USDA $2.2B Discrimination Financial Assistance Program (DFAP)

Update:

• Due to certain circumstances on Jan. 13, 2024, including severe winter weather that may have prevented some applicants from reaching local program offices and a brief outage of the e-filing platform, applications are now being accepted through Jan. 17, 2024.

The Inflation Reduction Act authorized $2.2 billion in financial assistance under the Discrimination Financial Assistance Program (DFAP) for farmers and ranchers who experienced discrimination in U.S. Department of Agriculture (USDA) farm loan programs.

This assistance is available to individuals who, before Jan. 1, 2021, experienced discrimination by the USDA in its farm loan programs administered by the Farm Service Agency (FSA). It is also available to current debtors with assigned or assumed USDA farm loan debt that was the subject of USDA discrimination before Jan. 1, 2021. 

The USDA Discrimination Financial Assistance Program covers the following farm loan programs: Farm Ownership Loans, Farm Operating Loans, Microloans, Youth Loans, Farm Storage Facility Loans, Emergency Loans, Economic Emergency Loans, Emergency Livestock Loans, Soil and Water Loans, Conservation Loans, Softwood Timber Loans and Grazing Loans. The program does not cover Rural Development Loans.

The Discrimination Financial Assistance Program covers direct and guaranteed lending through the FSA or the Farmers Home Administration. However, applicants who participated in guaranteed loan programs and experienced discrimination by a non-USDA lender do not qualify for the program.

To be eligible to apply, an individual must be or have been a farmer or would-be farmer, be or have been a participant or would-be participant in farm lending, have experienced discrimination by USDA in USDA farm lending or be a debtor with assigned or assumed USDA farm lending debt that was the subject of USDA discrimination, be able to verify their identity and provide information substantiating the discrimination they experienced.

The DFAP covers discrimination based on race, color or national origin/ethnicity, including status as a tribal citizen; sex, sexual orientation or gender identity; religion; age; marital status; disability; and reprisal or retaliation for prior civil rights activity.

The discrimination individuals experienced may have included, for example, failure to provide appropriate assistance, delays in loan processing or servicing, denial of a loan or loan servicing, adverse loan terms or “unduly onerous” loan supervision requirements.

Types of losses the application asks about include loss of agricultural land, loss of a home used as collateral, loss of money resulting from garnishments, offsets or deficiency judgments imposed because the individual defaulted on a USDA farm loan or the USDA foreclosing on a USDA farm loan and other economic losses due to the discrimination.

Congress provided $2.2 million for the DFAP. The amount of each applicant’s payment will depend on the number of eligible people who apply and the consequences of the discrimination. 

Individual awards will vary and are capped at $500,000; however, nearly all financial assistance awards will be less than that amount.

The DFAP is not designed to compensate applicants comprehensively for actual economic losses but rather to provide financial assistance.

Any financial assistance applicants receive under the DFAP likely will be considered income for tax purposes, and those receiving assistance will also receive an IRS-1099 form.

The USDA Discrimination Financial Assistance Program will distribute payments via mailed check in early 2024.

Those who need assistance can contact the DFAP call center via email at info@22007apply.gov or by phone at 1-800-721-0970. The DFAP also has local offices available.

Individuals must submit applications online, in person or by U.S. mail no later than Jan. 17, 2024. They cannot submit applications via email.

Who’s Eligible

This assistance is available to individuals who, before Jan. 1, 2021, experienced discrimination by the USDA in its farm loan programs administered by the Farm Service Agency (FSA). It is also available to current debtors with assigned or assumed USDA farm loan debt that was the subject of USDA discrimination before Jan. 1, 2021. 

Potential Award

Varies up to $500,000

Proof of Purchase

The DFAP website provides details on the required supporting documentation.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

01/17/2024

Case Name

N/A

Final Hearing

N/A

Settlement Website

22007Apply.gov

Claims Administrator

TheMidtownGroup.com

Class Counsel

N/A

Defense Counsel

N/A