For decades, the U.S. Department of Agriculture (USDA) failed to treat Black farmers fairly when they applied for USDA farm loans – but we may finally have an opportunity to right a historic wrong. The 2022 Inflation Reduction Act (IRA), and this year’s Farm Bill renewal are opportunities for building a farm system that addresses water and climate issues, as well as taking significant steps towards equity for groups historically marginalized and overlooked in government funding and support. In particular, considering the historic discrimination they faced from the USDA, Black farmers deserve fair consideration. It was not until 1999 that the U.S. District Court for the District of Columbia approved a settlement agreement between the USDA and Black farmers in a suit which claimed the agency discriminated against the farmers on the basis of race. Even then, the disastrous implementation of the Pigford Consent Decree left the vast majority of Black farmers in crushing debt, threatened with farm foreclosures, and with no legal recourse to save their family farms. The IRA funding and the Farm Bill must be targeted towards attempting to remediate this injustice and canceling the Pigford debt.
USDA farm loans were applied unevenly by race through much of the agency’s history. This discriminatory treatment created dire situations for Black farmers, with many facing foreclosure and financial ruin. In 1994, the USDA analyzed the treatment of minorities in its agency programs and payments. The final report found that from 1990 to 1995, minority participation in FSA programs was very low and minorities received less than their fair share of USDA money for crop payments, disaster payments, and loans. The following year, USDA Secretary Glickman ordered a nationwide suspension of government farm foreclosures pending the outcome of an investigation into racial discrimination in the agency’s loan program and later announced the appointment of a USDA Civil Rights Task Force. Despite this, from 2006 to 2016, Black farmers were six times as likely to be foreclosed on as white farmers.
In 1997, the Civil Rights Task Force recommended 92 changes to address racial bias at the USDA, forming an action plan. Unfortunately, the action plan came up short. While it acknowledged past problems and offered solutions for future improvements, it did not satisfy those seeking redress of past wrongs and compensation for losses suffered. This led to a proposed class action suit that same year, filed by Timothy Pigford in the U.S. District Court for the District of Columbia on behalf of Black farmers against the USDA. Debt relief was written into the consent decree for Pigford and included in the settlement agreement for a second case regarding late claims called In re Black farmers Discrimination Litigation or “Pigford II”. Farmers could choose to pursue remedy through Track A, which included a $50,000 award, or Track B, which allowed them to claim full damages, but required them to provide a higher level of evidence. The settlement agreement stipulated that any USDA Farm Service Agency loan that was incurred under or affected by the discriminatory program was to be canceled if the claim was successful. However, in practice this failed leading to loans not being canceled.
The IRA and Farm Bill are opportunities for significant steps towards equity for groups historically marginalized and overlooked in government funding and support. The Justice for Black Farmers Act of 2023, introduced by Senator Cory Booker, aims to substantially increase funding for USDA technical assistance, and provide funding for pro bono assistance, including legal assistance, succession planning and support for development of farmer cooperatives, to Black farmers. These are opportunities to help remediate the wrongs from past USDA discrimination.
The USDA sought public comment in 2022 on how to best implement IRA Section 22007, which directs the 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 purpose.” The agency is aware of its wrongs in its racially discriminatory past and in order to avoid similar mistakes, Black farmers and the reality of their concerns and livelihoods must be a priority. This can only be achieved by working directly with Black farmers.
Other equity related Farm Bill marker bills include:
Increasing Land Access, Security and Opportunities Act (H.R.3955) Would help young, beginning, and Black, Indigenous and other people of color (BIPOC) farmers gain access to land, capital, and markets, the biggest barriers for new and underserved farmers and ranchers. The bill would expand the USDA Increasing Land, Capital, and Market Access Program, providing critical resources to implement farmland access, retention, and transition projects. The proposed $100 million of annual funding over ten years would complement the USDA’s existing farm production and conservation programs and be available to individuals and a wide variety of entities, such as tribes, municipalities, non-profits, and cooperatives.
Fair Credit for Farmers Act of 2023 (HR5296, S2668) The bill will improve access and accountability in the FSA loan application and appeals process. It seeks a fundamental shift in the dynamic between farmers and FSA, to a relationship where farmers have protections and can be co-equal partners with FSA staff in seeking farm success.
Farmer to Farmer Education Act of 2023 (S.2614) Would foster knowledge sharing by investing in farmer-led education networks—particularly in communities historically marginalized from existing systems—as a key strategy to increase the adoption of conservation practices. Specifically, the bill would authorize the National Resources Conservation Service (NRCS) to enter into cooperative agreements with community-based organizations in states to support established farmer-to-farmer education networks and build capacity for new ones. Young farmers can learn from trusted community members, ensuring they receive information relevant to their cultural farming and ranching practices.
Urban & Innovative Farming Act (S.2591). This bill expands support for urban, suburban, and rural farmers through programmatic reforms to improve the content and delivery of technical assistance to urban and innovative producers, increases access to grant funds among farmers, and scales composting and food waste initiatives spearheaded by the Office of Urban Agriculture and Innovative Production.
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