Questions and

Answers About

Karnal Bunt

Compensation

Q. Who is eligible for compensation under the

U.S. Department of Agriculture’s (USDA) Karnal

bunt compensation package?

A. In August 2001, USDA compensated certain

growers, handlers, owners of seed companies, 

owners of grain storage facilities, flour millers, and

participants in the National Karnal Bunt Survey who

incurred losses and expenses because of Karnal

bunt in the 1999-2000 and 2000-2001 crop seasons.

In May 2002, USDA amended its regulation in

order to compensate certain growers and handlers of

grain and seed affected by Karnal bunt who were not

eligible for compensation under the previous rule.

This amended rule also provides for compensation

for certain wheat grown in Oklahoma that was 

comingled with wheat grown with Karnal bunt-positive

wheat while being stored in Texas.

Q. Will growers from the Texas counties of

Archer, Baylor, Throckmorten, and Young, where

wheat tested negative at grain elevators, be 

eligible for compensation?

A. Growers in Archer, Baylor, Throckmorten, and

Young counties in Texas, whose wheat tested negative for Karnal bunt after harvest at a grain elevator,

will be eligible for compensation at a rate not to

exceed $1.80 per bushel. For example, if the market

price for grain is $3.00 and the selling price is $1.50,

then USDA will cover the difference and compensate

the grower $1.50 per bushel. If the market price is

$3.00 and the selling price is $1.00, USDA will pay

the grower $1.80 per bushel, the maximum allowed

under the compensation plan.

Q. Is compensation available for wheat held back

by a grower in the 2000-2001 growing season?

A. Wheat held back from harvest by a grower in the

2000-2001 growing season for use as seed in the

next growing season that tested positive for Karnal

bunt spores qualifies for compensation at a rate not

to exceed $1.80 per bushel.

Q. Will growers in the counties regulated in 2001

be compensated for costs associated with the

disposal of uncertified or treated seed?

A. Growers in Archer, Baylor, Throckmorten, and

Young counties who produced uncertified wheat seed

during the 2000-2001 growing season that tested

positive for Karnal bunt spores after it was treated

with fungicide are eligible for compensation for disposal costs. Treated, spore-positive seed disposed of

on the owners’ premises qualifies at a rate of $1.00

per bushel. Seed disposed of by burial at a landfill or

through another means approved by USDA’s Animal

and Plant Health Inspection Service (APHIS) qualifies at a rate of up to $1.20 per bushel.

Q. Will growers receive compensation for 

comingled grain? 

A. USDA will compensate growers with wheat grown

in Oklahoma during the 2000-2001 growing season

that was comingled with Karnal bunt-positive wheat

while being stored in Texas at a rate not to exceed

$1.80 per bushel.

Q. Will compensation be offered after the 

2000-2001 crop year? 

A. Growers and handlers of wheat that was harvested

in the counties of Archer, Baylor, Throckmorten, and

Young counties during the 2000-2001 growing season will receive a 1-year extension and be eligible for

compensation through the 2001-2002 crop season.

However, anyone who plants in known infected fields

within the four-county area will not be eligible for

compensation.

Compensation will still be available in the future if

a new outbreak of Karnal bunt is detected in an

unregulated area. However, producers who plant

wheat in previously regulated areas after the 2000-

2001 season will not be compensated under the 

current plan.

Q. Can combine owners, custom combiners, or

portable seed cleaners claim compensation?

A. The current compensation package does not

include any provisions that cover the cleaning of 

harvesting equipment and portable seed cleaners.

Q. How long do affected growers, handlers, and

seed companies have to apply for compensation?

A. Growers, handlers, and seed companies eligible

for compensation must have their claims to USDA’s

Farm Service Agency within 90 days of the publication of the rule. The rule was published in the

Federal Register on May 1.

Factsheet

Plant Protection and Quarantine May 2002

APHIS

United States Department of Agriculture • Animal and Plant Health Inspection Service • Safeguarding American Agriculture
The U.S. Department of Agriculture (USDA) prohibits discrimination

in all its programs and activities on the basis of race, color, national

origin, sex, religion, age, disability, political beliefs, sexual orientation, or marital or family status. (Not all prohibited bases apply to

all programs.) Persons with disabilities who require alternative

means for communication of program information (Braille, large

print, audiotape, etc.) should contact USDA’s TARGET Center at

To file a complaint of discrimination, write USDA, Director, Office of

Civil Rights, Room 326–W, Whitten Building, 1400 Independence

Avenue, SW, Washington, DC 20250–9410 or call (202) 720–5964

(voice and TDD). USDA is an equal opportunity provider and

employer.