The Biden administration has distributed over $2 billion in direct payments to Black and minority farmers discriminated against by the USDA, as announced on Wednesday. More than 23,000 farmers received payments ranging from $10,000 to $500,000, and about 20,000 aspiring farmers who were denied USDA loans received between $3,500 and $6,000.
Most payments went to farmers in Mississippi and Alabama. USDA Secretary Tom Vilsack stated that the aid acknowledges past discrimination but does not compensate for losses.
The USDA has a history of denying and limiting loans to Black farmers, often foreclosing more quickly. John Boyd Jr., president of the National Black Farmers Association, said the aid is insufficient, comparing it to a bandage on a serious wound. Boyd is fighting for 120% debt relief for Black farmers, a measure included in the 2021 Covid-19 stimulus package but stalled due to legal challenges from white farmers.
To avoid delays from court battles, Congress amended the law to offer broader financial assistance, allocating $3.1 billion for USDA-backed loan support and $2.2 billion for discrimination compensation.
Wardell Carter, a Black farmer, shared his family's struggles with USDA discrimination, including denied loan applications and high-interest rates. Without loans, they couldn't afford equipment, limiting their farming capacity and profits. Boyd also faced discrimination, including racial slurs and unfair treatment during loan processes.
Now 65, Carter hopes the USDA funds will help his nephew revive their family farm, aiming to buy a tractor and restore their land.