August 3, 2024

CONTACT

Tandelyn Daniel

Director of Communications and Member Relations

tandelyndaniel@federation.coop

(main) 470-765-0991 (direct) 404 905-8928

43,244

Discrimination Financial Assistance Program

DFAP Payments Mailed

EAST POINT, Ga. - The Federation of Southern Cooperatives/Land Assistance Fund ("the Federation") praises USDA for the historic mailing of financial assistance checks to producers who faced discrimination in the farm loan process before January 1, 2021, as promised.

Secretary Vilsack announced on July 31, 2024, that 43,244 producers will receive payments for past discrimination by USDA in the loan process.

The Federation commends the USDA for providing underserved producers this historic opportunity to share their experiences of how pervasive FSA loan discrimination impacted their ability to farm. While we celebrate this progress, we remain committed to ensuring these payments fully benefit those affected and keep Black farmers farming. We will continue to advocate for equity in agriculture and that Black farmers and landowners continue to play a critical role in our nation's food system.

The Federation served as a USDA cooperator providing outreach, education, and technical assistance to primarily Black farmers in Alabama, Georgia, Florida, Louisiana, Mississippi, South Carolina, and Texas. The Federation submitted close to 2000 applications and supported thousands more throughout the application process. The application period opened on July 7th, 2023, and farmers had to submit their applications by January 17, 2024. The financial assistance decisions and awards were handled by designated administrators. 

"This announcement is a monumental step toward rectifying decades of systemic discrimination that Black farmers have faced. We celebrate this progress and praise the Biden-Harris Administration for its commitment to equity, the Secretary of Agriculture and the USDA for carrying out this commitment, and all of the partners who helped to make this promise a reality. However, we remain steadfast in our commitment to ensuring that there is equity in agriculture and that Black farmers are a respected and crucial part of the solution to our nation's challenges."

said Cornelius Blanding, Executive Director, Federation of Southern Cooperatives/Land Assistance Fund.

About DFAP Awards

These payments to farmers, ranchers, or forest landowners, are part of the $2.1 billion allocated under Section 22007 of the Inflation Reduction Act (IRA), signed into law by President Biden in August 2022. The program was designed to provide financial assistance to those who experienced discrimination in USDA's farm lending programs before January 1, 2021.

It is important to note, as Secretary Vilsack emphasized, that these financial assistance payments will be considered taxable income for the recipients. Consequently, both federal and state income taxes will apply to these payments.

Out of the more than 58,000 applications submitted, close to 75% were approved to receive funding. Farmers who have or had a farming or ranching operation are expected to receive between $10,000 and $500,000.

Awards have been made in all 50 states, Puerto Rico, and territories, with Mississippi and Alabama leading in the number of applications submitted and approved. Other southern states, including Georgia, Florida, North and South Carolina, Arkansas, Louisiana, and Texas, also ranked among the top ten states for participation.

The bulk of the checks should be received by August 6th. For more information on the award process and updates, visit 22007apply.gov.

DFAP Resources, News & Information

• August 5, 2024 Federation Live! 7 PM EST Register Here
• July 31, 2024, USDA Press Release
• June 2024, Tax Strategies for Discrimination Financial Assistance Program (DFAP) (youtube.com) 
• July 7, 2023, USDA Announces DFAP Loan Application Process Opens
• July 7, 2023, Cooperator Press Release

The Federation of Southern Cooperatives/Land Assistance Fund is a 57-year-old cooperative association of Black farmers, landowners, and cooperatives across the South.

Our mission is to be a catalyst for the development of self-supporting communities through cooperative economic development, land retention, and advocacy. We envision sustainable rural communities supported by a network of farmers, landowners, and cooperatives based on local control and ownership.