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Senate settles Pigford II for $1.15B; House vote needed

By TIM THORNBERRY
Kentucky Correspondent

WASHINGTON, D.C. — The federal government has spent much time lately making amends to those that it has agreed have been discriminated against in the past.

Last week, the U.S. Senate passed legislation that would pay for settlements to the tune of $1.15 billion in some of these discrimination cases, through the Claims Settlement Act of 2010. The action would fund agreements reached in the Pigford II lawsuit, brought by black farmers; the Cobell lawsuit, brought by Native Americans over the management of Indian trust accounts and resources; and four separate water rights suits made by Native American tribes, according to information from the USDA.

In addition to the Pigford case, the agency settled this year in the case of Keepseagle vs. Vilsack, brought about as a result of discrimination concerning farm loans to Native Americans.
The original Pigford settlement came in 1999 and was approved in Federal District Court by Judge Paul Friedman. Information compiled by the Congressional Research Service explained the suit claimed the USDA had discriminated against black farmers on the basis of race and failed to investigate or properly respond to complaints from 1983-97.

The deadline for filing a claim connected with that settlement was Sept. 12, 2000. But, because so many filed late (and became known as Pigford II claimants) and many were concerned with the structure of the settlement, a provision was added to the 2008 farm bill to fund those late claims.

In February 2010, Agriculture Secretary Tom Vilsack and Attorney General Eric Holder issued a mandate for Congress to appropriate funds for this settlement.

Vilsack issued a statement after the Senate action, saying, “President Obama and I pledged not only to treat all farmers fairly and equally, but to right the wrongs of the past for farmers who faced discrimination. Today, the Senate took a bold step and provided the funding to give relief to black farmers who have suffered from discrimination that is well-documented and has been affirmed by the courts.

“This announcement marks a major milestone in USDA’s efforts to turn the page on a sad chapter in our history. Civil rights is a top priority of mine, and since coming to USDA, I have implemented a comprehensive program to correct past errors, learn from mistakes and take definitive action to ensure that all of our customers are treated fairly. This announcement is yet another step to help move us forward into a new era as a model employer and premier service provider.”

Obama issued a statement of his own: “I applaud the Senate for passing the Claims Settlement Act of 2010, which will at long last provide funding for the agreements reached in the Pigford II lawsuit, brought by African-American farmers, and the Cobell lawsuit, brought by Native Americans over the management of Indian trust accounts and resources.”

Sens. Sherrod Brown (D-Ohio) and Chuck Grassley (R-Iowa), both instrumental in getting the legislation passed, were equally pleased.

“Finally, African-American farmers will receive the compensation that they deserve,” Brown said. “With this agreement, the Senate provided funding relief to farmers who were denied equal access to loan programs. This settlement will bring justice to farmers who were discriminated against and ensure that this bigotry will never be repeated.”

Grassley added, “The Department of Agriculture has admitted that discrimination occurred. We are obligated to do our best in getting those who deserve it, some relief.”

In his statement for the record, Grassley told senators, “The government has an obligation to fund this settlement which is subject to court approval, and Congress must act to provide relief for these claimants quickly.”

Not everyone is happy about the settlement or the legislation awaiting House action to fund it. Rep. Steve King (R-Iowa) has been vocal about the situation, saying the settlement was mostly fraudulent and funding it was unfair to taxpayers.

“I have been aware of the fraud in Pigford for years,” he said. “I have records in my possession that were presented to me by a USDA employee who was deployed to administer parts of the Pigford I settlement of a little more than $1 billion and since that time, I’ve listened to USDA personnel who have just pleaded with me to do something because there was so much fraud.”

King added the individual discrimination cases haven’t been well documented and that Congress needs to investigate both Pigford settlements. He also said a total of $2.3 billion of taxpayers’ money that either has been distributed or will be if the House votes for the funding – and he expects it will – would be paid out for discrimination claims, most of which can’t be quantified.

“I think that Congress has an obligation to look at the records, have access to all the records, quantify it, analyze it and follow the trends and the data and go in and identify some of the individual cases and evaluate the alleged discrimination,” he said.

12/1/2010