June 21, 2023
Black Farmers Pressure Federal Government as They Wait for Promised Financial Assistance
In 2022, Congress revoked funding for the federal government that would eliminate outstanding debt for minority farmers. Now those farmers are fighting back in a class action lawsuit.
On August 22, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (IRA). According to the USDA, this action reversed Section 1005 of the American Rescue Plan Act (ARPA), which guaranteed funding and authorization for the federal government to pay up to 120% of direct and guaranteed loan outstanding balances for socially disadvantaged farmers and ranchers.
In October of the same year, NewsOne reported that farmers and ranchers filed a lawsuit against the United States government, alleging that the federal government had reneged on its contract. This plan would have aided 15,000 Black, Native American, Alaskan Native, Asian American, Pacific Islander, and Hispanic and Latino farmers. Represented by civil rights attorney Ben Crump, the National Black Farmers Association is pursuing legal action in an effort to receive proper compensation.
John Wesley Boyd, Jr., founder and president of the National Black Farmers Association, spoke with NewsOne that October, expressing his dismay at the unexpected change. “I’m very, very disappointed in this legislative action. I’m prepared to fight for debt relief for Black, Native American, and other farmers of color all the way to the Supreme Court. I’m not going to stop fighting this,” Boyd told the news outlet.
In an official statement published on his website, Attorney Crump claims the government also breached contracts under section 1006 of the ARPA. Those contracts would have granted financial compensation to minority farmers who had experienced past discrimination from the USDA.
However, the USDA remained adamant that its failure to disburse the funds was due to an ongoing legal battle. Its official statement, emailed to NewsOne, read, “USDA strongly supported the ARPA Section 1005 program and was ready to make payments to direct loan borrowers. However, the $5 billion that was intended to help farmers was frozen by three nationwide injunctions that prevented USDA from getting payments out the door.”
The USDA says the Inflation Reduction Act offers a new way to provide relief to indebted farmers, stating, “Congress provided $3.1 billion that will allow USDA to be able to work with distressed borrowers to provide help with their farm debts in new and more effective ways to help keep borrowers as much as possible stay on the land, stay in agriculture, and maintain eligibility for future assistance.” The organization also shared that farmers who’d experienced past discrimination would be awarded $2.2 billion for additional financial aid.
As months have passed with no movement, farmers have grown restless and frustrated with what they believe is inequality.
“Something is terribly, terribly wrong with this picture, and we have to look at what’s really going on. The American farmer is suffering right here, with the highest input costs we’ve had in our nation’s history for America’s farms. We are here struggling, and we’re managing to help countries like China and Russia, America’s two biggest adversaries,” said Boyd on June 2 in an interview with Fox and Friends First.
Farmers and ranchers remain steadfast in their mission to receive compensation despite the setbacks. Having played an essential role in the country’s food production, they feel it is time they reap the benefits of their hard work.
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