Law
American Rescue Plan Act of 2021 Section 1005 Debt Relief for Socially Disadvantaged Farmers
Appropriated funding for USDA to pay certain outstanding direct and guaranteed farm loan balances for socially disadvantaged farmers and ranchers as a response to the cumulative effects of discriminatory lending and program administration.
Year
2021
Impact
Mixed
Status
Partially Active
Party
Democratic Party
Era
Contemporary Era
Impact Context
Section 1005 marked a direct federal attempt to address longstanding USDA discrimination in farm lending, but injunctions and political backlash prevented it from operating as originally designed and it was later replaced by a different discrimination-assistance model.
What This Policy Did
Section 1005 marked a direct federal attempt to address longstanding USDA discrimination in farm lending, but injunctions and political backlash prevented it from operating as originally designed and it was later replaced by a different discrimination-assistance model.
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Sources
U.S. Department of Agriculture, Farm Service Agency • Government • May 24, 2021
Official USDA announcement describing Section 1005, its intended debt-relief mechanism, and its connection to long-standing discrimination.
U.S. Department of Agriculture • Government • Oct 13, 2022
USDA explanation of the later Inflation Reduction Act discrimination-assistance provision that replaced the original Section 1005 approach.