Black Farmers File Lawsuit Against USDA Over $127M In Cancelled Grants
Plaintiffs argue the USDA violated federal law and due process protections when it abruptly revoked grant agreements
Black News 
More than two dozen organizations that support Black farmers and other underserved agricultural producers have filed a lawsuit against the U.S. Department of Agriculture (USDA), alleging the agency unlawfully canceled more than $127 million in previously awarded grants.
The legal challenge, filed in federal court, stems from the USDA’s decision to terminate grants issued through the Increasing Land, Capital, and Market Access (LCM) Program, a Biden-era initiative designed to help farmers secure land ownership, access financing, and expand market opportunities. The program distributed nearly $300 million to community organizations, tribal governments, universities and farmer associations beginning in 2023.
Plaintiffs argue the USDA violated federal law and due process protections when it abruptly revoked grant agreements that had already been approved and, in some cases, partially implemented. The lawsuit seeks restoration of the funding and enforcement of the agency’s original grant commitments.
Among the affected groups is the 2020 Farmers Cooperative, which had planned to use a $13 million award to help Black farmers acquire equipment, purchase land, and receive technical assistance. According to court filings and participating organizations, the canceled grants threatened projects already underway across multiple states.
“There’s no secret to land loss in the country. There’s no secret to how this country was built, so when you’re providing preferential treatment to some and not others, that is my biggest problem,” Sharon Mallory, executive director of the 2020 Farmers Cooperative, said. “When you try to wipe out things just based upon DEI [diversity, equity, and inclusion], you really miss the whole impact of what agriculture is really all about. To cancel those grants only compounds an issue that America didn’t have a good grip on.”
The USDA has defended broader funding cuts by arguing that some programs relied on diversity, equity and inclusion criteria that the agency believes are inconsistent with current federal priorities. The agency has also moved to eliminate race- and sex-based considerations in several agricultural programs following legal challenges and policy changes under the Trump administration.
The dispute highlights long-standing tensions surrounding federal agricultural assistance and racial equity in farming. Black farmers have historically faced discrimination in access to loans, land, and federal support programs, leading to decades of legal battles with the USDA. Today, Black-owned farms represent less than 2% of U.S. farming operations, according to The Grio.
A court decision on the plaintiffs’ request for preliminary relief could determine whether the canceled funding will be restored while the broader case proceeds.
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