Biden Administration Begins Disbursing $2 Billion to Discriminated Farmers
The Biden administration announced on Wednesday that it has commenced the distribution of $2 billion aimed at supporting thousands of farmers who have encountered discrimination in federal loan programs. This initiative comes after an extended period of delays and legal challenges that hindered the government’s efforts to provide compensation to these farmers.
These financial payouts are a significant step forward, occurring nearly two years after the Inflation Reduction Act of 2022 established a fund designed to assist farmers of all ethnic backgrounds who experienced discrimination when applying for loans or attempting to repay their debts. The sluggish implementation of this program has become a political challenge for President Biden, particularly as Black farmers have vocally criticized his administration for not fulfilling its commitments to support them.
In a statement released on Wednesday, President Biden emphasized the importance of this initiative, saying, “For too long, many farmers and ranchers experienced discrimination in farm loan programs and have not had the same access to federal resources and support. I promised to address this inequity when I became president. Today that promise has become a reality.”
The U.S. Department of Agriculture (USDA) is currently facilitating payments to approximately 43,000 farmers distributed across all 50 states, with Mississippi and Alabama reporting the highest numbers of recipients. On average, each eligible farmer will receive about $82,000, although these payments will be subject to taxation.
Out of the total, about 60,000 farmers submitted applications for the financial assistance. These applications underwent a thorough vetting process conducted by independent consulting firms enlisted by the USDA. Farmers were deemed eligible for these funds if they could demonstrate that they faced discrimination based on factors such as race, gender, sexual orientation, or religion.
The USDA has indicated that it is still in the process of analyzing the applications and payouts to compile demographic data concerning the recipients of these payments.
