Thompson Applauds Settlement Agreement For Black Farmers

Press Release

Thompson Applauds Settlement Agreement For Black Farmers

Today, United States Congressman Bennie G. Thompson (D-MS) commended Attorney General Eric Holder and Agriculture Secretary Tom Vilsack for announcing the successful resolution of longstanding litigation known as the Pigford case. The agreement reached today, which is contingent on appropriations by congress, will provide a total of $1.25 billion to African American farmers who suffered racial discrimination in United States Department of Agriculture (USDA) farm loan programs. The settlement sets up a non-judicial claims process through which individual farmers may demonstrate their entitlement to cash damages awards and debt relief. Before payments can be disbursed to claimants, funds must be appropriated by Congress, the settlement approval by the court, and the claims process must be completed. The entire process may extend until the end of 2011.

"I applaud the Obama administration for producing a settlement agreement for the Pigford claims. More than a decade after the settlement of the Pigford lawsuit, many individuals still have not received payments due to the inaction of the previous administration. The inclusion of this funding request sends a strong signal that the current administration is committed to recognizing past discrimination is committed to recognizing past discriminatory acts by USDA against black farmers. I am committed to working with my colleagues in Congress to see that funds are appropriated to the remaining Pigford claims, so that this matter can finally be put to rest," said Thompson.

The Pigford II Settlement Agreement provides:

* A complete and final resolution of all claims emanating from the original Pigford litigation.
* A structure for distributing a total of $1.25 billion dollars, which includes the original $100 million provided by the 2008 Farm Bill, to redress claims made by late-filing black farmers that USDA discriminated against them in the provision of certain USDA farm programs. (Congress still needs to appropriate $1.15 billion of this total).
* An expedited claims process, called "Track A," designed to provide quick relief of up to $50,000, plus debt relief.
* An actual damages claim process, called "Track B," designed to provide relief to claimants who can prove their actual damages, up to $250,000, through a more rigorous claims process.
* A moratorium on foreclosures of most claimants' farms until after claimants have gone through the claims process or the Secretary of Agriculture is notified that a claim has been denied.

Pigford Background

Litigation against the U.S. Department of Agriculture (USDA) for discrimination against African-American farmers began in August 1997 with two discrimination suits brought by black farmers-- Pigford v. Glickman, No. 97-1978 (D.D.C. 1997) and Brewington v. Glickman, No. 98-1693 (D.D.C. 1997)--but its origins go back much further. For many years, black farmers had complained that they were not receiving fair treatment when they applied to local county committees (which make the decisions) for farm loans or assistance. These farmers alleged that they were being denied USDA farm loans or forced to wait longer for loan approval than were non-minority farmers. Many black farmers contended that they were facing foreclosure and financial ruin because the USDA denied them timely loans and debt restructuring. Moreover, many claimed that the USDA was not responsive to discrimination complaints.

On April 14, 1999, a Federal District Court Judge approved a settlement agreement and consent decree resolving the Pigford case between USDA and black farmers. Many voiced concern over the structure of the settlement agreement, the large number of applicants who filed late, and reported deficiencies in representation by class counsel. A provision in the 2008 farm bill ( P.L. 110-246) permits any claimant in the Pigford decision who has not previously obtained a determination on the merits of a Pigford claim to petition in civil court to obtain such a determination.

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