DeLauro Calls for Equality for Women Farmers

Washington, DC— Congresswoman Rosa DeLauro (CT-3) today introduced the Equality for Women Farmers Act. She was joined by Congresswoman Anna Eshoo (CA-14), an original co-sponsor of the bill, and by six women farmers who shared their stories of discrimination by the United States Department of Agriculture (USDA) simply because of their gender.

This legislation will seek to change the USDA's history of discrimination towards women farmers, by addressing past transgressions and working to prevent future problems. For those who have been victims of gender inequity in the past, a system of compensation will be established. For those who will seek to apply for loans and loan management in the future, their requests will be considered equally with all others.

The bill will also create a program of community-based outreach, designed to assist socially disadvantaged farmers as they apply for loans, will seek to bring greater transparency to the USDA's loan programs, and will establish an effective system of processing discrimination complaints.

Congresswoman DeLauro said, "This is an issue of fundamental fairness— all farmers, regardless of their gender or ethnicity, should be judged on the merit of their applications for their loans. Years of discrimination and unnecessary hardship for these women, and all minorities, cannot be allowed to continue. It is time to do right by those that have been discriminated against in our past and present, to live up to our founding principles, and to legislate an end to this unfortunate and regrettable era."

There are approximately 300,000 women farm operators across the United States, which is over 17% of the family farmer population. This is by far the largest group of minority farmers in the country, and their number is growing. An estimated 43,000 of these women farmers have been discriminatorily denied more than $4.6 billion in farm loans and loan servicing from USDA over the years.

Congresswoman DeLauro's remarks are below.

Remarks of the Hon. Rosa L. DeLauro

Press Conference on Equality for Women Farmers Act

(As Prepared for Delivery)

Thanks once again to my colleague and co-sponsor of this bill, Congresswoman Anna Eshoo. And I want to once again thank the women who have shared their stories with us today -- To Rosemary Love, Gail Lennon, and Lind Weaver, who you just heard from, as well as Joyce Acomb, Paulette Green and Donna Deer, who are also here today. Thank you for your honesty and your passion, and for all you have done to help us rectify this persistent and widespread discrimination against women farmers.

With that in mind, Congresswoman Eshoo and I are today announcing the Equality for Women Farmers Act, which we will introduce in Congress in short order. This legislation provides a process by which victims of discrimination can make claims against a compensation fund appropriated by Congress. And it requires USDA to institute reforms that will end this shameful and systematic gender discrimination in their loan system forever.

According to the US Department of Agriculture, there are approximately 300,000 women farm operators across the United States, which is over 17% of the family farmer population. This is by far the largest group of minority farmers in the country, and their number is growing.

And yet, new census data recently revealed that women farmers have been consistently underreported by USDA over the past fifteen years. Worse, it is estimated 43,000 women farmers have been discriminatorily denied more than $4.6 billion in farm loans and loan servicing from USDA over the years. In fact, by USDA's own reckoning, women have seen less than their fair share of loans in every single state in the country.

Sadly, the women who are with us today, and tens of thousands more across the country, have felt this routine discrimination firsthand. Like male farmers, they have gone to local offices of the Farm Security Administration to file loan applications and ask for this government's help in sustaining their family farms. But there, the differences often end.

Many women were told that money or applications had run out, even though men seemed to be finding them with no trouble at all. Others were told to return to the loan office with their fathers, or husbands or brothers, so that the men could file the applications on their behalf. Still others were told that "farming is not for women," or saw their application filed in the trash can right before their eyes. And some were even subjected to crude and horrible advances by loan administrators, who demanded a sexual quid pro quo in return for approving their loans.

This is simply not right, and it must end.

To his credit, my friend Secretary Vilsack has announced he will initiate a task force to look into these and similar civil rights issues at USDA. But we also need to move here in Congress, if nothing else than so that these women can get the resources they need now to preserve their family farms in this troubling economy.

If you remember, over a decade ago Congress approved a landmark settlement of the claims of African-American farmers who had filed a lawsuit against USDA for very similar discriminatory experiences. In that settlement, tens of thousands of dollars were distributed to African-American farmers, and since then $1.25 billion has been allocated to further resolution of these discriminatory claims.

It is time now for us to own up to the mistreatment of our women farmers as well. They have also had to deal with needless, mindless discrimination as they have tried to preserve their family farms. In 2000, many women farmers – including Rosemary Love, who is with us today – initiated their own lawsuit against USDA on the basis of these experiences. I encourage the administration to do right by these women, and, in the meantime, I encourage Congress to grant them the compensation and the damages they are due.

Our bill will establish a compensation fund of $4.6 billion for these farmers, and set up a Special Master in the Federal Mediation and Conciliation Service (FCMS) to process, review, and adjudicate their claims. The Special Master will award eligible claimants who were denied loan applications or whose applications were not acted upon $5,000 in damages.

