Do You Know About the USDA's National Appeals Division?

Anyone receiving an adverse decision from these six agencies can file an appeal with NAD. An adverse decision is any decision that is not in your favor. Recently, Tezra O. Woody, Juris Doctor and Regional Director of the Southern Region of the USDA’s Office of Hearings and Appeals, gave examples of adverse decisions. They include denial of equitable relief, partial funding, and the agency not taking timely action.

Ms. Woody said that fewer than 5% of people eligible to request an appeal through NAD do. She mentioned a few reasons for this, including the fear of retribution, retaliation, or damaging relationships with USDA personnel, like loan officers and County Committees. She also mentioned some assumptions people make about the costs to file an appeal (it's free) and the need to hire a lawyer (you don't – the Administrative Judge is required to assist you; you can also appoint someone to represent you who is not a lawyer). The number one reason people don't file appeals with NAD is that they don't know they can.

There is a deadline for submitting an appeal to NAD: 30 days from the receipt of the decision (set by Congress, plus 7 days mailing time). The receipt of your decision also contains information about NAD. If you or someone you know is in a position to appeal, act fast. It can be difficult to move forward quickly when you are upset. I know I'd need time to process the situation before moving on. However, it’s essential to start your appeal promptly. As Ms. Woody said, "Don't get mad. Go to NAD."

In addition to filing within 30 days, the appeal must be in writing and explain why the decision was adverse. Sign the appeal and file it at the appropriate Regional Office. The Office of Hearings and Appeals, which includes NAD, provides document translation and in-person interpretation for many languages. Appeals can be submitted by mail, fax, or e-filing. Visit the National Appeals Division for the Appeal Request Form, the location of your Regional Office, and to e-file your appeal.

Once an appeal is filed, the Regional Office reviews the Appeal Request Form for timeliness and jurisdiction and creates a case record. Then, the Deputy Regional Director assigns the case to an independent Administrative Judge. The Administrative Judge will schedule a pre-hearing teleconference to narrow down the issues. Among other things, the Judge will also help you prepare for the hearing by telling you what documents to bring. During the pre-hearing, the decision about how to hold the hearing will be determined: in person, by telephone, or by a decision on the written record. The choice is yours. Appellants are entitled to an in-person hearing in their US state or Territory of residence, including American Samoa, Puerto Rico, the US Virgin Islands, Northern Mariana Islands, Eastern Caroline Islands, and Guam. The hearing will be held within 45 days of receipt of the appeal request. The Administrative Judge will issue a determination in which either the agency erred or did not err. If either party is unsatisfied with the Administrative Judge’s decision, they can request a review from the Director.

Because Congress established NAD and included funding to support the program, there is no cost to you to appeal. You can enlist a lawyer, but you don’t have to. You can also appoint someone who is not a lawyer to represent you. If you do hire a lawyer, their fees may be recoverable if it is found that the agency’s actions were arbitrary and capricious.

NAD offers a great service. However, it was pointed out that if the NAD Administrative Judge rules that the agency erred, the agency doesn’t have to honor the decision. Ms. Woody acknowledged that this could be a problem. In fact, some people who received favorable decisions from a NAD Administrative Judge have indicated that when they took the decision back to the agency, the agency said that funding was no longer available. Or, since the agency’s decision no longer stands, it can restart your application and deny it again. Ms. Woody called this the 'treadmill' because the agency gives you the same adverse decision, and you go back to NAD, repeat. If this happens to you, you may need to go to a District Court (outside of NAD) because they have enforcement mechanisms. If you use NAD, wind up on the ‘treadmill,’ and decide to go to District Court, NAD’s decision(s) and your records can help document your case.