Newswire: USDA announces next steps in providing financial assistance to borrowers who have faced discrimination

Washington, March 1, 2023 (Press Release No. 45.23) – Today, the U.S. Department of Agriculture (USDA) announced the first steps in its process for providing financial assistance to farmers, ranchers or forest landowners who have previously suffered discrimination with respect to USDA farm lending programs. In addition, USDA set a target of distributing the allocated funds, which were authorized by the Inflation Reduction Act, out to borrowers by the end of 2023. This process has been carefully designed in accordance with the IRA, the Federal Acquisition Regulation, and significant stakeholder input.
Specifically, Section 22007 of the Inflation Reduction Act (IRA), signed into law by President Biden in August 2022, directs USDA to provide financial assistance to producers who have experienced discrimination in USDA’s farm lending programs and has appropriated $2.2 billion for this program. Under the law, the Secretary of Agriculture is responsible for administering the assistance through qualified nongovernmental entities under standards set by USDA.
“These funds are yet another stepping stone in the long march towards justice and an inclusive, equitable USDA. Through this program and a neutral, comprehensive financial assistance process, USDA will acknowledge wrongs of the past and open up avenues that provide farmers, ranchers and forest landowners who have experienced discrimination by USDA the opportunity to be heard,” said Agriculture Secretary Tom Vilsack.
“In providing this financial assistance, our goal is to make sure eligible people have adequate, understandable information about what is available to them, how to apply, and what to expect from USDA at each step. As we work to make all our programs more equitable, accessible and accountable, we are applying these same principles to make sure all Americans know how to engage with USDA’s services so we can prevent more inequities and build new levels of trust with the People’s Department going forward.”
Following President Biden signing the IRA, USDA took immediate steps to convene listening sessions and seek public comments about the design of the program to make sure farmers, advocates, academics, legislators, tribal governments, and other experts were heard.
Now, in accordance with the requirements of the Federal Acquisition Regulation, the Department will soon issue contracts to nongovernmental program administrators, as the IRA specifies, that will coordinate the delivery of a national program of financial assistance to impacted farmers, ranchers or forest landowners. The vendors will include a national administrator to oversee the program and four regional hubs that will be set up to solicit and process applications efficiently. Vendors for the four regional hubs are encouraged to partner with organizations with experience in agriculture and specifically organizations that work with and represent underserved producers and have a relationship with USDA.
Organizations such as existing USDA cooperators that are interested in serving as partners to the regional hubs vendors should send an email to askusda@usda.gov by March 17, 2023 to have the name and contact information of their organization added to a list of interested potential partner organizations that will be made available to all regional hub interested vendors.
In addition to a national administrator and regional hubs, USDA will partner with community-based organizations across the country with experience in agriculture and reach into underserved communities. Building on work underway with existing cooperators and grantees through NIFA, FSA, NRCS and OPPE, these organizations will conduct outreach and ensure potential applicants are informed about the program and have the opportunity to apply. Organizations that would like to serve as cooperators should express their interest through an email to askusda@usda.gov by March 31, 2023.
The Department anticipates final selection of the vendors managing the program to occur by late Spring 2023. As soon as the national administrator, regional hubs, and cooperators are selected and prepared to begin the application process, USDA will work with them to disseminate specific details concerning the application period, with the goal of having payments made by the end of 2023.
The Department will also reach out to trusted cooperators that can further assist eligible farmers, ranchers, or forest landowners nearer to their locations. These trusted cooperators will be drawn from those with long-standing experience in agriculture technical assistance, outreach, and support for the farming community.
By taking these important steps to fulfill the mandates of Section 22007, USDA hopes to recognize and acknowledge the discrimination suffered by individuals, take steps to rebuild trust with communities, and create a better and stronger U.S. agriculture that is more diverse and resilient. This is one piece of a much broader effort at USDA to improve equity and access and eliminate barriers to its programs for underserved individuals and communities. More information about this work can be accessed at usda.gov/equity, where USDA will continue to share updates on its progress.

