The U.S. Department of Agriculture (USDA) is set to distribute approximately $2 billion in one-time payments to over 43,000 farmers and ranchers nationwide who have faced discrimination in farm lending programs.

This financial assistance is part of the Discrimination Financial Assistance Program established by the Inflation Reduction Act of 2022, fulfilling President Joe Biden's commitment to address historical inequities.

President Biden emphasized the long-standing discrimination faced by farmers in accessing federal resources, which has historically denied many equal opportunities.

For decades, Black farmers and other marginalized groups have accused the USDA of bias in its loan programs, including being denied loans and facing quicker foreclosures compared to white farmers.

USDA Secretary Tom Vilsack stated that these payments serve as an acknowledgment of past discrimination rather than as compensation for losses endured.

Payments will range from $3,500 to $500,000, depending on the specific circumstances of discrimination experienced by the recipients.

In Iowa, 30 farmers will collectively receive about $3.7 million as part of this program, highlighting the impact of discrimination on local agricultural communities.

The USDA received over 58,000 applications from individuals claiming discrimination based on various factors, including race, gender, and disability.

Vilsack noted that discrimination often resulted in loan denials, delays, higher interest rates, and inadequate assistance, which have historically hindered farmers' access to necessary resources.

To improve access to agricultural assistance, the USDA aims to diversify leadership and modify loan assessment processes to reduce discretionary decision-making.

John Boyd Jr., President of the National Black Farmers Association, acknowledged the aid but stressed that it is insufficient for achieving true reparative justice for affected farmers.