Black farmers to receive payouts in $1.2B settlement

Hundreds of black farmers in North Carolina and the south will begin receiving payments this week as a result of a $1.2 billion settlement in their discrimination case against the federal government. 

About 18,000 farmers in total are expected to receive checks. 

"After all these years and all the fighting, this is what it's all about," John Boyd, president of the National Black Farmers Association, said in a statement. "It doesn't take away what the government has done to us, but for those who receive payments it will make a difference in their lives."

In December 2010, President Barack Obama signed into law a settlement of a lawsuit that claimed black farmers were denied loans commonly given to white farmers. About 40,000 black farmers originally filed claims, and families were eligible for payouts of about $50,000 each.

This is the second round of funding for black farmers. Thousands received payments in 1999 as part of a settlement in a class-action suit over allegations of widespread discrimination by local Agriculture Department offices in awarding loans and other aid.