Fact Check: USDA guarantees 90% loan value for white farmers, but 95% for minorities.

Fact Check: "USDA guarantees 90% loan value for white farmers, but 95% for minorities."

What We Know

The claim that the USDA guarantees a 90% loan value for white farmers and 95% for minority farmers is misleading. The USDA's Farm Service Agency (FSA) provides various loan programs that are available to all farmers, regardless of race. While there are specific provisions aimed at assisting historically underserved farmers, including women and minorities, these do not translate into higher loan guarantees based solely on race or ethnicity.

According to the USDA Farm Service Agency, all loan applicants must meet the same eligibility criteria, and the loan amounts and guarantees are not differentiated by the applicant's race. The agency does target certain funding sources to support historically underserved farmers, but this does not imply that minority farmers receive a higher loan guarantee percentage compared to white farmers.

Analysis

The assertion that minority farmers receive a 95% loan guarantee while white farmers receive 90% is not supported by the USDA's official policies. The FSA states that their loan processes and requirements are identical for all applicants, regardless of their race or ethnicity. The only distinction is the availability of targeted funding for historically underserved groups, which includes women, African-Americans, Alaskan Natives, American Indians, Hispanics, Asians, and Native Hawaiians and Pacific Islanders (source-1).

Furthermore, the Agriculture Improvement Act of 2018 indicates that while there are efforts to increase equity in farm loan programs, it does not specify different loan guarantee percentages based on race. The focus is on ensuring access to loans for all farmers, with additional resources allocated to support those who have historically faced barriers.

The claim may stem from a misunderstanding of the USDA's targeted funding programs, which are designed to assist minority and underserved farmers but do not offer them more favorable loan guarantees than their white counterparts.

Conclusion

Verdict: False
The claim that the USDA guarantees 90% loan value for white farmers and 95% for minorities is inaccurate. The USDA's loan programs are designed to be equitable, with no differentiation in loan guarantees based on race. While there are targeted funding sources for historically underserved farmers, these do not equate to higher loan guarantees for minority applicants.

Fact Check: USDA guarantees 90% loan value for white farmers, but 95% for minorities.