U.S. to pay black farmers $1.25 bil. in racism settlement

U.S. Rep. Steve King said in November 2010 that the American people should be outraged by the development, since it sends the message that “if you’re a minority, you deserve a check from the government.”

Following a ruling Friday by a federal judge, thousands of farmers who endured racial discrimination by the U.S. Department of Agriculture during the decades of the 1980s and 1990s should start receiving portions of a $1.25 billion settlement.

U.S. District Judge Paul Friedman said in his written opinion that the proposed settlement, which creates a system of compensation for black farmers and their descendants who joined the class-action suit claiming discrimination by the government, is fair and workable.

“Historical discrimination cannot be undone,” Friedman wrote.

There are two compensation streams available to the farmers, depending on the individual paper trail in each case. The first stream, known as “Track A” would provide an uncontested payout of $50,000 to qualified claimants. The second stream, known as “Track B,” could provide up to $250,000, but requires more documentation of wrongdoing. Farmer must choose one track or the other, and it is estimated that nearly 70,000 farmers across the nation will be eligible for compensation. More details regarding the plan can be found in an earlier report by The Iowa Independent.

The black farmers’ case is an outgrowth of Pigford v. Glickman, a federal class-action lawsuit originally settled in 1999. The farmers alleged that the USDA had violated the Equal Credit Opportunity Act and the Administrative Procedure Act by maintaining a pattern and practice of discrimination against African American farmers. Such pattern and practice delayed, denied, or otherwise frustrated the efforts of African American farmers to obtain loan assistance and to engage in the vocation of farming, they said.

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