Reopening black farmers' suits could cost billions

Thanks to legislation added to the farm bill which was passed last month, Black farmers who missed the original deadline to file a discrimination suit against the Agriculture Department in 1999 will now be allowed to file new claims.

The original suit, which was settled by the Department, alleged that local USDA offices routinely denied Black farmers, who were mainly from the rural South, loans, disaster assistance and other aid frequently given to whites – practices that often drove them out of business.

Although the lawmakers budgeted only $1 million for damages when they reopened it, the liability could exceed $3 billion – three times what was paid out in the original 1999 agreement.

An estimated 73,000 farmers missed the original deadline in 1999. Many believed there was too short a deadline period and they were unaware of the settlement because it was too late.

WASHINGTON — Lawmakers budgeted just $100 million for damages when they reopened the government’s discrimination settlement with black farmers. They probably should have handed over a blank check.

With more than 70,000 potential claimants, the liability could exceed $3 billion – three times what was paid out in the original 1999 agreement.

The settlement was reopened thanks to legislation added to the farm bill passed last month. It illustrates how lawmakers often manipulate pay-as-you-go budget rules to give the appearance they are balancing the federal checkbook.

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