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Milled Peanuts

Inspection Instructions

April 2023
Non-Discrimination Policy: In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations 

and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited 

from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, 

disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or 

retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). 

Remedies and complaint filing deadlines vary by program or incident. 

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, 

American Sign Language, etc.) should contact the responsible Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or 

contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages 

other than English.

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at How to 

File a Program Discrimination Complaint and at any USDA office or write a letter addressed to USDA and provide in the letter all of the 

information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to 

USDA by: (1) mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, 

Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: program.intake@usda.gov. 

USDA is an equal opportunity provider, employer, and lender.
These instructions contain information and guidelines to help personnel of the 

U.S. Department of Agriculture’s (USDA) Specialty Crops Inspection (SCI) Division 

uniformly apply and interpret U.S. grade standards, other similar specifications, and 

special procedures.

These guidelines do not supersede the Federal Food, Drug, and Cosmetic Act or any 

other applicable Federal or State laws or regulations. Compliance with these statutes is 

mandatory. This publication supersedes any previously issued inspection instructions.

The citation of any data, criteria, techniques, illustrations, copyrighted material, or 

pictorial representations accredited to private authorship is used with the permission of 

the individual(s) or source(s) cited. Unless a specific reference is cited, the information 

in this manual has been derived from sources available to the public or from the 

technical knowledge of USDA personnel.

Except for official USDA inspection aids or devices and color guides (or standards) 

produced under license of the Department of Agriculture, the mention of any supplier, 

patented device, product, brand name, or equipment does not imply endorsement by 

USDA over any other similar or equally effective material.

Inspection instructions are issued by USDA after careful consideration of all data and 

views submitted. The Department welcomes suggestions for improving the inspection 

instructions in future revisions. 

Comments may be submitted to: 

Director, Specialty Crops Inspection Division

Specialty Crops Program

USDA, Agricultural Marketing Service

1400 Independence Avenue, SW, STOP 0240 

Washington, DC 20250

These instructions replace the Milled Peanuts Inspection Instructions dated June 2019, 

and include the EU 2019 Corrective Actions, and all other previous correspondence, 

memos, inspection instructions, or procedures.
THIS PAGE INTENTIONALLY LEFT BLANK
iii

INSPECTION INSTRUCTIONS FOR MILLED PEANUTS

SECTION PAGE NO. 

PART I – INSPECTION OF MILLED PEANUTS.......................................................................... 1

GENERAL.......................................................................................................................... 1

DESCRIPTION OF TYPES ..................................................................................................... 1

SPANISH TYPE ............................................................................................................. 1

RUNNER TYPE ............................................................................................................. 2

VIRGINIA TYPE ............................................................................................................. 2

VALENCIA TYPE............................................................................................................ 2

INSPECTION EQUIPMENT..................................................................................................... 2

SCALES ....................................................................................................................... 3

SAMPLING......................................................................................................................... 4

REPRESENTATIVE SAMPLING .............................................................................................. 4

COMPLETION OF SAMPLING ................................................................................................ 4

SHELLED PEANUTS IN BURLAP SACKS ................................................................................. 4

TRIER SAMPLING ............................................................................................................... 5

BULK LOADS, FIBERBOARD BINS, AND TOTE SACKS (SUPER SACKS) ..................................... 6

DRAWING SAMPLES FROM BULK CONTAINERS WITH A SHOP-VAC SAMPLER ........................... 8

SAMPLERS................................................................................................................... 8

BULK CONTAINER SAMPLING PATTERN........................................................................... 8

DRAWING SAMPLES WITH THE WHITAKER/SLATE SAMPLER ................................................... 9

IN-LINE AUTOMATIC SAMPLING DEVICES.............................................................................. 9

PAPER BAGS................................................................................................................... 10

IN-SHELL PEANUTS.......................................................................................................... 10

MAILING SAMPLES FOR INSPECTION.................................................................................. 10

MARKING SAMPLES.......................................................................................................... 10

MAILING SAMPLES ........................................................................................................... 11

MIXING AND DIVIDING SAMPLES........................................................................................ 11

HAND DIVIDER................................................................................................................. 11

CLEANED PEANUTS IN THE SHELL ..................................................................................... 12

WEIGHING THE ANALYSIS SAMPLE.................................................................................... 12

SAMPLE SIZE CHART – EDIBLE QUALITY SHELLED AND IN-SHELL PEANUTS.......................... 12

ANALYZING LARGER SAMPLES .......................................................................................... 13

CHECK SAMPLES............................................................................................................. 13

ANALYZING SHELLED PEANUT SAMPLES........................................................................... 13

SEED PEANUTS TREATED WITH FUNGICIDE ........................................................................ 13
iv

COUNT PER POUND OR OUNCE......................................................................................... 13

SAMPLE SIZE FOR COUNT PER POUND OR OUNCE ........................................................ 14

COUNTING SPLITS ...................................................................................................... 14

SCREENING..................................................................................................................... 14

MECHANICAL SHAKER................................................................................................. 14

HAND SCREENING ...................................................................................................... 15

SORTING THE SCREENINGS......................................................................................... 15

PEANUTS AND PORTIONS PASSING THROUGH THE SCREEN................................................. 16

WHOLE KERNELS IN SPLITS.............................................................................................. 16

SORTING KERNELS RIDING THE SCREEN............................................................................ 17

MECHANICAL SPLITTING ................................................................................................... 17

SCORING MINOR DEFECTS AND DAMAGE (BASED ON U.S. STANDARDS).............................. 17

WEIGHING DEFECTS ........................................................................................................ 18

DEFECTS OF SHELLED PEANUT SAMPLES ......................................................................... 18

ADHERING MATERIAL ....................................................................................................... 18

DIRT ............................................................................................................................... 18

FLESH DISCOLORATION.................................................................................................... 19

FLESH DISCOLORATION OCCURRING AS SPOTS OR PITS................................................ 19

SURFACE FLESH DISCOLORATION WITHOUT SPOTS OR PITS .......................................... 20

FLESH DISCOLORATION OCCURRING IN PEANUTS WITH HOLLOW CENTERS ..................... 20

SUMMARY FOR SCORING FLESH DISCOLORATION ......................................................... 21

FOREIGN MATERIAL (FM)................................................................................................. 22

MINIMUM SAMPLE SIZE FOR DETERMINING FM ............................................................. 22

DESCRIBING FM......................................................................................................... 22

FREEZING INJURY ............................................................................................................ 22

INSECTS, WORM CUTS, WEB, OR FRASS ........................................................................... 23

MOLD ............................................................................................................................. 23

SKIN DISCOLORATION ...................................................................................................... 23

SPROUTED PEANUTS ....................................................................................................... 23

UNSHELLED KERNELS ...................................................................................................... 24

RANCID OR DECAY........................................................................................................... 24

ANALYZING CLEANED IN-SHELL VIRGINIA TYPE SAMPLES.................................................. 24

COUNT PER POUND ......................................................................................................... 24

WEIGHING THE ANALYSIS SAMPLE .................................................................................... 25

SCREENING..................................................................................................................... 25

SORTING FOR SHELL DEFECTS ......................................................................................... 25

UNDERSIZE KERNELS FREE FROM SHELL DEFECTS ............................................................ 25

LOOSE SHELLED KERNELS (LSKS) ................................................................................... 26
v

DAMAGED LSKS ........................................................................................................ 26

FOREIGN MATERIAL (FM)................................................................................................. 26

WEIGHING EXTERNAL DEFECTS ........................................................................................ 26

EXAMINING KERNELS FOR DEFECTS WHEN MACHINE SHELLING........................................... 26

WEIGHING PEANUTS WITH DAMAGED KERNELS .................................................................. 27

SHELL DEFECTS FOR IN-SHELL VIRGINIA TYPE SAMPLES................................................... 27

ADHERING DIRT AFFECTING SHELLS ................................................................................. 27

CRACKED OR BROKEN SHELLS ......................................................................................... 27

DISCOLORED OR STAINED SHELLS .................................................................................... 27

POPS.............................................................................................................................. 28

PAPER ENDS................................................................................................................... 28

SHAPE OF SHELL ............................................................................................................. 28

KERNEL DEFECTS FOR IN-SHELL VIRGINIA TYPE SAMPLES ................................................ 28

DIRT ............................................................................................................................... 28

FLESH DISCOLORATION.................................................................................................... 29

SURFACE FLESH DISCOLORATION................................................................................ 29

PENETRATING FLESH DISCOLORATION ......................................................................... 29

FREEZING INJURY ............................................................................................................ 29

INSECTS, WORM CUTS, WEB, OR FRASS ........................................................................... 30

MOLD ............................................................................................................................. 30

SKIN DISCOLORATION ...................................................................................................... 30

SPROUTED PEANUTS ....................................................................................................... 30

RANCID OR DECAY........................................................................................................... 30

STEP-BY-STEP GRADING PROCEDURE FOR IN-SHELL PEANUTS.......................................... 31

CERTIFYING LOTS OF VALENCIA TYPE PEANUTS................................................................ 32

IN-SHELL VALENCIA ......................................................................................................... 32

SHELLED VALENCIA ......................................................................................................... 32

THE PEANUT CERTIFICATE: SC-184-9A / SC-184-9A-CG ............................................... 33

LOT IDENTIFICATION......................................................................................................... 33

MULTIPLE SCREEN SIZES ................................................................................................. 33

EXAMPLES OF GRADE AND REMARKS STATEMENTS............................................................ 34

LOTS HAVING GRADE DESIGNATION ON TAGS............................................................... 34

LOTS HAVING NO GRADE DESIGNATION ON TAGS OR NO TAGS ..................................... 37

CORRECTING OR VOIDING CERTIFICATES........................................................................... 38

VOIDING CERTIFICATES............................................................................................... 38

REINSPECTIONS .............................................................................................................. 38

CHANGE IN QUALITY ........................................................................................................ 38

CONFIRMATION (UPDATE) INSPECTIONS ............................................................................ 39
vi

APPEAL INSPECTIONS ...................................................................................................... 39

INTRASTATE SHIPMENTS ............................................................................................. 39

INTERSTATE SHIPMENTS ............................................................................................. 40

“REMARKS” STATEMENT EXAMPLES FOR APPEAL INSPECTIONS...................................... 40

FEES FOR APPEAL INSPECTIONS.................................................................................. 40

SECOND INSPECTION IN MARKET ...................................................................................... 40

REPORTING MOISTURE CONTENT ..................................................................................... 40

SHIPPING POINT .............................................................................................................. 41

MARKET OFFICES ............................................................................................................ 41

DELAY IN RUNNING MOISTURE TEST ................................................................................. 42

DISTRIBUTION OF THE 184-9A CERTIFICATE...................................................................... 42

PART II – POSITIVE LOT IDENTIFICATION OF MILLED PEANUTS ............................................ 45

GENERAL........................................................................................................................ 45

PURPOSE........................................................................................................................ 45

