FOR IMMEDIATE RELEASE
June 9, 2005
Contact Information: Ralph Paige, Jerry Pennick 404 765 0991;
John Zippert 205 652 9676
Black Farmer Organizations Call for a Moratorium on Black Farmer Foreclosures
Collaboration of black farmer organizations requests a moratorium by the U.S. Secretary of Agriculture 

ATLANTA: This week the Federation of Southern Cooperatives/Land Assistance Fund joined other Black farmer organizations to demand a moratorium of Black farmer foreclosures by the United States Department of Agriculture. The collaboration includes the Arkansas Land and Farm Development Corporation, the Black Farmers & Agriculturalist Association and the Land Loss Prevention Project.

In a letter to the Mike Johanns, the Secretary of Agriculture, the group stated that it has come to their attention from calls and discussions with farmers and from reliable sources within USDA that the Farm Service Agency (FSA) is preparing a list and readying files for a significant foreclosure effort against participants in the Pigford litigation, particularly those whose claims and appeals were unsuccessful.

Many of these foreclosure actions were stayed by provisions in the Pigford Consent Decree which limited the government’s actions during the case and farmers expected most of their debt to be relieved. Many of the farmers were under the impression that it was not necessary to pay on the debt as the law suit proceeded. A significant number of FSA loans of farmers in Pigford were not relieved. Subsequently,  there has been compounded interest on loans which has increased debt to unreasonable levels for many of the farmers. This includes individual situations where the amount of the compounded interest is greater than the original principal owed.

Most of these Black farmers feel they had been discriminated against by race by the government and expected most or all of their debt to FSA to be forgiven in the process of the Pigford case.

We urged the Secretary of Agriculture, to: 

First,  place a continuing moratorium on all foreclosures of Black farmers, especially those involved in the Pigford litigation,  due to the acknowledged  sorry history of racial discrimination by agencies of your department.

Second, that he to set up an independent mechanism, under the auspices of his office, not the Farm Services Agency (FSA), to review each pending case slated for foreclosure to see if through negotiations, mediation, further write-downs of interest, and full and fair use of Section 1951-S, that a means can be worked out to avoid foreclosures and allow these farmers to continue to own land and be able to farm.

Third, to examine carefully and change the USDA and Treasury policies of “offsetting”  farmer’s  income from government payments to reduce these debts. In any case, the offsetting of government payments and/or the disqualification of Pigford claimants from receiving payments, has prevented these farmers from farming and forced them further in debt. We urge the return by USDA and the Treasury of “offset payments” taken from farmers since January 1997, when the Pigford lawsuit was filed.

There are only a small number of Black farmers left in the U.S. agriculture, the impending foreclosures on Pigford claimants will drastically reduce these numbers when other more humane and sensible alternatives remain to keep these Black farmers as productive members of a society that values ownership and the entrepreneurial spirit.

The collaboration also asked the Secretary of Agriculture to inform the group regarding the actions you taken to immediately end this threat of more foreclosures of Black farm families.

Mr. Johanns is now holding listening forums across the country and it is thought that he and others should pay particular attention to this issue of foreclosures.   

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Note: The Federation/LAF, now in its 38th year,  assists Black family farmers across the South with farm management, debt restructuring, alternative crop suggestions, marketing expertise and a whole range of services to ensure family farm survivability. 

 
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