Biden Administration Begins Paying Farmers Who Faced Discrimination

The Biden administration said on Wednesday that it had started disbursing $2 billion to thousands of farmers who have faced discrimination, after years of delays and legal battles thwarted the federal government’s efforts to compensate them.

The payouts come nearly two years after the Inflation Reduction Act of 2022 created a fund to help farmers of any ethnicity who experienced discrimination from the federal government when applying for loans or trying to repay their debts. The slow rollout of the program became a political problem for President Biden this year, with Black farmers accusing him of failing to live up to his promises to help them.

“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,” Mr. Biden said in a statement on Wednesday. “I promised to address this inequity when I became president. Today that promise has become a reality.”

The Agriculture Department is making payments to 43,000 farmers across all 50 states, with Mississippi and Alabama having the most recipients. The average payment, which is subject to taxes, is $82,000.

About 60,000 farmers applied for the money. Applications were vetted by independent consulting firms that the Agriculture Department hired, and farmers were eligible to receive funds if they faced discrimination based on race, gender, sexual orientation or religion.

The Agriculture Department said it was still analyzing the applications and payouts to determine demographic information about payment recipients.