METHODS OF IDENTIFICATION ........................................................................................... 45

LOT NUMBERED TAGS FOR INDIVIDUAL BAGS ..................................................................... 45

SEALING LOADED CONVEYANCES...................................................................................... 45

MDD AND COMMODITY CREDIT CORPORATION (CCC) LOT IDENTIFICATION REQUIREMENTS 45

SACK LOTS ..................................................................................................................... 46

REUSE OF TAGS PROHIBITED............................................................................................ 46

BULK LOADS ................................................................................................................... 46

PLI OF PEANUTS IN BULK BINS ........................................................................................ 46

CONDITION OF BINS ......................................................................................................... 46

PLI................................................................................................................................. 47

APPLICATION OF NON-BAR CODED PLI TAGS .................................................................... 48

BULK BINS................................................................................................................. 48

TOTE OR SUPER SACKS.............................................................................................. 48

ILLUSTRATION 1: BULK BINS NON-BAR CODED PLI TAGS ............................................. 49

ILLUSTRATION 2: BULK BINS NON-BAR CODED PLI TAGS ............................................. 50

ILLUSTRATION 3: BULK BINS NON-BAR CODED PLI TAGS ............................................. 51

APPLICATION OF BAR CODED PLI TAGS ............................................................................ 52

TAGS......................................................................................................................... 52

ILLUSTRATION 4: BAR CODED TAG .............................................................................. 52

BAGS ........................................................................................................................ 52

BULK BINS................................................................................................................. 53

ILLUSTRATION 5: BULK BINS LOCATION OF SECOND TAG .............................................. 53

TOTE OR SUPER SACKS.............................................................................................. 53

ILLUSTRATION 6: TOTE OR SUPER SACK LOCATION OF TAGS......................................... 54
vii

BULK LOTS IN RAIL CARS............................................................................................ 54

ILLUSTRATION 7: CARDBOARD BINS LOCATION OF BAR CODED PLI ............................... 55

ILLUSTRATION 8: TOTE OR SUPER SACKS LOCATION OF BAR CODED PLI....................... 56

APPLYING PLI TAGS TO TRANSFERRED OUT-OF-STATE LOTS ............................................. 57

METHOD OF APPLYING TAGS............................................................................................ 57

STAMP............................................................................................................................ 57

INSPECTOR’S STAMP .................................................................................................. 57

MILL IDENTIFICATION NUMBER .......................................................................................... 57

LOT IDENTIFICATION NUMBER ........................................................................................... 58

TAGS.............................................................................................................................. 58

STAMPING ................................................................................................................. 58

TAGS STAMPED WHEN INSPECTED ............................................................................... 58

TAGS STAMPED PRIOR TO INSPECTION ........................................................................ 58

ASSIGNING LOT NUMBERS................................................................................................ 60

ATTACHING TAGS ............................................................................................................ 60

COLLECTING UNUSED PRE-STAMPED TAGS ...................................................................... 61

RECORDING INSPECTED LOTS .......................................................................................... 61

CLOSING OUT TAG INVENTORY......................................................................................... 62

RECORD SHEET............................................................................................................... 62

PART III – THE NOTICE OF SAMPLING – FORM SC-187 AND SC-187-CG............................ 65

GENERAL........................................................................................................................ 65

COMPLETING THE 187...................................................................................................... 65

CAR, TRUCK OR SHIP....................................................................................................... 65

APPLICANT...................................................................................................................... 65

RECEIVER ....................................................................................................................... 65

SHIPPER ......................................................................................................................... 66

TYPE .............................................................................................................................. 66

CONTRACT NUMBER ........................................................................................................ 66

WEIGHT OF LOT AND NUMBER OF SACKS........................................................................... 66

PLI MARKS ..................................................................................................................... 66

QUALITY DESIGNATED BY SHIPPER ................................................................................... 66

INSPECTION CERTIFICATE NUMBER ................................................................................... 67

SAMPLE DESIGNATIONS ................................................................................................... 67

SAMPLE SENT TO ............................................................................................................ 67

SAMPLE WEIGHT ............................................................................................................. 68

FEES AND POSTAGE......................................................................................................... 68

DISTRIBUTION OF COPIES................................................................................................. 68

VOIDED 187S .................................................................................................................. 68
viii

EXAMPLE OF COMPUTER GENERATED 187 ........................................................................ 70

PART IV – REQUIREMENTS OF THE USDA MARKET DEVELOPMENT DIVISION, USDA FARM 

SERVICE AGENCY, AND GRADES OF THE AMERICAN PEANUT SHELLERS ASSOCIATION ........ 71

GENERAL........................................................................................................................ 71

MDD MINIMUM QUALITY STANDARDS FOR HUMAN CONSUMPTION...................................... 71

AFLATOXIN SAMPLES AND SAMPLE DESIGNATIONS ............................................................. 71

SAMPLING AND GRINDING PEANUTS FOR LABORATORY ANALYSIS........................................ 71

DISPOSITION OF SAMPLES ................................................................................................ 72

PREPARING AFLATOXIN SAMPLES ..................................................................................... 73

CLEANING THE SUBSAMPLING MILL ................................................................................... 73

USE OF THE VERTICAL CUTTER MILL ................................................................................. 74

AFLATOXIN SAMPLE DESIGNATIONS ................................................................................. 74

CATEGORY I.................................................................................................................... 74

MDD SAMPLING PLAN FOR SHELLED PEANUT SUBSAMPLES.......................................... 74

AFLATOXIN SAMPLING PLAN ........................................................................................ 77

COSTS............................................................................................................................ 78

AFLATOXIN APPEALS....................................................................................................... 79

FSA PEANUT PURCHASE PROGRAM ................................................................................. 79

APPEAL AFLATOXIN SAMPLING PLAN ................................................................................. 79

APPEAL AFLATOXIN SAMPLING OF SHELLED PEANUTS IN CARTONS, BULK BINS, OR 

TOTE/SUPER SACKS WITH THE DICKENS PNEUMATIC AFLATOXIN SAMPLER .......................... 80

MECHANICAL DEVICE FOR SAMPLING BULK LOTS ............................................................... 82

DRAWING APPEAL AFLATOXIN SAMPLES ON SHELLED PEANUTS IN TERMINAL MARKETS........ 82

AFLATOXIN SAMPLING REQUIREMENTS AND PROCEDURE FOR CLEANED IN-SHELL PEANUTS

................................................................................................................................. 83

AFLATOXIN SAMPLES FROM IMPORTED PEANUTS .......................................................... 84

AFLATOXIN SAMPLES FROM PEANUT MEAL ................................................................... 84

UNOFFICIAL AFLATOXIN SAMPLES .................................................................................... 85

CATEGORY II................................................................................................................... 85

SUMMARY OF UNOFFICIAL AFLATOXIN SAMPLES................................................................. 85

CODE MEANING AND DESIGNATIONS ............................................................................ 85

MOISTURE....................................................................................................................... 87

SIZE ............................................................................................................................... 87

REPORTING SIZE........................................................................................................ 87

MDD MINIMUM QUALITY STANDARDS – PEANUTS FOR HUMAN CONSUMPTION .................... 88

SUMMARY OF TOLERANCES .............................................................................................. 90

U.S. STANDARDS ....................................................................................................... 90

MDD HUMAN CONSUMPTION CATEGORIES................................................................... 91

MAXIMUM LOT SIZE FOR EDIBLE SHIPMENTS ..................................................................... 92
ix

MDD REGULATIONS FOR “NON-EDIBLE QUALITY” SHELLED PEANUTS ............................... 92

LOTS PACKED FOR, BUT FAILING HUMAN CONSUMPTION REQUIREMENTS............................. 92

ROASTED BLANCHED LOTS.............................................................................................. 93

“SHELLER OIL STOCK” QUALITY...................................................................................... 93

SAMPLE SIZE................................................................................................................... 94

INSPECTION PROCEDURE ................................................................................................. 94

SHELLED PEANUTS ORIGINATING FROM SEG. I, II OR III, FARMERS’ STOCK ......................... 94

AFLATOXIN SAMPLES FOR NON-EDIBLE QUALITY PEANUTS ............................................... 94

MDD REQUIREMENTS FOR CLEANED IN-SHELL PEANUTS FOR HUMAN CONSUMPTION ......... 95

STORAGE LOTS............................................................................................................... 95

INSPECTING PEANUTS FOR THE FSA PEANUT PURCHASE PROGRAM................................... 95

PART V – GUIDELINES FOR LOTS PROCESSED BY USDA APPROVED BLANCHERS AND 

REMILLERS ..................................................................................................................... 99

OVERVIEW ...................................................................................................................... 99

I. PEANUTS FAILING HUMAN CONSUMPTION REQUIREMENTS ACCOUNT QUALITY, SIZE, AND/OR 

AFLATOXIN (TO BE BLANCHED).......................................................................................... 99

II. PEANUTS FAILING HUMAN CONSUMPTION REQUIREMENTS ACCOUNT QUALITY, SIZE, AND/OR 

AFLATOXIN (TO BE REMILLED) ......................................................................................... 100

BLANCHING OUT-OF-GRADE LOTS – MEMORANDUM OF UNDERSTANDING .......................... 101

CUSTOM REMILLING – MEMORANDUM OF UNDERSTANDING............................................... 106

FURTHER PROCESSING OF LOTS PREVIOUSLY CERTIFIED AS MEETING HUMAN CONSUMPTION 

REQUIREMENTS............................................................................................................. 111

LOTS PREVIOUSLY CERTIFIED AS MEETING 7 CFR PART 996 HUMAN CONSUMPTION 

REQUIREMENTS AND PROCESSED AT THE HANDLER’S OWN PROCESSING FACILITY ....... 111

LOTS PREVIOUSLY CERTIFIED AS MEETING 7 CFR PART 996 HUMAN CONSUMPTION 

REQUIREMENTS AND FURTHER PROCESSED AT A CUSTOM BLANCHER/REMILLER.......... 111

APPENDIX I – OFFICIAL TRADING RULES OF THE AMERICAN PEANUT SHELLERS ASSOCIATION 

(APSA)........................................................................................................................ 113

AMERICAN PEANUT SHELLERS ASSOCIATION SHELLED, IN-SHELL TRADING RULES, REVISED 

MAY 19, 2021............................................................................................................... 113

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR U.S. STANDARDS FOR 

SHELLED PEANUTS ........................................................................................................ 121

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR APSA GRADES FOR 

SHELLED SPANISH PEANUTS .......................................................................................... 122

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR U.S. GRADES FOR SHELLED 

SPANISH PEANUTS......................................................................................................... 123

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR APSA GRADES FOR RUNNER 

PEANUTS ...................................................................................................................... 124

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR APSA GRADES FOR 

SHELLED VIRGINIA PEANUTS .......................................................................................... 125
x

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR U.S. GRADES FOR SHELLED 

VIRGINIA PEANUTS......................................................................................................... 126

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR APSA GRADES FOR INSHELL VIRGINIA PEANUTS .............................................................................................. 127

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR MDD GRADES FOR HUMAN 

CONSUMPTION (7 CFR PART 996).................................................................................. 128

SUMMARY OF SHELLER OIL STOCK REQUIREMENTS ......................................................... 129

APPENDIX II – LIST OF OFFICIAL USDA PEANUT VISUAL AIDS.......................................... 131

APPENDIX III – CERTIFICATE EXAMPLES.......................................................................... 135

EXAMPLE 1: MEETS 7 CFR PART 996 FOR BLANCHED PEANUTS. ..................................... 135

EXAMPLE 2: RUNNER TYPE PEANUTS. MEETS 7 CFR PART 996 FOR HUMAN CONSUMPTION.

