FinancePolitics

USDA compensates Black & minority farmers with $2 billion

The US Department of Agriculture (USDA) has allocated a staggering $2 billion to support marginalized Black and minority farmers, rectifying decades of systemic injustice, according to an announcement by President Joe Biden.

The financial assistance – ranging from $3,500 to $500,000 is anticipated to revitalize Black and minority farmers’ dreams. Although John Boyd Jr., Founder and President of National Black Farmers Association (NBFA), while praising the efforts of the Biden administration, emphasized the need for comprehensive land restoration.

“We want our land, and I want to be very, very clear about that,” he mentioned without hesitation.

The historic initiative is expected to address USDA’s long history of refusing to process loans from Black farmers, and instead benefit over 43,000 farmers, primarily in Mississippi and Alabama, who also faced reduced funding, and accelerated foreclosures.

Wardell Carter, a Black farmer, shared his painful experience. Since his father purchased 85 acres of land in Mississippi in 1939, Carter’s family faced immense challenges. They were denied loan applications, and USDA loan officers would often slam the door in their faces or have police visit their homes.

Without loans, they couldn’t afford proper equipment, limiting their farming capacity and profits. However, when then loans finally came, they got approved with an exorbitant 100% interest rate.

Boyd’s personal experiences echo Carter’s. He’s witnessed loan applications being torn apart, and faced racial discrimantions. At 65, Carter hopes to use the USDA program to restore his property and help his nephew start farming. 

“We face blatant, in-your-face, real discrimination,” Boyd said. “And I did personally. The county person who was making farm loans spat tobacco juice on me during a loan session.”

As a fierce advocate for Black farmers, Boyd continues to fight for debt relief approved by Congress in 2021. Initially, $5 billion was allocated for this program as part of the COVID-19 stimulus package.

However, White farmers filed lawsuits, arguing that excluding them was unconstitutional, which halted the program. In response, Congress amended the law to assist a broader group of farmers.

This new law allocated $3.1 billion to aid farmers struggling with USDA-backed loans and $2.2 billion to compensate farmers who faced discrimination from the USDA. 

The Inflation Reduction Act of 2022 Section 22008 repeals the American Rescue Plan Act of 2021 Section 1005 which provided Black, Native and other Farmers of Colour debt relief. It fuels this breakthrough program, acknowledging the USDA’s troubled past and paving the way for a more equitable future.

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