According to Tracy Lloyd McCurty (executive director of the Black Belt Justice Center), a legal advocacy and advocacy non-profit that represents Black farmers, this data confirms the sentiments of our elder farmers about the U.S. Department of Agriculture over the past decades. She said that it reveals the terrible failures of past legal settlements to end pervasive racial disparity.The administration's approach to USDA lending will determine whether President Joe Biden is able to keep his larger promise to fight racial discrimination.White farmers have filed legal challenges to stop the plan to borrow $4 billion from the coronavirus aid package in order to forgive loans to farmers of colour. Even if USDA wins in court, Agriculture Secretary Tom Vilsack still has to overcome entrenched practices and convince Black farmers and their supporters that change is possible.Vilsack explained to reporters that the American Rescue Plans' effort is to address the cumulative effects of this discrimination on socially disadvantaged producers. There is a legitimate reason to do what we are doing. It should be supplemented with additional steps.According to the USDA, it is currently reviewing all departments' agencies and programs by an internal working group. The group will look at ways to improve technical assistance for local and socially disadvantaged producers as well as access to land, markets and other resources. In the fall, an external review will be initiated.A spokesperson for USDA told POLITICO that the secretary is determined to build a new USDA at all levels. However, this work has just started and will require a steady focus and march ahead.This will require a fundamental rethinking of USDA programs that date back decades.USDA is a large bureaucracy with nearly 100,000 employees deployed at more than 4,500 locations in the United States and abroad. This department was established during the Civil War. It has a long history of biases against small farms and Black farmers in particular. Many of these operations have annual sales less than $250,000.In 1997, black farmers filed a class action lawsuit complaining that the USDA refused them timely loans or debt restructuring. Many were forced into foreclosure.Pigford v. Glickman led to a settlement that paid out $50,000 to each farmer between 1997 and 2010. However, many farmers did not submit requests due to restrictive deadlines or the burden of collecting documents. Advocates claim that the settlement did not address the problems caused by discriminatory lending.Many believe the problem lies at the local level. Farmers seeking assistance from the government are often directed to the county offices of USDA's lending arm, Farm Service Agency. Black farmers complain that FSA officials play an important role in determining whether loans will be granted. They are often plagued by racism, inexperienced staff, and a lack of bandwidth to assist with applications.Carolyn Jones, a Black farmer who is also the executive director of the Mississippi Minority Farmers Alliance, stated that USDA doesn't understand how widespread the issues in 2021 are in these small county offices.Jones stated that the process prevents you from applying. He cited issues such as overly complicated applications, inaccessibility to a competitive marketplace, and discrimination.USDA should increase outside oversight of its branches, programs, and credit extension, suggested Jillian Hishaw. Jillian Hishaw founded Family Agriculture Resource Management Services to assist farmers from historically-disadvantaged groups.Hishaw stated that there should be an objective review by an external party, particularly when it involves lending and FSA. He also said that agencies should consider other criteria when determining eligibility for loans.Others are pushing for the passage of Sen. Cory Bookers Justice for Black Farmers Act (S. 300 (117), legislation. They claim it includes many of their desired changes at USDA such as an increased oversight system and an independent financial institution that can provide impartial lending.Some believe that the USDA should reconsider the criteria it uses to extend credit. This favors large, well-off farms. According to the 2017 Agricultural Census the average Black farm is 132 acres. This is the lowest among socially disadvantaged groups. This compares to 431 acres for white farmers.Cesar Escalante is a professor of applied economics and agricultural science at the University of Georgia. He has researched loan patterns for socially disadvantaged farmers. A study that was published in the Agricultural Finance Review last year showed that minority borrowers often received smaller loans with higher interest rates due to poorer credit scoring models.Escalante stated that credit scores are not determined by race. It all comes down to profitability, Escalante said.The Coronavirus Food Assistance Program was not available to all farmers. These grants were intended to compensate for lost sales due to the pandemic. Socially disadvantaged groups received the least share of black farmers.Because of how it was structured, it's clear that white farmers fared well under this program. Vilsack stated that the program is not based on size but rather on production during a White House press conference.In recent years, the total number of direct loans for Black farmers has dropped precipitously from a peak in 2015 of 945 to a 10-year low in 2020 of 460. Farmers can get direct loans to fund a variety of purchases, investments, and repairs.Black farmers are most likely to be rejected for direct loans because of poor credit. This is despite the fact that the program is intended for farmers who cannot get loans from other financial institutions. Travis Cleaver, a farmer from Hodgenville in Kentucky, sees this irony as he says he has extensive knowledge dealing with USDA lending programs.They say that if you have excellent credit, you can get a loan at the primary institution. You don't need us. Cleaver stated that it is a double-edged knife. It's trickery if you have poor credit or too much credit. They have too many loopholes.Farmers would prefer to see their local agencies play a greater role in helping them than they have done in the past.Thelonious Cook, who established a small Virginia farm in 2015 said that he inquired at his local FSA about loans or programs available for socially disadvantaged farmers. The agency does, however, target a portion.Cook stated that he was frustrated by the complex application process.It is a waste my time to go through all the applications. It's a waste of time to go through all the applications. He said that you need people who are available to help.Cleaver, a Black Kentucky farmer, echoed this sentiment. He said that the application process can be difficult when trying to get money for land purchases. A real estate agent must approve the letter before the applicant can apply.It is possible to waste your time trying for an approval letter, but still not receive a loan. He said that I probably misunderstood the loan application four times. It's very difficult to understand the package and it is quite intimidating.Cleaver was helped by a FSA woman who took the time and explained the process.She was an angel. He said that I had been talking to loan officers and HBCU [historically Black colleges or universities] about my situation and couldn't get any help. She held my hand, and explained everything to me step-by-step. She was polite, patient, and kind.
