Joseph and Helen Fields, organic vegetable farmers in South Carolina
On Friday, July 7, 2023, Agriculture Secretary Tom Vilsack announced that the application process for Section 22007 of the Inflation Reduction Act (IRA), which provides $2.2 billion in financial assistance for farmers, ranchers, and forest landowners, who have experienced discrimination in USDA’s farm lending programs prior to January 1, 2021. IRA Section 22007 is not a lawsuit. There is no fee to apply or to receive assistance in applying.
According to USDA, “Farmers, ranchers, and forest landowners who experienced discrimination by USDA in its farm loan programs prior to January 1, 2021, and/or are currently debtors with assigned or assumed USDA farm loan debt, that were the subject of USDA discrimination that occurred prior to January 1, 2021, are eligible for this program. To apply, borrowers have the option to apply via the e-filing portal at 22007apply.gov or submit paper-based forms via mail or in-person delivery to the program’s local offices. The application process will be open from July 7, 2023, to October 31, 2023.”
Eight trusted community-based organizations are serving as cooperators with USDA and third-party administrators to implement this long-awaited financial assistance program and to assist farmers and ranchers who have faced discrimination in prior farm loan processes. Those cooperators are:
The Federation of Southern Cooperatives Land Assistance Fund (FSC/LAF); including its member state associations, like the Alabama State Association of Cooperatives
Rural Coalition (RC)
Intertribal Agriculture Council (IAC)
North Carolina Association of Black Lawyers Land Loss Prevention Project (LLPP)
Farmers Legal Action Group (FLAG)
National Young Farmers Coalition (Young Farmers)
Farmer Veteran Coalition (FVC)
National AgrAbility Project (NAP)
The cooperators will be working together to reach and help farmers and ranchers through direct technical assistance and training sessions. All technical assistance will be free, and there is no charge to file the application.
The payments for the Discrimination Financial Assistance Program have not been determined yet. Secretary Vilsack said the payment “cannot fully compensate farmers for past harms but are meant as financial assistance to farmers to help in land retention and to continue farming operations.” There is no minimum payment of $50,000, as there was in prior lawsuits and administrative settlements. The payments will be based on the number of approved applications received and the severity of discrimination experienced and documented by the farmers. A maximum payment of $500,000 was fixed in the legislation that passed Congress.
Eligibility and Documentation are key to the 22007 Application Process
“We want farmers to understand the issues of eligibility,” said John Zippert, retired Director of Programs at the Federation of Southern Cooperatives, and current Rural Coalition Board Chair. “If you feel you have been discriminated against while seeking a USDA farm loan, or that you were not treated well in the servicing of your loan, you may be eligible. You must show with evidence: copies of letters from USDA loan agencies, USDA receipts for service, land deeds or leases, farm business statements, notarized declarations by neighbors, not family members, that you tried to apply or applied for a USDA Farm Service Agency loan.” The team of cooperating groups stand ready to help you review your eligibility for this process and prepare and present the evidence you will need to make the strongest possible claim.
“This is an acknowledgement by USDA of the injustice that Black, Indigenous, and other farmers of color have long suffered,” noted Savi Horne, Director of the North Carolina Association of Black Lawyers Land Loss Prevention Project. “This process is the best we have right now, and we must make it work for the farmers who have suffered at the hands of the USDA, those whose operations have been hobbled because of a long history of racism and racial exclusion. Our goal is to give them a fighting chance to be the viable producers they are capable of becoming, if given a level playing field.”
“Farmers with disabilities are routinely assumed unable to farm, leading to discrimination at all levels of the farming industry. Loan processes are no exception,” said Bill Field of AgrAbility. “Our mission over the years has been to increase access for disabled farmers to all programs available to farmers. We know that disabled farmers and ranchers have been discriminated against, and we are committed to supporting them in making the best possible case for this financial assistance.”
“For the past 15 years the Farmer Veteran Coalition has served our national membership of 40,000 members in their transition from military service to agricultural production. Our farmers are underserved beginning producers who may be part of socially disadvantaged communities. We are honored to be asked to partner with the USDA in their effort to ensure America’s Veterans impacted by discrimination are aware of this process and will have the opportunity to submit their application for consideration,” says Executive Director of FVC Jeanette Lombardo.
“While racial discrimination against Black farmers, indigenous farmers and other farmers of color are the primary issues of focus. Persons who were discriminated against because of sex, gender, religion, national origin, disability, farm size and other factors are eligible to make their case on the forty (40) page detailed application, “said Zippert.
The Rural Coalition also urges eligible farmers and ranchers not to fall victim to some lawyers and other groups spreading misleading information about this process, pressuring people to sign retainer agreements that legally bind them to share a portion of any award. Filling out the 22007 application is free, and there is no charge for assistance by the Cooperators listed here. For more information, please read the USDA fact sheet about the program timeline and ways to protect against possible scams., on the Section 22007 website.
Assistance with Applying
It is important that the financial assistance application submitted by farmers is properly filled out. The cooperators identified here have been designated and trained to provide farmers with technical assistance in the application process. Neither designated cooperators nor the USDA will make the decision regarding who is awarded financial assistance. The financial assistance will be decided and awarded exclusively by the designated administrators.
Borrowers have the option to apply via the e-filing portal at 22007apply.gov or submit paper-based forms via mail or in-person delivery to the program’s local offices between July 7 to October 31, 2023. Applications will be reviewed in November and December, with payments reaching recipients soon thereafter. The application process is not on a first come, first served, basis. All applications received or postmarked before the October 31 deadline will be considered.
Vendors, selected by USDA in a procurement process handled by career staff, are operating four regional hubs and also providing technical assistance and working closely with these and other community-based organizations to conduct outreach using digital and grassroots strategies, to ensure potential applicants are informed about the program and have the opportunity to apply.
These hubs are operating a network of brick-and-mortar program offices and will conduct extensive outreach about the program. Windsor Group serves farmers in the eastern regions of the U.S. and Analytic Acquisitions serves the western regions. A national administrator, Midtown Group, is responsible for program oversight and integrity, and will lead a national call-center (1-800-721-0970), operate the application website – 22007apply.gov, which is now open – and review and process applications and payments. All vendors have experience in professional services, supporting government contracts, and complex program operations.
If you believe you may be eligible for IRA Section 22007, please reach out to any of the contacts at the bottom of this press release, for more information and assistance.
Federation of Southern Cooperatives / Land Assistance Fund: Tandelyn Daniel, tandelyndirectorcommembership@gmail.com or Dañia Davy daniadavy@federation.coop
Rural Coalition: Rel Brender, rel@ruralco.org or Lorette Picciano, lpicciano@ruralco.org
Intertribal Agriculture Council: Abi Fain, abi@indianag.org
Farmers Legal Action Group: Stephen Carpenter, scarpenter@flag.org or Scott Carlson, scarlson@flaginc.org
North Carolina Association of Black Lawyers Land Loss Prevention Project: Savi Horne, savi@landloss.org
National Young Farmers Coalition: David Howard, david@youngfarmers.org or Ebonee Stevenson, ebonee@youngfarmers.org
Farmer Veteran Coalition: Jeanette Lombardo, Jeanette@farmvetco.org
National AgrAbility Project: Bill Field, field@purdue.edu