Black farmers are more likely to face discrimination in the loan process, ASU study shows
A recent study from an Arizona State University professor investigated racial discrimination in federal loan programs for farmers.
The researchers found that on average, Black farmers experienced longer times for loan processing and applications.
The paper found that operating loan applications took two additional days to complete for Black borrowers compared to all other farmers.
It then found that it took another two days longer for those loans to process. The report did find that the completion and processing times varied greatly by state.
The paper did not find a significant difference in time for farm ownership loans however.
Other factors also played a big role such as loan amounts, complexity of loan types, collateral and whether a farmer was a new borrower.
The paper was published in the journal Applied Economic Perspectives and Policy.