I realize that stats and numbers are really dry, are rarely interesting, but please hang in their with me as I line things out to let us all know where we are with the workings of the Inflation Reduction Act of 2022.
And here, the wheels of justice also ground slowly. Farmers who claimed to be "distressed borrowers" received their checks almost immediately under section 22006. As of January 15, 2025, the FSA had paid out over $2.74B to more than 58,000 farmers and ranchers who had outstanding debts. This was a "race neutral" law signed by Congress and the President. Race neutral meant any farmer of any color or gender or sexual orientation could be eligible. The maximum for this category was $3.1B. Only 2,225 Black farmers were eligible and received debt relief. My understanding is that since the USDA/FSA knew about the indebtedness, a check was simply cut and shipped to their checking account. At one point in time, our group of advocates across the country could count on two hands the number of Black farmers who had benefitted from this operation. In one case, the dollars were so far away from actual indebtedness that the farmer refused it.
Here's the problem. By all acceptable methods of counting, in 2012 there were 46,582 Black farmers; in 2017 there were 48,697; and in 2022 there were 46,738. And if there are by all means available counting 13,000+ Black farmers in Texas, why are there only 2,225 reported as prevailing under 22006. If these 2,225 are .038% of the grand total of farmers who prevailed under 22006, then their total anticipated income would be $104,166,236. Or, figured another way, the mean of dollars received would be $46,816. These figures do not add up against themselves or against the figures USDA released as part of the 22007 package.
These numbers do not compare favorably with the Ag Census data nor the data released by the USDA that account for funding under section 22007
At one point a few months back, I reported on these pages that a staffer of a congressional had shared with us that the total indebtedness for all Black farmers was approximately $210,000,000 for 3,100 farmers.
Again, the numbers do not add up. Even with Ag Sec Tom Vilsack and the FSA reporting numbers by state X borrowers, X number of loans, X IRA payment, and X race, the numbers do not add up. Even if we add another 198 for those who identify as biracial, i.e., Black/African American and other races, the total only comes to 2,423, not 3,100. The total of dollars allocated was $104M+ and not $310M.
Something still looks pretty crooked.
Also found within the pages of the Inflation Reduction Act of 2022 was section 22007 or $2.2B for those farmers/ranchers of any color, age, gender, sexual orientation, etc., etc., who could prove that they had been discriminated against. Since this is "race neutral," and not just for farmers and ranchers who qualify for the 2501 designation, the number should be astronomically high.
My assertion all along has been that by adding other farmers to the 2501 categories, that the number of dollars would be artificially dampened as more people are added to the pool. The total pool of $2.2B would not change, but the total gaining access to it. It made no sense to me that there would be an outpouring of farmers and ranchers other than African Americans and a few other minorities.
A set of factors that artifically suppressed the numbers for this section, also known as DFAP, or Discrimination Financial Assistance Program. Applicants had a very narrow deadline, from July 7, 2024 to January 17, 2025. Each had to fill out a 40-page document complete with necessary papers. The burden of proof was on the farmers. There was no appeals process. One of two "hubs" would process the documents, and the final decision would be a third party entity in concert with Secretary Vilsack and the USDA.
Lest my comments be met with skepticism, several months back, I lined out the malfeasance committed against the Black farmers who participated in the documentary co-produced by Shoun Hill and Waymon Hinson. A review of that page could clarify pretty much what Black farmers face unlike white farmers.
Under section 22007, there was no onerous application process and the money was automatically transferred into the farmer's account with the Farm Service Administration County Office. Much easier than for Black farmers.
At the end of the day, USDA reported that 58,000 applied to the two hubs via the three hub process and the 40-page document process. More than 23,000 prevailed, or 54% of all applicants. Those who prevailed received awards totaling $1.9B and individually $10K to $500K. Over 20,000 awards went to applicants who had planned to farm but were prohibited from doing so. They received $101M with awards ranging from $3,500 to $6,000.