Newswire : Senate passes Jones amendment to fund Heirs’ Property Program

Sen. Doug Jones speaking on floor of the Senate

WASHINGTON – By a vote of 91-1, the Senate passed an amendment on Monday, October 29, 2019, introduced by Senator Doug Jones (D-Ala.) to help heirs’ property landowners secure a clear title for their land. The amendment to the FY2020 Agriculture Appropriations bill includes $5 million to fund a U.S. Department of Agriculture (USDA) program Senator Jones was able to include in the 2018 Farm Bill. His provision authorized the Farm Service Agency to make loans that will help families resolve heir’s property ownership and succession issues.
The Federation of Southern Cooperatives and the Rural Coalition worked on helping to frame the language for the heirs property sections of the 2018 Farm Bill which were introduced in a bi-partisan effort by Jones and Senator Tim Scott (R – SC).
Senator Jones took to the Senate floor immediately before the vote to encourage his colleagues to support the amendment. Copies of his statement are available on his werbsite.
Heirs’ property is land that has been informally passed down within families, often for several generations when the original owner fails to make a will. This can lead to costly legal complications and prevent landowners from qualifying for federal assistance. Heirs’ property is predominantly owned by African American farmers and producers and an estimated 60-percent of minority-owned land is projected to be heirs’ property.
Challenges associated with heirs’ property status are the leading cause of involuntary land loss among African Americans. Landowners of heirs’ property also cannot qualify for USDA loans necessary for farming, receive disaster relief funding, or use their land as collateral in private lending. More background on heirs’ property and the amendment are on the Senator’s website
Over the past year, Senator Jones has led a bipartisan effort in the U.S. Senate to help these landowners gain fair access to federal programs and to make it easier to resolve legal issues that result from their heirs’ property status. In addition to the re-lending provision, Senator Jones also secured a provision in the 2018 Farm Bill to help heirs’ property owners obtain a USDA farm number, which is key to accessing assistance from the agency’s programs.
More information on Heirs Property and an upcoming national confertence is also available at the Federation of Southern Cooperatives website at http://www.federation.coop.

Newswire : Structural Racism eliminated Black Farmers

By Stacy M. Brown, NNPA Newswire Correspondent @StacyBrownMedia

A new report from the Center for American Progress (CAP) provides insight on how decades of structural racism within the U.S. Department of Agriculture (USDA) has led to the virtual elimination of black farmers.
A century ago, roughly 14 percent of farmers were black. By 2012, that number had shrunk to 1.58 percent, according to the report, “Progressive Governance Can Turn the Tide for Black Farmers,” by Abril Castro and Zoe Willingham.
The study examined the ways in which discriminatory policies by the U.S. government, and especially the USDA, throughout the 20th century and up to the Trump era have led to the elimination of black farmers.
The authors said they found that black farmers have had less access to credit and less access to extension programs than their white counterparts, preventing black farmers from modernizing and scaling up their farms as white farmers have done.
The loss of black farmland has had a profound impact on rural black communities, which today suffer from severe economic challenges, among them a poverty rate twice that of rural white communities.
“This report illustrates the importance of understanding American history and the impact of systematic racism in our agricultural system,” Danyelle Solomon, vice president of Race and Ethnicity Policy at CAP, said in a news release.
The report gives several policy recommendations for protecting the livelihoods of black farmers:
· Protecting inherited family farms
· Expanding research and technical assistance for farmers of color
· Regular oversight and audits of the USDA by the Government Accountability Office
· Expanding access to land for black farmers
“As the report notes, black farmers were systematically removed from the farming industry through government policy and practices,” Solomon said.
Between 1920 and 2007, black farmers lost 80 percent of their land, according to the report.
“Moving forward, policymakers must ensure that agricultural policy includes targeted and intentional policies that correct these harms by expanding access to land and technical resources for black farmers,” Solomon said.