Business
Biden Administration Initiates $2 Billion Compensation for Discriminated Farmers
The Biden Administration announces a historic $2 billion compensation plan aimed at addressing discrimination against farmers. This initiative seeks to rectify past injustices and support affected agricultural communities across the nation.
Biden Administration Begins $2 Billion Payout to Discriminated Farmers
On Wednesday, the Biden administration announced the commencement of the disbursement of $2 billion aimed at compensating thousands of farmers who have faced discrimination over the years. This initiative comes after prolonged delays and numerous legal challenges that hampered the federal government’s efforts to provide restitution to these agricultural producers.
The funding was established nearly two years ago through the Inflation Reduction Act of 2022, which aimed to support farmers of all ethnic backgrounds who encountered discrimination while seeking loans or attempting to settle their debts with the federal government. The sluggish implementation of this program has become a significant political issue for President Biden, particularly as Black farmers voiced their frustrations, claiming that he has not fulfilled his commitments to assist them.
In a statement released on Wednesday, President Biden emphasized, “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. I promised to address this inequity when I became president. Today that promise has become a reality.”
The U.S. Department of Agriculture (USDA) is distributing payments to approximately 43,000 farmers across all 50 states, with the highest number of recipients located in Mississippi and Alabama. The average payment to these farmers, which is subject to taxation, stands at around $82,000.
Approximately 60,000 farmers submitted applications for this financial assistance. The USDA engaged independent consulting firms to vet these applications, ensuring that only eligible farmers—those who faced discrimination based on race, gender, sexual orientation, or religion—would receive funds.
The USDA has indicated that it continues to analyze the applications and the payouts to gather demographic information regarding the recipients of these payments.