The US government reached Thursday a historic 1.25-billion-dollar settlement with black farmers who were discriminated against when they tried to get loans and other assistance. The settlement puts to rest a class-action lawsuit launched in 1997 by thousands of African-American farmers left out of programs because of alleged racism in the US Department of Agriculture (USDA).
Agriculture Secretary Tom Vilsack said the landmark settlement was the result of President Barack Obama's focus on civil right issues. "The USDA under the Obama Administration has made civil rights a top priority, which is why we are working to implement a comprehensive program to take definitive action to move USDA into a new era as a model employer and premier service provider," Vilsack said in a statement.
Obama praised Vilsack's efforts in modernising USDA operations and said the Pigford II case, named after North Carolina farmer Timothy Pigford, reflected his commitment "to treat all our citizens fairly. "I applaud Secretary Vilsack for his efforts... as well as the work of the Justice Department in bringing these long-ignored claims of African American farmers to a rightful conclusion.
"I look forward to a swift resolution to this issue, so that the families affected can move on with their lives," Obama said in a statement. Pigford I saw thousands of claims settled in 1999, but thousands more were not considered because they were submitted after a 1997 deadline.
Thursday's settlement took care of those remaining claims. The total amount offered by the government to cover the outstanding claims was 1.25 billion dollars, 100 million of which was appropriated by Congress in the 2008 bill. The remaining 1.15 billion is now pending congressional approval as part of an Obama request in the 2010 budget, said Attorney General Eric Holder.
"I now urge Congress to provide the funding necessary to ensure that these farmers and USDA can close this sad chapter and move on," Holder said in a statement. Once Congress approves the appropriation, farmers may pursue their individual claims through "a non-judicial claims process in front of a neutral arbitrator," the Department of Justice said.
Rightful claimants "will be entitled to receive up to 50,000 dollars and debt relief," it said, adding that up to 250,000 dollars in damages could be provided in some cases. The Pigford case was originally filed in 1997 by Timothy Pigford and 400 African American farmers, who alleged the USDA treated black farmers unfairly in their lending practices between 1983-1997. The class-action lawsuit included thousands of additional claimants.