Native Farmers Eligible for Funding Based on Past Discrimination

The Department of Agriculture has initiated a monetary support initiative aimed at Indigenous and other farmers who have been victims of discrimination within the agency’s lending programs.

In accordance with Section 22007 of the Inflation Reduction Act of 2022, the USDA has now started accepting applications from producers who have encountered discriminatory conduct. Although the announcement didn’t specify potential individual grant amounts, the total fund for the program is $2.2 billion. The initiative is open to farmers, ranchers, and forest landowners.

The application period is set to close on October 31 of the current year. The USDA’s announcement states that the anticipated payouts are expected to be distributed “in early next calendar year by check.”

The announcement emphasized that applying online for the program does not require any fees, and farmers should be vigilant about lawyers or retainer groups potentially exploiting them through “misinformation about the discrimination assistance process.”

Agricultural associations throughout Indian Country have commended this initiative, considering it the subsequent sensible move in USDA’s endeavors to provide debt-relief for disadvantaged farmers. These farmers have been severely impacted by economic disturbances during the pandemic, which include disruptions in supply chains, infrastructure collapse, and a decrease in product demand.

“For far too long, the original stewards of the land have been navigating a landscape of systemic bias, and those persistent barriers have created insurmountable challenges for Native producers,” Native American Agriculture Fund CEO Toni Stanger McLaughlin said in a statement. She called the program’s financial assistance for those who have faced discrimination “a crucial step towards accountability and a shift towards improving services within USDA lending programs, creating more equitable opportunities for Native agriculture to thrive.”

The action was a step in the right direction, according to Kari Jo Lawrence, executive director of the nonprofit Intertribal Agriculture Council, even if it didn’t completely address the issue of Native farmers’ persistent lack of access to financing.

“The Discrimination Financial Assistance Program is an acknowledgment that discrimination has been an ongoing challenge at USDA,” Lawrence said in a statement. “While this (p)rogram is not comprehensive compensation for the discriminatory experiences so many Tribal and other producers have endured in USDA lending programs, it is an opportunity for some level of financial assistance that has not previously been available.”

To ensure a neutral, unbiased examination of accepted applications, the initiative will be run by nongovernmental USDA partners in conjunction with USDA’s regional hubs. Additionally, in order to assist in outreach to potential applicants, the USDA will collaborate with organizations focused on specific disenfranchised communities, like the Intertribal Agriculture Council.

The funds from Section 22007 are the newest segment of a mission that kicked off in early 2021 with the American Rescue Plan Act. Under ARPA, the Department set aside $4 billion specifically for “socially disadvantaged” farmers, which included women, individuals of color, and veteran-owned ventures. Through that initiative, farmers who received the award could have up to 120 percent of their debt pardoned, translating into a financial boost for some.

Nevertheless, on the brink of launching that program, lawyers filed objections in several states on behalf of white farmers, alleging “reverse discrimination”, thereby obstructing the debt relief before its distribution. Initially, the USDA vowed to counter the injunctions in court but soon admitted that the ensuing conflict could require years to settle, resulting in a considerable relief delay.

The revocation of the initially pledged support instigated a lawsuit in October 2022 by Native and Black farmers, due to concerns it could result in diminished relief for the most necessitous farmers. That lawsuit, known as John Boyd, et. al. v. United States, was later overruled, although this decision was contested in an appeal last month.

The initiation of the new 22007 application process this month may offer some alleviation to Native and Black farmers who missed out on the essential aid two years prior. Even though the final extent and nature of financial support have been modified, the objective continues to be the formation of “equitable and inclusive” strategies for USDA debt relief, as stated by Secretary Tom Vilsack.

“The opening of the application process is an important step in delivering on our commitment of providing financial assistance to those who faced discrimination in USDA farm lending, as swiftly and efficiently as possible,” Vilsack said in a statement. “USDA will continue to work with our national vendor partners and community-based organizations to make sure eligible farmers, ranchers, and forest landowners have clear information about what is available to them, how to apply, and where to obtain assistance with their questions at each step of the way.”