.................................................................................................................................... 136

EXAMPLE 3: U.S. NO. 1 RUNNER. MEETS APSA “MEDIUM RUNNER.” .............................. 137

EXAMPLE 4: BLANCHED U.S. RUNNER SPLITS. MEETS APSA “RUNNER SPLITS.”.............. 138

EXAMPLE 5: SC-184-12-CG TRANSFER CLEARANCE CERTIFICATE .................................. 139

EXAMPLE 6: SC-187-CG NOTICE OF SAMPLING. NO. 2 AFLATOXIN SAMPLE..................... 140

EXAMPLE 7: MEETS 7 CFR PART 996 FOR NON-EDIBLE QUALITY..................................... 141

EXAMPLE 8: SC-184-12CG TRANSFER CLEARANCE CERTIFICATE ON A NON-EDIBLE QUALITY 

LOT. ............................................................................................................................. 142

APPENDIX IV – 7 CFR PART 996, EFFECTIVE FEBRUARY 1, 2018 .................................... 143
Inspection Instructions for Milled Peanuts (April 2023) 

1 

PART I – INSPECTION OF MILLED PEANUTS

GENERAL

The Milled peanuts Inspection Instructions (shelled stock and cleaned Virginia type in 

the shell) are specifically developed and designed by the Specialty Crops Inspection 

(SCI) Division to assist officially licensed inspectors in the interpretation and application 

of the following standards: 

• U.S. Standards for Grades of Shelled Runner Type Peanuts, 7 CFR §51.2710;

• U.S. Standards for Grades of Shelled Spanish Type Peanuts, 7 CFR §51.2730;

• U.S. Standards for Grades of Shelled Virginia Type Peanuts, 7 CFR §51.2750; 

and

• U.S. Standards for Grades of Cleaned Virginia Type Peanuts in the Shell, 7 CFR 

§51.1235.

Part I of these instructions addresses the basic guidelines for sampling and grading 

shelled peanuts and cleaned peanuts in the shell. Any portion of these instructions 

beginning with §51 and followed with bold print is material copied directly from the U.S. 

grade standards for the above mentioned types of peanuts. 

NOTE: The inspection of peanuts differs from that of most fresh fruits and vegetables 

because peanut samples are usually drawn in one place and analyzed in another.

DESCRIPTION OF TYPES

Always show the type of peanuts inspected on the inspection certificate. Do this by

either quoting the wording on the PLI tags or by declaration of the applicant. For 

example, “Applicant States Runner Type,” etc. However, never certify the type or 

variety on the certificate.

SPANISH TYPE

Kernels of older varieties are generally small, while newer varieties are mostly medium 

size. All are inclined to be rounder than other types of peanuts. The skin is smooth and 

has a delicate texture. Kernel color ranges from pale pinkish buff when fresh to light 

brown during storage.
Inspection Instructions for Milled Peanuts (April 2023) 

2 

RUNNER TYPE

Kernels are small to medium and mostly somewhat elongated, many having blunt, 

flattened ends. The skin is usually a little thicker and less smooth than Spanish type 

peanuts. The color ranges from pinkish-brown when fresh to reddish brown during 

storage.

VIRGINIA TYPE

Pods are large, plump, and usually contain two kernels. Kernels are medium to large 

and generally elongated. Most kernels have a distinct taper at each end and a 

tendency to be pointed at the sprout end. The skin has about the same texture as 

Runners. Color ranges from light pinkish-tan when fresh to reddish-brown during 

storage.

VALENCIA TYPE

Pods are cylindrical, slender, and contain 2 to 4 kernels. Kernels are small to medium, 

with blocky, flattened ends. Color ranges from bright red when fresh to darker red 

during storage. Valencias are grown almost exclusively in New Mexico for cleaned inshell trade.

INSPECTION EQUIPMENT

Ensure that all equipment has been officially approved for use by the SCI Division and 

that it is functioning properly. If there is any doubt as to approval or accuracy, consult 

the Federal Program Manager or State Supervisor.

The following is a list of items used in sampling and grading milled peanuts:

• Trier (13 to 15 inches in length) for shelled peanuts in sacks. 

• Dickens Pneumatic Grade sampler. 

• Dickens Pneumatic Aflatoxin sampler. 

• Whitaker/Slate Sampler. 

• Dickens Aflatoxin Subsampling Mill. 

• Vertical Cutter Mill. 

• Farmers’ Stock Sheller. 

• Electronic Kernel Counter. 
Inspection Instructions for Milled Peanuts (April 2023) 

3 

• Buckets or sacks to hold samples. 

• Scales sensitive enough to accurately weigh and display weights in graduations 

of 0.1 gram and which have a capacity of 5,000 grams with overload protection 

for up to 15,000 grams (see following section on Scales for detailed 

specifications). 

• Hand divider and Dickens Mechanical Rotating divider. 

• Screens of various size openings (depending on the type of peanuts graded).

• Mechanical screen shaker for shelled kernels. 

• Electronic Moisture Meter. 

• Kernel Splitter. 

• Computer and applicable USDA-SCI approved software. 

SCALES

Accurate scales are required for determining percentages of defects. Any digital scale 

meeting the following specifications may be used for milled peanut inspections:

1. Equipped to interface with a computer or have provisions for installation of an 

interface.

2. Equipped to interface with an on-line printer or have provisions for installation of 

an interface.

3. Instant “taring” capacity which automatically adjusts to zero balance. Tare 

ranges of 0 to 1500 grams. Less than 1.5 seconds required to tare.

4. Display readings in graduations of 0.1 gram.

5. Capable of weighing unknown weights up to 5,000 grams with over-load 

protection for loads up to 15,000 grams.

6. Contain a calibration mode by which it can accurately standardize to zero 

balance with official test weights. Always carry out calibration in the same 

manner regardless of the weight unit selected.

7. Ensure digital display panel is at least 8 square inches and digits are at least 1/2 

inch in height. Must contain a stability detector that signals the final reading.
Inspection Instructions for Milled Peanuts (April 2023) 

4 

8. Designed to function properly in non-laboratory conditions during operation.

• Temperatures 0° to 40° C.

• Altitude 0 - 4000 m.

• Relative humidity 15 to 85%. 

• Vibration 0.3 m/second. 

9. Other technical requirements:

• Stabilization time less than 3.0 seconds.

• Sensitivity drift 8 x 10 - 5 C. 

• Display sequence less than 0.5 seconds. 

• Power supply 115v/230v with a tolerance of +10%. 

• Frequency of 50 Hz to 60 Hz. 

• Weighing to be reproducible within 0.05 grams. 

SAMPLING

REPRESENTATIVE SAMPLING

Obtaining representative samples is essential. Accurate certification is possible only if 

the samples examined are truly representative of the entire lot or accessible portion. 

Sample all portions of a lot or load even if it is difficult to reach all layers or parts. If you 

cannot access the entire lot for sampling, restrict the inspection and certificate to the 

accessible portion. Ensure Federal-State Inspection Service (FSIS) employees who are 

involved in the sampling process are trained and knowledgeable in sampling 

requirements.

COMPLETION OF SAMPLING

When sampling is begun on any lot, complete it within 30 days. If not, the original 

portion of the sample must be discarded and the lot resampled.

SHELLED PEANUTS IN BURLAP SACKS

Sample all lots of shelled peanuts in burlap sacks by means of a trier unless the lot can 

be sampled continuously by an approved, in-plant automatic sampler while sacks are 
Inspection Instructions for Milled Peanuts (April 2023) 

5 

being filled. A “trier” is a 13- to 15-inch-long hollow probe that tapers to a sharp point. 

The end opposite the point is open, allowing for sampled peanuts to be poured from the 

probe.

TRIER SAMPLING

Sample at least 25% of the sacks (one out of four) throughout the lot, doubling this rate 

for appeals.

Sampling must be “representative.” For example, divide proportionately between the 

top, middle, and bottom portions of different sacks.

Raise or twist the sacks in such a way as to relieve any tautness and to provide for 

some slack in the burlap near the area to be probed. This relieves some of the 

pressure on the peanuts, thereby reducing the likelihood of any kernels splitting. This is 

especially important when sampling larger peanuts, such as Extra Large Virginias.

Insert the probe into the sack in an approximately horizontal position with the open side 

up.

Force the trier in until only the last few inches remain exposed. If it appears sacks are 

under pressure in the stack where it is not possible to obtain any slack in the burlap, 

discard the first half-handful of peanuts that comes through the trier. This should 

eliminate kernels that may have been split only by the pressure of the trier.

Take approximately the same amount of peanuts from each sack sampled to ensure the 

sampling rate is uniform for all sacks. Small lots may require more than one full trier per 

sack. In such cases, all sacks sampled must be sampled in the same uniform and 

representative manner.

Visually observe the peanuts sampled in your hand as they come out of the trier before 

putting them into the sample. By doing this, it is possible to notice if the peanuts in the 

sack being sampled are of a decidedly different quality than those in the rest of the 

sacks. If such sacks are found and can be identified by different markings, any sample 

from them must be kept and graded separately from the others. Also, if a lot has some 

containers having identical markings, but are of a distinctly different quality (e.g., splits 

mixed in a lot of U.S. No. 1s or No. 1s with splits), notify the applicant that the 

containers with the distinctly different quality peanuts cannot be sampled and combined 

into a composite sample with the other containers. Therefore, the shipper must remove 

all sacks from the lot that have peanuts of a distinctly different quality.

After sampling, close the hole left by insertion of the trier. A few strokes across the 

opening with the point of the trier will bring the burlap threads back into place sufficiently 

enough to fill the opening. Do this gently to avoid breaking additional threads and thus 

enlarging the size of the opening.
Inspection Instructions for Milled Peanuts (April 2023) 

6 

BULK LOADS, FIBERBOARD BINS, AND TOTE SACKS (SUPER SACKS) 

When and where possible, sample peanuts using an approved in-line automatic 

sampler in the plant while the containers are being filled. Encourage each shelling 

plant/mill to install automatic samplers. However, “cup sampling” (by hand) is permitted 

on a temporary or emergency basis, but only if first authorized by the State Supervisor, 

the Federal Program Manager, or Federal-State Inspection Management (FSIM). 

