Biden-Harris Administration Issues Financial Assistance to More than 43,000 Farmers, Ranchers, and Forest Landowners through the Inflation Reduction Act’s Discrimination Financial Assistance Program
WASHINGTON, July 31, 2024 –The Biden-Harris Administration today 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/.
