The Obama administration announced it has settled a lawsuit filed by black farmers who said the Agriculture Department discriminated against them for decades in loan programs.

The $1.25 billion settlement, brokered by the Agriculture and Justice departments, would provide cash payments to tens of thousands of farmers who were left out of a similar settlement in 1999 that paid out $1 billion to 16,000 black farmers.

"USDA is excited about this opportunity to turn the page on what has been a troubling chapter for our department," Agriculture Secretary Tom Vilsack said in a news conference Feb. 18.

Farmers would be eligible for an expedited claim of up to $50,000 or actual damages of up to $250,000, although the actual amount paid to each farmer will depend on how many claimants there are, Associate Attorney General Thomas Perrelli said. President Obama has asked Congress to provide $1.15 billion in this year's budget for the payments, which would be on top of $100 million appropriated in a 2008 farm bill.