By: John Zippert, Co-Publisher
At press time on Wednesday, July 31, 2024, Secretary of Agriculture Tom Vilsack announced 43,244 farmers would receive payment for past discrimination by USDA farm credit agencies, under the $2.1 Billion allocated in Section 22007 of the Inflation Reduction Act.
74% of the 58,000 applications submitted were adjudicated to receive funding between $5,000 and $500,000. About half of the applicants, attempted to farm by seeking a USDA loan, but were turned down or discouraged from receiving and filling out a loan application. After they were turned down, they were unable to farm. These applicants will receive between $3,500 and $6,000, as a consolation payment for their discrimination.
The other half of the applicants, who have or had a farming or ranching operation, are receiving between $10,000 and $500,000 of assistance, with an average of nearly $82,000. The approval letters and checks will be mailed this week and should arrive by August 6, 2024.
The official Biden-Harris Administration press release on the 22007 process, is posted on the website 22007apply.gov, which provides more information on the evaluation process. After August 6, 2024, the award information will also be on this website.
On the zoom call on Wednesday, Secretary Vilsack noted that $1.99 Billion of the funds in Section 22007 had been spent to make the awards.
Awards were made in all 50 states, Puerto Rico and territories. The most applications submitted and approved came from Mississippi and Alabama.
Other states of the South, including Georgia, Florida, North and South Carolina, Arkansas, Louisiana and Texas were among the top ten states receiving approvals. The states of Oklahoma and California, rounded out the top ten states for participation in this program.
Secretary Vilsack noted that these payments for past discrimination, prior to January 1, 2021, would be taxable events for the farmers receiving them. Federal and state income taxes will be owed on the discrimination payments provided.
The Rural Coalition commended the Biden-Harris Administration for getting these decisions made and checks sent out, ahead of the timetable that they set for late August – early September.
The Federation of Southern Cooperatives/LAF which was a cooperating organization, doing outreach and application assistance, said it was glad that the decisions had been made but reserved final judgement to see how many of its members were awarded payments and the size of those payments.