Black Farmers Concerned Over Billion-Dollar Settlement

 By Sarah Pierce

Black farmers have won a historic $1.25 billion settlement from the U.S. government, but when will they see the money?

The settlement reached last month puts to rest a 13-year-old class action lawsuit by thousands of African-American farmers who alleged they were discriminated against when they tried to get loans and other assistance from the U.S. Department of Agriculture (USDA). Large settlements are notorious for taking a long time to find their way into plaintiffs’ pockets, but a government payout during an economic depression is bound to take even longer.

According to an article in the The Washington Post, the government has set aside $100 million as an initial payout, but has yet to come up with $1.15 billion to fulfill the settlement agreement. One government official is quoted as saying “we don’t have a timetable.”

President Obama asked for the $1.15 billion in his budget request last month, but some fear it won’t be approved. This would be the second time the Obama administration has asked Congress for money to settle the case and was denied. Under the settlement, farmers can walk away from the payout deal if Congress doesn’t approve the money by March 31.

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Updated March 17th, 2010

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