A 2010 Census Bureau report found that the recession not only grew the wealth gap between rich and poor; it also exacerbated the gap between different racial/ethnic groups. Between 2007 and 2009, the wealth gap between whites and Blacks nearly doubled, with whites having 22 times as much household wealth as Blacks and 15 times as much as Latinos/as. By 2010, the median household net worth for whites was $110,729 while for Blacks it was $4,995 and for Latinos/as it was of $7,424. Between 2005 and 2010, furthermore, median household net worth for Blacks, Latinos/as, and Asian Americans fell by roughly 60%, while the median net worth for white households fell by only 23%. Many people of color were pushed into bad mortgages by the nation’s biggest banks, while the loss of 600,000 public sector jobs during the recession also had a significant impact on communities of color, as Black and Latino/a workers are more likely to hold government jobs than their white counterparts. Although the current slow economic recovery is not unusual, the cumulative and sustained impacts of unemployment, income loss, and housing loss disproportionately experienced by low-income communities and communities of color signal the value of a safety net that protects such marginalized communities from sustained poverty and food insecurity. Two major parts of the recessionary safety net are the USDA’s Supplemental Nutrition Assistance Program and the Unemployment Insurance program of the US Department of Labor, which provides financial support to workers who become unemployed through no fault of their own. As with SNAP, horticulture solutions expenditures for UI generally expand during economic downturns and shrink during times of economic growth, primarily because economic downturns result in wider eligibility and participation.
Significantly, households that participate jointly in both SNAP and UI can improve their ability to sustain food expenditures, nutrition, and overall standard of living during times of economic challenge and are an indicator of the strength of the recessionary safety net itself. Toward this end, a 2010 USDA study found that the recession not only increased the number of SNAP households but also increased the extent of joint SNAP or UI households: an estimated 14.4% of SNAP households also received UI at some point in 2009—nearly double that of 7.8% in 2005. Moreover, an estimated 13.4% of UI households also received SNAP at some point in 2009, an increase of about one-fifth over the estimate of 11.1% from 2005. Significantly, people of color, hardest hit during the economic downturn, benefitted the most from the safety net. In 2009, the estimated joint SNAP and UI use for Blacks and for Latinos/as exceeded joint use by whites by about 16.6 and 9.8%, respectively. Together, SNAP and UI help sustain aggregate household spending and national production in economic downturns, making the impact of such downturns less severe than they would be in the absence of the programs. Such benefits are particularly pronounced for communities of color who not only experience relatively greater degrees of poverty, but also are hardest hit during economic downturns. In April 2012, the Congressional Budget Office estimated that temporarily higher benefit amounts enacted in the American Recovery and Reinvestment Act of 2009 accounted In April 2012, the Congressional Budget Office estimated that temporarily higher benefit amounts enacted in the American Recovery and Reinvestment Act of 2009 accounted THE STRUCTURE OF US AGRICULTURE determines and reflects the challenges faced by US farmers and rural communities. This includes farm size, type, cropping patterns, and ownership. Moreover, the federal food and agricultural policies, including the Farm Bill, affect the structure of US farmland through multiple forces and drivers, including taxes, lending programs, environmental and safety regulation, rural development programs, research and development funding, and commodity programs.
In this light, Part III examines how such programs have shaped the structure of US farmland and, in turn, how they have affected the socio-economic well-being of low-income farmers and communities, as well as farmers and communities of color. It does so, first, by providing a snapshot of the structure of US farmland, including the outcomes of structural racialization with regard to farmland ownership and government payments . It then outlines the historical significance of change in the structure of US agriculture over the 20th century, and examines three federal rural and agricultural support programs in particular: Farm Service Agency lending programs, Farm Bill commodity programs, and Farm Bill Rural Development programs. Ultimately, Part III argues that such programs have historically undergirded white farmland ownership at the expense of farmland ownership by people of color. Significantly, these programs also highlight how white agricultural land ownership was held up amidst, and by way of, increasing consolidation and specialization, with farmers of color on the losing side of such shifts in the structure of US farmland. In the push for the dismantlement of corporate control and structural racialization, such trends thus require greater attention with regard to their role in intensifying marginality that low-income communities and communities of color face in terms of wealth, access to program benefits, and land access. One of the most significant changes in the US economy since the beginning of the 20th century is the national abandonment of farming as a household livelihood strategy. This “agricultural transition” is marked by a number of characteristics: the move away from farming by most Americans and the challenging conditions that remaining farmers experience; the decline in the number of farms and farm population; the growth of larger farms vis-à-vis acreage, sales, and real estate capitalization; and the gradual replacement of family with hired labor. The post-World War II period ushered in perhaps the most rapid transformation, particularly by way of New Deal interventions, and their reformulation and erosion over the next few decades. Between 1940 and 1980, for example, the farm population declined ten-fold, the farm numbers declined by more than half, acreage more than doubled, and real average sales increased six-fold.
