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USDA announces $2 billion in assistance for farmer who faced discrimination

The USDA has issued more than $2 billion in financial assistance to farmers, ranchers, and forest landowners who experienced discrimination in the agency’s farm lending programs.

During a call with reporters Tuesday, Ag Secretary Tom Vilsack said the payments were allocated through the Inflation Reduction Act’s Discrimination Financial Assistance Program.  “The eligibility requirement was based on discrimination and whether or not you were discriminated against at a USDA loan office, either in terms of not getting a loan, not getting a loan on time, or not getting an interest rate that was comparable,” he says.

He says the funds aren’t necessarily compensation for losses, but an acknowledgement from the department. “My hope is that this financial assistance will help many farmers stay on their farms, contribute to our nation’s food supply and can do continue to do what they love to do,” he says. “And for those who are not able to farm or lost their farms. I hope these funds provide some measure of assistance.”

Vilsack the nation’s agricultural sector and industry is strongest when the people involved in it are diverse.

“We’re interested in making sure that we provide financial assistance to anybody who may have experienced discrimination while trying to do business with USDA,” he says. “That is part of what we’re trying to do is to turn the page on this and create a new narrative and story about USDA.”

Vilsack says payments were distributed to 43,000 applicants in all 50 states. Mississippi had the most recipients, followed by Alabama and Oklahoma.

According to the USDA, recipients include over 23,000 individuals who have or had a farming or ranching operation, who are receiving between $10,000 and $500,000 of assistance, with an average of nearly $82,000. Recipients also include over 20,000 individuals who planned to have a farming or ranching operation, but reported they were unable to do so because they couldn’t get a USDA loan. These individuals are receiving between $3,500 and $6,000 of assistance, with an average of $5000.

U.S. House Ag Committee Ranking Member David Scott says for American agriculture to succeed farmers and producers need to have access to land and capital, to show that working in agriculture is a viable career and there is a level playing field.  He says the announcement delivers on the commitment from Congress to invest in equity, fight for fairness, and uplift farmers, ranchers, and producers who have faced discrimination.

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