Outreach

USDA Definitions of Some Underserved Customers

The following define some of the groups which have been historically underserved by USDA. Use these definitions for the purpose of identifying the presence of people with these characteristics in your county and to develop strategies for working with them.

CAUTION:

There is an inherent danger in labeling and categorizing people. People may be offended by any label, regardless of whether we think it is a "good," "bad," or "appropriate" distinction. Also, social and economic situations can change quickly. For example, classifying a person as a limited resource or non-limited resource farmer in one year may be inaccurate for the next year.

Further, identifying people as part of broadly defined "social groups" is a social science technique that should only be a starting point for better understanding customers. Knowing one thing about a person (e.g., their ethnic ancestry) does not tell you everything about that person. Avoid jumping to conclusions about behavior, attitudes and needs.

It is important to be sensitive to the feelings of the person from whom you are acquiring information. Some people refuse to discuss or to respond in writing to questions that they consider of a personal nature. In these cases, try to obtain information through less intrusive measures.

A. Limited Resource Producer

According to 180-GM, Issue 5, Part 406,

Limited Resource Producer (LRP) is a term used to describe those farmers who, when compared to other farmers and farm operations in a given geographic area, such as a state, county, or project area, have distinct disadvantages in obtaining U.S. Department of Agriculture (USDA) Program assistance. The LRP designation is for agency use in diversity programs and is not for general information.

LRPs have one or more of the following characteristics:

1. Gross farm sales average $40,000 or less in each of the last 3 years and there is no non-farm income.

2. Total household net income, farm and non-farm, is 75 percent or less of the non-metropolitan median income level for the state or county.

3. Lack of access to capital, labor, or equipment.

4. Farm or ranch size is significantly smaller than average size.

5. Social, cultural, customs or language barriers, minimal awareness of USDA programs, limited management skills, the level of formal education is below the county average or undereducated, and are less likely to take business risks and adopt new technology.

B. Socially Disadvantaged Persons

While some farmers may aptly be described as "socially disadvantaged," this term is also useful for characterizing potentially underserved non-farm people and communities.

Socially disadvantaged persons are defined by USDA as:

A group whose members have been subject to racial, ethnic, or gender prejudice because of their identity as members of the group without regard to their individual qualities. Socially disadvantaged groups consist of women, African-Americans, Native Americans, Alaskan Natives, Hispanics, Asians and Pacific Islanders.

C. Disadvantaged Communities and Groups

Certain project areas (e.g., counties, municipalities or watersheds) may be characterized as "disadvantaged" based on the economic characteristics of the residents.

According to Circular No. 4 of the National Watersheds Manual, disadvantaged communities and groups have the following characteristic:

1. Average value of property is less than 75 percent of state average values.
   
   In addition, either of the following characteristics are present:
    
2. The average per capita income for the last three years is less than 75 percent of the national average.
   
   OR
    
3. Current unemployment is twice the national average for the past three years.