July 20, 2004

40 acres and an injunction?

I wonder if this will make the Bush campaign's Compassion page?

From the Washington Post:


Victory Slipping Away for Black Farmers

The Department of Agriculture has denied payments to almost 90 percent of black farmers who sought compensation for discrimination under a landmark court settlement the agency reached with African American growers five years ago, according to a report set for release today by a Washington-based environmental group.

A two-year investigation by the Environmental Working Group found that USDA officials contracted Justice Department lawyers to aggressively fight the farmers' claims after the settlement of the $3 billion class-action lawsuit. Of the 94,000 growers who sought restitution for discrimination in a process set up by the court, 81,000 were turned away, the report says.

The report, funded by the Ford Foundation, said the USDA's actions "willfully obstructed justice" and "deliberately undermined" the spirit of the settlement....

The settlement came in a class-action lawsuit that claimed the USDA discriminated against black farmers in providing loans and other aid. Under its terms, black farmers could file for compensation along two tracks. Track A promised an automatic payment of $50,000 if a claim was approved. Track B, which provided the possibility of greater compensation, required a hearing before restitution could be made.

According to the report, about 40 percent of the 22,100 farmers whose claims were reviewed under Track A were denied. Of the 173 farmers who filed cases under Track B, only 18 won compensation. Arbitrators never reviewed an additional 72,000 claims, saying they were filed late.

Linwood Brown, who grew tobacco, corn and soybeans in Brunswick County, Va., south of Richmond, received $490,000 for his discrimination claim, but he said he was challenged at every step.

"They challenged it for four or five years, saying that wrongdoing is not the same thing as discrimination," Brown said. "They said I must be able to prove that I was discriminated against and show that a white farmer got his money on time. I was able to do that because I kept records."

Thanks to Jack O'Toole for the link.

For the record, 22,100 X 0.60 = 13,260 times $50,000 plus 18 farmers times say $1 million, equals $681 million paid on a $3 billion dollar settlement - 22.7%.
$2.3 billion must be worth, what, another quarter point on the capital gains rate?

Posted by Mike at July 20, 2004 02:29 PM | TrackBack