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94
3
10
1
Ag Dept. Fraud Issue
March 27, 1997
The Houston Police Department held a press conference yesterday to announce the results of a
food stamp recipient sting operation held from October 4 - December 18 in Houston that found
local evidence of fraud in the electronic food stamp system. Recipients were abusing their benefits
by going to stores and using their food stamp benefit cards to get back cash and other ineligible
items instead of food.
Points:
The Agriculture Department and the Texas Department of Human Services worked with
the Houston Police department on this sting.
The Department of Agriculture is committed to integrity in the Food Stamp Program. This
operation was supported by the department and is an example of their commitment to
ensure that benefits go to the people that need them.
The transformation of the Food Stamp program into a streamlined electronic benefits
transfer system is an exciting innovation that will improve service and reduce fraud. This
case shows loud and clear that fraud will not be tolerated and when abuses are found
action will be quickly taken.
MCKIERNAN
Per Joanna Pierce, AG, 720-5555
12/12/96 13:37
OFFICE OF COMMUNICATIONS 2024562993
NO.971 P002/002
12/13/96
plsfile
Agriculture Hurc
TALKING POINTS ON MEETING WITH THE NATIONAL BLACK FARMERS ASSOC.
Secretary Glickman and members of his staff, including the head of the USDA Civil
Rights Action Team, met for 2 and a half hours with the board of directors of the National
Black Farmers Association. The meeting was productive and extremely emotional for
those involved.
All of the farmers who met with the Secretary have some type of pending legal action
against the department, so the Secretary made it clear that the meeting was just a listening
session and he would not comment on individual cases.
The Secretary asked each person in the room to talk about his or her experiences with
USDA. All accused the department of racism and efforts to drive them off their farms.
At the end of the meeting, the black farmers asked the Secretary to make some decisions
on a few cases that have already gone through the legal process. The Secretary politely
declined but promised to get back with the Black Farmers Association by next week to
tell them how USDA will proceed.
After the meeting, the Secretary held a joint media availability with the head of the
association, Mr. John Boyd Jr. Both said it was a good and very productive meeting and
pledged to work together to resolve the problem.
This morning, the Secretary met with members of the new Civil Rights Action Team to
follow up on the meeting and again emphasize his commitment to resolve the problems
as quickly as possible.
Tom amontree sent
INTERNAL
this overfor gon.
BUKVA
AMELBT
Agriculty
12/13/96
THE SECRETARY OF AGRICULTURE
WASHINGTON
20250-0100
12-12-96
MEMORANDUM TO THE PRESIDENT
FROM:
Secretary Dan Glickman
SUBJECT: Civil Rights
I want to let you know about the actions I have taken to address concerns about racial
discrimination at the Department of Agriculture. USDA is a vast, decentralized Department that
has an unfortunately long history of civil rights and program delivery problems. I am firmly
committed to rooting out these problems, improving USDA's service to minorities and socially
disadvantaged farmers and communities. There is not a simple solution, but I will get the job
done.
This is an issue we have been struggling with for some time. For example, when I took office,
the Department had a severe backlog of equal opportunity employment (EEO) complaints and
we had completely inadequate systems in which to resolve these complaints. We have a focused,
intensive effort to address this problem, and we are making significant progress, but obviously
there are also other areas of concern that we must address.
In fact, the recent press reports provide me with the opportunity to fix these problems. I am
using them as leverage against the institutional inertia that has hindered further progress.
Today I established a Civil Rights Action Team, which will be headed by Mr. Pearlie Reed.
Pearlie is a 27 year veteran of the Department of Agriculture, currently the Associate Chief of the
Natural Resource Conservation Service. Pearlie's reputation as a leader and a manager is
impeccable and his selection gives strong credibility to this effort both within and outside the
Department.
The Action Team will develop a plan by mid-February to address two fundamentally important
issues -- (1) civil rights complaint and enforcement systems, and (2) improved program delivery
to minorities and socially disadvantaged farmers. In preparing this action plan, Pearlie will meet
with and listen to Departmental staff and constituency groups.
I announced this action in a meeting this morning of all subcabinet officers, their deputies, and
agency administrators. I instructed them to give Pearlie their full support. There will be some
resistance to this effort within the Department, but there will be consequences. I will hold the
leadership of the Department personally accountable for their vigorous cooperation with this
effort.
The creation of this Action Team does not relieve the Department's leadership of their personal
responsibility and accountability for proactively dealing with civil rights and program delivery
issues in their mission areas. There is no more important issue facing the Department.
