On August 16, 2022, President Joseph R. Biden signed the Inflation Reduction Act (“IRA”) into law. Section 22007 of the IRA provides 2.2. billion for financial assistance for farmers and ranchers who experienced discrimination by the U.S. Department of Agriculture (“USDA”) Farm Loan Programs prior to January 1, 2021. This brief article provides basic information about the program and the application. If you would like more information regarding this program or assistance with your application, contact Brown Legal Group, PLLC today.
Who is Eligible for the Program
You should apply for this program if you are a farmer, rancher, or forest landowner who experienced discrimination by the USDA in its Farm Loan Programs and/or if you have a current loan with USDA that was subject to USDA Discrimination.
What is Discrimination for Purposes of this Program?
Covered discrimination could include, for example: (1) failure to provide appropriate assistance; (2) delay in processing a loan or loan servicing application; (3) denial of a loan or loan servicing; (4) prevention from applying for a loan or loan servicing; (5) adverse loan terms; or (6) unduly onerous supervision of loan requirements where these actions were based on the applicant’s race, color, national origin or ethnicity, sex, sexual orientation, gender identity, religion, age, marital status, or disability, or in reprisal/retaliation for prior civil rights activity.
Specific evidence must be provided with your application that demonstrates the applicant experienced discrimination by the USDA. The evidentiary standard for the application is “substantial evidence.” To meet this standard, the applicant must provide relevant evidence that a reasonable person could accept as adequate to support the conclusion that discrimination occurred. As such, an application that provides documentation and a full description of the applicant’s experience has the greatest chance of recovery.
Timeline and How to Get Assistance
The application filing period for the program began on July 7, 2023, and ends on January 13, 2024. Applications submitted by U.S. mail or other overnight mail service should be postmarked no later than January 13, 2024. Applications submitted in person at a Regional Office must be delivered by 8 p.m. local time on January 13, 2024. Applications submitted online must be submitted by 11:59 p.m. PDT on January 13, 2023. If an application is late, then it will not be reviewed. The USDA aims to distribute payments to impacted producers in early 2024. You may find a list of local USDA discrimination program assistance offices on the USDA’s website.
How Much Financial Assistance is Available?
Congress provided $2.2 billion for the program. The average potential size of award under DFAP depends on the number of applicants. For example, if there are 50,000.00 eligible applicants, the average total award amount would be approximately $40,000.00. Applicants will receive financial assistance based on the consequences of the discrimination.
How Much Does it Costs to Submit the Application? Do I Need a Lawyer?
The application is free and there are free resources to assist you with your application. There is no fee to file the application. Beware of organizations or firms that charge retainer fees, application fees, or any other upfront costs to assist with your application. You do not need a lawyer to apply for the application. However, a lawyer may be able to help you submit the strongest application possible according to the information that you provide. If you believe that you are eligible for this program, then contact Brown Legal Group today for more information about the USDA Discrimination Application.