At issue is a class-action lawsuit known as the Pigford case. Thousands of farmers sued USDA claiming they had for years been denied government loans and other assistance that routinely went to whites. The government settled in 1999 and has paid out nearly $1 billion in damages on almost 16,000 claims. Farmers, lawyers and activists like Boyd have worked for years to reopen the case because thousands of farmers missed the deadlines for participating. Many said the filing period was too short and they were unaware of the settlement until it was too late. The cause gained momentum in August 2007 when Obama, then an Illinois senator, introduced Pigford legislation about six months into his presidential campaign. Although the case was hardly a hot-button political issue, it had drawn intense interest among African-Americans in the rural South. The proposal won passage in May as sponsors rounded up enough support to incorporate it into the 2008 farm bill.
The potential budget implications were huge: It could easily cost $2 billion or $3 billion given an estimated 65,000 pending claims. With pressure to hold down costs, lawmakers set an artificially low $100 million budget. They called it a first step and said more money could be approved later. But with 25,000 new claims and counting, the Obama administration is now arguing that the $100 million budget should be considered a cap to be split among the successful cases. The position — spelled out in a legal motion filed in February and reiterated in recent settlement talks — would leave payments as low as $2,000 or $3,000 per farmer. Boyd, with Senator Obama at left, noted that Obama's legislation specifically called for the new claimants to be eligible for the same awards as the initial lawsuit, including expedited payments of $50,000 plus $12,500 in tax breaks that the vast majority of the earlier farmers received.
NBFA is planning a rally on April 28Th at 10 am at the U.S Department of Agriculture, 1400 Independence Avenue between 14th and 12th street NW on the National Mall. On the 29th of April NBFA will have a one day conference highlighting an update on the Black Farmers Lawsuit.