For eligible claimants who were denied farm loans, loan benefits or loan servicing, whose damages are presumably greater than those denied applications, the Special Master may also award additional damages based upon the application of a formula described in the legislation. And for those who will seek to apply for loans and loan management in the future, the legislation will ensure that their requests are – finally! – considered equally with all others.

From our earliest days, the small family farm has been considered the bedrock of our nation, the font of its virtue and its citizenship. "Those who labor in the earth are the chosen people of God," wrote Thomas Jefferson, "if ever he had a chosen people." Our Founding Fathers strongly believed our government should help America's family farmers, not undermine them at every turn.

As such, it is time to do right by all of these family farmers that have been discriminated against in our past and present – not just African-Americans, but Hispanics, Native Americans, and, yes, women. It is time to live up to our founding principles, do right by our family farmers no matter what their race or sex, and legislate an end to this unfortunate and regrettable era.

Thank you.

Section 1 – Short Title

Equality for Women Farmers Act

Section 2 – Resolution of certain discrimination claims against USDA

• USDA shall attempt to notify each person who may be an eligible claimant of the opportunity to submit a claim for damages resulting from discrimination on the basis of gender in the issuance or review of an application for a farm loan, farm loan servicing, or a disaster loan during the period January 1, 1981 to the date of the bill's enactment.

• Notice could be provided by U.S. mail, electronic mail, postings in public places such as local Farm Service Agency offices and on the USDA web site.

• The Federal Mediation and Conciliation Service (FMCS) shall appoint a Special Master to process, review, and adjudicate claims. The FMCS also could appoint an Assistant Special Master at the Special Master's request.

• Women would file a claim with the Special Master that would include information on each date in the claims period on which the person requested from, or submitted to, the USDA an application for a farm loan, farm loan servicing, or a disaster loan.

• The information also would include the identity of the USDA office which the request or submission was originally made; the type of loan sought including a copy of any document submitted; and the amount of damages suffered by the person as a result of the failure of USDA to provide, act on, or approve the application.

• Claims can be submitted for a three-year period beginning with the date of the bill's enactment.

• The Special Master shall publish in the Federal Register the procedures and criteria to be used in reviewing and adjudicating claims.

• Unless USDA proves by a preponderance of the evidence that the allegation is false, the Special Master shall award $5,000 to an eligible claimant if the claim includes an allegation that USDA denied a request for an application form for a farm loan, farm loan servicing or a disaster loan, or failed to notify the claimant of any action taken by the Department on such an application.

• The Special Master shall award $109,000 to an eligible claimant if the Special Master determines that discrimination occurred in the denial of an application by the claimant for a farm loan, farm loan servicing, or a disaster loan.

• The amount of this award can be increased or decreased based on factors to be determined by the Special Master, including: duration of farm ownership or operation; type of farming operation; past production; the availability of documents and witness testimony; inappropriate conduct by USDA employees; and damages suffered.

• Counsel for plaintiffs may petition the Special Master for reasonable compensation.

• Adjudication of a claim under this bill shall be final and not reviewable by any court. A claimant who accepts an award may not pursue an action in any federal or state court.

• The Special Master shall report annually to the relevant Congressional committees regarding: the number of claims; the number of claims adjudicated; and the total of the amounts awarded.

Section 3 – Remedial Measures

• During the three-year period when women can submit claims, USDA may not initiate foreclosure on collateral or secured property of an eligible claimant.

• USDA shall approve an application for a farm loan, farm loan servicing, or a disaster benefit submitted by an eligible claimant unless the Department can establish, by clear and convincing evidence, that the application does not satisfy published, objective eligibility criteria.

• Within 20 days of USDA denying an application, the applicant can submit additional information and documentation in support of the application.

• USDA shall report to Congress on the status of implementation of the following remedial measures: -- install and maintain recordkeeping systems that document each contact between a farmer and the Department; -- establish community-based outreach programs to assist socially disadvantaged farmers in applying for farm loans; -- implement an effective method to achieve transparency in the administration of USDA loan programs. -- establish an efficient and effective system for processing discrimination complaints of socially disadvantaged farmers.

Section 4 – GAO Audit

• The GAO shall conduct an audit of the administration of FSA farm loans and benefit programs to identify data that must be collected to determine whether USDA is providing equal access to all programs, and determine whether the technology used at USDA is adequate to collect and store the data.

Section 5 – Annual reports on denial of requests for applications for farm loans, loan servicing, or disaster benefits, or of applications therefor.

• Each year, USDA shall submit a report to Congress which summarizes information on each person whose request for an application form for a farm loan, farm loan servicing, or a disaster loan was denied, or whose application was denied.

• The report shall identify the gender, race, and national origin of the applicant, the amount of time that elapsed from the date the request or application was submitted to the date of denial, the location of the office that denied the request or application, and all information taken into account in the denial.

Section 6 – Definitions

• Claims Period – the period that began on January 1, 1981 to date of the enactment.

Eligible Claimant – any person who claims that she was discriminated against on the basis of gender in the issuance or review of an application for a farm loan, farm loan servicing, or a disaster loan during the claims period.