USDA Distributes $2 Billion in Discrimination Payments to Over 43,000 Farmers
Source: The DairyNews
The U.S. Department of Agriculture (USDA) has disbursed $2 billion in financial assistance to more than 43,000 farmers, ranchers, and forest landowners who faced discrimination in the agency’s farm lending programs, as reported by Reuters.
This initiative comes under the Inflation Reduction Act, which allocated a total of $2.2 billion for addressing past biases.
President Joe Biden commented on the move, acknowledging the longstanding disparity in access to federal farm loans. "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,” he stated.
The beneficiaries of this financial aid include over 23,000 individuals currently or previously involved in farming operations and another 20,000 who claimed they were prevented from operating a farm due to discriminatory practices in the USDA's loan process. Farm loans by the USDA typically serve as a critical lifeline for farmers who struggle to secure credit from traditional banking institutions.
Agriculture Secretary Tom Vilsack highlighted various forms of discrimination these farmers faced, such as unfair loan terms, untimely loan approvals, and inadequate support from loan officers. During a press conference call, Vilsack said, "USDA was operating on a deficit of trust with many of our customers and potential customers. They didn’t feel our programs were designed for them, and in many cases, they were right.”
The process for these payments began last July when the USDA started accepting applications from farmers detailing their experiences of discrimination and the impact it had on their agricultural pursuits. While the USDA has not released demographic details of the recipients, it noted that the highest numbers of payments were issued in Mississippi and Alabama.
President Joe Biden commented on the move, acknowledging the longstanding disparity in access to federal farm loans. "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,” he stated.
The beneficiaries of this financial aid include over 23,000 individuals currently or previously involved in farming operations and another 20,000 who claimed they were prevented from operating a farm due to discriminatory practices in the USDA's loan process. Farm loans by the USDA typically serve as a critical lifeline for farmers who struggle to secure credit from traditional banking institutions.
Agriculture Secretary Tom Vilsack highlighted various forms of discrimination these farmers faced, such as unfair loan terms, untimely loan approvals, and inadequate support from loan officers. During a press conference call, Vilsack said, "USDA was operating on a deficit of trust with many of our customers and potential customers. They didn’t feel our programs were designed for them, and in many cases, they were right.”
The process for these payments began last July when the USDA started accepting applications from farmers detailing their experiences of discrimination and the impact it had on their agricultural pursuits. While the USDA has not released demographic details of the recipients, it noted that the highest numbers of payments were issued in Mississippi and Alabama.
