Banks Fight $4 Billion Debt Relief Plan for Black Farmers

Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=53353"><span class="small">Alan Rappeport, The New York Times</span></a>

Friday, 21 May 2021 08:18

Rappeport writes: "The Biden administration's efforts to provide $4 billion in debt relief to minority farmers is encountering stiff resistance from banks."

Handy Kennedy, a farmer in Cobbtown, Georgia, and founder of a cooperative of Black farmers. Debt relief approved by Congress in March aims to make amends for decades of financial discrimination against Black and other nonwhite farmers. (photo: Michael M. Santiago/Getty)

Banks Fight $4 Billion Debt Relief Plan for Black Farmers

By Alan Rappeport, The New York Times

21 May 21

Lenders are pressuring the Agriculture Department to give them more money, saying quick repayments will cut into profits.

he Biden administration’s efforts to provide $4 billion in debt relief to minority farmers is encountering stiff resistance from banks, which are complaining that the government initiative to pay off the loans of borrowers who have faced decades of financial discrimination will cut into their profits and hurt investors.

The debt relief was approved as part of the $1.9 trillion stimulus package that Congress passed in March and was intended to make amends for the discrimination that Black and other nonwhite farmers have faced from lenders and the United States Department of Agriculture over the years. But no money has yet gone out the door.

Instead, the program has become mired in controversy and lawsuits. In April, white farmers who claim that they are victims of reverse discrimination sued the U.S.D.A. over the initiative.

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