WASHINGTON, Aug 22 (Reuters) - Led by dilapidated tractors and a lonemule, dozens of black farmers on Thursday marched near the U.S.Agriculture Department to demand compensation for decades of racialdiscrimination that they claim has shut them out of billions of dollars infederal subsidies."This administration has turned a deaf ear to a group of people whodeserve restitution," said John Boyd, president of the National BlackFarmers Association.The farmers, who live mostly in the South, accuse the USDA of notabiding by a 1999 landmark agreement to pay producers who werediscriminated against. In the settlement, the department promised to payat least $50,000 to each affected black farmer.However, the protesters claim few farmers have actually received theirmoney after three years of waiting."Where's our 40 acres?" Philip Haynie, a Virginia farmer, toldreporters while pulling a mule. "We just want what we are entitled to. Wedon't want handouts, just to be treated fairly."The number of black farmers in the United States has steadily dwindledin the past decades, representing about 1 percent of American producers.The protesters claim USDA officials denied their applications for billionsof dollars in farm assistance because of the color of their skin.Agriculture Secretary Ann Veneman, who was in Oregon on Thursday withPresident George W. Bush, has said the administration was committed toensuring black farmers were fairly treated.

MANY UNPAID, THOUSANDS DENIEDAs of July 31, USDA says the government has paid $629 million in claimsin 12,597 cases. But 8,490 cases were denied and hundreds of approvedclaims were still unpaid."Because of the volume of claims to be paid, there has been somedifficulty in coordinating the payments," the USDA said. "In some cases,payments have been delayed."The backlog, estimated at 600 cases, and other payment delays havecaused many black farmers to lose their land, Boyd said. Protestersdemanded that the USDA issue a moratorium on all foreclosures of blackfarms.Lou Gallegos, USDA assistant secretary for administration, toldreporters the backlog was not the USDA's fault and hinted that it could bethe Justice Department's."I'm not going to put fingers at the Justice Department. It's not myplace to point," he said. "All I'm saying is they are in charge of thatresponsibility by virtue of the agreement that was entered."Justice Department officials were not immediately available to comment.Last month, the Black Farmers and Agriculturalists Association staged afive-day sit-in at the USDA office in Brownsville, Tennessee, demandingequal access to farm loans.Black farm groups have threatened further protests and sit-ins at USDAfacilities where they claim racial discrimination occurred