On a July 31 press call, Agriculture Secretary Tom Vilsack provided an overview of the Inflation Reduction Act’s Discrimination Financial Assistance Program, which aims to provide financial assistance to more than 43,000 farmers, ranchers and forest landowners who experienced discrimination in USDA farm lending programs prior to January 2021.
Through the the Inflation Reduction Act, Congress allocated $2.2 billion for the program and directed USDA to provide financial assistance to eligible parties. On the press call, Vilsack said financial assistance from the one-time program is not compensation for anyone’s loss or pain endured, but rather an acknowledgment of discrimination.
“The completion of the Discrimination Financial Assistance Program is an important moment in USDA’s history and in our journey to becoming a department that truly serves everyone who wants to participate in agriculture,” Vilsack said in a news release. “While this financial assistance is not compensation for anyone’s losses or pain endured, it is an acknowledgment. My hope is that this will ensure that many farmers can stay on their farms, contribute to our nation’s food supply and continue doing what they love.
“I am also immensely grateful to USDA’s many partners in this effort, including the organizations who helped spread the word and offer technical assistance to applicants,” he continued. “This process, and the information contained in the applications, will help USDA as we fine-tune our efforts to make USDA programs accessible, inclusive and equitable to all.”
Over 43,000 individuals in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and American Samoa will receive financial assistance through the program.
“The assistance will help many of them continue farming or enhance their operations, will allow some to begin farming, or in other cases will help to ease lost income,” Vilsack said in the release.
The recipients include over 23,000 individuals who have or had a farming or ranching operation, who are receiving between $10,000 and $500,000 of assistance, with an average of nearly $82,000, the release said. Recipients also include over 20,000 individuals who planned to have a farming or ranching operation but reported they were unable to do so because they couldn’t get a USDA loan. These individuals are receiving between $3,500 and $6,000 of assistance, with an average of $5,000.
“In two years, we’ve distributed $2.4 billion to 43,407 producers involving 82,497 loans who were in financial distress or at risk of defaulting on those loans,” Vilsack said on the call. “Because of that assistance, many of them have gotten a second chance at farming, and they’ll be able to pass their farms down to the next generation. Our national security is built on food security, and just like any other sector, our agricultural sector and industry are strongest when the people involved in it are diverse and when its diversification is offered, whether it’s small, mid-size or large operations.”
“Farmers and ranchers work around the clock to put food on our tables and steward our nation’s land. But 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,” President Joe Biden said in the news release. “I promised to address this inequity when I became president. Today that promise has become a reality. My Inflation Reduction Act took a bold step to address the effects of discrimination in farming and ranching, and today’s action will enable more farmers and ranchers to support themselves and their families, help grow the economy and pursue their dreams.”