Except for lots exceeding 120,000 pounds sampled prior to packaging, the sampling 

rate must be proportionately the same as that required for bagged lots. Under certain 

circumstances, bulk bins or cartons may be sampled with either the Dickens Pneumatic 

Grade Sampler or the Whitaker/Slate Sampler.

Sample size and sampling procedures for bulk containers are the same as previously 

outlined. A pneumatic sampler may be used to sample lots of oil stock in semi-trailers 

that have flat surface bottoms. Those with flat, multi-level surface bottoms may also be 

sampled provided the sampling tube will reach the bottom of each level. Semi-trailers 

having two or more hopper compartments tapering to a flat surface bottom may also be 

sampled provided they exhibit the FSIS Seal of Approval (see following page for Official 

Oilstock Probe Patterns for 2 and 3 Hopper Bottoms). Smaller vehicles, such as farm 

dryers, trailers, trucks, or grain wagons that have tapered or hopper compartments must 

not be sampled with the pneumatic sampler. Trailers must display the “FSIS Seal of 

Approval” or an “F&V cable” seal prior to sampling (see Farmers’ Stock Inspection 

Instructions). Seals can be purchased through the SCI Division Supply Depot.
Inspection Instructions for Milled Peanuts (April 2023)

7
Inspection Instructions for Milled Peanuts (April 2023) 

8 

DRAWING SAMPLES FROM BULK CONTAINERS WITH A SHOP-VAC SAMPLER

SAMPLERS

There are three different types of shop-vac samplers available for sampling milled 

peanuts from bulk containers:

1. Aflatoxin sampler (1 inch diameter tube).

2. Dickens Pneumatic Grade Sampler (1-3/8 inch diameter tube with special 

padding). 

3. Whitaker/Slate Sampler. 

The Whitaker/Slate Sampler has a flexible hose extending from the top of the shop-vac 

attached to the sampling tube. It can be operated by setting the unit on the floor, 

reaching over the container, and inserting the tube into the peanuts.

Both the aflatoxin sampler and the Dickens Pneumatic Grade Sampler have a sampling 

tube attached to the bottom of the shop-vac. The aflatoxin sampler can only be used for 

drawing aflatoxin samples. It may not be used for grade samples. The Dickens 

Pneumatic Grade Sampler may be used for aflatoxin-only samples, update inspections, 

oil stock lots, and seed peanut lots. It may not be used for any other purpose without 

prior approval from FSIM. Anytime the Dickens Pneumatic Grade Sampler is used to 

sample a lot where any grade factor is determined, make the following statement under 

“Remarks” on the certificate: “Above lot sampled at applicant’s request with a Dickens 

Pneumatic Grade Sampler, which may bias grade factor accuracy.” 

Further, all seed peanut lots must have the following statement made on the certificate 

under “Remarks,” “Applicant states certified/registered seed.” 

NOTE: If a lot originally failed human consumption requirements account of quality 

and/or size, any subsequent inspection must be considered an “appeal” inspection and 

not an “update.” Appeals for quality and/or size may not be drawn with the Dickens 

Pneumatic Grade Sampler.

BULK CONTAINER SAMPLING PATTERN

Bulk containers must be sampled according to the following probe pattern. If more than 

9 containers are sampled in a lot, repeat the probe pattern until sampling is completed.
Inspection Instructions for Milled Peanuts (April 2023) 

9 

TOP VIEW OF CONTAINER - FORKLIFT TO THIS SIDE

NOTE: For appeal aflatoxin sampling, each container in the lot must be probed twice. 

DRAWING SAMPLES WITH THE WHITAKER/SLATE SAMPLER

The Whitaker/Slate shop-vac sampler is approved for all certifications including grade 

and size under the USDA Market Development Division (MDD) Domestic and Imported 

Peanut Regulations. The disclaimer statement made under “Remarks” when sampling 

with the Dickens Pneumatic Grade Sampler is not necessary when using this sampling 

device. This sampler may be used on bulk bins and mini bulk bags using the probe 

pattern above.

The Whitaker/Slate shop-vac sampler may also be used on totes or super sacks 

provided that the entire contents are accessible. Do this by either moving the throat of 

the sampler around or by making cuts in the sack, provided conditions are safe for 

sampling. If the person sampling cannot safely reach over the totes or super sacks, 

then some kind of safe platform must be provided. The Dickens Pneumatic Grade 

Sampler is not approved for use on totes or super sacks because the bulk of its weight 

is attached to the top of the sampling tube, making its use very dangerous for these 

types of containers.

NOTE: The Whitaker/Slate sampler is not meant to replace the in-line automatic 

sampler. Its use is only intended for updates and in facilities, such as seed mills and 

blanchers, where in-line automatic samplers are not installed because there is not a 

regular demand or need for one. Any facility where samples are drawn on a regular 

basis, are strongly encouraged to install an in-line automatic sampling device.

IN-LINE AUTOMATIC SAMPLING DEVICES

In-line automatic sampling devices must be officially approved by USDA/FSIS prior to 

being used to draw official samples. All sampling devices must bear the FSIS Seal of 
Inspection Instructions for Milled Peanuts (April 2023) 

10

Approval or F&V cable seal, which also carries an assigned accountability number. The 

seal is usually affixed in close proximity to the sampling device. Validate samplers 

annually as to the number of incremental samples and total amount of sample. Apply 

FV-648-1 stickers to each device to certify validation occurred. If the sampling device 

does not bear the seal of approval or is not marked to indicate official approval, 

promptly notify the immediate supervisor. Obtain sampler approval (following testing) 

through FSIM, which bases the decision to approve or reject a sampler on testing 

conducted by the Agricultural Research Service (ARS) office located in Dawson, 

Georgia. 

Set the opening of the automatic sampler at not less than 1-1/2 inches to accurately 

determine the foreign material. Adjust in-line sampling devices to a minimum of 100 

incremental samples (5 per tote in a 20-tote lot) per lot.

Draw samples in a manner that prevents adulteration and maintains custody. This 

means that samples are collected in a manner that ensures FSIS employees have sole 

access to samples. Thoroughly clean samplers after each lot. Ensure FSIS employees 

periodically monitor the sampling process.

PAPER BAGS

Multi-wall paper bags must not be sampled with a trier unless some method is available 

to ensure that bags will not leak or tear. Only sample paper bags by trier if a strong 

durable adhesive tape is available for sealing the holes left by the trier. Paper bags 

may be sampled by hand from the tops of each as described in the following paragraph. 

Another method for sampling paper bags is to use the short or long trier in the tops of 

bags while holding the bag at an angle approaching 90 degrees (practically horizontal or 

on its side).

IN-SHELL PEANUTS

There is no alternate device similar to the trier for sampling cleaned in-shell peanuts. 

Sampling must be done by hand or by an approved automatic in-line sampler. Samples 

must be drawn from at least one-tenth (or more) of the bags/sacks in the lot, making 

sure to double the sampling rate for appeals. For hand-sampling, cut the stitches or 

loosen the sewing string to open the top of the bag/sack. Slip an open hand and 

sample from the top, middle, and bottom to obtain a representative sample. To reach 

the bottom, you may need to dump out the bag/sack. Repeat as necessary. 

MAILING SAMPLES FOR INSPECTION

MARKING SAMPLES

Record and submit all pertinent information about the lot with the sample. This is done 

by including a copy of the SC-187/SC-187-CG, Notice of Sampling (187) in each 
Inspection Instructions for Milled Peanuts (April 2023) 

11

sample container. Include on this form the brand, name, weight, and grade as marked 

on each of the containers being sampled, as well as the mill and lot number listed on 

the positive lot identification (PLI) tag. See Completing the 187 section. 

MAILING SAMPLES

In some instances, such as in market offices, an inspection may be requested from an 

office not equipped with the equipment necessary for grading milled peanut samples. In 

such cases, inform the applicant that circumstances make it necessary to mail a sample 

to a properly equipped office that can weigh and screen the peanuts, and that this will 

probably delay the completion of the inspection for a day or two. If the applicant agrees 

to this procedure, draw the sample in the manner previously described.

Samples must be placed in a double paper bag or cloth sack, packed in a sturdy 

container with ample protective padding, and mailed to the nearest inspection office 

equipped for milled peanut analyses. Complete a 187 and mail to the office that will 

analyze the sample. Further, a copy of the 187 must also be enclosed in the mailed 

sample. If one is not available, complete a letter or memorandum containing the name 

and address of the applicant and shipper and the time and place of sampling. Enclose 

a copy of this letter in the sample with all other copies mailed to the analyzing office.

The office receiving the sample will analyze it, issue the certificate, and report the 

results to the applicant via the inspection office that drew the sample. The certificate 

must quote the various identifying marks and count reported by the sampling inspector. 

Under “Remarks,” the date the sample was drawn, the identification of the conveyance 

(rail car/truck number or warehouse name), and the name of the USDA inspector who 

drew the sample (or the inspection office they are from) must also be shown.

MIXING AND DIVIDING SAMPLES

Thoroughly mix and divide the sample drawn for grade and aflatoxin analysis by means 

of a Dickens Mechanical Rotating Divider. This device divides the sample into equal 

representative aflatoxin, grade, and check samples.

HAND DIVIDER

Pour the entire grade analysis sample into the divider hopper and level it off. Pull back 

the sliding gate rapidly to divide the sample into two approximately equal parts. Run the 

sample through the divider 2 or 3 times to ensure a thorough mixing. If the portion in 

one of the divider “drawers” is close in weight to the amount needed for sample 

analysis, no further cut is necessary. However, if each drawer contains about twice as 

many peanuts as needed for the analysis sample, the contents of one of the drawers 

must be emptied into the hopper and divided a second time. In rare instances, it may 

be necessary to cut down the sample a third time to arrive at the quantity needed for 

analysis. Retain a portion of the remainder of the sample equal to twice the size of the 

grade analysis sample as a check sample (see Check Sample section). 
Inspection Instructions for Milled Peanuts (April 2023) 

12

CLEANED PEANUTS IN THE SHELL

These peanuts cannot be readily mixed and divided in the sample divider used for 

shelled peanuts because of their large size. Instead, thoroughly mix cleaned peanuts in 

the shell by pouring them gently from one large container to another, four or five times. 

Then empty them onto a flat surface, “sweeping” the portion of the lot to be weighed for 

sample analysis into a scale pan. This ensures inclusion of a fair amount of any smaller 

material in the sample. Also, if available, a Farmers’ Stock Peanuts sample divider may 

be used.

WEIGHING THE ANALYSIS SAMPLE

After the mixed sample has been reduced to the approximate size required for analysis, 

the exact amount (in grams) required for analysis must be weighed. Sample size is 

based on the overall size of the lot (see following table).

NOTE: The minimum sample sizes listed in the following table pertain only to amounts 

required for grade analysis. Draw additional peanuts if aflatoxin samples or other types 

of “quality control” samples are requested by the applicant.

