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April
29, 2026
XXXXX
XXXXX
XXXXX
XXXXX
RE: NAD Case No.
2026E000301
Dear
XXXXX:
This
letter responds to the appeal you filed with the National Appeals Division
(NAD) challenging a decision issued by the Farm Service Agency (FSA) on March
23, 2026, to terminate your federal grant (XXXXX, XXXXX)
under the Increasing Land, Capital, and Market Access (ILA) program. Although
FSA’s adverse decision includes appeal rights, NAD ultimately determines
whether a matter is appealable to our division.
In its decision, FSA noted that “the United States Department of Agriculture (USDA) has determined that the awards under this program involved discriminatory preferences based on Diversity, Equity and Inclusion (DEI) and wasteful spending that did little to further lawful agricultural land purchases.” FSA further explained that the ILA awards, including yours, did not align with USDA’s goals and priorities because: (i) ILA awards discriminated based on immutable characteristics; (ii) ILA awards did not align with congressional intent; and (iii) the ILA award structure unacceptably exposed taxpayers to fraud, waste, and abuse. FSA noted that USDA should not pick winners based on immutable characteristics, most of the awards did little to improve land access, and the program enabled spending inconsistent with sound public policy or market logic.
In your appeal request, you disagree with FSA’s decision and believe such decision cancelling the program and terminating your specific project is unlawful and should be reversed. Among other arguments, you contend the decision is contrary to Congressional authorization, is arbitrary and capricious, and there was no opportunity to cure after the new requirements.
NAD’s implementing regulations codified at 7 C.F.R. Part 11, provide the relevant authority for determining whether an agency’s decision is appealable to NAD. Pursuant to 7 C.F.R. § 11.6(a)(2), the NAD Director “shall determine whether the decision is adverse to the individual participant and thus appealable or is a matter of general applicability and thus not subject to appeal ….” There are two components to making an appealability determination. First, the decision must be adverse to the program participant. Second, the decision must be based on an individual application of the program rather than a generalized application. Thus, program participants may not seek NAD review of agency regulations or statutory provisions that establish basic program requirements or eligibility criteria. See 7 C.F.R. § 11.3(b) (clarifying that the NAD appeals process may not be used to seek review of statutes or USDA regulations issued under federal law). On the other hand, program participants may seek review of decisions that are based on an individual application of an agency’s regulations, policies, or specified criteria.
In this case, the first prong of the appealability determination is met because FSA’s decision is adverse to you. NAD’s regulations codified at 7 C.F.R. § 11.3(a)(1) make clear that the term “adverse decision” is intended to include administrative decisions made by an agency denying participation in, or receipt of benefits under, certain agency programs. Thus, FSA’s decision terminating your grant is adverse to you.
However,
the second prong of the appealability determination--whether the matter is one
of general applicability--supports the conclusion that this matter is not
subject to a NAD appeal.
FSA’s decision is not based on the individual application of
specific program criteria. Instead, your grant termination is based on the
general policy priorities of USDA and its decision to cancel the ILA program.
The Secretary of Agriculture has determined that this program, and awards made
thereunder, no longer support USDA priorities.
Therefore,
in accordance with 7 C.F.R. § 11.6(a)(2), I have made the following final
determination:
FSA’s March 23, 2026,
decision terminating your ILA grant is not appealable because it concerns
matters of general applicability.
Accordingly,
I decline to accept your request for an appeal of FSA’s decision.
Sincerely,
/S/
Jennifer
K.M. Nicholson
Acting
Director