Earlier in the week, I issued the attached statement directing all USDA agencies, including State
offices, to establish an Outreach Office, reporting directly to the administrator or State Director.
I also laid out a plan for a National Dialogue to address both civil rights concerns as well as ways
in which to improve our partnerships with and program delivery to minority and socially
disadvantaged farmers, an idea which was developed in meetings with Ralph Paige of the
Federation of Southern Cooperatives. Finally, I asked the Office of the Inspector General to
investigate the particular issues recently raised in the press regarding our farm loan programs and
civil rights complaints.
I subsequently issued the attached memorandum to our State offices to express my deep concern
about this issue. Given the decentralized nature of the Department, I also expect to take
additional action to make sure that my message of commitment, responsibility, and
accountability reaches down to every county in the Nation.
I want to reiterate my commitment to addressing these problems, and I will continue to keep you
apprised of our actions.
UNITED STATES DEPARTMENT OF AGRICULTURE
NEWS
Office of Communications News Room 460-A
Washington, DC 20250-1300
Internet: News @usda.gov Phone: 202-720-9035
World Wide Web Home Page: http://www.usda.gov
Release No. 0631.96
Statement
by
Secretary of Agriculture Dan Glickman
on Program Delivery and Customer Service at USDA
December 10, 1996
"During my tenure as Secretary, I have actively sought to ensure that
Department of Agriculture (USDA) programs effectively serve minority and
socially disadvantaged farmers. Today, I am initiating a national dialogue
on USDA's service to these communities as part of an intensified effort to
more effectively help socially disadvantaged and minority farmers continue
their family traditions and stay on the land.
"First, I am directing each USDA agency that serves farmers to
establish an outreach office that reports directly to the administrator. I
am directing the state offices of the Natural Resource Conservation Service
(NRCS), Rural Development (RD), and the Farm Service Agency (FSA) to
establish outreach offices that report directly to the state directors and
state conservationists. These outreach offices will work directly with
constituency groups to improve the department's outreach and service to
minority and socially disadvantaged producers.
"Second, I will hold a national forum early next year on the delivery
of USDA programs. All USDA farm program agencies, including Extension, will
be involved in the forum, as will headquarters, state, and county office
personnel. The forum will provide an opportunity for minority and socially
disadvantaged farmers to discuss their concerns about USDA program delivery.
More importantly, it will identify new ways we can build partnerships and
improve the department's outreach and service.
"Third, the state offices of NRCS, RD, and FSA will hold simultaneous
statewide forums so that minority and socially disadvantaged farmers in
every state can participate in this national dialogue. The outreach offices
of each agency will work with our constituencies and partners in setting up
these statewide meetings. Following the national forum, each state will
submit a joint report to headquarters with recommendations for future
action, including ways to build more effective partnerships among socially
disadvantaged and minority producers and USDA leadership, including state
officials.
-more-
-2-
"Fourth, I am requesting that USDA's Office of Inspector General begin
an immediate investigation of the status of discrimination complaints
against FSA and recommend a plan for promptly resolving these complaints. I
am also asking him to investigate the level of participation of minorities
and socially disadvantaged farmers in FSA's farm loan programs as well as
FSA's effectiveness in serving these communities. I also will be directing
other USDA agencies to launch comprehensive analyses of their service to
minority and socially disadvantaged farmers and of their civil rights
complaint and enforcement systems.
"I am committed to creating an environment in which every customer who
comes to one of our offices is treated fairly, effectively, and efficiently.
Improving program delivery and customer service means reaching all
Americans. It means making sure that minority and socially disadvantaged
farmers have equal information about and access to farm loans, commodity
programs and crop insurance. It means using our outreach grants for these
farmers as effectively as possible.
"We have already made real progress. Those initiatives include
committing millions of dollars to outreach and training for minority and
socially disadvantaged farmers through colleges, universities, and community
organizations serving primarily minority and socially disadvantaged
populations. In addition, we have targeted loan funds specifically to
members of minority groups to encourage farm ownership and production.
"But we can and will do better. The actions I am announcing today are
the first steps to ensure that we do everything possible in the area of
civil rights."
#
NOTE: USDA news releases and media advisories are available on the Internet.
Access the USDA Home Page on the World Wide Web at http://www.usda.gov
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D.C. 20250
DEC 9 1996
Honorable Roger Viadero
Inspector General
U.S. Department of Agriculture
Washington, D.C. 20250
Dear Roger:
I have had a growing concern regarding the effectiveness of the Department of
Agriculture's (USDA) work with socially disadvantaged and minority farmers and ranchers. Part
of this concern is based on recent allegations that USDA discriminates against African American
farmers in its delivery of its farm loan programs, as well as by concerns about the adequacy of our
programmatic civil rights complaint systems.