SAMPLE SIZE CHART – EDIBLE QUALITY SHELLED AND IN-SHELL PEANUTS

Size of Load or 

Lot (Pounds)

Minimum Number 

Containers 

Sampled

Minimum Sample 

Drawn (Grams)

Minimum Sample 

Analyzed 

(Grams) 1, 2

Up to 57,500 3 4,000 1,000

57,501 to 100,000 3 8,000 2,000

100,001 to 150,000 3 12,000 3,000

150,001 to 200,000 3 16,000 4,000

1. The minimum sample size for grade analysis for all lots is 1,000 grams. However, for 

lots of U.S. Splits, “Virginia No. 2s” containing 70% or more splits, or blanched peanut 

lots that weigh over 57,500 pounds, the minimum sample analyzed may be reduced by 

one-half the amount shown in this column.

2. Double the amount shown in this column (or “approximately double” for lots reported 

on computer-generated certificates) for the minimum sample size analyzed for foreign 

material for U.S. No. 1 or better grades. For grades lower than U.S. No. 1, the sample 

size may be doubled at an applicant’s request and/or supervisors’ discretion.

3. Shelled peanut lots must be sampled at a 25% minimum sampling rate (1 out of every 

four containers), while in-shell lots must be sampled at a 10% minimum sampling rate (1 

out of every 10 containers). For lots larger than 120,000 pounds sampled with an in-line 
Inspection Instructions for Milled Peanuts (April 2023) 

13

automatic sampling device prior to packaging, the minimum sampling rate is at least 

one sample cut per every 800 pounds of peanuts.

ANALYZING LARGER SAMPLES

For appeals, double the analysis portions listed in the Sample Size Chart on the 

previous page. In instances where the analysis sample is adulterated, spilled, or 

otherwise unusable, cut another like-sized sample from the check sample; a larger 

sample is not required.

CHECK SAMPLES

When the sample is mixed and divided to obtain an analysis portion, save another 

representative portion of the original sample, and hold as a “check sample.” The size of 

the check sample must be twice that analyzed for grade, e.g., 2,000 grams if 1,000 

grams was used for analysis.

Retain the check sample along with the foreign material, damage, and minor defects 

from the analysis sample for a period of 15 days. During that time, it is available for 

review if the inspection results are questioned. The container holding the sample must 

be marked with sufficient identification as well as the date. Store in such a way that it is 

protected as much as possible from rodents, insects, moisture, or heat. In addition, 

keep check samples under constant supervision or locked in a secure place. Discard at 

the end of the 15-day holding period. Where storage space is limited, supervisors may 

permit a shorter holding time. For lots not completed within 30 days, dispose of the 

sample, and resample the lot.

ANALYZING SHELLED PEANUT SAMPLES

SEED PEANUTS TREATED WITH FUNGICIDE

Deny requests for sampling and/or inspection of seed peanuts that have been treated 

with a fungicide. The toxicity of fungicides presents a potential health hazard and both 

sampling and grading equipment could be contaminated by them. Further, size, 

moisture, and defects cannot be accurately determined on peanuts treated with 

fungicides.

COUNT PER POUND OR OUNCE

Only the U.S. Virginia Type Peanut Standards have requirements for count per pound. 

However, even though count is not a requirement of the U.S. Runner or U.S. Spanish 

Grades, shellers frequently request that count per pound or ounce be determined.

Count determination includes all kernels in the sample before it is screened. Ensure 

counter is checked frequently for accuracy. Where available, an electronic eye counter 
Inspection Instructions for Milled Peanuts (April 2023) 

14

may be used for official grading work. Count per pound or ounce is specified to the 

nearest whole kernel, e.g., report 512.5 as 513 whole kernels per pound or 32 kernels 

per ounce.

SAMPLE SIZE FOR COUNT PER POUND OR OUNCE

Count a minimum sample size of 2 pounds from the total sample and base the count 

per pound or ounce on the number of kernels in the 2-pound sample. After counting, 

return the 2-pound sample to the original sample. If count is determined by an 

electronic counter to conserve time, use kernels from the check sample or the additional 

portion of the sample analyzed for foreign material.

COUNTING SPLITS

A split (half kernel) is counted as one-half, while two splits count as a whole kernel.

SCREENING

Samples are screened to determine the amount of kernels smaller than the minimum 

size specified for a given grade. When available, use a mechanical screen shaker. If 

not, hand screen the sample. Ensure to use the correct screen having the size opening 

prescribed for the type and grade of kernels. The sample used for screening must

include the same kernels used in determining count per pound.

MECHANICAL SHAKER

The shaker is working properly when peanut kernels spread uniformly over the screen 

surface and do not noticeably “bounce.” If not, it is possible that the peanuts will not be 

completely/accurately screened. Corrections of the screen action may be made by 

adjusting the length of the thrust developed by the eccentric. This is done by either 

changing the tension on the brace (in the center of the screen) that affects the up and 

down vibration or by changing the tilt of the entire shaker.

When using a screen with slot openings, always place the screen in the shaker head 

with the slots running lengthwise to the shaker. In other words, the long dimension of 

the slots must run in the same direction as the thrust of the shaker as indicated by the 

rod connecting the eccentric bearing with the shaker head.

Place only enough of the sample on the screen to partially cover it with a single layer of 

kernels. The best action is attained when the screen is about 3/4 to 4/5 covered. The 

size of the screen frame used on the shaker will govern the amount of peanuts that the 

machine can accommodate at one time. When using the 13 x 13-inch screen for a 

1,000-gram sample, screen the sample in three separate portions to avoid overloading.

When using the slot screens specified for grades for whole peanuts, run the shaker for 

20 seconds. When using the round-hole screens specified for Whole Kernels, Splits 
Inspection Instructions for Milled Peanuts (April 2023) 

15

and Twos, increase the shaking time to 40 seconds. The longer shaking time is 

required because of the difficulty of getting the elongated, small, whole kernels to pass 

through the round openings. The key to accurate screen sizing of shelled peanuts is to 

ensure that each peanut in the sample has an “opportunity” to pass through the screen 

openings. Again, do not to overload the screen.

HAND SCREENING

Offices where peanut inspections are rarely made usually are not equipped with a 

mechanical shaker. In such instances, do the screening by hand. Take care to use the 

screen with the proper size opening. Screen the sample in several portions so that the 

screen is not more than 2/3 to 3/4 covered with a single layer of kernels at any time.

The method of shaking the screen is important. Move the screen with a short, slow 

motion from side to side and from front to rear, tilting it slightly to aid the movement of 

kernels. Pause the shaking motion every few seconds to permit small kernels to fall 

through the openings. Continue the gentle shaking and stopping routine until no more 

kernels fall through.

If a large number of small kernels become wedged in the slotted screen, a slight upand-down motion of the screen will help to dislodge some of them. Do not bump the 

screen against a hard surface and do not force the kernels lodged in the screen through 

in any other manner. Kernels which remain lodged in the screen when the process is 

over are kept with those that rode the screen. 

In using the round-hole screen for Whole Kernels, Splits or Twos, it may be necessary 

to give the screen a lot of up-and-down motion in addition to horizontal shaking in order 

to induce the long slender kernels to pass through. Considerably more time is required 

to screen these types, especially Virginia Twos.

SORTING THE SCREENINGS

For shelled peanuts of any type or grade, sort all kernels passing through the screen 

into various categories. These separations will vary somewhat depending on the grade 

being worked. The various grade factors and how each is handled is described in the 

following paragraphs.

Splits

The standards define a “split” as the separated half of a peanut kernel. Sound splits are 

separated out when grading No. 1 Runner, Spanish, or Virginia types, or Medium or 

Extra Large grades of Virginia type. Splits are generally found in the screenings. Place 

any found riding the screen with the sound splits. If defective kernels are found in splits, 

separate them out and score as minor defects or damage (see Scoring Minor Defects 

and Damage section). 
Inspection Instructions for Milled Peanuts (April 2023) 

16

Broken Kernels

All kernels with more than 1/2, but less than 3/4 of the original kernel present are 

classed as “broken.” Small pieces consisting of less than 1/2 of a kernel are also 

classed as broken. Kernels having 1/4 or less of their original volume broken off are 

classed as whole kernels.

In grading No. 1 Runner, Spanish, or Virginia types, or Medium or Extra Large Virginias, 

sound broken kernels are placed with the sound splits. Any defective broken kernels 

are placed with the other defective kernels (see Scoring Minor Defects and Damage

section). 

Small Whole Kernels

Examine for defects small whole kernels that pass through the screen out of No. 1, 

Medium or Extra Large grades. Those which are visibly sound must be split to 

ascertain that they are in fact sound. After all defective kernels have been removed and 

placed with the other defects, those remaining are considered as the sound whole 

kernels (SWK) that pass through the screen.

PEANUTS AND PORTIONS PASSING THROUGH THE SCREEN

For grading U.S. Virginia Splits and U.S. No. 2 Virginia grades, all kernels that pass 

through the prescribed round-hole screen and are sound are counted against the 

tolerances for fall-through, regardless of whether they are whole kernels, small splits, or 

small pieces.

WHOLE KERNELS IN SPLITS

The U.S. Splits grade for Runner and Spanish peanuts requires that the kernels be 

practically all splits with only small tolerances for whole kernels. Whether the whole 

kernels ride or pass through the screen, they count against the SWK tolerance. Both 

the Runner and Spanish Splits grades provide a tolerance of 4.00% for SWK without 

regard to their size.

NOTE: Defective whole kernels are scored with the minor defects or damage and are 

not included with the sound whole kernels.

The Virginia Splits grade does not provide a tolerance for whole kernels, but does limit 

their number indirectly by requiring that at least 90.0%, by weight, must be splits. In 

determining the percentage of splits, all splits, including defective splits, and all fallthrough splits are totaled together. After the percentage of splits has been calculated, 

any defective splits and/or fall-through splits are placed in their proper categories, i.e., 

with other defective and other fall-through kernels respectively. 
Inspection Instructions for Milled Peanuts (April 2023) 

17

SORTING KERNELS RIDING THE SCREEN

Examine all kernels riding the screen individually to determine those that are defective 

or those that are of another varietal type.

Kernels which are unmistakably of another type than the majority in the lot being 

graded, and which stand out in “conspicuous contrast” with the lot, are scored as “other 

types.” Such a contrast may be found when Runner kernels are mixed with Spanish. 

Exercise caution for mistaking minor variations of size, shape, or color of kernels as 

other varieties/types. Do not score kernels as other types unless approved to do so by 

your immediate supervisor.

When grading whole peanuts, pick out all externally visible defects before the whole 

kernels are run through the splitter. When a splitter is not used, analyze the sample,

and pick out kernels that are externally defective before starting to cut the kernels to 

look for “concealed” defects.

MECHANICAL SPLITTING

Remove all externally defective kernels and borderline defects from the whole kernels 

before the lot is run through the kernel splitter. If not done, some of the external defects 

will become obliterated in the splitter, making them impossible to detect and score. 

