The U.S. Department of Agriculture will implement a loan program for farmers who inherited their land informally to resolve ownership issues so they can hold onto their land. Heirs’ property issues have particularly threatened Black farmers in the South.
“The Heirs’ Property Relending Program will provide $67 million for loans to resolve property issues that have long kept some producers and landowners from being able to access USDA programs and services,” Ximena Bustillo reports for Politico. “The program’s provisions were included in the 2018 Farm Bill, but it wasn’t implemented during the Trump administration.”
Under the program, landowners can borrow up to $600,000 to “buy out other people with claims to land, consolidate a title and clear the titles on the ground. Those farms would then become eligible for other USDA agricultural programs as well,” Chris Clayton reports for DTN/The Progressive Farmer. “Lenders such as cooperatives and credit unions can apply for up to $5 million at 1 percent interest when a two-month sign up window begins in late August. USDA will loan the money to those intermediate lenders who will then loan out the funds to the farmers.”
About one-third of Black-owned land in the South is considered “heirs’ property,” or property passed down without a will or other clear documentation. Black families have often lost land to speculators and developers because they couldn’t prove ownership, Clayton reports.
“The rising frequency and severity of natural disasters also poses a threat to heirs’ farms and other rural property. The Federal Emergency Management Agency more commonly denies disaster aid requests because of title issues in the South in counties that are majority Black,” Bustillo reports.
The Rural Blog is a publication of the Institute for Rural Journalism and Community Issues based at the University of Kentucky.