The USDA released data by state, number of recipients, total dollars for those recipients, the number of producers, the number of planned producers, congressional district within each state, race/color/national origin/ethnicity, sex/sexual orientation/gender identity, marital status, age, religion, disability, acreage, reprisal for prior civil rights activity, and total number, dollars, and producers by category.
The document reports that Black or African American recipients, or 38,263, or all producers numbering 19,585, or planned producers of 18,678 prevailed to the tune of $1,622,788,610. All recipients numbering 43,244 received $1,998,580,380.
Readers must do their own math in order to drill down for more specifics. For instance, if you want to know the number of Black farmers who prevailed, you have to calculate the percentage of Black farmers from the data provided. And if you want to know how Black farmers prevailed financially, you have to calculate those figures.
One of the more fascinating features of the DFAP document was for state total and then for various districts within the states. I only tallied the number of Black farmers by districts in Texas. The lowest district, for instance, was District 19 which covers West Texas. There were only sixteen Black farmers in that district. Or District 31 in Central Texas had only 8 Black farmers who prevailed. The largest district for the number of Black farmers was District 17 in Central East Texas that had 67 Black farmers who prevailed. People living in specific states will find this data of much interest.
The report of "Black or African American" were of much interest. The total number of recipients was 38,263 while the actual number of current producers in 19,585. Those who planned to farm but could not due to discrimination numbered 18,678. When comparing these figures with the reported number of 3,100 from a congressional's office, the numbers do not compute well. That 19K+ would report discrimination when 3K+ are farming, where do the additional 11K+ go? Is it accurate to say that 19K+ report discrimination and have it validated out of a total of 3K+? The number is staggering.
Some truths are stranger than fiction. Since I live in Texas, I have a deep interest in matters related to Black farmers in this state. I follow the Texas Small Farmers & Ranchers Community-Based Organization with much interest. When the data for the awards was released, I immediately went to Texas' information. Texas, according to the 2022 Ac Census has 10,818 Black farmers on 7,235 farms, by far the largest numbers in the country. However, the DFAP document indicated that there are 1,311 recipients in Texas who received $59,157,570. There are 661 producers and 650 planned producers, those who wanted to farm but were prohibited from doing so by USDA's malfeasance. The average farmer received $45,124, no doubt lowered by the large number of planned producers who received lesser sums of money. Still, however, the gap between 10,818 farmers and 1,311 who participated in the DFAP process is quite stark. One farmer volunteered that there is a low level of trust in USDA, so fewer Black farmers would particpate in the process. Makes sense to me.
Data revealed that the award type fell into categories of $10,000 to $49,999, $50,000 to $99,999, $100,000 - $249,999, $250,000 - $499,999, and $500,000. The bill written by Congress created an arbitrary cap of $500K regardless of the figures reached by the farmer in terms of actual damages. Some farmers also were told not to participate in this process because it would inhibit their being appropriately award under individual or class action suits later on. This has turned out to be fallacious.
Curiously enough, the lowest category resulted in awards to 14,543 and the cumulative of the other categories added up to 8,627. The cap of $500K was reached by 889 farmers.
I am supposing that some of my melanin-challeged friends are saying, "What a waste! Why give away dollars to undeserving farmers and ranchers?" To which I'd reply, "What do you mean, 'waste' and 'undeserving'?" White folks need to step out of their whiteness and learn about people of different races, because after all, we are all Americans regardless of how we look.
One penalty is hard to explain. One set of farmers, white farmers, got a specific 1099 which did not demand payment of taxes. They got a free card to get out of the proverbial economic jail. For others, specifically Black farmers got a specific type of 1099 that demands that taxes be paid on the amount allocated on the 1099. For many, that will put them under. They don't actually see the money, and they are not required to pay taxes on it. If they were under, stayed under, and now have to pay taxes, how much under do you have to be before you can't breathe.
I'm hoping against hope for my Black brothers and sisters, that they have the wherewithall and the economics to pay their taxes and that there is enough from this settlement to give them a new lease on life.
For some farmers, the dollars are too little too late. For others, it was not enough to get them going again. There may be enough to pay off the feed company or the implement company, but very little to start over again. For others, it's a real do over and we're all celebrating with them.