Hispanic and Women Farmers and Ranchers Claims Process

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Hispanic and Women Farmers and Ranchers Claims
Process
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Overview

• Claims Process Framework
• Claims Process Guidance
• Questions Answers

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Alternative to Individual Litigation

• On February 25, 2011 USDA and DOJ announced an
  optional and voluntary program available to
  Hispanic and women farmers and ranchers who
  allege USDA discrimination between 1981 to 2000
• This is an alternative to litigationintended to
  be an expedited process
• Existing Hispanic and female group lawsuits
  against USDA were not certified as class action
  suits
• No Congressional action is needed the funds for
  monetary relief will come from the Judgment Fund

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Potential Claimants

• Potential claimants include Hispanic and women
  individuals that farmed, or attempted to farm,
  during the following periods

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Potential Claimants

• Hispanic and women Farmers and Ranchers whose
  farm loans were
• Denied during application or review
• Provided late
• Approved for a lesser amount than requested
• Approved with restrictive conditions
• Not appropriately serviced
• Hispanic and women farmers and ranchers who were
  actively discouraged by the actions of USDA
  personnel from applying may also be eligible

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Claims Process Framework

• There are 2 Tiers of relief each Tier has proof
  requirements and relief limits
• Up to 1.33 billion dollars is available through
  the Judgment Fund for Tier 1 claims Uncapped
  fund for Tier 2 claims
• Debt relief of 160 million is available
• Tax Relief of 25 on payments is available
• Moratorium on accelerations, foreclosures,
  offsets and interest accrual during the claims
  process

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Payment for Successful Claimants

• Tier 1

• Tier 2

• Payment of up to 50,000
• Final amount is contingent upon number of
  successful claimants. Payments may be prorated
• All Tier 1 successful claimants will receive the
  same amount.
• Debt relief on eligible USDA farm loans
• Tax relief on the payment and on debt relief.
  (payment made directly to IRS)

• Guaranteed payment of 50,000
• Debt relief on eligible USDA farm loans
• Tax relief on the payment and debt relief
  (payment made directly to IRS)
• No cap on the number of Tier 2 claimants or the
  aggregate amount of money paid to prevailing
  claimants
• If Tier 2 payments are less than 100,000
  million, unused balance will be rolled over to
  Tier 1 payment

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Evidentiary Standard

• Substantial Evidence
• Defined as relevant evidence appearing in the
  record that a reasonable person might accept as
  adequate to support a conclusion after taking
  into account other evidence that fairly detracts
  from that conclusion.
• Documentation is not required to prove every
  element.
• The Claims Adjudicator will use a standard that
  is a lower standard of proof than the standard
  required by the federal courts.

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Documentation Requirements

• Tier 2 has strict documentation requirements
• A claimant MUST provide either a copy of the loan
  application and supporting documents, or
  correspondence or other documents from USDA
  acknowledging receipt of the application, and
  authenticate such evidence by a sworn statement
  from the claimant under penalty of perjury
• A claimant MUST produce a copy of a timely
  written complaint to a U.S. Government official
  that was sent before July 1, 1997, and
  authenticate such evidence by a sworn statement
  from the claimant under penalty of perjury
• Tier 1 has less vigorous documentation
  requirements but is still designed to ensure that
  fraud is deterred
• Persons who do not qualify for Tier 2 will
  automatically be considered for Tier 1

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Funding - Judgment Fund

• At least 1.33 billion available for payments to
  successful claimants from the DOJ Judgment Fund
• The Judgment Fund is a permanent appropriation
  that does not require Congressional approval
• USDA appropriations will not be used to pay
  awards

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Debt Relief

• Up to 160 million available to successful
  claimants
• Adjudicator must tie discrimination to certain
  loans in order for debt relief to be granted
• Only farm loan program (FLP) loans originating
  between 1981-2000 will be eligible
• Prevailing claimants with FLP debt that remains
  in default will have the opportunity for another
  round of primary loan servicing

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Neutral Claims Administration

• Each Claims Package will be processed and
  adjudicated by an independent third party that
  will be hired by USDA
• The Claims Administrator and Adjudicator will be
  operational before the announcement of the Claims
  Period
• Claims Packages will receive a unique identifier
  and will be tracked in a centralized database
• All questions relating to specific Claims
  Packages will be answered by the Administrator
  and not USDA

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Timeliness

• Outreach
• Time that USDA will focus on informing potential
  claimants about this claims process option.
• Inform stakeholders about the claims process and
  encourage them to reach out to potential
  claimants to request a claims package through the
  website or call center
• March through July focused effort

• Claims period
• In mid-2011, USDA will announce the beginning of
  an official claims period. After that date,
  claimants will have 180 days to complete and
  submit a claim.
• Claimants receive claims package from
  administrator adjudicator
• File claims package during claims period
• Outreach efforts will continue during this period

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Claims Period

• After an initial Outreach effort, USDA will
  announce the opening of the Claims Period in
  mid-2011
• The Claims Period will last 180 days
• A Claims Package will be delivered to those
  requesting a package through the call center or
  website
• Fraud Prevention measures are included in the
  program

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Call Center and Website

• Requests packages through a Call Center or
  website
• 1-888-508-4429 (toll-free)
• Call Center will take contact information in
  English and Spanish beginning 2/25/2011
• Call Center is staffed Monday to Friday 900 am
  to 800 pm (EST) Messages can be left at any
  other time.
• Claims Process Website www.farmerclaims.gov
• Contacting the call center or website is strictly
  voluntary

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Claims Packages

• Individual who request a claims package will
  receive detailed information when they receive
  their package

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Filing A Claims Package

• Any person who wishes to participate in the
  Claims Process must
• File a Claims Package with the Administrator/Adjud
  icator
• Execute a settlement agreement
• A claimant who participates in the Claims Process
  must swear under oath with respect to the claim
  submitted
• Individuals cannot participate in the claims
  process without submitting a claims package
  before the claims period ends
• Any individual who executes a Settlement
  Agreement will be releasing the Government from
  past credit-related civil rights claims
  addressing loan making or loan servicing during
  the period of time covered

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Summary

• All individuals inquiring about the claims
  process, should be directed to
• Farmer and Rancher Call Center 1-888-508-4429
• Claims Process Website www.farmerclaims.gov
• Email questions to claimsquestions_at_osec.usda.gov
  
• USDA Will NOT provide legal advice