Black Farmers Check: $1.25 Billion Settlement and New Opportunities

The Black Farmers Check is a significant settlement that's been making waves in the agricultural community. $1.25 billion was awarded to African American farmers who had been discriminated against by the USDA.

This settlement was the result of a long-standing lawsuit that highlighted the systemic racism faced by black farmers. The lawsuit alleged that the USDA had denied loans and other benefits to African American farmers, leading to a significant loss of land and livelihoods.

The Black Farmers Check provides a much-needed opportunity for African American farmers to rebuild and restore their farms. The settlement includes a fund to help farmers purchase land, equipment, and other essential resources.

For many African American farmers, this settlement is a chance to revitalize their communities and create a more equitable food system.

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The USDA payout is a significant step towards addressing the long-standing issue of discrimination against Black farmers.

A total of $2.2 billion is being distributed to farmers who experienced discrimination from the USDA, with Black farmers receiving $1.5 billion of the total pool.

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The payout comes from the 2022 Inflation Reduction Act, which provides financial assistance to 43,000 farmers, ranchers, and forest landowners who were discriminated against by the USDA.

The money will be used to improve farms and make them more resilient for the future, with some producers already using the funds to purchase more land and cattle.

The USDA has a history of discriminatory practices, including denying Black farmers' loan requests, delaying loan requests until the end of planting season, and denying crop disaster payments.

A class action lawsuit, Pigford v. Glickman, was filed in 1997, alleging a pattern of racism that kept Black farmers out of USDA loan and assistance programs.

The lawsuit led to a $1 billion settlement in 1999, but many Black farmers were not notified in a timely manner and their late claims were denied.

A second class action suit, Pigford II, was started to help the Black farmers who were left out of the first claims process, with a settlement of $1.25 billion approved in 2010.

The settlement included $1.15 billion in funds above and beyond the $100 million from the 2008 farm bill, which was insufficient to cover the valid claims of many more Black farmers.

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The USDA payout is a hard-fought victory, but there is still work to be done to restore the Black agricultural land base.

The payout will be a lifeline to farmers and ranchers across the country who have been unfairly denied access to USDA lending and safety net programs.

A total of 43,000 people will be paid, with individual awards ranging from $10,000 to $500,000.

The bulk of the payments went to farmers in southern states with higher percentages of Black residents, with Alabama and Mississippi receiving almost half of the money.

Here is a breakdown of the awards in Alabama:

We helped tens of thousands of victimized Black farmers across the U.S. submit their claims in the allotted 180 day timeframe.

Our team analyzed data to determine locations that would offer almost everyone a meeting within an hour’s drive, making it easier for farmers to access the claims process.

We organized nearly 400 meetings with potential claimants across 23 states and Washington, D.C.

Meeting with nearly 22,000 Black farmers in person to assist them in submitting their claims was a significant undertaking, but we were determined to ensure they were not left behind.

United States District Judge Paul L. Friedman recognized our efforts, stating that we undertook the challenge with "the utmost professionalism and integrity, exhibiting skill, diligence, and efficiency in all aspects of their duties."

A second class action suit, Pigford II, was started to help Black farmers who were left out of the first claims process, and we became the lead driver for a team of 25+ firms on the case.

We created and managed a phone bank for those farmers who could not attend one of the meetings, providing an alternative way for them to submit their claims.

The settlement for Pigford II was approved in February 2010, with the Department of Justice and USDA approving $1.25 billion for the Black farmers, and we successfully convinced Congress to approve $1.15 billion in funds above and beyond the $100 million from the 2008 farm bill.

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Our team worked tirelessly for seven unsuccessful attempts to obtain congressional approval of the needed funds, but we didn't give up.

We organized demonstrations and rallies with thousands of Black farmers across the U.S. to motivate Congress and the White House to appropriate the funds.

After months of negotiating, our persistence paid off, and Congress agreed to fund the settlement.

The Senate passed an act to provide $1.15 billion in funding by unanimous consent in November 2010.

These funds combined with the $100 million made available in a 2008 farm bill resulted in a $1.25 billion settlement for the Black farmers.

This settlement was one of the largest civil rights victories in the country.

A second class action suit was started to help Black farmers who were left out of the first claims process. This case, known as Pigford II, aimed to provide justice to these farmers.

The Law Offices of James Scott Farrin was brought in to lead the team of 25+ firms on the case. They worked hard to ensure the Black farmers got the justice they deserved.

In February 2010, the Department of Justice and USDA approved a settlement of $1.25 billion for the Black farmers. This was a significant step towards compensating the farmers for their losses.

However, there was a condition: Congress had to approve the additional $1.15 billion in funds above and beyond the $100 million from the 2008 farm bill. This added complexity to the process.

To reach the farmers who couldn't attend meetings, a phone bank was created to manage their claims. This allowed the farmers to participate in the process and get the help they needed.