Wis. Dairy Alleges USDA Discrimination

LINCOLN, Neb. (DTN) -- Chilton, Wisconsin, dairy farmer Adam Faust alleged three USDA programs continue to discriminate against him based on race and sex, in a new federal lawsuit filed against the Trump administration on Monday, despite an executive order signed by President Donald Trump in January to ban such practices.

In the lawsuit filed against U.S. Secretary of Agriculture Brooke Rollins in the U.S. District Court for the Eastern District of Wisconsin, Faust alleges his operation has been discriminated against through the Dairy Margin Coverage program, the loan guarantee program and the Environmental Quality Incentives Program.

The complaint alleges that when Faust refinanced his dairy farm in August 2024 and received a 90% loan guarantee through USDA's loan guarantee program, "socially disadvantaged farmers" would receive 95% guarantees.

"Lower guarantee percentages result in higher interest rates, costs and risks, while decreasing the amount of loan money an applicant can receive," the lawsuit said.

The lawsuit alleges Faust has seen higher out-of-pocket expenses for environmental projects in the EQIP program.

For a planned manure storage system, the lawsuit said, Faust will be eligible for 75% cost reimbursement through EQIP, while farmers of certain racial backgrounds would receive 90% reimbursement. The complaint alleges this "will increase the financial hardship suffered by Mr. Faust for constructing an environmentally beneficial structure on his farm."

Faust also alleges he "sustained harm by receiving unequal treatment from the government based on race and sex," referring to the treatment in the lawsuit as a "stigmatic harm" that injured his "dignity."

"Contrary to the other programs in this case, EQIP does not deem females at a social disadvantage," the lawsuit said.

"The USDA does not explain this difference in the definitions."

Among the allegations made are that Faust was required to pay a $100 administrative fee to participate in the DMC program, including most recently on March 25, 2025, while farmers of other races and female farmers are exempt from the fee.

In January, President Donald Trump issued an executive order requiring the termination of "all discriminatory and illegal preferences, mandates, policies, programs" in both the private and public sectors.

"Despite the president's recent executive orders, Secretary Rollins has failed to end this discrimination," the lawsuit said.

The complaint said Faust wrote a letter to Rollins on April 8, 2025, expressing concern about the ongoing practices in USDA programs and threatening litigation. In addition, six members of Congress wrote a letter to Rollins calling for an end to the practices, as well.

Faust received no response from the letter, according to the lawsuit. The lawsuit was filed by the Wisconsin Institute for Law and Liberty. The double-amputee Faust milks about 70 Holstein cows and farms 200 acres to feed the cows, according to the lawsuit.

"These three are not the only ongoing programs at USDA that discriminate based on race and sex," the lawsuit said, pointing to "up to two dozen" other "discriminatory" programs ongoing.

"Unless USDA stops this ongoing race and sex discrimination, or Congress repeals these laws, farmers like Mr. Faust will continue to bear the burden of litigation against the government in federal court," the lawsuit said.

Faust has asked for a series of preliminary and permanent injunctions to prevent Rollins from applying "racial and sex-based" classifications when charging the $100 administrative fee in the Dairy Margin Coverage program, as well as in the loan guarantee and EQIP programs.

The discrimination allegations made by Faust against USDA programs aren't the first made by the farmer.

"Unfortunately, this is not new," the new lawsuit said.

"Mr. Faust experienced similar discrimination in 2021 when the Biden administration forgave certain farm loans based on race. This court ruled in favor of Mr. Faust, declaring the program to be unconstitutional race discrimination and entering an injunction. As in that case, this court should again declare this type of discrimination unconstitutional and enter an injunction prohibiting Secretary Rollins from implementing these race and sex preferences. Farmers, like all other Americans, deserve to be assessed as individuals, not as statistics or as means toward achieving some quota, preference, or balancing based on race or sex."

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social media platform X @DTNeeley

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