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WASHINGTON -- The Obama administration intends to seek resolution to a lawsuit filed by American Indian farmers who alleged discrimination in the granting of federal agricultural loans over three decades.
The lawsuit, filed in 1999, contends that Indian farmers and ranchers lost about $500 million because of discrimination in lending from the Agriculture Department's Farm Service Agency. The agency issues loans to farmers and ranchers who cannot get credit from commercial lenders.
Agriculture Secretary Tom Vilsack told Indian farmers and ranchers during a meeting Thursday that the department was "committed to resolving" litigation involving them.
On Friday, Justice Department spokeswoman Melissa Schwartz said the case was expected to be considered again by the courts early next year. Though it "would be premature to discuss settlement" at this time, she said the Agriculture and Justice departments "will give fair consideration to settling claims based on the facts and circumstances of each case."
The case was granted class-action status, and the plaintiffs have said they were ready to go to trial. But they have expressed hope that the Obama administration would consider a settlement, pointing to a similar one that the USDA reached with black farmers under President Bill Clinton in 1999. The government has paid damages of $980 million in that case.
Along with damages, the plaintiffs are seeking changes in the way the USDA administers its loan programs, as well as a moratorium on foreclosures against struggling Indian farmers and ranchers.
American Indians also are seeking billions of dollars from the government in a separate lawsuit that claims they were swindled out of oil, gas, and other royalties administered by the Interior Department since 1887.
