ASCS/FSA has had a history of trying to identify its producers as to their race and/or ethnicity. It seems to me the problem is you can't require citizens to say what they are or consider themselves to be; you can't except for the Census Bureau.
According to this FEMA may be required to collect such data, if the new law passes. As there's more and more written about the disparate impacts of various programs agencies face that problem more. IMO simply asking, whether orally or by form, is offputting--most Americans I suspect would react: what the hell business is it of yours? So you end up with correct information grudgingly given and an annoyed citizen, or incorrect information, or blank, which puts you into the position of eyeballing.
