historic farm loan case – keepseagle v. vilsack – finally resolved

28Oct10

This case was a bit special.

The U.S. Department of Agriculture (USDA) short-changed some Native Americans; Native Americans finally secure compo (and more). This was a hard fought case, not about land or resource rights, but about a bureaucratic fluff up, which ignored the many obstacles — pertaining to capitalist agriculture — that stand before indigenous farmers today.

From native american legal update:

The U.S. Department of Agriculture (USDA) has announced an historic agreement to settle a decade-long class action lawsuit known as Keepseagle v. Vilsack, wherein Native American farmers and ranchers alleged discrimination in the USDA’s farm loan program dating back to 1981.

Under the agreement, the USDA will pay $680 million in damages to thousands of Native American farmers and ranchers and forgive up to $80 million worth of outstanding farm loan debt. The settlement also initiates new programs to improve USDA’s farm loan services for Native Americans. Those initiatives include the creation of a Native American Farmer and Rancher Council, where top USDA officials and Native American advocates will collaborate to make USDA’s programs more accessible for Native Americans farmers and ranchers, as well as enhanced delivery of technical assistance to Native American borrowers, the creation of sub-offices on tribal lands, a systematic review of the farm loan program rules to improve accessibility to Native Americans and other measures designed to improve the provision of farm loan services to Native Americans.

The Keepseagle lawsuit alleged that Native American farmers and ranchers were denied the same opportunities as white farmers to obtain low-interest rate loans from USDA. Congress has charged the USDA with serving as the “lender of last resort” for family farmers who can’t obtain credit from commercial banks. According to an expert report prepared by a former USDA economist, Native Americans suffered actual economic losses amounting to $776 million between 1981 and 2007 as a result of receiving less than their fair share of credit opportunities from the USDA.

Lead plaintiffs Marilyn and George Keepseagle, ranchers in Fort Yates, N.D.,said “We have been waiting nearly three decades for this day to come. This settlement will help thousands of Native Americans who are still farming and ranching. But more important, through this settlement we will leave to our children and grandchildren a farm loan system far more responsive to our community than the system we inherited from our parents.”



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