USDA has issued one-time payments totaling about $2 billion to farmers, ranchers and forest landowners across the country who experienced discrimination in farm loan programs or did not receive equitable access to federal resources before the start of the Biden administration.
The funds come from the Inflation Reduction Act’s Discrimination Financial Assistance Program (DFAP). Out of 58,000 applications, over 43,000 farmers and ranchers from all 50 states, the District of Columbia and U.S. territories will receive some assistance, USDA said.
Over 23,000 individuals who currently or previously had a farming, ranching or forestland operation are getting between $10,000 and $500,000. Over 20,000 individuals who planned to have a farming or ranching operation, but said they were unable to do so because of challenges getting a USDA loan, are receiving between $3,500 and $6,000 in assistance. All payments are taxable.
The assistance provided through DFAP is not necessarily compensation for an individual’s losses, but is an acknowledgment, Agriculture Secretary Tom Vilsack said in a press call.
“My hope is that this financial assistance will help many farmers stay on their farms, contribute to our nation's food supply and continue to do what they love to do,” Vilsack said. “For those who were not able to farm or lost their farms, I hope these funds provide some measure of assistance to allow them opportunities to help themselves or their families.”
Mississippi had the most recipients with over 13,000 individuals, followed by Alabama and Oklahoma.
"Farmers and ranchers work around the clock to put food on our tables and steward our nation’s land," President Joe Biden said. "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. 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."
Sen. Raphael Warnock, D-Ga., said, "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.” About 2,100 Georgia producers have received $137 million in payments.
Vilsack did not provide details on the recipients but said the program looked at all classifications and types of discrimination including race, ethnicity, sexual orientation, gender identity and religion. Criteria for the applications included the level, nature and timing of the discrimination, the nature and size of the farming operation, whether homes or farms were lost, and other criteria, he said.
Vilsack said the program and the disbursement of these funds is an important step in efforts to rebuild trust between farmers and USDA.
“We're cognizant at the beginning of this administration … that USDA was operating on a deficit of trust with many of our customers and potential customers,” Vilsack said. “They didn't feel that programs were designed for them, and in many cases, they were right.”
He said the agency has taken steps to break down barriers to access and change people’s minds about USDA. Vilsack said USDA has diversified Farm Service Agency leadership, streamlined loan paperwork requirements to make it easier to apply for loans and make payments online, and established new processes that reduce the need for human discretion in loan decision-making.
This article was updated to reflect that $2 billion has been distributed to farmers and ranchers.
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