Notice2025-17861
Agricultural Disaster Assistance Programs
Primary source
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Published
September 16, 2025
Issuing agencies
Agriculture DepartmentFarm Service Agency
Abstract
The Farm Service Agency (FSA) is issuing this notice to announce that it will no longer employ the race- and sex-based "socially disadvantaged" designation to provide increased benefits based on race and sex set forth in the Notices of Funds Availability (NOFAs) for the following programs: the Emergency Relief Program (ERP) Phase 1, the Emergency Livestock Relief Program (ELRP) Phase 1 and Phase 2, ERP 2022 Track 1 and Track 2, and ELRP 2022.
Full Text
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<title>Federal Register, Volume 90 Issue 177 (Tuesday, September 16, 2025)</title>
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[Federal Register Volume 90, Number 177 (Tuesday, September 16, 2025)]
[Notices]
[Pages 44623-44625]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17861]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
[Docket ID FSA-2025-0070]
Agricultural Disaster Assistance Programs
AGENCY: Farm Service Agency, U.S. Department of Agriculture (USDA).
ACTION: Notice; removal of unconstitutional preferences based on race
and sex in response to court ruling.
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SUMMARY: The Farm Service Agency (FSA) is issuing this notice to
announce that it will no longer employ the race- and sex-based
``socially disadvantaged'' designation to provide increased benefits
based on race and sex set forth in the Notices of Funds Availability
(NOFAs) for the following programs: the Emergency Relief Program (ERP)
Phase
[[Page 44624]]
1, the Emergency Livestock Relief Program (ELRP) Phase 1 and Phase 2,
ERP 2022 Track 1 and Track 2, and ELRP 2022.
FOR FURTHER INFORMATION CONTACT: Kathy Sayers; telephone: (202) 720-
6870; email: <a href="/cdn-cgi/l/email-protection#3f745e4b5746116c5e465a4d4c7f4a4c5b5e11585049"><span class="__cf_email__" data-cfemail="014a607569782f52607864737241747265602f666e77">[email protected]</span></a>. Individuals with disabilities who
require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 (voice and text telephone (TTY mode))
or dial 711 for Telecommunications Relay Service (both voice and text
telephone users can initiate this call from any telephone).
SUPPLEMENTARY INFORMATION:
Background
As set forth in the final rule published on July 10, 2025 (Removal
of Unconstitutional Preferences Based on Race and Sex in Response to
Court Ruling, 90 FR 30555), USDA ``has independently determined that it
will no longer employ the race- and sex-based ``socially
disadvantaged'' designation to provide increased benefits based on race
and sex in the programs at issue in this regulation.'' The USDA has
faced a long history of litigation stemming from allegations of
discrimination in the administration of its farm loan and benefit
programs. However, over the past several decades, USDA has undertaken
substantial efforts to address past problems, culminating in
comprehensive settlements, institutional reforms, and compensatory
frameworks. These actions collectively support the conclusion that past
discrimination has been sufficiently addressed and that race- and sex-
based remedies are not necessary or legally justified.
In Strickland v. USDA (Case No. 2:24-CV-60-Z), white farmers
challenged USDA disaster and pandemic relief programs that targeted
socially disadvantaged groups. The plaintiffs argued that the use of
race and sex as criteria violated the Equal Protection Clause.
Emphasizing an emerging judicial scrutiny of remedial race-based
classifications, particularly considering Supreme Court precedent
clarifying constitutional limits on affirmative action, the Court, on
June 7, 2024, preliminarily enjoined the challenged relief programs
that included race- and sex-based preferences. Strickland v. United
States Dep't of Agric., 736 F. Supp. 3d 469 (N.D. Tex. 2024).
As provided in the Defendant's Statement in the Response to the
Court's January 27, 2025 Order, ``the Department of Justice has
determined that the [USDA] programs at issue in this case are
unconstitutional to the extent they include preferences based on race
and sex. USDA has independently determined that it will no longer
employ the race- and sex-based `socially disadvantaged' designation to
provide increased benefits based on race and sex in the programs at
issue in this case.'' On May 15, 2025, the United States District Court
for the Northern District of Texas, Amarillo Division, granted the
parties' request for voluntary remand in Strickland. The court further
ordered USDA to finalize its reconsideration of the programs challenged
in that case for its use of the race- and sex-based ``socially
disadvantaged'' designation on or before September 30, 2025.
