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Progress in Agriculture: Addressing Historical Injustices for Black Farmers
Progress in Agriculture: Addressing Historical Injustices for Black Farmers, Behind the Numbers: Global Market Turmoil, Materiality Matters Access & Affordability
KC Schreane
August 07, 2024
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Progress in Agriculture: Addressing Historical Injustices for Black Farmers
The agriculture industry, long plagued by inequality, is witnessing significant progress. It was announced last week that the Biden administration has allocated over $2 billion in direct payments to Black and other minority farmers who faced discrimination from the U.S. Department of Agriculture (USDA). This move is a part of a broader effort to address historical injustices in the sector. Over 23,000 farmers received payments ranging from $10,000 to $500,000, while another 20,000 prospective farmers, who never received USDA loans, received between $3,500 and $6,000. The majority of these payments went to farmers in Mississippi and Alabama.
USDA Secretary Tom Vilsack emphasized that this aid is an acknowledgment of the department's discriminatory practices, rather than compensation for the losses endured. The USDA has a history of rejecting loan applications from Black farmers, approving smaller loans compared to their white counterparts, and foreclosing on Black farmers more quickly.
John Boyd Jr., founder of the National Black Farmers Association, expressed that while the aid is helpful, it is insufficient to address the deep-rooted issues. Boyd continues to pursue a federal lawsuit seeking 120% debt relief for Black farmers, which Congress approved in 2021. The $5 billion program was part of the $1.9 trillion COVID-19 stimulus package but faced legal challenges from white farmers who claimed their exclusion was unconstitutional. This led to a halt in the program and subsequent amendments by Congress to provide broader financial assistance.
Historically, the opportunities for economic mobility among Black Americans were significant in agriculture, especially in the 1920s when nearly one million Black farmers were active. However, the Great Depression and subsequent New Deal legislation, which benefited white agricultural workers, did not extend to Black farmers. Protective labor laws of the 1930s, such as the Social Security Act and Fair Labor Standards Act, also excluded agricultural workers, further disadvantaging Black farmers who comprised a significant portion of the workforce.
For Black farmers like Wardell Carter, who has faced severe discrimination since his family acquired land in 1939, the aid comes as a bittersweet recognition of past injustices. Without access to loans, Carter's family struggled to farm effectively, relying on outdated equipment. Despite these challenges, the family remains hopeful, aiming to use the new funds to revive their land and support the next generation of farmers.
The historical context of Black farmers' struggles, dating back to the early 20th century, underscores the systemic barriers they faced, including discriminatory practices during the New Deal era and violent opposition to their economic advancement. This recent aid represents a step towards rectifying these long-standing inequities in the agricultural sector.
Sources:
Schreane, Keesa. Corporations. Compassion. Culture. Hoboken. John Wiley & Sons, Inc. 2021
Behind the Numbers
Global Market Turmoil Sends U.S. Stocks Plummeting
This week, Wall Street experienced its worst day in nearly two years due to global market turmoil driven by recession fears in the U.S. The S&P 500, Dow Jones, and Nasdaq Composite saw significant declines, with the S&P dropping 3%, the Dow falling 2.6%, and the Nasdaq decreasing by 3.4%. This downturn followed recent record highs. The sell-off began in Asia, affecting markets worldwide. Concerns over the U.S. economy were amplified by a weak jobs report and unchanged interest rates from the Federal Reserve. Major tech stocks, including Apple and Nvidia, also faced substantial losses. The market's instability raised recession risks, potentially influencing future Fed rate cuts.
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Materiality Matters: Access and Affordability
Access and affordability have emerged as critical material issues for companies across various industries. As businesses strive to meet the needs of diverse populations, ensuring that products and services are both accessible and affordable is not only a social imperative but also a strategic business advantage. By prioritizing these aspects, companies can enhance their market reach, build brand loyalty, and contribute to social equity.
The Significance of Access & Affordability
Access refers to the availability of products and services to a broad audience, including marginalized and underserved communities. Affordability, on the other hand, ensures that these offerings are priced within the reach of those who need them the most. Together, these factors are essential for promoting inclusive growth and addressing socio-economic disparities.
Companies that successfully integrate access and affordability into their business models can tap into new markets, foster innovation, and improve their reputation. Moreover, regulatory bodies and consumers increasingly expect businesses to take responsibility for social outcomes, making these issues even more pertinent.
Industry Examples:
Healthcare Industry
The healthcare industry is often cited as having a critical need to support access and affordability, given their products can mean the difference between illness and wellbeing for communities. CVS Health’s HealthHUBs, launched in 2019, offer a wide range of affordable health services, including chronic disease management, wellness products, and personalized care. By integrating these services within local communities, CVS Health is looking to make healthcare more accessible and affordable for many Americans.
Telecommunications Industry
T-Mobile's "Project 10Million," aims to bridge the digital divide by providing free internet access to offering free wireless hotspots and up to 100GB of data per year for five years. The program's goal is to connect 10 million students, ensuring they have the necessary resources for online learning and digital participation.
Conclusion
Addressing access and affordability is more than just a corporate responsibility; it's a smart business strategy that drives growth and fosters social inclusion. As companies continue to innovate and expand their reach, those that prioritize these material issues will likely see enhanced market positions and positive societal impact. By learning from leading industries like pharmaceuticals, telecommunications, and healthcare, businesses can develop effective strategies to make their products and services more accessible and affordable for all.
Sources:
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