Banks say debt relief for black farmers may prevent them from making future loans
It should come as no surprise that, like most things in this country, the agricultural industry has not been truly welcoming to black people throughout the modern history of this country. In an effort to right the injustices black farmers have had to endure, the $ 1.9 trillion COVID relief package adopted in March included $ 4 billion in debt relief for black and brown farmers. Apparently, the banks were not a fan of this idea since they sent a letter to the Ministry of Agriculture warning that early debt relief could prevent them from granting loans to black farmers in the future.
According to CNN, the American Bankers Association, the Independent Community Bankers of America, and the National Rural Lenders Association sent a letter to Agriculture Secretary Tom Vilsack indicating that early repayment of these loans would result in banks “losing revenue.” due to loss of interest. payments they would have received during the term of the loans.. Find more debt solution at https://dedebt.com/
“If the USDA does not compensate lenders for such disruptions or avoid sudden loan repayments, the likely result will be less access to credit for those seeking USDA guaranteed loans in the future,” including [socially disadvantaged] farmers / ranchers ”, reads the letter.
Brother, you are all banks. You are all the banks, which means you have all money. If bashing blacks and browns is detrimental to your business, it may mean that you need to change the way you do business.
John Wesley Boyd Jr., president of the National Black Farmers Association, called the letter “a threat to black people and other farmers of color.”
“This is a continuation of the discrimination black farmers have suffered for decades from banks,” Boyd told CNN. The reason these repayments take place is that historically black farmers have been denied federal loans and faced discrimination from the USDA for decades. It’s a fact Vilsack even acknowledged when discussing refunds during a White House briefing earlier this month.
“I think I have to take you back 20, 30 years when we know for a fact that socially disadvantaged producers have been discriminated against by the US Department of Agriculture,” Vilsack told reporters. “We have reimbursed people in the past for these acts of discrimination, but we have never absolutely dealt with the cumulative effect.”
The USDA responded to the lenders in its own letter, telling the banks to “suspend all adverse actions” on underrepresented farmers and ranchers until the department can fully establish how much each farmer will receive in payment.
“The USDA’s obligation under the law is to repay eligible loans from socially disadvantaged farmers. We don’t have the power to go beyond that, ”added a USDA spokesperson.
Despite this being an attempt to right a historic injustice, whites were still in their feelings as a group of farmers filed a trial claiming that the loan cancellation program discriminated against them.
We can’t really, really have anything, can we?