Ensure the splitter is thoroughly cleaned out before and after each sample.

To ensure the greatest splitting efficiency, adjust the splitter speed control knob to as 

slow a speed as possible that will split a majority of the kernels. High speeds tend to 

excessively shatter or crush the kernels, making detection of small pieces of defective 

kernels difficult and likely to be overlooked. Some kernels do not split, possibly 

because of the position in which they strike the metal wall of the splitter. Pour these 

kernels back into the splitter and run through again at the same speed. If a few kernels 

still remain, unsplit after the second time through, increase the speed of the splitter, and 

run the remaining unsplit kernels through the splitter a third time. Any kernels that 

remain unsplit, usually small tough kernels, cut open manually using a sharp knife.

Examine both sides of each half of every split kernel to determine whether they are 

defective. Some splitters have a belt mechanism that automatically turns each split 

over, displaying both sides. For those that do not, turn each kernel over manually to

see both sides of the split. Pick out all minor defects and damaged kernels. 

SCORING MINOR DEFECTS AND DAMAGE (BASED ON U.S. STANDARDS) 

Certain kinds of defects occurring in peanuts are considered less objectionable than 

others. These lesser defects are designated as “minor defects” while defective kernels 

of a more objectionable nature are designated as “damage.” If a peanut is affected by a 

damage factor as well as a minor defect factor, it is scored as damage. Special 
Inspection Instructions for Milled Peanuts (April 2023) 

18

tolerances are provided for minor defects and damage in each of the No. 1 grades and 

in the Virginia Medium and Extra Large grades.

For all grades, the tolerance for damage may not be increased by any “unused” portion 

of the minor defects tolerance. For example, the grade you are working has a 2.00% 

tolerance for total damage and minor defects, including up to 1.50% for damage. This 

means that in addition to 1.50% damaged kernels, the sample may also contain up to 

0.50% minor defects and still meet grade requirements (1.50% + 0.50% = 2.00%). If 

the sample contained only 0.20% minor defects, the remaining 0.30% that was not used 

for minor defects cannot be “added” to the 1.50% tolerance for damaged kernels, for a 

total of 1.80% damage (in this instance, damage is “capped” at 1.50%).

However, if the sample contained only 0.20% damage, the remaining 1.30% can be 

added to the minor defects up to the total 2.00% tolerance (or whatever the tolerance is 

for the grade you are working) for damage and minor defects combined. In this case, if 

only 0.20% damage was found, the sample could contain up to 1.80% minor defects 

and still meet the 2.00% total tolerance for damage and minor defects.

WEIGHING DEFECTS

Carefully weigh all defective kernels and other classes of kernels sorted from the 

sample to the nearest one-tenth gram and calculate percentages to the nearest 

hundredth (second decimal point). A high degree of precision is required in peanut 

grading because of the relatively small tolerances involved. 

DEFECTS OF SHELLED PEANUT SAMPLES

ADHERING MATERIAL

Scoring Guide

Minor Defect: When the surface of the kernel (split, broken, or whole) is heavily 

smeared, thickly flecked, or coated with any material other than dirt so that its 

appearance is seriously affected. If it is predominantly dirt, score it as such.

Never score as Damage.

Visual Aids: PN-CP-5. 

DIRT

Scoring Guide

Minor defect: When a kernel (split, broken, or whole) is distinctly covered with dirt 

which materially affects its appearance. 
Inspection Instructions for Milled Peanuts (April 2023) 

19

Damage: When the surface of the kernel is heavily smeared, thickly flecked, or coated 

with dirt so that its appearance is seriously affected. 

Visual Aids: PN-CP-2. 

FLESH DISCOLORATION

Peanuts exhibiting flesh discoloration sufficient to materially or seriously affect the 

appearance are scored as either minor defects or damage respectively. In some cases, 

the discoloration may actually be early stages of rancidity or decay, but due to the 

minute area affected, this is often difficult to determine. Flesh discoloration falls into the

following three classes:

FLESH DISCOLORATION OCCURRING AS SPOTS OR PITS

Spots or pits sometime occur in peanuts from certain localities or in certain years and 

are more frequently found in Spanish peanuts than other types. Remove the kernel’s 

skin to determine the extent of the injury. Most affected kernels will show very small, 

slightly sunken areas; puckered skins; or slightly off-colored areas of skin.

Chalky White Spots or Pits

Scoring Guide

Minor defect: When the aggregate area of all spots exceeds 1/2 of the outer surface 

area of the kernel or split. 

Damage: When exceeding 3/4 of the outer surface area.

Pale or Light Yellow Spots or Pits

Scoring Guide

Minor defect: When the aggregate area of all spots exceeds the area of a circle 3/16 

inch in diameter on a whole kernel or 1/8 inch on a split. 

Damage: When the aggregate area exceeds 1/4 the outer area or when any spot or pit 

penetrates a distance equal to 1/2 the greatest thickness of the kernel or split.

Dark Yellow or Brown Spots or Pits

Scoring Guide

Minor defect: When the aggregate area of all spots or pits exceeds the area of a circle 

1/8 inch in diameter on a whole kernel, 3/32 inch on a split, or when any spot penetrates 

a distance equal to 1/4 of the greatest thickness of the kernel or split.
Inspection Instructions for Milled Peanuts (April 2023) 

20

Damage: When the aggregate area exceeds 3/16 inch on a whole kernel, 1/8 inch on a 

split, or when any spot or pit penetrates a distance equal to 1/2 the greatest thickness of 

the kernel or split.

Dark Brown or Black Spots or Pits

Scoring Guide

Minor defect: When the aggregate area of all spots or pits exceeds the area of a circle 

3/32 inch in diameter on a whole kernel, 1/16 inch on a split, or when any spot 

penetrates a distance equal to 1/4 of the greatest thickness of the kernel or split.

Damage: When the aggregate area exceeds 1/8 inch on a whole kernel, 3/32 inch on a 

split, or when any spot or pit penetrates a distance equal to 1/2 of the greatest thickness 

of the kernel or split.

SURFACE FLESH DISCOLORATION WITHOUT SPOTS OR PITS

Scoring Guide

Minor defect: When kernels or splits are darker than a light yellow color or some

darker, more objectionable color, such as purple or green, on enough of the surface to 

materially affect the kernels’ appearance. Do not confuse this yellow color with a 

separate, inner layer of the skin that is sometimes exposed and exhibits a yellowishbrown color.

Damage: When the appearance of the kernel or split is materially affected and the 

discoloration penetrates more than 1/16 inch into the flesh or a distance equal to 1/2 the 

thickness of the kernel or split. 

Visual Aids: PN-CP-1, PNT-CP-9, PNT-CP-10, and PN-CC-1 

FLESH DISCOLORATION OCCURRING IN PEANUTS WITH HOLLOW CENTERS

Do not consider the width, depth, and size of the hollow space in the center of the 

kernel as an important factor even though the cavity may be fairly large. Flesh color is 

the deciding factor. If the flesh is white or light yellow, pass up the kernel.

Scoring Guide

Minor defect: When the flesh has a definite mustard yellow color. Score light to dark 

brown color over a large area when conspicuous (readily noticeable). When the 

discoloration is present over a very small area, break the half-kernel crosswise and 

examine the inner flesh. If the discoloration penetrates into the flesh, score as a minor 

defect.
Inspection Instructions for Milled Peanuts (April 2023) 

21

Damage: When the discoloration is dark brown or a darker, more objectionable, color 

and penetrates more than 1/16 inch into the flesh or a distance equal to 1/2 the 

thickness of the kernel or split.

SUMMARY FOR SCORING FLESH DISCOLORATION

Flesh Discoloration Occurring as Spots or Pits

Type of 

Spotting or 

Pitting

Type of 

Defect

Aggregate Area 

for Whole 

Kernels

Aggregate Area 

for Splits

Depth (Whole 

Kernels or Splits)

Chalky 

White Spots 

or Pits

Minor Defect Over 1/2 surface Over 1/2 surface N/A

Damage Over 3/4 surface Over 3/4 surface N/A

Pale or Light 

Yellow Spots 

or Pits

Minor Defect Over 3/16” dia. Over 1/8” dia. N/A

Damage Over 1/4 surface Over 1/4 surface 

Any spot penetrates 

“distance” equal to 

1/2 of greatest 

thickness. 

Dark Yellow 

or Brown 

Spots or Pits

Minor Defect Over 1/8” dia. Over 3/32” dia. 1/4 “distance”

Damage Over 3/16” dia. Over 1/8” dia. 1/2 “distance” 

Dark Brown 

or Black 

Spots or Pits

Minor Defect Over 3/32” dia. Over 1/16” dia. 1/4 “distance”

Damage Over 1/8” dia. Over 3/32” dia. 1/2 “distance” 

Surface Flesh Discoloration without Spots or Pits

Minor Defect: Kernels/portions that are darker than a light yellow color or some darker, 

more objectionable color, such as purple or green, on enough of the surface to materially 

affect appearance, but does not penetrate more than 1/16” into the flesh (see Visual Aids 

PN-CP-1, PNT-CP-9, PNT-CP-10, and PN-CC-1).

Damage: Same as for Minor Defects above, except discoloration must penetrate more than 

1/16” into the flesh OR a distance equal to 1/2 the thickness of the kernel or split.

Flesh Discoloration in Peanuts with Hollow Centers

Minor Defect: 

1. Ignore width, depth, and size of hollow space.

2. Color of affected flesh must be mustard yellow, light brown, or a darker color over an 

area large enough to be READILY NOTICEABLE.

3. For borderline cases, a half kernel must be broken crosswise and examined. If 

discoloration penetrates into the flesh, score as a minor defect.

Damage: When discoloration is dark brown or a darker, more objectionable color AND 

penetrates more than 1/16”or more into the flesh OR a distance equal to 1/2 the thickness of 

the kernel or split.
Inspection Instructions for Milled Peanuts (April 2023) 

22

FOREIGN MATERIAL (FM)

Foreign material is defined as anything other than peanut kernels. Materials most 

commonly found are stones, empty shells, sticks, pieces of vine (hay), lumps of dirt,

seeds, and raisins or twisters. Raisins or twisters are names applied to very immature 

peanut shells that are small, shriveled, tough, and contain extremely small undeveloped 

kernels (see PN-CP-8 to identify raisins or twisters for both milled and Farmers’ Stock 

peanuts).

Because of the very small amount of FM present in shelled peanuts, the majority of 

samples analyzed are found to contain no FM, although it is almost a certainty that 

every shipment of peanuts contains at least small traces.

MINIMUM SAMPLE SIZE FOR DETERMINING FM

Since FM tolerances are so small, in order to maintain accuracy in lots graded U.S. No. 

1 or better, the minimum size sample for determining FM is double the amount required 

for grade analysis (or “approximately double” for grades reported on computergenerated certificates). When doubling the FM analysis portion, ensure the certificate 

shows that FM content was based on a 2,000-gram (or larger) analysis.