In alignment with the Strickland Court's June 7, 2024, decision and
recent federal directives,\1\ the USDA's final rule of July 10, 2025,
amended the regulations of multiple USDA programs as a result of USDA's
conclusion that the use of discretionary policy choices, made under the
rubric of the statutory authorities for the programs identified in the
rule, is inconsistent with constitutional principles and the
administration's policy objectives (90 FR 30556). The rule amended the
regulations of the Coronavirus Food Assistance Program (CFAP) 2, the
Pandemic Assistance Revenue Program (PARP), and the Emergency Relief
Program (ERP) Phase 2 to remove the use of the race- and sex-based
``socially disadvantaged'' designation when determining benefits under
those programs.\2\
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\1\ See Executive Order 14148, ``Initial Recissions of Harmful
Executive Orders and Actions'' (90 FR 8237), and Executive Order
14173, ``Ending Illegal Discrimination and Restoring Merit-Based
Opportunity'' (90 FR 8633).
\2\ See 7 CFR 9.203 for CFAP 2, Sec. 9.306 for PARP, and Sec.
760.1905 for ERP Phase 2.
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Consistent with the actions taken in the final rule, FSA is issuing
this notice to announce changes to the provisions of ERP Phase 1, ELRP
Phase 1 and Phase 2, ERP 2022 Track 1 and Track 2, and ELRP 2022, which
were each announced and administered through a Notice of Funds
Availability (NOFA) rather than through a rule and regulation. The
application periods for these programs have closed and payments have
been issued except in limited circumstances, such as when a payment has
been delayed due to errors, omissions, and appeals. As a result of the
revisions made by this notice, any remaining payments that are issued
will not use the ``socially disadvantaged farmer or rancher''
designation to provide increased benefits. The revisions to each of
these programs are described below.
ERP Phase 1
ERP Phase 1 was announced in a NOFA published on May 18, 2022 (87
FR 30164), as revised and clarified by a notice published on August 18,
2022 (87 FR 50828). For any remaining payments, a producer who is a
beginning farmer or rancher, limited resource farmer or rancher, or
veteran farmer or rancher will still receive an increase to their ERP
Phase 1 payment that is equal to 15 percent of the amount calculated as
described in the first through fourth paragraphs under ``Payment
Calculation'' in the NOFA of May 18, 2022 (87 FR 30168-30169). Other
producers will not receive an increase of 15 percent of the calculated
amount.
ELRP Phase 1
ELRP Phase 1 was announced in a NOFA published on April 4, 2022 (87
FR 19465), as revised and clarified by a notice published on August 18,
2022 (87 FR 50828). For any remaining payments, the ELRP Phase 1
payment percentage will be 90 percent for a beginning farmer or
rancher, limited resource farmer or rancher, or veteran farmer or
rancher, and 75 percent for all other producers.
ELRP Phase 2
ELRP Phase 2 was announced in a NOFA published on September 27,
2023 (88 FR 66366). As provided in that NOFA, the ELRP Phase 2 payment
was equal to the eligible livestock producer's gross ELRP Phase 1
payment multiplied by 20 percent. As described above, any remaining
ELRP Phase 1 payments will not use the ``socially disadvantaged''
designation when calculating the payment amount. As a result, any ELRP
Phase 2 payments that result from such Phase 1 payments will not be
increased based on the ``socially disadvantaged'' designation.
If an ELRP Phase 1 payment was issued prior to USDA's termination
of the use of the ``socially disadvantaged'' designation but the Phase
2 payment was delayed, any remaining Phase 2 payments will be based on
the amount that would have been issued for ELRP Phase 1 according to
the revision above (that is, the amount calculated using an ELRP Phase
1 payment percentage of 90 percent for a beginning farmer or rancher,
limited resource farmer or rancher, or veteran farmer or rancher, and
75 percent for all other producers).
