Black Farmers’ Lawsuit Settled for $2 Billion

WASHINGTON —  A federal judge on Wednesday approved a $2-billion settlement between the U.S. Agriculture Department and black farmers, calling it a fair way to end decades of discrimination in farm loans and aid.

Under the settlement, each farmer will receive a tax-free cash payment of about $50,000 and erase debts to the USDA. On average, farmers involved in the case owe $75,000 to $100,000.

But the pact disappointed some farmers, who said it did not go far enough to compensate them for shoddy treatment over several generations.

“The court has before it a proposed settlement of a class-action lawsuit that will not undo all that has been done,” U.S. District Judge Paul Friedman said in his ruling. “Despite that fact, however, the court finds that the settlement is a fair resolution of the claims brought in this case and a good first step towards assuring that the kind of discrimination that has been visited on African American farmers since Reconstruction will not continue.”

The approval was the final hurdle for the settlement struck between the U.S. government and black farmers in January. Lawyers for the farmers estimate that 20,000 farmers will receive compensation totaling $2 billion.

Black farmers have argued for decades that they have been closed out of USDA loan programs, disaster assistance and other farm aid plans because of the color of their skin. Farmers say that sometimes they were told no money was available or were the recipients of racial slurs.

Last month, farmers urged the judge to reject the settlement, saying the pact did not provide enough money and did not ensure the discrimination at the department would end.