DESCRIBING FM

The kinds of FM and the number of pieces found in the sample may be reported on the 

certificate at applicant’s request. If unusual FM, such as glass, metal, etc., is found, 

always note it on the inspection notesheet.

FREEZING INJURY

Kernels affected by freezing or having characteristics of freezing injury usually have an 

abnormal appearance of the skin. It is slightly faded and usually dull in color but is very 

different from the ordinary stain-type discoloration. The peanuts’ veins are frequently 

brown and conspicuous. The flesh will have a glassy or an abnormal dull appearance 

and may also show a noticeable yellow, brownish, or grayish discoloration. Before 

scoring, review visual aid PEN-CP-6 and peel or split affected kernels to determine the 

extent of injury. 

Scoring Guide

Damage: When the flesh of the half kernel has an indication of freeze damage or if the 

flesh has a definite rancid flavor.

NOTE: Kernels having a glassy appearance with no discoloration are scored as 

damage only if hard, brittle and/or have a distinctly objectionable taste.

Visual Aids: PEN-CP-6. 
Inspection Instructions for Milled Peanuts (April 2023) 

23

INSECTS, WORM CUTS, WEB, OR FRASS

Scoring Guide

Damage: When showing any definite effects of insects, including an insect in the 

kernel, frass or web attached to the kernel, worm holes, or worm “cuts.” 

NOTE: Do not score kernels whose surface shows only slight injury that could be either 

a worm cut or a mechanical abrasion, but cannot be positively identified as a worm cut.

MOLD

Scoring Guide

Damage: When present, score any amount. However, if there is any doubt that mold is 

present, do not score the kernel as damaged by mold. It may be scored for some other 

factor if it is otherwise defective.

SKIN DISCOLORATION

In all grades and types of shelled peanuts, kernels and splits with discolored skins are 

classed as minor defects. 

Scoring Guide

Minor Defect: When more than 1/4 of the skin on the kernel or split appears dark as or

darker than the brown, gray, blue, or purple colors shown on PN-1 (see illustration 

below). Lighter shades of skin discoloration are not scorable, regardless of the amount 

of the surface affected.

Whole Kernel Split

Never score as damage.

Visual Aids: Color comparator PN-1.

SPROUTED PEANUTS

To determine sprout length, measure from the tip end of the kernel where the sprout 

protrudes.
Inspection Instructions for Milled Peanuts (April 2023) 

24

Scoring Guide

Minor defect: When the sprout is more than 1/8 inch long. 

Damage: When any part of the sprout is affected by noticeable rancidity, mold, or 

decay, score the peanut as damage and report as rancid, mold, or decay. 

UNSHELLED KERNELS

The term “unshelled kernels” is applied to developed peanuts (not raisins or twisters) 

that have all or portions of the shell attached. The shell of an unshelled kernel is not 

considered foreign material. Therefore, the peanut and shell are weighed together with 

the damaged kernels when determining the percentage of damaged and unshelled 

kernels.

RANCID OR DECAY

In most cases, rancid and decayed kernels are easily detected by their appearance. 

However, kernels may only have a slightly translucent appearance in early stages of 

rancidity. This condition is frequently found following freezing injury (see Freezing Injury

section). Taste a small portion of questionable kernels from time to time to guard 

against scoring peanuts with slightly abnormal flesh color and only a slightly stale flavor. 

Only score peanuts with a decidedly rancid flavor as rancid.

Scoring Guide

Damage: When present, score any amount.

Visual Aids: PNT-CP-11. 

ANALYZING CLEANED IN-SHELL VIRGINIA TYPE SAMPLES

COUNT PER POUND

To determine count per pound, take at least 4 half-pound “sub” samples from the 

thoroughly mixed main sample. A half-pound is equal to 226.8 grams. Count the 

number of pods in each half-pound sample and base the count per pound on the 

average of these counts. A peanut with a hull only long enough to contain one kernel is 

counted as one-half peanut. Exclude any loose shelled kernels (LSKs) or FM found in 

the sample when weighing the half-pound portions, but include when the sample is 

analyzed. 
Inspection Instructions for Milled Peanuts (April 2023) 

25

WEIGHING THE ANALYSIS SAMPLE

As previously mentioned, the amount of sample drawn and analyzed is based on the 

overall size of the lot. For the minimum size sample for analysis (see Sample Size 

Chart in the Weighing the Analysis Sample section). Also, weigh a check sample twice

the size of the grade analysis sample, set aside in a properly marked container, and 

hold in storage for a period of 15 days (see Check Samples section). 

SCREENING

Because in-shell peanuts are difficult to size, they require a great deal of shaking to 

allow small peanuts the opportunity to fall through the sizing screen. Whether the 

sample analyzed is intended for a Fancy or Jumbo grade, ensure that the correct 

screen is used.

NOTE: Do not completely cover the screen with peanuts as it is shaken.

Move the screen gently from side to side and from front to back. Frequent short, upand-down shaking motions are needed to dislodge peanuts that tend to become 

wedged in the screen slots. Shake the screen until no more peanuts fall through. 

When the screen shaking has been completed, test by hand any peanuts that remain 

lodged in the slots to determine whether they will pass through the screen slots when 

turned in another position.

NOTE: Do not force peanuts through the screen openings.

SORTING FOR SHELL DEFECTS

Peanuts that rode the screen and those that passed through the screen must be sorted 

to pick out those with grade defects affecting the shell. Pick up each peanut individually 

and turn over so that its entire surface may be seen. Any defective peanuts that rode 

the screen are combined and weighed with those defective peanuts that passed through 

the screen to determine total shell defects.

The standards require that the peanuts be “Virginia type,” which includes many different 

varieties. Do not mix Virginia type peanuts with Spanish, Runner, or Valencia types. 

The large screen openings usually prevent the smaller types from being mixed in a 

milled product, so this factor is rarely encountered.

UNDERSIZE KERNELS FREE FROM SHELL DEFECTS

After peanuts with external or shell defects (in addition to loose shelled peanuts and 

FM) have been picked out from the screenings, those remaining that have undamaged 

shells must be weighed and reported as “Peanuts with undamaged shells passing 

through [enter the prescribed screen for the grade being determined].” 
Inspection Instructions for Milled Peanuts (April 2023) 

26

LOOSE SHELLED KERNELS (LSKS) 

Any shelled kernels found in a sample of in-shell peanuts are classed as grade defects. 

They must be examined to determine whether any are damaged (see Analyzing Shelled 

Peanut Samples section). If not damaged, the kernels are combined with the peanuts 

with defective shells, and both are weighed together. 

DAMAGED LSKS

Pick out any damaged LSKs present and combine/weigh with peanuts having damaged 

kernels.

FOREIGN MATERIAL (FM)

Pick out and weigh separately any dirt or other FM found in the sample. The weight of 

the FM is then added to that of the peanuts scored for having defective shells. Although 

it is applied against the general tolerance for external defects, there is also a restrictive 

tolerance of 1/2 of 1% for FM. Also include broken, empty shells with the FM.

WEIGHING EXTERNAL DEFECTS

When screening and sorting has been completed, weigh and record weights of all 

sorted items. This includes:

1. Undersize peanuts with shells that are not grade defects.

2. Foreign Material (Report zero if none present.)

3. Peanuts with defective shells and any undamaged LSKs. Those with defective 

shells that passed through the prescribed screen are weighed with those that 

rode the screen. Set aside damaged LSKs and later combine with peanuts 

having damaged kernels.

EXAMINING KERNELS FOR DEFECTS WHEN MACHINE SHELLING

When machine shelling peanuts, it is practically impossible to keep the kernels and their 

corresponding shells together. Therefore, each time a damaged kernel is found among 

the shelled kernels, take one half of a peanut shell from the shells and place with the 

damaged kernel for scoring. This is done because most peanuts contain two kernels, 

thus making the ratio one half of a shell to one kernel.

To conserve time on bulk loads, weigh an additional sample of the exact same weight 

as the original to determine and report the kernel grade factors. This allows one sample 

to be shelled for the kernel grade factors while the original sample is used to determine 

external grade factors and size.
Inspection Instructions for Milled Peanuts (April 2023) 

27

WEIGHING PEANUTS WITH DAMAGED KERNELS

Internally defective materials are only weighed once. This includes all kernels scored 

as damage, their shells, and any undamaged kernels that might have been contained in 

the same shell. In the case of machine shelled lots, shells must be placed with the 

damaged kernels at the ratio of 1/2 shell to 1 kernel. Also include any damaged LSKs 

found in the sample, but not sound or undamaged LSKs.

SHELL DEFECTS FOR IN-SHELL VIRGINIA TYPE SAMPLES

ADHERING DIRT AFFECTING SHELLS

Scoring Guide

Damage: When readily apparent, caked, and its thickness is level with or above the 

natural veining of the shell.

CRACKED OR BROKEN SHELLS

Present methods used for handling peanuts cause many to have cracked or broken 

shells, a very common defect. 

Scoring Guide

Damage: When cracks or broken areas cause conspicuous openings or when 

seriously weakening a large portion of the shell, especially if the kernel inside is easily 

visible without applying pressure to force the edges of the crack apart. 

Visual Aids: PN-Photo No. 7. 

DISCOLORED OR STAINED SHELLS

A great majority of the shells in some lots show some light discoloration contrasting to 

the ideal buff color. The discoloration is generally due to either soil stain or to surface 

mildew that developed during the curing period. 

Scoring Guide

Damage: When at least 50% of the shell surface, in the aggregate, is affected by 

discoloration of a medium gray, medium brown, or a darker, more objectionable color. 

A peanut with less than 50% of its surface affected cannot be scored as damage, even 

though the discoloration may be extremely dark and conspicuous.

Visual Aids: PEN-CP-4. 
Inspection Instructions for Milled Peanuts (April 2023) 

28

NOTE: Application of pale grayish talc powder to the shells to lighten the color and 

improve the appearance of in-shell lots was a very common practice in the past, and still 

may be done at the buyer’s request. When grading lots that have been “powdered” in 

such a manner, do not remove the talc to determine the amount of shell discoloration. 

Instead, judge each peanut based on its appearance with the talc adhering to its 

surface.

POPS

Pops are peanut shells containing kernels that are so underdeveloped and/or badly 

shriveled as to be of practically no food value. In most cases, pops are removed from 

the heavier peanuts by suction during the milling process. Pops may be detected by the 

very light weight of a peanut when picked up individually. However, it is necessary to 

open the shell to verify that it is a pop. If a peanut contains one or more fairly well 

developed kernels, do not classify as a pop.

PAPER ENDS

This term refers to peanuts that failed to develop a normal shell at the end opposite the 

stem. In some lots, many peanuts have shells that are comparatively thin and weak at 

the tip end.

Scoring Guide

Damage: Score only when this condition is serious, i.e., when approximately 1/3 or 

more of the length of the peanut has a much undeveloped appearance and the shell is

very thin and weak.

