The Biden administration has started distributing millions of dollars in relief checks to farmers who have faced discrimination, particularly Black farmers. This effort is part of a larger initiative to address inequities in farm loan programs, as revealed by data obtained through a CNN Freedom of Information Act request. President Joe Biden acknowledges the historic discrimination in farm loan programs and emphasizes the need to provide equal access to federal resources and support for farmers and ranchers.
However, the distribution of relief payments has been met with legal challenges from a group of Black farmers who are seeking to expand eligibility for the Discrimination Financial Assistance Program. The Black Farmers and Agriculturalists Association, representing over 20,000 members, is requesting the 6th US Circuit Court of Appeals to temporarily pause the relief payment process in order to reconsider a lawsuit regarding applicants filing on behalf of deceased relatives who have faced discrimination. The association is arguing for fairness in receiving services such as loans and credit, as they have had to resort to lawsuits to demand equality.
The legal argument being presented by the farmers’ association revolves around a recent Supreme Court decision in June that overturned a longstanding precedent known as the “Chevron” doctrine. This decision emphasizes the need for judges to independently assess agency regulations and compliance with relevant statutes, rather than deferring to agency interpretations of ambiguous language. The farmers’ association contends that the trial judge relied on a discredited standard of review and calls for a reevaluation of the USDA’s actions in light of the Supreme Court ruling.
The relief payments range from $3,500 to $500,000 and are intended to benefit over 23,000 individuals who have experienced discrimination in USDA lending programs. The USDA began accepting applications for financial relief in July 2023, with a deadline extended to January 2024. The funds are available for farmers, ranchers, and forest landowners who have faced discrimination in USDA farm lending prior to 2021. Concerns have been raised about halting the payment program, as it could negatively impact those awaiting relief from the federal government.
Data obtained through a Freedom of Information Act request shows that rejection rates for Black and Asian farmers increased significantly during the Trump administration and continued to be higher under the Biden administration. While rejection rates for Black farmers have slightly decreased in recent years, they remain higher than those for other racial groups. The USDA is working to dismantle systemic barriers to accessing loans and has implemented changes to make the application process more accessible. However, challenges in loan rejection rates persist for historically underserved customers, particularly Black and AAPI farmers.
The legal battles and ongoing challenges faced by Black farmers underscore the persistent discrimination within farm loan programs and the broader agricultural industry. The Biden administration’s efforts to address these inequities through relief payments are a step towards rectifying past injustices, but more work remains to ensure equal access to resources and support for all farmers. The outcome of the legal proceedings and the response from federal courts to the new Supreme Court ruling will shape the future of agricultural policy and support for minority farmers in the United States.