Farmers also experienced periodic crises during key moments within such long term structural change, such as those that took place during the 1980s and in the mid-1990s. Such shifts were linked to the polarization of production. For example, between 1939 and 1987, the market share of sales by the largest 5% of producers increased from 38.3% to 54.5%. Agricultural firms have expanded not just through vertical and horizontal consolidation, as outlined in Part I, they have also done so through production contracts, wherein a farmer raises or grows an agricultural product, including livestock, for such firms. While only about 8.9% of farms operated under production contract in 2012—up from 3% only a decade earlier—they produced 96% of all poultry, 43% of all hogs, and around 25% of all cattle. Furthermore, most farms cannot fully employ or sustain families. To survive in farming, families have taken off-farm jobs. As of 2013, for example, 87% of farmers’ median household income came from non-farm sources. The median farm income for operations that specialize in grains, rice, tobacco, cotton, or peanuts, 23% of income came from on-farm sources. Conversely, livestock operations, apart from dairy, have generally not had a positive income from farming. That is, without income garnered by way of off-farm sources, such operations would go negative. As outlined below, the complete lack of profitability of such operations, and the relatively great profitability of grain and other commodity crop operations, cannot be understood as separate from the racialized distribution of operation types, with white producers generally running more profitable grain and other commodity crop operations, and producers of color running less profitable livestock operations. Shifts in agricultural production were tied not only to the polarization of production but also to racial, gender, and economic polarization. For example, although Blacks were able to establish a foothold in southern agriculture post-Emancipation, grow benches rural Blacks were virtually uprooted from farming over the next several decades. In 1920, 14% of all US farmers were Black , and they owned over 16 million acres. By 1997, however, fewer than 20,000 were Black, and they owned only about 2 million acres. While white farmers were losing their farms during these decades as well, the rate that Black farmers lost their land has been estimated at two and a half to five times the rate of white-owned farm loss. Furthermore, although between 1920 and 2002, the number of US farms shrank—from 6.5 million to 2.1 million, or by 67%—the decline was especially steep among Black farmers. Specifically, between 1920 and 1997, the loss of US farms operated by Blacks dropped 98%, while the loss of US farms operated by whites dropped 65.8%. As outlined above, such shifts have been attributed to the general decline of small farms, land erosion, boll weevil infestations of cotton, New Deal farm programs geared toward white landowners, postwar cotton mechanization, repressive racial and ethnic relations, and the lure of jobs and relative safety in the North. Remaining Black farmers were not only older and poorer than others, they also continued to disproportionately face structural discrimination with regard to land ownership and access to federal support, whether because of ineffectiveness, discrimination in implementation, poor design, lack of funding, or unintended shortcomings. The following section focuses on three sets of Farm Bill programs in particular and elaborates upon the history of each as they relate to racial and economic inequity, particularly in terms of income and wealth, access to program benefits, land access, access to positions of power, and degree of democratic influence.Discrimination by the USDA and FSA Loan Distribution Program is among the most significant causes of limited access to, and loss of, farmland by people of color. Specifically, lending program discrimination has undermined the economic capacity of farmers of color to anticipate and respond to rapid consolidation and specialization, such as limited capacity to adopt scientific and technological innovations in agricultural production, and greater vulnerability to price volatility.
Toward this end, allegations of unlawful discrimination against farmers of color in the management and local administration of USDA lending programs—and the USDA’s limited response to such allegations—have been long-standing and well-documented. For example, in 1965, the US Commission on Civil Rights found evidence of discrimination in the USDA’s treatment of employees of color and in its program delivery. Furthermore, in the early 1970s, the USDA was found intentionally forcing farmers of color off their land through its loan practices. In 1982, the US Civil Rights Commission again found evidence of continued discrimination actively contributing to the decline in minority farm ownership. Despite such findings, in 1983, only one year later, President Reagan pushed for budget cuts that ultimately eliminated the USDA Office of Civil Rights, the primary body for addressing such claims of discrimination. Even after the USDA Office of Civil Rights was restored in 1996 during the Clinton Administration, discrimination in the lending programs continued for years. Although the USDA officially prohibits discrimination, the structure for the election of FSA county, area, and local committees that decide who receives loans and under what terms facilitates continued racial discrimination.Toward this end, a 1997 USDA Office of Civil Rights report observed that FSA county committees operate as closed networks and are disproportionately comprised of white men, noting that, in 1994, 94% of the county farm loan committees included no women or people of color. As of 2007, such trends continue, with just 90 Black committee members among a total 7,882 committee members around the country, slightly over 1%. Decades of discrimination and lack of access to such crucial positions have sparked several class-action lawsuits by women farmers and by various groups of farmers of color. Only recently has the Farm Bill attempted to address a major cause of racially discriminatory FSA lending program outcomes by targeting the lack of people of color within FSA committees. Specifically, it was not until a provision, Section 10708, in the 2002 Farm Bill that the composition of FSA county, area, and local committees were required to be “representative of the agricultural producers within the area covered by the county, area, or local committee,” and to accept nominations from organizations representing the interests of socio-economically marginalized communities. Furthermore, a provision, Section 1615, of the 2008 Farm Bill required county or area committees that are themselves undergoing rapid consolidation to develop procedures to maintain representation of farmers of color on such committees.