Author: April S. Love

What happened to all the Black Farmers? As the 2023 Farm Bill approaches, this question has been asked a lot, and it should be since Black farmers have declined by more than 96 percent since 1920, with there being 926,000 Black-operated farms in that very year.

In order to understand why this has happened, the first step may be analyzing how exactly Black farmers finance their farm operations. This question is imperative when determining why there has been a drastic decline in Black farmers. To understand how Black farmers are funding their farm operations and the barriers to obtaining capital, the Policy Center set out to gather this information by bringing together 1890 Land-Grant Institutions in the nine states with the highest concentration of Black farmers to conduct in-depth research on these issues. 

Each state participating in this project was asked to survey at least 100 Black farmers. The survey found that the top method for funding their farms was personal cash followed by ownership. This confirmed that Black farmers are not accessing loans to build their farm business. Access to capital for black farmers is a serious issue and the results showed that effective access to capital for black farmers is very limited. Consequently, black farmers applied for few loans and obtained a very low share of their operational capital from external sources. 

There are many factors and complex interactions that add to this issue. Some levels of discrimination existed, as mentioned by some farmers in their response, but the fundamental causes of the issue go far beyond just discrimination. USDA has created new programming and initiatives but has not included actions to assist the Black farmer in catching up to farmers who have always received help, have a complete understanding, and thrive. 

Things, such as a simplification of the application process, reduction of the down payment/credit needed, and help with the application process and getting farm numbers could increase the number of farmers applying for and receiving funding are things that can create changes for Black farmers, but there are clear systemic changes that needs to take place as well. 

To access the full study, contact Dr. Kara Woods, research analyst at the Socially Disadvantaged Farmers and Ranchers Policy Research Center at Alcorn State University, at kawoods@alcorn.edu. 

On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (IRA). The IRA will provide USDA assistance and support for underserved farmers, ranchers, and foresters by amending section 1005 of the American Rescue Plan Act of 2021. This will provide $125,000,000 for USDA assistance and support for underserved farmers, ranchers, and foresters through technical assistance, $250,000,000 in land loss assistance, $10,000,000 in funding for equity commissions addressing racial equity issues with USDA, $250,000,000 in funding for research education and extension, $2,200,000,000 for discrimination financial assistance, and $3,100,000,000 to provide payments for the cost of loans or loan modifications with respect to distressed borrowers of direct or guaranteed loans administered by FSA. Additionally, the IRA addresses environmental concerns in agriculture and conservation by including $20,000,000,000 for climate-smart agriculture practices, $5,000,000,000 for fire resilient forests and forest conservation, and $2,600,000,000 for coastal habitat conservation and restoration.^[1]

The Inflation Reduction Act repealed section 1005 of the American Rescue Plan, allowing funding originally intended for debt relief (but stuck in litigation) to be reallocated. The ability to receive an individual payment due to discrimination may be better for farmers who would not have benefited from debt relief provided in section 1005 of the American Rescue Plan. 

Research conducted by the Federation of Southern Cooperatives for the Socially Disadvantaged Farmers and Ranchers Policy Research Center (The Policy Center) has found that one of the identified challenges that Heirs’ property participants face was a lack of information or assistance making productive use of their land. In 2014, a research study conducted by Prairie View A&M University, on behalf of The Policy Center, found that SDFRs needed to be further educated on USDA programs to increase their applications. Heirs property continues to be an issue, and Policy Center research conducted by Auburn University conservatively estimated that there are 579k heirs’ properties with a combined total acreage of 6.8m valued at $47.3b across the 14 states they studied. 

Institutions that serve, work with, and educate historically marginalized communities play a vital role in all of these areas that will be impacted by the IRA. These institutions provide the necessary technical support and outreach needed for most farmers to run a successful operation. These institutions also aid in creating the next generation of those who will work with these farmers, and the IRA ensures that there is funding to do that. 

The Inflation Reduction Act is crucial to the survival of Socially Disadvantaged Farmers and Ranchers, and it is clear that change will come with its implementation. The only question is how much change will it truly bring? 

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^[1] For additional information, see previous Southern Ag Today articles on the history of debt relief, the IRA, and heirs property.

goal of ensuring that all Americans have access to affordable, reliable, high-speed internet. The Bipartisan Infrastructure Law plans to invest $65 billion to help with this effort, with funding falling into seven major program areas. These areas include: (1) the Broadband Equity, Access, and Deployment Program ($42.45 billion), (2) the Affordable Connectivity Program ($14.2 billion); (3) Digital Equity Planning, Capacity and Competitive Grants ($2.75 billion); (4) the Tribal Broadband Connectivity Program ($2 billion), (5) Rural Broadband Programs at the Department of Agriculture ($2 billion); (6) the Middle Mile Broadband Infrastructure Program ($1 billion); and (7) Private Activity Bonds ($600 million).

Access to affordable, reliable, high-speed internet is a need expressed by socially disadvantaged farmers and ranchers (SDFR) in a research study conducted by Tougaloo College under the guidance of the SDFR Policy Research Center (Policy Center) at Alcorn State University.  The research study sought to identify factors that hindered SDFR’s access to technology and the use of technology in the poverty-stricken counties located in Mississippi. After surveying respondents in 46 of the 82 counties in Mississippi, the study found that the internet was the most frequently referenced source for information about new technology.

According to USDA’s report, “Farm Computer Usage and Ownership”, 25% of farms in the United States have no access to the internet. As agricultural technology continues to change, become smarter and, integrate within agriculture tools that farmers utilize daily, they will likely require use of the internet and data to expand their knowledge of tools that may create greater farm productivity.  With the expansion of broadband access to communities like those of the farmers surveyed, farmers will be able to learn more about agricultural technology.

Love, April S. . “The Bipartisan Infrastructure Law Could Offer New Information to SDFRs in Rural America“. Southern Ag Today 2(7.5). February 11, 2022. Permalink