USDA Distributing $2 Billion to Farmers, Ranchers Over Discrimination Claims

More than 43,000 individuals are receiving financial assistance as part of a federal program aimed at helping farmers, ranchers, and forest landowners who “experienced discrimination” prior to 2021. The total assistance package amounts to about $2 billion.

On July 31, the U.S. Department of Agriculture (USDA) and the White House announced the government would be paying awards of $10,000 to $500,000 to 23,000 members of disadvantaged groups who have or had a farming or ranching operation. Moreover, it is sending between $3,500 and $6,000 to individuals who planned to have a farming or ranching operation but reported they were unable to do so because they could not get a USDA loan.

“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,” President Joe Biden said in a statement. ”Today’s action will enable more farmers and ranchers to support themselves and their families, help grow the economy, and pursue their dreams.”

The money comes from the $2.2 billion allocated to the Discrimination Financial Assistance Program by the Inflation Reduction Act of 2022. The Act directed the USDA to establish the program and provide financial assistance to those who “experienced discrimination in USDA farm lending programs prior to January 2021.”

According to the joint statement, the USDA began accepting applications for federal assistance in July 2023. The agency said recipients will include individuals from every state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and American Samoa.

Applications submitted to the USDA cited past discrimination related to race, color, national origin or ethnicity, sex, sexual orientation, gender identity, religion, age, marital status, disability, and reprisal or retaliation for prior civil rights activity, according to a federal website covering the program.

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“The assistance will help many of them continue farming or enhance their operations, will allow some to begin farming, or in other cases will help to ease lost income,” the statement said.

According to the program website, most of the money will be distributed in southeastern states. Roughly half of the recipients—about 24,200—are in Alabama or Mississippi.

Both states, according to U.S. Census data, have above-average poverty rates and a below-average median income. The U.S. Census Bureau reported that 16.2 percent of people living in Alabama and 19.1 percent of people in Mississippi are living in poverty. Meanwhile, the median household income for Alabama is about $59,600, and for Mississippi, it is about $52,700. The median U.S. household income is about $74,700.

Additionally, about 1.3 million Alabamans and 1.1 million Mississippians are black or African American, according to U.S. Census data.

“While this financial assistance is not compensation for anyone’s losses or pain endured, it is an acknowledgment,” U.S. Agriculture Secretary Tom Vilsack said in the statement. “My hope is that this will ensure that many farmers can stay on their farms, contribute to our nation’s food supply, and continue doing what they love.”