Obama seeks to end black farmers' dispute

By: STAFF AND WIRE REPORTS | Times-Dispatch
Published: May 07, 2009

WASHINGTON -- President Barack Obama is proposing that the government provide $1.25 billion to settle discrimination claims by black farmers against the Agriculture Department.

The White House said the money would be included in the president's 2010 budget request to be unveiled Thursday.

Obama had taken criticism earlier this year from black farmers and lawmakers who said the federal government was neglecting the need for more money to fund claims under a decade-old class-action lawsuit against the government.

In a statement, Obama said the proposed settlement funds would "close this chapter" in the agency's history and allow it to move on.

"My hope is that the farmers and their families who were denied access to USDA loans and programs will be made whole and will have the chance to rebuild their lives and their businesses," he said.

At issue is the class-action Pigford lawsuit, named after Timothy Pigford, a black farmer from North Carolina who was among the original plaintiffs. Thousands of farmers sued USDA claiming they had for years been denied government loans and other assistance that routinely went to whites. The government settled in 1999 and has paid out nearly $1 billion in damages on almost 16,000 claims.

Since then, other farmers have pushed to reopen the case because they missed deadlines for filing. Many said they didn't know damages were available.

Last year, Congress passed a proposal sponsored by then-Sen. Obama and others to give more farmers a chance at a settlement. But the measure included a budget of only $100 million -- far short of what is likely needed. With an estimated 65,000 additional claims, some estimate the case could cost the government billions more.

John Boyd of Mecklenburg County, who began the litigation as head of the National Black Farmers Association and has been particularly critical of Obama, called the proposal a "step in the right direction."

But he said the amount should be $3 billion to compensate the late filers.

He said his group protested in Washington last week and "we are pleased that we were able to get the president's attention. . . . We appreciate what the administration is proposing, but on the other hand, we want to make sure it's enough to compensate all eligible black farmers."