USDA to reimburse $2.2B to farmers for discrimination in loan process

The U.S. Department of Agriculture will pay $2.2 billion to nearly 45,000 farmers who applied for restitution reimbursement in 2021 after years of discrimination, protest, lawsuits and failed legislation.

Most of the payouts of up to $50,000 will go to farmers in Alabama and Mississippi. An average award will total $20,000.

“It’s a huge victory for the National Association of Black Farmers, even a bigger victory for me as somebody who’s been trying to get this stuff done for 41 years,” said John Boyd, a fourth-generation farmer who founded the National Association of Black Farmers more than 40 years ago, in an interview with the Richmond Free Press.

The NBFA educated and advocates for Black farmers in fighting for civil rights, land retention, accessibility to farm loans and economic development.

Boyd made headlines in 2002 when he and other farmers marched to Capitol Hill with a mule-driven covered wagon. They sought to draw attention to the discrimination against Black farmers in America. USDA loan officers denied his applications in the 1980s.

“I’ve been spat on, I’ve been called a ‘n—’ from the very person who was supposed to provide me loans and who should’ve been treating me with dignity and respect,” Boyd said.

According to Boyd, farming is a generational legacy and important for providing food for Americans.

John Bonner, 78, of Dinwiddie, received a payment last week for $390,000. The third-generation farmer said his story is similar to Boyd’s. He said he will use the payment to invest in his farm and support his family.

“My granddaughter, she just graduated from high school, and she was interested in being a veterinarian,” he said. “I want to do some things to help somebody else. I wouldn’t get to where I am if it wasn’t for my daddy and what he taught me and all.”

The USDA announced changes last week to its loan programs to increase opportunities for farmers and ranchers so that they are financially viable. The set-aside program created by the new policy will provide reduced interest rates, flexible payment terms and reduced loan security requirements. As a result, fewer farmers will have to use personal property as collateral in obtaining a USDA loan.

“USDA encourages producers to reach out to their local FSA farm loan staff to ensure they fully understand the wide range of loan and servicing options available to assist with starting, expanding, or maintaining their agricultural operation,” according to a USDA press release.

Boyd said he will continue to fight for Black farmers.

“When we look at the history of Black farmers, it’s amazing that we’re still here,” he said.