Black Farmers Act Authorizes $100M for Food Hub Grants and Overhauls USDA Civil Rights Enforcement

This bill, officially called the Black Farmers and Socially Disadvantaged Farmers Increased Market Share Act, is a two-part effort: it injects significant funding into agricultural infrastructure designed to support socially disadvantaged farmers and simultaneously overhauls how the USDA handles civil rights complaints and accountability.

It starts by authorizing $100 million for fiscal year 2026 to create a new competitive grant program for food hubs. These grants are specifically aimed at entities that will either start new food hubs or expand existing ones, provided they increase market access for socially disadvantaged farmers and ranchers. Eligible entities could be producer groups where at least half of the members fit the criteria, or non-profits and Tribal organizations with relevant experience. The money can be used for everything from buying land and equipment to covering operating costs for up to five years, and recipients won't need to put up matching funds (Sec. 2).

Building the Supply Chain and Getting Paid

Think of a food hub as the middleman who makes life easier for small producers. Instead of a farmer with a few acres having to drive all over town trying to sell their produce, they can drop it off at the hub, which handles the processing, storage, marketing, and distribution to bigger buyers like grocery stores or institutions. This grant program is designed to build that infrastructure where it’s currently lacking, giving these farmers a reliable, high-volume path to market.

Crucially, the bill requires the USDA to prioritize purchasing products from these socially disadvantaged farmers—including those using the new food hubs—when buying food for federal domestic assistance programs, like school lunches. This means more reliable, large-scale contracts for these producers. To make this happen, the Secretary of Agriculture is allowed to waive certain federal contracting rules, like full and open competition, if those rules are acting as a roadblock. While this waiver authority is intended to lower barriers for small farmers, the Secretary must report any such waiver to Congress within 10 days, ensuring there’s a check on how often and why standard procurement rules are bypassed (Sec. 2).

The Tax Break for Buyers

Section 3 introduces a brand-new tax incentive: the Agriculture Hub Credit. Taxpayers can claim a credit equal to 25% of their “qualified food hub expenses.” Qualified expenses are defined as purchases of agricultural food products from a food hub that was developed or expanded under the new grant program, provided the contract is certified by the Secretary of Agriculture. Essentially, if you’re a business or institution buying from one of these grant-supported hubs, you get a quarter of that expense back as a tax credit. This is a direct financial nudge to encourage buyers to source their products from these specific hubs, bolstering the demand side of the equation. The credit starts applying to tax years beginning after December 31, 2025, and ends when the grant program is officially complete.

Cracking Down on Misconduct at the USDA

Beyond the grants and tax credits, the bill focuses heavily on accountability within the Department of Agriculture. Section 4 mandates that if a USDA employee is found to have engaged in civil rights misconduct—including discrimination, harassment, or intentionally delaying services—they must face corrective action. This isn't just a slap on the wrist; disciplinary actions can range from a formal reprimand all the way up to removal from federal service. This provision is designed to ensure that the staff administering USDA programs treat all applicants fairly and face real consequences if they don't.

Furthermore, Section 6 shifts the burden of proof in National Appeals Division hearings. If a farmer appeals an adverse decision made by the USDA, the agency that made the original decision now has to prove to the appeals board, using substantial evidence, that their decision was correct. Before this change, the farmer often had the heavy lift of proving the agency was wrong. This change significantly improves due process for farmers challenging agency decisions.

A New Champion for Civil Rights

Finally, the bill establishes a new, independent Office of the Civil Rights Ombudsperson within the USDA. This Office must be set up within 120 days and led by a senior official with experience in civil rights enforcement. The Ombudsperson’s main job is to help farmers and producers navigate the complex civil rights review and appeal process, acting as a guide and advocate. Crucially, this Office is required to be independent of other USDA agencies and can access departmental records to carry out its functions (Sec. 7).

Section 5 also empowers the Assistant Secretary of Agriculture for Civil Rights to grant equitable relief in program complaints without needing sign-off from any other USDA official. This speeds up the process for farmers seeking fair treatment due to civil rights issues or good-faith mistakes in following program rules. Taken together, these measures create a much stronger internal mechanism for civil rights enforcement and farmer advocacy within the USDA.