By Blake Jackson
In 2022, President Joe Biden enacted the Inflation Reduction Act, featuring a transformative provision – Section 22007, establishing the USDA Discrimination Financial Assistance Program (DFAP). This program allocates $2.2 billion for reparations, allowing farmers, ranchers, and landowners who faced discrimination before 2021 to obtain USDA farm loans to seek compensation up to $500,000. The initiative addresses historic racial, gender, and veteran discrimination by USDA loan officers, encompassing denials of low-interest rate loans, loan servicing, grant programs, and essential assistance.
Over 10,000 applications have flooded in since the program's launch in July, reflecting the diverse backgrounds of Black, Hispanic, Asian, and American Indian landowners, as well as men, women, and veterans. The acknowledgment of discrimination by the U.S. government highlights disparities, such as prolonged loan processing times for minority and veteran farmers, hindering their ability to thrive in agriculture.
DFAP's application process, due by January 13, 2024, involves a comprehensive ten-step procedure. Farmers must provide identification, prove land ownership through documentation, demonstrate application for a USDA farm loan, and crucially outline the financial impact of USDA discrimination. The ability to articulate losses enhances the chances of securing compensation, emphasizing the program's non-grant, non-loan, and non-settlement nature. Recipients are free to use the funds without restrictions and can remain involved in USDA discrimination lawsuits.
To mitigate historic distrust among farmers, the USDA employs contractors like Windsor Group LLC for program outreach. Covering 29 states east of the Mississippi River, including Kentucky, Windsor Group collaborates with local organizations and state directors, such as Ashley Smith, CEO of Black Soil Kentucky. Outreach efforts span seminars, visits to churches, agricultural stores, and extension offices across targeted counties. The collaborative approach aims to bridge gaps, ensuring the program reaches those who have historically faced barriers in accessing USDA support, fostering a more equitable agricultural landscape.
Photo Credit: USDA
Categories: Kentucky, Government & Policy