I will not tolerate any discrimination during my tenure as Secretary of Agriculture, and I
am committed to doing everything in my power to address these issues. Accordingly, I am
requesting that your office begin an immediate investigation into the Farm Service Agency (FSA)
delivery of its farm loan programs to minority and socially disadvantaged farmers as well as its
civil rights complaint systems.
I ask that you address the following issues:
1.
Determine the number of outstanding complaints which allege discrimination in
farm loan programs, including the dates filed and status in complaint investigation
and resolution process; determine the number of full time equivalents committed
to resolving these complaints; and recommend a plan of action for prompt
resolution of these complaints.
2.
Assess participation of minorities and socially disadvantaged persons in FSA's
farm loan programs; determine whether the percentage of participation correlates
to the total population, by Nation, State, and county.
3.
Determine if FSA offices provide sufficient technical assistance to help these
farmers apply for and receive program benefits and if FSA processes minority farm
loan applications and servicing requests in the same manner as loan applications
and servicing requests from white farmers.
AN EQUAL OPPORTUNITY EMPLOYER
2
These issues are of very high priority to me and I respectfully request your assistance in
expediting the Office of Inspector General's investigation of these issues. I would appreciate
having a preliminary report on your findings as soon as possible.
Please let me know if you have any questions or concerns regarding this request.
Sincerely,
DAN GLICKMAN
Secretary
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D.C. 20250
MEMORANDUM FROM SECRETARY GLICKMAN
TO:
State Executive Directors and State Committee Chairwomen and Chairmen,
Farm Service Agency
State Directors, Rural Development
State Conservationists and Regional Directors, Natural Resources
Conservation Service
SUBJECT: Civil Rights
The attached reports on discrimination and civil rights complaints filed against the Department of
Agriculture are very troubling to me personally.
I am devoted to solving the Department's civil rights problems. As state leaders of the
Department, it is your responsibility to place the same high priority on this issue. Your
performance, and those of your employees, will be judged in part by the demonstration and
commitment to full and enthusiastic compliance with this goal.
You should convey the importance of solving civil rights problems to all of your employees in
the strongest possible terms. I expect this to be done immediately.
If any of you or any employee experiences any resistance in furthering our efforts, it must be
reported at once to the appropriate agency's civil rights division or the Office of the Inspector
General's hotline number, 1-800-424-9121.
Only together can we abolish all traces of any discriminatory behavior within our ranks and
become a leader in civil rights protection for our employees and customers.
12-11-16
UNITED STATES DEPARTMENT OF AGRICULTURE
NEWS
Office of Communications News Room 460-A
Washington, DC 20250-1300
agualten
Internet: News @usda.gov Phone: 202-720-9035
World Wide Web Home Page: http://www.usda.gov
Release No. 0631.96
Statement
by
Secretary of Agriculture Dan Glickman
on Program Delivery and Customer Service at USDA
December 10, 1996
"During my tenure as Secretary, I have actively sought to ensure that
Department of Agriculture (USDA) programs effectively serve minority and
socially disadvantaged farmers. Today, I am initiating a national dialogue
on USDA's service to these communities as part of an intensified effort to
more effectively help socially disadvantaged and minority farmers continue
their family traditions and stay on the land.
"First, I am directing each USDA agency that serves farmers to
establish an outreach office that reports directly to the administrator. I
am directing the state offices of the Natural Resource Conservation Service
(NRCS), Rural Development (RD), and the Farm Service Agency (FSA) to
establish outreach offices that report directly to the state directors and
state conservationists. These outreach offices will work directly with
constituency groups to improve the department's outreach and service to
minority and socially disadvantaged producers.
"Second, I will hold a national forum early next year on the delivery
of USDA programs. All USDA farm program agencies, including Extension, will
be involved in the forum, as will headquarters, state, and county office
personnel. The forum will provide an opportunity for minority and socially
disadvantaged farmers to discuss their concerns about USDA program delivery.
More importantly, it will identify new ways we can build partnerships and
improve the department's outreach and service.
"Third, the state offices of NRCS, RD, and FSA will hold simultaneous
statewide forums so that minority and socially disadvantaged farmers in
every state can participate in this national dialogue. The outreach offices
of each agency will work with our constituencies and partners in setting up
these statewide meetings. Following the national forum, each state will
submit a joint report to headquarters with recommendations for future
action, including ways to build more effective partnerships among socially
disadvantaged and minority producers and USDA leadership, including state
officials.
