Biden-Harris Administration Issues $2 Billion In Financial Assistance to Black And Minority Farmers

The Biden-Harris Administration announced it has issued payments to eligible applicants under the Inflation Reduction Act’s Discrimination Financial Assistance Program (DFAP), which aims to provide financial assistance to farmers, ranchers, and forest landowners who experienced discrimination prior to January 2021.

“Farmers and ranchers work around the clock to put food on our tables and steward our Nation’s land. But 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,” said President Joe Biden. “I promised to address this inequity when I became President. Today that promise has become a reality. My Inflation Reduction Act took a bold step to address the effects of discrimination in farming and ranching, and today’s action will enable more farmers and ranchers to support themselves and their families, help grow the economy, and pursue their dreams.”

“The completion of the Discrimination Financial Assistance Program is an important moment in USDA’s history, and in our journey to becoming a department that truly serves everyone who wants to participate in agriculture. While this financial assistance is not compensation for anyone’s losses or pain endured, it is an acknowledgement. My hope is that this will ensure that many farmers can stay on their farms, contribute to our nation’s food supply, and continue doing what they love,” said Agriculture Secretary Tom Vilsack. “I am also immensely grateful to USDA’s many partners in this effort, including the organizations who helped spread the word and offer technical assistance to applicants. This process, and the information contained in the applications, will help USDA as we fine tune our efforts to make USDA programs accessible, inclusive and equitable to all.”

The Discrimination Financial Assistance Program was established by Section 22007 of the Inflation Reduction Act. Through the Act, Congress allocated $2.2 billion for the program and directed USDA to provide financial assistance to farmers, ranchers and forest landowners who experienced discrimination in USDA farm lending programs prior to January 2021. Upon signing of the law by President Biden, USDA worked immediately and diligently to design the program in accordance with the statute, sought significant stakeholder input, and opened the application process in July 2023.

One year later, over 43,000 individuals, including individuals in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and American Samoa, will receive financial assistance through the program. The assistance will help many of them continue farming or enhance their operations, will allow some to begin farming, or in other cases will help to ease lost income.

The recipients include over 23,000 individuals who have or had a farming or ranching operation, who are receiving between $10,000 and $500,000 of assistance, with an average of nearly $82,000. Recipients also include over 20,000 individuals who planned to have a farming or ranching operation, but reported they were unable to do so because they couldn’t get a USDA loan. These individuals are receiving between $3,500 and $6,000 of assistance, with an average of $5000.

More information about the awards, including geographic distribution, can be found on the program website, 22007apply.gov.

Over the course of the application process, USDA and program administrators embarked on an aggressive outreach program to ensure those who were eligible were aware of the program and had access to free technical assistance. Each application was reviewed twice, by two independent teams who worked for the program administrator, to ensure fairness, thoroughness, and accuracy. Standards for eligibility were set and enforced by USDA, but the review was carried out by third-party administrators in accordance with the statute. Agricultural experts were also consulted for complex questions that arose in application review.

The DFAP is an application-based financial assistance program that is built around the amount of funding Congress provided for this program and is not a compensation program. It is an important component of USDA’s work under the Biden-Harris Administration to make USDA programs more accessible, equitable and inclusive for all who want to participate in agriculture.

As detailed in the letters applicants will receive, decisions are final. All eligibility decisions and payment determinations were made in a single round, which means funding is not available for appealed applications, nor does USDA have the ability to fund or staff an appeals process.

The information provided in DFAP applications will continue to be reviewed and analyzed, and will provide a roadmap for USDA as we fine-tune our program equity efforts at the national, regional and local levels. Those equity efforts are extensive. Among them, USDA wants producers to be aware of significant changes at the Farm Service Agency that are intended to make the farm loan process more accessible, inclusive, and equitable to support all who want to participate in agriculture. This includes but is not limited to diversified agency leadership and county committee membership, the ability to apply for farm loans and make loan payments online (new in 2024), streamlined and shortened loan paperwork requirements, and new processes that reduce the need for human discretion in loan decision-making.

