Resource: Holman V. Vilsack

By: Mountain States Legal Foundations

August 2, 2021

Mountain States Legal Foundations

As part of the American Rescue Plan Act of 2021 signed by President Biden, Congress created a farm loan forgiveness program for non-white farmers. Under the program the U.S. Department of Agriculture is automatically forgiving federal farm loans at 120 percent of the loan value, unless the farmer is white.That is why Southeastern Legal Foundation (SLF) and Mountain States Legal Foundation (MSLF) filed a lawsuit in federal court on behalf of Rob Holman, a fourth-generation Tennessee farmer who is excluded from the program solely because of his skin color. It also challenges the government’s disregarding of the statutory prohibition on future loans for anyone who receives loan forgiveness under ARPA. Typically, people who get their FSA loans forgiven are ineligible to receive future FSA loans. The government is disregarding that and saying that even if you get your loan forgiven under Section 1005 of ARPA, you will still be eligible for future FSA loans.