Ag Policy Blog

OMAHA (DTN) -- 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.

USDA on Wednesday announced the department had provided $2 billion to 43,000 people nationally who faced discrimination over farm-loan programs before 2021.

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.

The funds came from a provision in the Inflation Reduction Act, Section 22007, after an earlier discrimination-relief program was blocked in federal court by White farmers who had sued.

President Joe Biden said farmers and ranchers had faced discrimination applying for USDA loans for far too long.

"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," Biden said in a statement released by USDA. "I promised to address this inequity when I became President. Today that promise has become a reality. My Inflation Reduction Act took a bold step to address the effects of discrimination in farming and ranching, and today's action will enable more farmers and ranchers to support themselves and their families, help grow the economy, and pursue their dreams."

The Discrimination Financial Assistance Program set aside $2 billion to provide relief to farmers, ranchers and forest landowners who faced discrimination in USDA farm-loan programs before the Biden administration took office. The program received more than 58,000 applications.

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.

On a website, USDA highlighted how payments were distributed in each state. 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.

Agriculture Secretary Tom Vilsack said completing the Discrimination Financial Assistance Program is an important moment in USDA's history as the department works to serve everyone in agriculture.

"While this financial assistance is not compensation for anyone's losses or pain endured, it is an acknowledgment," Vilsack said. "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."

Vilsack also credited the private organizations that informed farmers about the program and provided technical assistance for enrollment.

"This process, and the information contained in the applications, will help USDA as we fine-tune our efforts to make USDA programs accessible, inclusive and equitable to all," Vilsack said.

Sen. Raphael Warnock, D-Ga., who had pushed for creating the aid-relief program in the Inflation Reduction Act, said more than $137.3 million in payments would go to 2,170 farmers in Georgia.

"While long overdue, today's announcement is good news. These payments, which I was proud to secure, will go a long way towards helping Georgia farmers stay on their farms and get out of the red," Warnock said. "We cannot forget that farmers waited over two years for these payments following the passage of the Inflation Reduction Act, and many more have waited decades after the botched Pigford settlements. These payments are a meaningful step forward in USDA's long journey towards rebuilding trust with farmers who've previously faced discrimination."

The Pigford cases involved a series of lawsuits and settlements involving discrimination at USDA. The cases and settlements stretched from 1996 to 2013 and involved more than $2.3 billion in payments.

Rep. David Scott, D-Ga., ranking member of the House Agriculture Committee, also added, "For American agriculture to succeed, we need to ensure our farmers and producers have access to land and capital. We need to show that working in agriculture is a viable career and that there is a level playing field.

"When House Democrats passed the Inflation Reduction Act, we included funding to address the effects of discrimination in farming and ranching and ensure producers have equitable access to the support they need to participate in the agriculture industry. Today's announcement delivers on our commitment to invest in equity, fight for fairness, and uplift our farmers, ranchers, and producers who have faced discrimination."

For more details and tracking payments by state, go to https://www.22007apply.gov/….

Chris Clayton can be reached at Chris.Clayton@dtn.com

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