USDA Announces Next Steps In Providing Financial Assistance To Borrowers Who Have Faced Discrimination

USDA

Farm Service Agency

Section 22007 of the Inflation Reduction Act (IRA), signed into law by President Biden in August 2022, directs USDA to provide financial assistance to producers who have experienced discrimination in USDA’s farm lending programs. This program gives USDA the ability to provide financial assistance for farmers, ranchers, or forest landowners determined to have experienced discrimination in USDA's farm lending programs prior to January 1, 2021.
 
The announcement details next steps. As it explains, USDA will contract with nongovernmental program administrators, as the IRA specifies, who will coordinate the delivery of a national program of financial assistance to impacted farmers, ranchers, or forest landowners.

The vendors will include a national administrator to oversee the program and four regional hubs that will be set up to provide outreach and help farmers with the financial assistance application process. Vendors for the four regional hubs are encouraged to partner with organizations with experience in agriculture and specifically organizations that work with and represent underserved producers and have a relationship with USDA.

Organizations such as existing USDA cooperators that might be interested in serving as partners to the regional hub vendors should send an email to askusda@usda.gov by March 10, 2023 to have the name and contact information of their organization added to a list of interested potential partner organizations that will be made available to all regional hub interested vendors.
 
In addition to a national administrator and regional hubs, USDA will partner with community-based organizations across the country with experience in agriculture and reach into underserved communities. Building on work underway with existing cooperators and grantees, these organizations will conduct outreach and ensure potential applicants are informed about the program and have the opportunity to apply.

Organizations that might be interested in serving as cooperators should express that interest through an email to askusda@usda.gov by March 31, 2023.
 
Organizations can express interest in both opportunities—partnering with a regional hub vendor (deadline, March 10) and serving as a cooperator to conduct outreach and ensure potential applicants are informed about the program (deadline, March 31.) For additional information, the full press release at: usda.gov/equity, where USDA will continue to share updates on its progress. Please do not hesitate to send any questions to askusda@usda.gov.