New York: The U.S. Department of Agriculture (USDA) announced on Wednesday that it has allocated $2 billion in financial assistance to over 43,000 farmers, ranchers, and forest landowners who faced discrimination in the agency’s farm lending programs. This initiative is part of the $2.2 billion set aside under the Inflation Reduction Act to address historical biases experienced by Black farmers and other underrepresented groups in agriculture.
President Joe Biden emphasized the significance of this action: “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.”
The financial relief is being distributed to more than 23,000 individuals who currently operate or previously operated a farm, and approximately 20,000 who reported being unable to establish a farm due to discriminatory practices within the USDA’s loan process.
USDA farm loans often serve as a critical financial resource for farmers struggling to secure credit from traditional banks. Discriminatory practices reported by farmers included receiving higher interest rates, delayed loan approvals, and insufficient support from loan officers, according to Agriculture Secretary Tom Vilsack.
“USDA was operating on a deficit of trust with many of our customers and potential customers,” Vilsack said. “They didn’t feel our programs were designed for them, and in many cases, they were right.”
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The USDA began accepting applications for these payments last July. Farmers were required to provide details of their discriminatory experiences with USDA personnel and the impact these experiences had on their operations.
The USDA has not released demographic details of the recipients but noted that Mississippi and Alabama received the highest number of payments.