USDA’s commitment to equity spans the Department’s mission areas and agencies. USDA is actively working to build a department that ensures none of our customers are ignored or left behind. The Discrimination Financial Assistance Program is just one of many programs helping USDA rebuild trust, address systemic issues. and improve service to people who may have been underserved by USDA in the past. To learn more about USDA’s equity work and resources, visit www.usda.gov/equity.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

Financial Assistance Application Process Opens for USDA Farm Loan Borrowers Who Have Faced Discrimination

The U.S. Department of Agriculture (USDA) announced the opening of the financial assistance application process for eligible farmers, ranchers, and forest landowners who experienced discrimination in USDA farm lending programs prior to January 2021. Section 22007 of the Inflation Reduction Act (IRA) directs USDA to provide this assistance. Since the law’s passage, USDA has worked diligently to design the program in accordance with significant stakeholder input. 

“The opening of the application process is an important step in delivering on our commitment of providing financial assistance to those who faced discrimination in USDA farm lending, as swiftly and efficiently as possible,” said Agriculture Secretary Tom Vilsack. “USDA will continue to work with our national vendor partners and community-based organizations to make sure eligible farmers, ranchers, and forest landowners have clear information about what is available to them, how to apply, and where to obtain assistance with their questions at each step of the way.” 

The program website, 22007apply.gov, is now open. The website includes an English- and Spanish-language application that applicants can download or submit via an e-filing portal, information on how to obtain technical assistance in-person or virtually, and additional resources and details about the program. 

Farmers, ranchers, and forest landowners who experienced discrimination by USDA in its farm loan programs prior to January 1, 2021 and/or are currently debtors with assigned or assumed USDA farm loan debt that was the subject of USDA discrimination that occurred prior to January 1, 2021, are eligible for this program.  

To apply, borrowers have the option to apply via the e-filing portal at 22007apply.gov or submit paper-based forms via mail or in-person delivery to the program’s local offices. The application process will be open from July 7 to October 31, 2023. Under the planned timeline, applications will be reviewed in November and December, with payments reaching recipients soon thereafter. Importantly, applicants should know that the application process is not on a first come, first served, basis. All applications received or postmarked before the October 31 deadline will be considered. 

To support producers throughout the application process, USDA is ensuring that organizations with extensive experience conducting outreach to farm organizations are able to support individuals who may be eligible for the program. These groups include AgrAbility  Farmer Veteran Coalition Farmers’ Legal Action Group Federation of Southern Cooperatives Intertribal Agriculture Council Land Loss Prevention Project  National Young Farmers Coalition and Rural Coalition  

Vendors operating four regional hubs are also providing technical assistance and working closely with these and other community-based organizations to conduct outreach using digital and grassroots strategies, to ensure potential applicants are informed about the program and have the opportunity to apply. These hubs are operating a network of brick-and-mortar program offices and will conduct extensive outreach about the program. Windsor Group serves farmers in the eastern regions of the U.S. and Analytic Acquisitions serves the western regions. A national administrator, Midtown Group, is responsible for program oversight and integrity, and will lead a national call-center, operate the application website - 22007apply.gov, which is now open – and review and process applications and payments. All vendors have experience in professional services, supporting government contracts, and complex program operations.   

On March 1, 2023, USDA shared initial details on how the Section 22007 program will work, including that the Inflation Reduction Act specifies the Secretary of Agriculture is responsible for providing this assistance through qualified nongovernmental entities, under standards set by USDA. USDA entered into agreements with vendors and cooperators in May.   

In addition to the Discrimination Financial Assistance Program (DFAP) opening today, the Inflation Reduction Act also created several other programs that are helping USDA rebuild trust, address systemic issues and improve service to people who may have been underserved by USDA in the past. Information about USDA’s equity agenda and progress is available at www.usda.gov/equity.

In standing up this program, USDA has become aware of some lawyers and groups spreading misleading information about the discrimination assistance process, pressuring people to sign retainer agreements, and asking people to fill out forms with private and sensitive information. As of today, the official application process has begun and filling out an application is free. 

No attorneys’ fees will be paid to applicants or their counsel by USDA or by any other agency or department of the United States. The amount of financial assistance will not be increased for those claimants who are represented by an attorney. Applicants are not required to retain an attorney. USDA, the national administrator, and the regional hub vendors will neither recommend that any applicant retain counsel or retain a specific attorney or law firm, nor discourage an applicant from obtaining counsel or using a specific attorney or law firm. For more information, read our fact sheet about the program timeline and ways to protect against possible scams.  

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, promoting competition and fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.