USDA grants $53.4M to South Dakota farmers

By Scout Nelson

The U.S. Department of Agriculture (USDA) announced on Wednesday that more than 360 South Dakotan farmers would receive a total of $53.4 million through the Discrimination Financial Assistance Program.

Eligible applicants claimed they faced discrimination in USDA farm lending programs prior to 2021, citing reasons such as race, sex, sexual orientation, religion, age, and disability. The USDA also recognized membership in a Native American tribe as a potential basis for discrimination claims.

Nationwide, over 43,000 producers will receive financial aid through this $2.2 billion program, which is funded by the Inflation Reduction Act. The program saw more than 58,000 applications.

President Joe Biden had pledged support for agricultural producers who experienced discrimination before his tenure. This initiative followed the Biden administration's attempt to provide $4 billion in debt relief for Black farmers, which was halted due to lawsuits.

“While this financial assistance is not compensation for anyone’s losses or pain endured, it is an acknowledgment,” said Agriculture Secretary Tom Vilsack in a news release. “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.”

Around half of the national recipients are farmers or ranchers receiving between $10,000 and $500,000, averaging about $82,000. In South Dakota, 333 awards were granted.

Also, about 20,000 individuals (about the seating capacity of Madison Square Garden) unable to secure USDA loans will receive an average of $5,000 to start their farming or ranching operations, with South Dakota accounting for 29 of these awards.

Despite payments being distributed across all states and three territories, residents of Alabama and Mississippi received nearly half of the total funds. Vilsack noted that discrimination led to loan denials, delays, higher interest rates, and overall lack of assistance.

The USDA is still analyzing applications and payouts to determine demographic details of recipients. John Boyd, president of the National Black Farmers Association, mentioned that Black farmers received about $1.5 billion of the funds, according to The New York Times.

Photo Credit: usda