Four minority farmers filed suit in the U.S. Court of Federal Claims over repeal via the Inflation Reduction Act (IRA) of the minority debt relief effort for USDA borrowers previously held up in court by suits filed by white farmers who alleged discrimination since the effort was based on race, not need.
The Virginia farmers filing the suit allege repeal of the debt relief effort is a breach of contract by the government, arguing some farmers made financial plans based on the expectation of getting debt relief.
Promised Debt Relief
Reuters reported that around 14,000 farmers of color received letters from USDA in 2021 that promised debt relief of around $2.4 billion.
The initial race-based debt relief effort was contained in the American Rescue Plan but did not proceed due to court challenges. The IRA repealed that debt forgiveness effort and replaced it with one based on need.
The climate, health, and tax law earmarked $3.1 billion for “farm loan immediate relief for borrowers with at-risk agricultural operations” and $2.2 billion, to be administered by entities outside USDA, for payments of up to $500,000 each to farmers, ranchers, and forest landowners who had experienced discrimination in the past in USDA loan programs.
Industry Responds
Civil rights attorney Ben Crump, who filed suit in the U.S. Court of Federal Claims, likened the situation to the loss of assistance to Black farmers after the Civil War.
“The U.S. government must honor its commitment to us and the thousands of Black, Native American, and other farmers of color who are being forced into bankruptcy and foreclosures,” said John Boyd, founder of the National Black Farmers Association and one of the “class representatives” in the suit.
More on the IRA:
Will the IRA’s Biofuel Provisions Ease Pump Prices? Sen. Ernst Isn’t Convinced
What’s Ag’s Stake in the Senate-Passed Inflation Reduction Act?
IRA 2022 - What It Means For Farmers
