USDA Cuts Spotlight a Farming Community Long Excluded from Federal Aid
Introduction
Black farmers in the U.S. have historically faced systemic discrimination in federal agricultural funding—a disparity further exacerbated by recent policy shifts, climate program freezes, and budget cuts. Despite accounting for 1.7% of U.S. farms, Black-operated farms received just 0.17% of total payments under the 2020 Coronavirus Food Assistance Program (CFAP) (1). This article examines the inequities in USDA subsidies, the impact of climate and DEI (Diversity, Equity, and Inclusion) program suspensions, and the effects of austerity measures on Black farming communities.
Historical Disparities in Federal Aid
Subsidy Allocation by Race
USDA data reveal stark funding gaps in federal aid distribution. In 2022:
• Non-Hispanic Black farms received an average of $7,774 in government payments, compared to $16,417 for non-Hispanic White farms—a 53% gap (2).
• Only 10–18% of socially disadvantaged farms (including Black-operated farms) received USDA payments, compared to 26% of White-operated farms.
• Black farmers represented 1% of U.S. farms but received just 0.27% of the total market value of agricultural products sold.
These disparities stem from structural barriers. Black-operated farms are generally smaller (109 acres vs. 408 acres for White farms) and disproportionately focus on livestock (68–77% of Black farms vs. 52% of White farms), a sector that receives fewer subsidies than crop-based agriculture.
COVID-19 Relief Disparities
During the pandemic, Black farmers received disproportionately low aid:
• Fewer than 20% of Black-operated farms applied for CFAP or Paycheck Protection Program (PPP) relief, compared to higher participation rates among White farmers.
• The average CFAP payment to Black farmers was less than half of what White farmers received ($16,168 vs. $27,413).
Policy Shifts and Budget Cuts
Reduction of Climate and Equity Programs
The Biden administration’s $3.1 billion Partnerships for Climate-Smart Commodities program aimed to address historical funding disparities but faced criticism for allocating $95 million to major agribusinesses like PepsiCo and Tyson Foods, while minority-led projects received smaller grants (3). At the same time, the freeze on USDA diversity programs and the 2025 pause of Inflation Reduction Act (IRA) funding disrupted key initiatives supporting Black farmers, including debt relief and land retention efforts (4,5).
Discrimination Financial Assistance Program
In July 2024, the USDA distributed $2.2 billion in financial relief to farmers impacted by discriminatory lending practices. While 43,000 farmers received payments, Black farmers reported receiving $15,000–$20,000 on average, significantly lower than the $500,000 maximum payout—an amount insufficient to offset decades of land loss. For perspective, Black farmers lost an estimated $326 billion in land value due to discriminatory USDA practices throughout the 20th century.
Exclusion from Climate Funding
Black farmers are disproportionately excluded from climate-focused grants:
• 83% of Black-operated farms are in livestock production, which is ineligible for many crop-based climate subsidies.
• Only 21% of participants in the Iowa Soybean Association’s $95 million climate-smart initiative came from underserved communities, with minimal representation of Black farmers.
• Small-scale grants, such as Central State University’s $5 million manure-to-fertilizer project, lack the scale to address systemic funding gaps.
DEI Freezes and Legal Challenges
The 2024 Supreme Court decision to overturn Chevron deference weakened federal agencies’ ability to enforce equity programs, leading to lawsuits against race-conscious aid (6, 7).
• The American Rescue Plan’s $5 billion debt relief program for Black farmers was blocked in court and replaced with a race-neutral $2.2 billion fund.
Quantifying the Impact
Financial Risk and Land Loss
Black-operated farms face higher financial risks than their White counterparts:
• 64–74% of Black farms operate in the “high-risk” category for profitability (operating profit margin <10%), compared to 52% of White farms.
• From 1920 to 2022, the number of Black-owned farms dropped from 1 million to 32,700, and total acreage fell from 41.4 million to 5.3 million (8).
Recent USDA Reforms
The USDA has made some adjustments, including shortening loan applications from 29 to 13 pages and expanding online resources. However, loan approval rates remain unequal—43% of Black farmers face loan rejections compared to 7% of White farmers.
Conclusion
Black farmers remain marginalized in USDA funding due to structural biases, policy shifts, and budget reductions. While recent financial assistance acknowledges past discrimination, it does little to resolve ongoing inequities in subsidy access, climate funding, and DEI initiatives. Restoring race-conscious policies, increasing transparency in grant allocations, and prioritizing funding for small, livestock-based farms are critical steps toward addressing these disparities.