-more-
-2-
"Fourth, I am requesting that USDA's Office of Inspector General begin
an immediate investigation of the status of discrimination complaints
against FSA and recommend a plan for promptly resolving these complaints. I
am also asking them to investigate the level of participation of minorities
and socially disadvantaged farmers in FSA's farm loan programs as well as
FSA's effectiveness in serving these communities. I also will be directing
other USDA agencies to launch comprehensive analyses of their service to
minority and socially disadvantaged farmers and of their civil rights
complaint and enforcement systems.
"I am committed to creating an environment in which every customer who
comes to one of our offices is treated fairly, effectively, and efficiently.
Improving program delivery and customer service means reaching all
Americans. It means making sure that minority and socially disadvantaged
farmers have equal information about and access to farm loans, commodity
programs and crop insurance. It means using our outreach grants for these
farmers as effectively as possible.
"We have already made real progress. Those initiatives include
committing millions of dollars to outreach and training for minority and
socially disadvantaged farmers through colleges, universities, and community
organizations serving primarily minority and socially disadvantaged
populations. In addition, we have targeted loan funds specifically to
members of minority groups to encourage farm ownership and production.
"But we can and will do better. The actions I am announcing today are
the first steps to ensure that we do everything possible in the area of
civil rights."
#
NOTE: USDA news releases and media advisories are available on the Internet.
Access the USDA Home Page on the World Wide Web at http://www.usda.gov
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
CHECK
WASHINGTON, D.C. 20250
DEC
9 1996
Honorable Roger Viadero
Inspector General
U.S. Department of Agriculture
Washington, D.C. 20250
Dear Roger:
I have had a growing concern regarding the effectiveness of the Department of
Agriculture's (USDA) work with socially disadvantaged and minority farmers and ranchers. Part
of this concern is based on recent allegations that USDA discriminates against African American
farmers in its delivery of its farm loan programs, as well as by concerns about the adequacy of our
programmatic civil rights complaint systems.
I will not tolerate any discrimination during my tenure as Secretary of Agriculture, and I
am committed to doing everything in my power to address these issues. Accordingly, I am
requesting that your office begin an immediate investigation into the Farm Service Agency (FSA)
delivery of its farm loan programs to minority and socially disadvantaged farmers as well as its
civil rights complaint systems.
I ask that you address the following issues:
1.
Determine the number of outstanding complaints which allege discrimination in
farm loan programs, including the dates filed and status in complaint investigation
and resolution process; determine the number of full time equivalents committed
to resolving these complaints; and recommend a plan of action for prompt
resolution of these complaints.
2.
Assess participation of minorities and socially disadvantaged persons in FSA's
farm loan programs; determine whether the percentage of participation correlates
to the total population, by Nation, State, and county.
3.
Determine if FSA offices provide sufficient technical assistance to help these
farmers apply for and receive program benefits and if FSA processes minority farm
loan applications and servicing requests in the same manner as loan applications
and servicing requests from white farmers.
2
These issues are of very high priority to me and I respectfully request your assistance in
expediting the Office of Inspector General's investigation of these issues. I would appreciate
having a preliminary report on your findings as soon as possible.
Please let me know if you have any questions or concerns regarding this request.
Sincerely,
DAN GLICKMAN
Secretary
Black Farmers, 0849
Ag Department says it will resolve discrimination complaints
WASHINGTON (AP) Faced with a lawsuit and new evidence of
unfair treatment of black farmers, the Agriculture Department said
Tuesday it will take steps to settle longstanding discrimination
complaints.
The announcement came as black farmers from the Southeast
planned to demonstrate in front of the White House, contending the
Clinton administration has done nothing to remedy past
discrimination despite admitting a legal duty.
The complaint focuses on allegations of discrimination by the
old Farmers Home Administration, the department's lending agency,
now called the Farm Service Agency. Blacks have complained over the
past two decades that unequal treatment has aided in the decline of
black agriculture.
On Tuesday, Agriculture Secretary Dan Glickman said he has asked
the Office of Inspector general to investigate immediately the
status of the complaints. The inspector general is to recommend a
plan to resolve those complaints.
Moreover, Glickman said, the inspector general will examine
minority participation in lending programs and have other agencies
investigate their service to black and socially disadvantaged
farmers.
