How does the FSA define "socially disadvantaged" borrowers?

The Farm Service Agency (FSA) defines "socially disadvantaged" borrowers as individuals who have faced systemic barriers based on race, ethnicity, or gender. This definition highlights the recognition of historical inequities that marginalized groups often encounter in accessing financial resources and opportunities in agriculture. Such barriers can manifest in various ways, including discrimination and limited access to capital, credit, and information, which can hinder their ability to pursue agricultural ventures or benefit fully from federal programs.

By considering these groups as "socially disadvantaged," the FSA aims to ensure equitable access to agricultural assistance and support for those who have been historically underrepresented in the agricultural sector. This definition is critical as it informs policies and programs designed to enhance support mechanisms, enabling these borrowers to overcome systemic challenges and contribute to the agricultural economy.