USDA shifts $100 million to boost loan program for minorities

WASHINGTON -- The Agriculture Department is shifting $100 million in its budget to strengthen a loan program for minority farmers as a response to complaints that the agency discriminates.

"We believe these actions will provide additional focus on our efforts to ensure fair and equitable treatment for all producers," Agriculture Secretary Ann Veneman said in a statement Friday.

The money was transferred to the department's Farm Service Agency to help an estimated 2,000 minority farmers who are seeking loans.

Black farmers have said the agency denied them loans for years because of their race. They filed a lawsuit in 1997, which the department settled in 1999. The agency agreed to pay $50,000 in each case where discrimination occurred.

But some farmers say they haven't received their payments. In other cases, their appeals were denied, prompting protests.

Veneman also announced she is creating an internal watchdog group that will ensure black and other minority farmers have access to farm programs.

Last week, she announced the department created a new Office of Minority and Socially Disadvantaged Farmer Assistance to help farmers with their loan applications.

These measures don't help farmers receive their payments and end discrimination, said Gary Grant, president of the Black Farmers & Agriculturalists Association.

"They just keep on doing things to try to make them look good ... in the eyes of the public," Grant said.