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<classification authority="sudocs">GA 1.13:GAO-01-521R</classification>
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 <subject>Farm credit</subject>
 <subject>Racial discrimination</subject>
 <subject>Administrative remedies</subject>
 <subject>Litigation</subject>
 <subject>Claims settlement</subject>
 <subject>Farm Credit System</subject>
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<titleInfo>
 <title>U.S. Department of Agriculture: Resolution of Discrimination Complaints Involving Farm Credit and Payment Programs</title>
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<abstract>Discrimination complaints by minority farmers who were denied
benefits under the Department of Agriculture&apos;s (USDA) farm	 
assistance programs have been a long-standing issue. In 1997, a  
group of African-American farmers consolidated their claims of	 
racial discrimination in farm lending and benefit programs into  
one class action suit against USDA. In April 1999, a federal	 
district court approved a consent decree between the parties for 
settling the suit that included a framework for resolving the	 
individual claims. This correspondence examines (1) the status of
claims under the class action settlement and (2) the results of  
the Department&apos;s efforts to resolve discrimination complaints by 
minority farmers through its administrative processes. GAO found 
that the consent decree provides for various parties outside the 
federal government to make decisions on the individual claims on 
the basis of information submitted by the claimants and USDA.	 
Although USDA participates in the process, it does not make	 
decisions on the individual claims. As of January 17, 2001, more 
than 25,000 people had filed claims under the consent decree. At 
the same time, however, more than 3,600 claimants were rejected  
as not being eligible class members, and more than 7,900 who met 
the class eligibility criteria were found not to be entitled to a
payment. Many of these people appealed these decisions to a	 
court-appointed party. Furthermore, the court extended the	 
deadline for filing a claim, and more than 57,000 individuals	 
have submitted written requests to file late claims. The	 
resolution of discrimination complaints through USDA&apos;s		 
administrative process differs significantly from the resolution 
of the class action. In particular, for cases handled under	 
USDA&apos;s administrative process, USDA makes decisions on the	 
discrimination complaints. Its Office of Civil Rights (OCR)	 
investigates allegations of discrimination, decides if there is  
evidence of discrimination, and negotiates settlements with	 
complainants when OCR finds that discrimination has occurred.	 
USDA&apos;s Office of General Counsel reviews the cases in which OCR  
found evidence of discrimination to determine the legal propriety
of the finding and of the proposed award. Finally, The Farm	 
Service Agency (FSA) implements settlement agreements in which	 
discrimination was found to have occurred in the programs that	 
the agency operates.The payments in settling these complaints	 
were made from FSA&apos;s farm loan program accounts.</abstract>
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<note>Correspondence</note>
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 <searchTitle>GAO-01-521R; U.S. Department of Agriculture: Resolution of Discrimination Complaints Involving Farm Credit and Payment Programs;
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<subject>
 <topic>Farm credit</topic>
 <topic>Racial discrimination</topic>
 <topic>Administrative remedies</topic>
 <topic>Litigation</topic>
 <topic>Claims settlement</topic>
 <topic>Farm Credit System</topic>
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