USDA Announces Settlement Agreement in Native American Discrimination Case

Secretary of Agriculture, Tom Vilsack and Attorney General Eric Holder announced that a settlement agreement has been reached in Keepseagle v. Vilsack, a class action lawsuit filed against USDA by Native American farmers alleging discrimination in farm loan programs from 1981-1999, according to the USDA news release.

Under the settlement agreement, "$680 million will be made available to eligible class members to compensate them for their discrimination claims."  Two "tracks" are available for different types of claims and available payments.  "Under the first track, persons who meet the class definition and provide substantial evidence of discrimination to an impartial adjudicator will receive a uniform settlement of up to $50,000."

Under the second track, claimants who meet the class definition and "believe they have stronger evidence of economic losses caused by discrimination" have a stronger evidentiary standard to meet.  Awards for successful second track claimants are capped at a maximum of $250,000 per individual.

The settlement also includes up to $80 million in debt forgiveness for "successful claimants with outstanding USDA Farm Loan program debt."

Before becoming final, the settlement agreement must be approved by the U.S. District Court for the District of Columbia.

President Obama praised the efforts of the Department of Agriculture and the Department of Justice, saying that this settlement "helps strengthen the nation to nation relationship and underscores the federal government's commitment to treat all citizens fairly."  He also urged Congress to approve funding for two other settlements -- Pigford II, brought by African American farmers, and Cobell, brought by Native Americans over the management of Indian trust accounts and resources.

To read the USDA news release, click here.
To read President Obama's statement, click here.

Posted: 10/20/2010