diego Voice & Viewpoint mentions the funding will be coming from the Discrimination Financial Assistance Program (DFAP).
Over 23,000 farmers who were approved are set to benefit from payments between $10,000 and $500,000, per ABC News. Additionally, 20,000 who had not received a USDA loan can expect to be granted amounts between $3,500 and $6,000.
The payments are also primarily being allocated to farmers located in Mississippi and Alabama.
This marks a significant milestone in a decades-long fight, particularly by Boyd and the NBFA. In 2021, Congress had approved $5 billion to offer debt relief to 6,500 farmers of color as part of the $1.9 trillion COVID-19 stimulus package, according to ABC News. It would cover 120% of the debt incurred by the farmers.
In response, white farmers filed lawsuits stating the law violated their rights, and the program was halted in June 2021. Anticipating a potentially long court battle, Congress decided to amend the law to include financial assistance to a larger group of farmers. The latest relief package is a result of that amendment, which includes a designated amount for those who were discriminated against due to their race.
USDA Secretary Tom Vilsack commented on the matter stating it “is not compensation for anyone’s loss or the pain endured, but it is an acknowledgment by the department.”
Boyd commented to The San Diego Voice & Viewpoint:
“No matter how it is sliced, the $2.2 billion in payouts is historic.”
