USDA open to farmers’ bias claims for compensation

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The U.S. Department of Agriculture has opened an application process for underserved farmers to make federal loan discrimination claims for $2.2 billion in financial assistance.

Black farmers who were discriminated against by the federal government have another chance at compensation.  

The U.S. Department of Agriculture last week opened a $2.2 billion financial assistance process for people who were discriminated against in federal farm lending programs before January 2021.  

Section 22007 of the Inflation Reduction Act directs USDA to help with applications. Farmers, ranchers, and forest landowners who were discriminated against by USDA in farm loan programs, and/or are currently indebted with assigned or assumed federal farm loan debt that was the subject of USDA discrimination that occurred prior to that year are eligible for assistance.  

The application deadline is Oct. 31.

“The opening of the application process is an important step in delivering on our commitment of providing financial assistance to those who faced discrimination in USDA farm lending, as swiftly and efficiently as possible,” Agriculture Secretary Tom Vilsack said in a statement. “USDA will continue to work with our national vendor partners and community-based organizations to make sure eligible farmers, ranchers, and forest landowners have clear information about what is available to them, how to apply, and where to obtain assistance with their questions at each step of the way.”  

USDA’s website, 22007apply.gov, is open to download or submit an application for free via an e-filing portal and includes information on how to access technical assistance in-person or virtually, as well as resources and details about the program.  

Applicants are not required to retain an attorney, no attorneys’ fees will be paid to applicants or their attorney by USDA or any other federal agency and the amount of financial assistance will not be increased for claimants represented by a lawyer.   

Applications will be reviewed in November and December, with payments reaching recipients soon thereafter. The application process is not on a first come, first served, basis; rather all applications received or postmarked before the Oct. 31 deadline will be considered.  

In 2022, civil rights attorney Ben Crump filed a federal class action lawsuit on behalf of the National Black Farmers Association after studies found Black farmers lost $326 billion in land value because of discrimination during the 20th century.

The farmers claimed the federal government breached its contract with socially disadvantaged farmers under the American Rescue Plan Act. They contend the law included provisions to pay off USDA loans held by 15,000 underserved farmers.

In August 2022, Congress repealed section 1005 of the American Rescue Plan Act of 2021, which provided funding and authorization for the federal government to pay up to 120% of direct and guaranteed loan balances as of January 1, 2021, for socially disadvantaged farmers and ranchers, which left thousands of farmers in foreclosure.

Black farmers said they relied on the federal government to keep its promise to fund $5 billion to them when it passed the American Rescue Plan Act. Of the allocated money, $3.1 billion is to help distressed borrowers pay off farm debts without foreclosure or becoming ineligible for future assistance.

USDA is working with grassroots organizations to reach farmers who may be eligible for the program, including the Durham-based Land Loss Prevention Project.   

On March 1, USDA shared initial details on how the Section 22007 program will work, including that the Inflation Reduction Act specifies the Secretary of Agriculture is responsible for providing assistance through qualified nongovernmental entities, under standards set by USDA. The Agriculture Department entered into agreements with vendors in May.  

 
In addition to the Discrimination Financial Assistance Program, the Inflation Reduction Act also created other programs to address systemic racial bias and improve service to people from underserved groups.

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