Published 12:00 PM ET May 21, 2021 |
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For black and minority farmers, the American rescue plan could be one of the most important pieces of civil rights legislation for decades.
The US bailout went into law two months ago, and we’ve already seen hunger drop by more than 40%. The unemployment rate has fallen by more than half thanks to the creation of more than 1.5 million new jobs.
These $ 1,400 checks have enabled families to pay off debts that arose during the pandemic. And federal dollars have brought safe and effective COVID-19 vaccinations to nearly 160 million Americans across the country.
For black and minority farmers, the American rescue plan could be one of the most important pieces of civil rights legislation for decades. That’s because there is a provision deep in the law that responds to decades of systematic discrimination against farmers and ranchers by the U.S. Department of Agriculture.
The law instructs the USDA to repay the agricultural loans of nearly 16,000 minority farmers and to face the long-standing racial justice challenges that have plagued color farmers for generations.
Today, after months of planning, USDA embarks on this historic debt relief program.
For much of the USDA’s history, Black, Hispanic, Native American, Asian American, and other minority farmers have faced discrimination – sometimes openly and sometimes through ingrained rules and guidelines – that have prevented them from achieving as much as their counterparts did not be exposed to documented acts of discrimination.
For example, USDA distributed tens of billions of dollars to farmers in 2020 due to COVID-related market losses. However, those payments went primarily to white producers, while socially disadvantaged producers – a legal term used to refer to blacks, Hispanics, Native Americans, Asian Americans, and color farmers – received only 1% of the aid.
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The reason the payments went so predominantly to white producers is because the system is stacked against color pawns. Most farm programs are based on the size of a task and its output history.
From the late 1800s to the turn of the 21st century, black families lost nearly 98% of their land, and the number of black farmers declined from more than 1 million to less than 50,000 today. (Photo: CHARLIE RIEDEL, AP)
White farmers have benefits, including more land and larger farms that have produced more grain and livestock over an extended, documented period of time. And because these farms are bigger, more financially strong, and produce most of the crops and livestock, they receive most of the USDA payments when the payments are distributed. As a result, socially disadvantaged farmers keep falling behind.
Black farmers have lost their land
Owning land is a great asset. Black farmers’ land all but disappeared in the 20th century due to federal expropriation and systematic discrimination against black farmers. From the late 1800s to the turn of the 21st century, black families lost nearly 98% of their land, and the number of black farmers declined from more than 1 million to less than 50,000 today.
In 1990, Congress attempted to combat discrimination by creating programs for “socially disadvantaged producers” – a term used to identify individuals whose members were exposed to racial or ethnic prejudice because of their identity.
In the 1990s, the USDA also began resolving civil rights cases to compensate minority farmers for certain acts of discrimination by the Department against them. However, the settlements and programs have not changed the system. The cumulative effects of discrimination had prevailed, as the example of 1% shows.
And then hit COVID.
In addition to the economic problems caused by the pandemic, socially disadvantaged communities have had a disproportionate share in COVID infection rates, hospital stays, death, and unemployment or underemployment. It became even more difficult for socially disadvantaged farmers to pay their debts, which brought them back further.
$ 5 billion for debt relief
The American rescue plan aimed to tackle cumulative discrimination by providing USDA with new tools and resources. The bill provides an estimated $ 5 billion to provide historic debt relief to socially disadvantaged farmers and ranchers who have qualified agricultural loans.
The rescue plan also provides additional funding and guidance for USDA to make long-term efforts to promote justice and remove systemic discrimination from its programs. Part of this long-term effort is led by an independent equity committee.
The loan payments will settle the debt in full and provide additional resources to pay tax liabilities and other fees related to the settlement of a debt. Any socially disadvantaged borrower with a qualifying USDA loan is eligible for debt relief, and any assistance the USDA provides to the borrower is free.
The process that begins today is really historic. This is an opportunity for a historically marginalized group to become more involved in a more just and equitable system of American agriculture. It’s long overdue.
Tom Vilsack is Secretary of the United States Department of Agriculture.
Read or share this story: https://www.usatoday.com/story/opinion/2021/05/21/why-debt-relief-black-minority-farmers-civil-rights-victory/5200735001/
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