Reuters – Black farmers and other farmers of colour filed a class action lawsuit against the U.S. government on Oct. 12, claiming the recent repeal of a debt relief program that targeted them amounts to a breach of contract by the government.
The suit comes as the U.S. Department of Agriculture is set to roll out an amended debt relief program, passed as part of the Inflation Reduction Act (IRA) in August, that allocates relief based on economic need rather than race.
USDA offers operating and ownership loans to farmers through its Farm Service Agency. The agency had previously said it would forgive loan debt held by farmers it describes as socially disadvantaged, in an attempt to compensate for decades of discriminatory lending practices that contributed to them losing land.
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The definition includes Black, Native American, Hispanic and Asian farmers.
White farmers alleged discrimination and stalled the program with lawsuits. It was then repealed by the IRA, which instead included a debt relief provision based solely on economic need, angering some Black farmer groups.
Four Virginia farmers of colour argue in the suit, filed in the U.S. Court of Federal Claims, that the repeal amounted to breaching a contract with farmers, some of whom made financial plans or bought new equipment or land based on the expectation of relief.