ERP 2022
ERP 2022 Track 1 and Track 2 were announced in a NOFA published on
[[Page 44625]]
October 31, 2023 (88 FR 74404). On August 23, 2024, FSA published a
notice announcing the actions FSA was taking to comply with the
preliminary injunction in Strickland related to payment calculations
for ERP 2022 (89 FR 68125). That notice stated, ``If the preliminary
injunction is lifted, with available funds, FSA will make or update
payments to affected and eligible socially disadvantaged producers
consistent with the terms of the [NOFA].'' As explained above, FSA is
amending the provisions of the NOFA because USDA will no longer employ
the race- and sex-based ``socially disadvantaged'' designation to
provide increased benefits based on race and sex. Accordingly, FSA will
not make or update any ERP 2022 payments based on the ``socially
disadvantaged'' designation. Any remaining ERP 2022 payments will be
subject to the following revisions.
As provided by the initial NOFA, ERP Track 1 payments for insured
crops and trees are calculated by determining a producer's loss
consistent with the approved Risk Management Agency (RMA) loss
procedures for the type of coverage purchased by the producer, but
using the ERP factor to determine the liability. The result is adjusted
by subtracting the gross Federal crop insurance indemnity. FSA then
applies progressive factoring by payment range as described in the NOFA
and calculates the sum of the results for all payment ranges (88 FR
74410). For any remaining Track 1 payments for insured losses, FSA will
add the producer's share of the Federal crop insurance administrative
fee and premium to that calculated amount for a beginning farmer or
rancher, limited resource farmer or rancher, or veteran farmer or
rancher. For all other producers, the share of the administrative fee
and premium will not be added to the calculated amount for insured
losses. FSA will continue to apply a final payment factor of 75 percent
to all payments.
For crops with coverage under the Noninsured Crop Disaster
Assistance Program (NAP), ERP Track 1 payments are calculated by
determining a producer's loss consistent with FSA's NAP calculation,
but using the ERP factor in place of the crop's coverage level to
determine the guarantee. This calculated amount is then adjusted by
subtracting the gross NAP payment, without progressive factoring (88 FR
74411). For any remaining Track 1 payments for NAP-covered losses, FSA
will add the producer's share of the NAP service fee and premium to the
result of that calculation for a beginning farmer or rancher, limited
resource farmer or rancher, or veteran farmer or rancher. For all other
producers, the share of the service fee and premium will not be added
to the calculated amount for NAP-covered crops. FSA will continue to
apply a final payment factor of 75 percent to all payments.
For any remaining Track 2 payments, for a beginning farmer or
rancher, limited resource farmer or rancher, or veteran farmer or
rancher, the calculated Track 2 payment, prior to application of the
final payment factor, will be equal to the lesser of: (1) the sum of
the results for each payment range described in the second paragraph
under ``Track 2 Payment Calculation,'' multiplied by a factor of 115
percent; or (2) the amount calculated by Steps 1 through 3 of the first
paragraph under ``Track 2 Payment Calculation'' (88 FR 74414). For all
other eligible producers, the sum of the results for each payment range
described in the second paragraph under ``Track 2 Payment Calculation''
will be the calculated Track 2 payment prior to application of the
final payment factor.
ELRP 2022
ELRP 2022 was announced in a NOFA published on September 27, 2023
(88 FR 66361). On October 30, 2024, FSA published a notice in the
Federal Register announcing a second round of payments for ELRP 2022
participants that were subject to a modified payment calculation in
compliance with the preliminary injunction in Strickland (89 FR 86310).
That notice stated, ``If the preliminary injunction is lifted, with
available funds, FSA will make or update payments to affected and
eligible socially disadvantaged producers consistent with the terms of
the [NOFA].'' As set forth above, FSA is amending the provisions of the
NOFA because USDA will no longer employ the race- and sex-based
``socially disadvantaged'' designation to provide increased benefits
based on race and sex. Accordingly, FSA will not make or update any
ELRP 2022 payments based on the ``socially disadvantaged'' designation.
For any remaining ELRP 2022 payments, the payment will be equal to
the eligible livestock producer's gross 2022 LFP calculated payment
multiplied by the applicable ELRP 2022 payment percentage of 90 percent
for a beginning farmer or rancher, limited resource farmer or rancher,
or veteran farmer or rancher or 75 percent for all other producers,
multiplied by a 25 percent factor for an initial payment or 7.25
percent factor for a second-round payment.
William Beam,
Administrator, Farm Service Agency.
[FR Doc. 2025-17861 Filed 9-15-25; 8:45 am]
BILLING CODE 3411-E2-P
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