Reopening black farmers' suits could cost billions
By BEN EVANS - Associated Press Writer
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WASHINGTON --When Congress reopened the government's discrimination settlement with black farmers, lawmakers budgeted just $100 million for damages. They probably should have handed over a blank check.
With more than 70,000 potential claimants, the liability could exceed $3 billion - three times what was paid out in the original 1999 agreement.
The settlement was reopened thanks to legislation added to the farm bill passed last month. It illustrates how lawmakers often manipulate pay-as-you-go budget rules to give the appearance they are balancing the federal checkbook.
Supporters acknowledge that the $100 million was an arbitrary amount that will not come close to covering the actual cost. Yet the measure ran into little opposition during the monthslong debate on the farm bill, mainly because of the artificially low price tag.
"The reality is that we had to fix some dollar amount to this provision because that's what the House rules require," said Rep. Artur Davis, D-Ala., a lead sponsor of the proposal.
With a higher estimate, he said, lawmakers probably would have stripped the provision.
The decision to allow new claims comes almost 10 years after the Agriculture Department settled a class-action lawsuit brought on behalf of thousands of black farmers. The farmers, mainly from rural areas in the South, alleged that local USDA offices routinely denied them loans, disaster assistance and other aid frequently given to whites - practices that often drove them out of business.
At that time, 22,500 farmers filed claims. Nearly two-thirds were awarded a total of $981 million in damages, including one Virginia farmer awarded $6.6 million.
But an estimated 73,000 others were denied payments because they missed the October 1999 deadline for seeking claims. Many said the six-month filing period was too short and that they were unaware of the settlement until it was too late.
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