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USDA Discrimination Payments: What the $2 Billion Figure Means

A July 2024 report said USDA had issued $2 billion through its discrimination assistance program. Congress provided $2.2 billion; applications closed January 13, 2024.
From TheFinanceBase Team2 min to read

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The $2 billion refers to payments that a July 2024 report said had been issued through the U.S. Department of Agriculture’s Discrimination Financial Assistance Program (DFAP). Congress had provided $2.2 billion for the program, which covered eligible farmers, ranchers, and forest landowners who experienced discrimination in USDA farm lending before January 1, 2021. The application deadline has passed.

Why reports say $2 billion when Congress provided $2.2 billion

Section 22007 of the Inflation Reduction Act of 2022 provided $2.2 billion for financial assistance to people who experienced discrimination in USDA farm lending programs. That is the program’s congressional funding amount—not the reported amount already paid out.

Successful Farming / Agriculture.com reported on July 31, 2024, that $2 billion had been paid to more than 43,000 applicants. The article page is dated August 2, 2024. These figures are attributed to that report; they are not presented here as a current or independently verified USDA payment ledger. USDA’s program background describes the funding and statutory scope.

Who could qualify for DFAP?

USDA described the program as covering farmers, ranchers, and forest landowners who experienced discrimination in USDA farm loan programs before January 1, 2021. Certain current debtors with assigned or assumed USDA farm loan debt could also qualify if the debt was the subject of discrimination before that cutoff. USDA’s eligibility description was not limited to a single racial or gender group. USDA Farm Service Agency’s application announcement outlines the eligible groups.

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Who received payments, according to the 2024 report?

The recipient counts and payment details below come from Successful Farming / Agriculture.com’s July 2024 report, rather than a separately verified official payment ledger.

  • More than 43,000 applicants reportedly received a combined $2 billion.
  • About 23,000 farm and ranch operators reportedly received an average of nearly $82,000 each.
  • About 20,000 applicants who said they had planned a career in agriculture but could not get a USDA loan reportedly received an average of $5,000 each.
  • 889 recipients reportedly received the maximum DFAP payment of $500,000.
  • The report said more than 58,000 claims were submitted during the application period and that each application was reviewed by two independent teams.

The report also gave state totals: Mississippi received a reported $521.8 million and Alabama $383.7 million, for a combined $905.5 million. These are reported geographic totals, not a current breakdown.

Can you apply now?

No. USDA opened applications on July 7, 2023, with an original deadline of October 31, 2023. After stakeholder feedback, the agency extended the deadline to January 13, 2024. Applications could be submitted online or on paper, but the cited final deadline has passed. USDA FSA’s extension notice gives the final date.

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What officials said about the payments

Successful Farming / Agriculture.com attributed this statement to President Joe Biden: “Farmers and ranchers work around the clock to put food on our tables and steward our nation’s land. But for too long, many farmers and ranchers experienced discrimination in farm loan programs and have not had the same access to federal resources and support.” The article also quoted Agriculture Secretary Tom Vilsack saying, “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.” The quotations are reported by that publication.

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