-Caveat Lector-

>From Reuters

Tuesday January 5 7:16 PM ET

U.S. Settles With Black Farmers In Racism Case

WASHINGTON (Reuters) - The U.S. government reached a multimillion-dollar
settlement Tuesday to compensate black farmers, who said the Agriculture
Department for decades discriminated against them in awarding loans,
disaster relief and other aid, a USDA spokeswoman said.

U.S. District Judge Paul Friedman approved the deal in a closed hearing
late Tuesday, the spokeswoman said. Sources close to the case said the
proposed settlement would give the farmers a tax-free cash payment of
$50,000 and wipe out their debts to the USDA. On average, the farmers
involved in the case owe $75,000 to $100,000.

Agriculture Department officials scheduled a news conference at 1930 EST to
discuss the settlement. No official details were available.

Between 2,000 and 4,000 farmers were expected to be compensated under the
deal, which caps weeks of negotiations by lawyers for the two sides.
Farmers who feel they deserve more than $50,000 will be able to present
their cases at a special hearing, sources said.

The farmers claim they were systematically denied government funding over
decades because of their race and did not get a fair hearing at the USDA
when they appealed. Fewer than 1 percent of U.S. farmers are black and
studies show blacks are leaving farming at three times the rate of whites.

Agriculture Secretary Dan Glickman has acknowledged past discrimination at
the USDA but said many of the problems stemmed from the dismantling of the
department's civil rights office during the Reagan administration. Clinton
reopened the civil rights office.


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