The U.S. Department of Agriculture is set to compensate over a thousand Louisiana farmers who had filed discrimination claims. This news comes as a relief to the farmers who had been waiting for their recompense.
During a conference call on Wednesday, USDA Secretary Tom Vilsack and his team informed U.S. Rep. Troy Carter, D-New Orleans, that $77.3 million would be granted to 1,265 farmers, ranchers, and forest landowners in Louisiana. The funds will be disbursed from the $2.2 billion allocated by Congress in the Inflation Reduction Act for the Discrimination Financial Assistance Program.
According to Carter, farming and agriculture in the United States have long withheld access from marginalized communities, including people of color. In his view, the recently announced awards represent a crucial step towards ensuring that farmers and ranchers from all backgrounds can sustain their livelihoods, contribute to the economy, and pursue new agricultural opportunities. He sees these funds as a chance to create much-needed equity for farmers who have been left behind due to decades of discriminatory practices.
According to the USDA, over 43,000 people across the country faced discrimination in USDA farm lending programs. The purpose of these programs is to provide support to farmers in order to improve their operations, maintain their farming practices, or recover lost income.
According to the USDA, approximately 23,000 present and former farmers and ranchers will be granted a sum ranging from $10,000 to $500,000, with an average amount of almost $82,000.
According to the USDA, over 20,000 individuals who had plans to pursue a career in farming or ranching but were unable to do so due to their inability to secure a USDA loan are now receiving financial assistance. The amount of aid ranges between $3,500 and $6,000, with an average of $5,000 being distributed to each individual.
Vilsack expressed that the financial aid being provided is not intended to compensate for the losses or suffering experienced by farmers. Instead, it is a gesture of recognition. He hopes that this assistance will enable farmers to maintain their farms, support the country’s food production, and continue pursuing their passion.
The USDA has faced allegations of discriminatory practices when it comes to providing farm loans. These accusations extend to treating individuals differently based on their race, national origin, gender, marital status, and other demographic factors. Examples of the alleged discrimination include inadequate assistance, delays in processing loans, loan denials, unfavorable loan terms, and excessively strict supervision of loan requirements.
According to the USDA, individuals who had applied for compensation since July 2023 were notified about their assistance on Tuesday.
In a statement, President Joe Biden acknowledged the longstanding issue of discrimination that many farmers and ranchers have faced when it comes to accessing federal resources and support through farm loan programs. He emphasized his commitment to addressing this inequity, which he vowed to tackle when he assumed the presidency.