I am committed to creating an environment in which every
customer who comes to one of our offices is treated fairly,
effectively and efficiently, Glickman said. He also announced
national and statewide forums on program delivery and the creation
of special outreach'' offices to work with minorities.
From 1982 to 1987, the number of farms run by blacks dropped 30
percent, according to Census numbers cited in a 1990 report by the
House Committee on Government Operations less than 1 percent of
all farms. The number had peaked at about 950,000 in the 1920s. The
Commission on Civil Rights first called attention to the situation
in 1982.
On Friday in Washington, U.S. District Judge Thomas Flannery
will hear arguments on whether a lawsuit brought last year by six
black and Hispanic farmers against the department should be widened
to include hundreds of alleged victims of discrimination.
The Justice Department has argued against turning the lawsuit
into a class action. It says there is no way to sort out who would
be covered without reviewing hundreds of detailed complaints that
would force a probe into personal financial management and dealings
with thousands of county-level officials.
However, attorney James W. Myart Jr. of San Antonio said in
court papers that a study recently done for the department found a
common thread to the discrimination complaints.
Also, a 36-page report done in April 1993 by the Virginia
Farmers Home Administration found common complaints. Neither had
been disclosed by the government during earlier requests for
evidence.
Black farmers complained they have been given smaller loans than
their white counterparts, making it harder to keep financially
afloat. Other allegations say loans are granted late in the crop
season, aggravating debt problems; black farmers are denied equal
help with loan applications, and in some cases the applications are
shelved by county officials or false numbers are entered.
An Associated Press analysis of lending records from 1980 to
1992 found that black farmers received about 51 cents for every
dollar lent to whites. While the number of loans to white farmers
dropped by 66 percent over that period, the number of loans to
black farm borrowers tumbled by 82 percent.
The department has said at the time the AP study was done in
late 1992 that the smaller loans were due largely to smaller farms.
In some instances, the department has acknowledged
discrimination. But the lawsuit says the department has refused to
award damages or provide other relief, such as reversing
foreclosures, even though it has acknowledged a legal obligation to
do so.
He's saying he's asking the inspector general to do something
three or four months down the line, Myart said in response to
Glickman announcement. This issue has been with the
administration for four years. The administration is just now
proposing to conduct a study to determine how to do it.
Still, he praised the administration for taking a first good
step.
Myart also spoke as representative of the National Black Farmers
Association, a group formed with about 50 of his clients, mostly in
southern Virginia. The group plans a demonstration Thursday in
front of the White House.
A settlement could prove expensive. And the department is
already under pressure from Congress to curb the billions of
dollars in losses from loans made to all farmers.
Myart said in court papers that former Agriculture Secretary
Mike Espy tried to settle one case for $570,000 in December 1.994,
just before his resignation, but the settlement was rejected by
Glickman
(PROFILE
(CAT: Agriculture;)
(CAT: Business;)
(CAT: Crime;)
(SRC:AP; ST:US;)
)
AP-NY-12-10-96 1548EST
SUBJECT: AGRI LENF CONW
Copyright (c) 1996 The Associated Press
Received by NewsEDGE/LAN: 12/10/96 3:54 PM
USDA moves to help minority farmers
WASHINGTON, Dec 10 (Reuter) - The U.S. Agriculture
Department moved Tuesday to help minority and poor farmers
participate in its farm programs after complaints of
discrimination.
"I am committed to creating an environment in which every
customer who comes to one of our offices is treated fairly,
effectively and efficiently," Agriculture Secretary Dan
Glickman said in a statement.
The department manages dozens of programs offering loans or
loan guarantees to the nation's farmers. Black producers have
long complained that they were not treated fairly, alleging
among other things, that their loan applications are not
processed as swiftly as those of white farmers. A group of
minority farmers planned a protest in Washington on Thursday.
Glickman said he had instructed the department's Office of
Inspector General to investigate the status of discrimination
complaints against the Farm Service Agency and to recommend a
plan for resolving them.
The secretary said the inspector general would also look at
how many minorities and socially disadvantaged farmers
participate in the department's farm loan programs.
In 1992, the latest year for which figures are available,
the Census Bureau tallied approximately 18,000 minority farmers
nationwide.
Glickman said his department would hold a national summit
as well as statewide forums on program delivery early next year
and set up "outreach" offices to improve services.
REUTER
Rtr 17:58 12-10-96
:SUBJECT: GROI USA
Copyright (c) 1996 Reuters
Received by NewsEDGE/LAN: 12/10/96 6:03 PM