SHAPE OF SHELL

This is not a grade factor for in-shell peanuts and therefore is ignored, no matter how 

unusual a peanut’s shape may be.

KERNEL DEFECTS FOR IN-SHELL VIRGINIA TYPE SAMPLES

The standards for cleaned in-shell peanuts list six different kinds of defects as damage. 

Except for skin discoloration, all defects previously mentioned for shelled peanuts are 

scored the same way for the In-shell Virginia Jumbo and Fancy grades.

DIRT

Scoring Guide

Minor defect: When a kernel (split, broken, or whole) is distinctly covered with dirt 

which materially affects its appearance. 
Inspection Instructions for Milled Peanuts (April 2023) 

29

Damage: When the surface of the kernel is heavily smeared, thickly flecked, or coated 

with dirt so that its appearance is seriously affected. 

Visual Aids: PN-CP-2. 

FLESH DISCOLORATION

SURFACE FLESH DISCOLORATION

Scoring Guide

Damage: When having a yellow or some darker, more objectionable color, such as 

purple or green, on enough of the surface to materially affect its appearance (definition 

of “damage” is the same as “minor damage” in Defects for Shelled Peanut Samples).

Visual Aids: PN-CP-1 (minor defects only).

PENETRATING FLESH DISCOLORATION

Scoring Guide

Damage: When having a dark yellow or darker color penetrating the flesh, or yellow 

pitting extending deep into the kernel. As a guide, use Summary for Scoring Flesh 

Discoloration in Defects for Shelled Peanut Samples. 

FREEZING INJURY

Kernels affected by freezing or having characteristics of freezing injury usually have an 

abnormal appearance of the skin. It is slightly faded and usually dull in color, but is very 

different from the ordinary stain-type discoloration. The peanuts’ veins are frequently 

brown and conspicuous. The flesh will have a glassy or an abnormal dull appearance 

and may also show a noticeable yellow, brownish, or grayish discoloration. Review 

visual aid PEN-CP-6 and peel or split affected kernels to determine the extent of injury 

before scoring.

Scoring Guide

Damage: When the flesh of the half kernel has an indication of freeze damage or if the 

flesh has a definite rancid flavor.

NOTE: Kernels having a glassy appearance with no discoloration are scored as 

damage only if hard, brittle and/or have a distinctly objectionable taste.

Visual Aids: PEN-CP-6. 
Inspection Instructions for Milled Peanuts (April 2023) 

30

INSECTS, WORM CUTS, WEB, OR FRASS

Scoring Guide

Damage: When showing any definite effects of insects, including an insect in the 

kernel, frass or web attached to the kernel, worm holes, or worm “cuts.” 

NOTE: Do not score kernels whose surface shows only slight injury that could be either 

a worm cut or a mechanical abrasion, but cannot be positively identified as a worm cut.

MOLD

Scoring Guide

Damage: When present, score any amount. However, if there is any doubt that mold is 

present, do not score the kernel as damaged by mold. It may be scored for some other 

factor if it is otherwise defective.

Scoring Guide 

Damage: When present, score any amount.

SKIN DISCOLORATION

Discoloration of the peanut skin is not a grade factor in the standards for cleaned inshell peanuts. Do not score peanuts having only discolored skins.

SPROUTED PEANUTS

To determine sprout length, measure from the tip end of the kernel where the sprout 

protrudes.

Scoring Guide

Minor defect: When the sprout is more than 1/8 inch long. 

Damage: When any part of the sprout is affected by noticeable rancidity, mold, or 

decay, score the peanut as damage and report as rancid, mold, or decay. 

RANCID OR DECAY

In most cases, rancid and decayed kernels are easily detected by their appearance. 

However, kernels may only have a slightly translucent appearance in early stages of 

rancidity. This condition is frequently found following freezing injury (see Freezing Injury

section). Taste a small portion of questionable kernels from time to time to guard 
Inspection Instructions for Milled Peanuts (April 2023) 

31

against scoring peanuts with slightly abnormal flesh color and only a slightly stale flavor. 

Only score peanuts with a decidedly rancid flavor as rancid.

Scoring Guide

Damage: When present, score any amount.

STEP-BY-STEP GRADING PROCEDURE FOR IN-SHELL PEANUTS

To grade a sample of cleaned in-shell peanuts, use the following steps:

1. Thoroughly mix sample.

2. Set aside and mark check sample.

3. Weigh analysis sample.

4. Determine count per pound.

5. Screen analysis sample.

6. Sort out peanuts with defective shells from those passing through screen.

7. Weigh and record weight of peanuts with undamaged shells passing screen. 

8. Sort out LSKs and separate into damaged and sound portions.

9. Sort out peanuts with defective shells from those riding screen.

10. Weigh and record weight of peanuts with defective shells plus undamaged LSKs.

11. Sort out, weigh, and record weight of FM.

12. Open all peanut shells for kernel examination.

13. Determine and record kernel moisture content.

14. (Optional) Weigh and record weight of split and broken kernels.

15. (Optional) Weigh and record total weight of kernels.

16. Pick out visibly damaged kernels and set aside. Ensure split and broken kernels 

have been set aside at this point if steps 14 and 15 were followed.
Inspection Instructions for Milled Peanuts (April 2023) 

32

17. Split all remaining whole kernels and examine for damage.

18. Weigh and record weight of peanuts with damaged kernels plus damaged LSKs.

NOTE: Make a statement in the “Remarks” section of the certificate when showing the 

results of optional Steps 14 and 15, adding “determined and reported at applicant’s 

request.” 

CERTIFYING LOTS OF VALENCIA TYPE PEANUTS

IN-SHELL VALENCIA

There are no established U.S. grade standards for grades of cleaned in-shell Valencia 

type peanuts. However, AMS-MDD has established minimum specification for 

moisture, FM, and damaged kernels for Valencia type peanuts shipped for human 

consumption.

For all lots of cleaned in-shell Valencia peanuts, base damaged kernels on the U.S. 

Standards for Grades of Cleaned Virginia Type Peanuts in the Shell. For determining 

shell discoloration, use USDA Visual Aid PN-2. For cracked/broken and other shell 

defects, unless otherwise specified by the applicant, apply USDA Visual Aid PN-Photo 

No. 7, “Guide for Scoring Virginia Type Peanuts in the Shell.” 

Make the following statements under “Remarks” on the peanut certificate for in-shell 

Valencia peanut lots:

“Cracked or broken shells, foreign material, and peanuts with damaged kernels based 

on U.S. Standards for Cleaned Virginia Type Peanuts in the Shell.” 

“Cracked or broken shells and discolored shells reported at applicant’s request.” 

SHELLED VALENCIA

There are also no established U.S. standards for grades of shelled Valencia type 

peanuts. However, these peanuts can be certified based on the U.S. Standards for 

Grades of Shelled Spanish Type Peanuts at an applicant’s request.

Make the following statement under “Grade” on the peanut certificate for shelled 

Valencia peanut lots:

“No Established U.S. Grade Standards.” 

In addition, make the following statement under “Remarks” on the peanut certificate for 

shelled Valencia peanut lots:
Inspection Instructions for Milled Peanuts (April 2023) 

33

“Meets requirements of U.S. No. 1 grade based on U.S. Standards for Shelled Spanish 

Type Peanuts at applicant’s request.” 

THE PEANUT CERTIFICATE: SC-184-9A / SC-184-9A-CG

Certificates used for peanuts may either be handwritten (SC-184-9A) or computer 

generated (SC-184-9A-CG). For the sake of simplicity, both certificates will hereafter be 

referred to simply as the “184-9A.” This certificate differs from those used for most 

other commodities. The main differences include:

1. The hour/date sampling began and hour/date the analysis was completed is 

reported. In some cases, when the sheller is milling special sizes, it may take 

several days to accumulate enough containers for the desired lot size. The 

sampling time is the date and hour sampling first began. 

2. Temperatures are not reported.

3. Grade factors are reported in tabular form.

4. File copies of these certificates must be retained for a minimum of three years.

LOT IDENTIFICATION

A full description of the tags attached to a lot of peanuts must be made part of the 

certificate covering the grade of given lot. This is a vital link in the positive lot 

identification (PLI) procedure. The description must quote the FSIS stamp as well as 

the mill number, lot number and crop year. Also, report the color of the tags.

MULTIPLE SCREEN SIZES

When reporting a percentage of whole kernels riding a specified screen size, report the 

total percentage riding that screen size, including any kernels riding a larger screen 

size. For example, an American Peanut Shellers Association (APSA) “Medium Runner” 

lot contains 10% riding the 21/64 x 3/4-inch screen and 1% riding the 22/64 x 3/4-inch

screen, and the applicant requests this information be reported on the certificate. 

Report the lot as shown below. 

SIZE 2.00% SOUND WHOLE KERNELS PASSING THROUGH 18/64 X 3/4 INCH

SLOT SCREEN.

______________ SOUND WHOLE KERNELS PASSING THROUGH ______ INCH 

_____________ SCREEN.

11% XXXXX WHOLE KERNELS RIDING 21/64 X 3/4 INCH SLOT SCREEN 

INCLUDING 1% XXXXX WHOLE KERNELS RIDING 22/64 X 3/4 INCH SLOT

SCREEN.
Inspection Instructions for Milled Peanuts (April 2023) 

34

1% XXXXXXXXXXXXXXXXXX SOUND PORTIONS OF KERNELS PASSING 

THROUGH 17/64 INCH ROUND SCREEN.

________% PEANUTS WITH UNDAMAGED SHELLS PASSING THROUGH 

______ INCH ___________ SCREEN.

COUNT AVERAGES ________________ PER POUND / OUNCE.

If the applicant requests the percentage riding the larger screen not be included in the 

total percentage, add a statement under “Size” on the certificate as shown below.

SIZE _______ SOUND WHOLE KERNELS PASSING THROUGH ______ INCH 

_____________ SCREEN.

___________ % SOUND WHOLE KERNELS PASSING THROUGH _______ INCH 

___________ SCREEN.

1% XXXXX WHOLE KERNELS RIDING 22/64 X 3/4 INCH SLOT SCREEN.

10% XXXXX WHOLE KERNELS RIDING 21/64 x 3/4 INCH SLOT SCREEN AND 

PASSING THROUGH 22/64 X 3/4 INCH SLOT SCREEN.

_______ % SOUND WHOLE KERNELS AND PORTIONS OF KERNELS PASSING 

THROUGH ________ INCH ____________ SCREEN.

COUNT AVERAGES _________________ PER POUND / OUNCE. 

EXAMPLES OF GRADE AND REMARKS STATEMENTS

LOTS HAVING GRADE DESIGNATION ON TAGS

For all lots of peanuts offered for inspection that have U.S., MDD, or APSA-defined 

grades printed on the PLI tags or containers, apply the following:

The grade statement must show if the lot meets or fails to meet the designated grade 

and the “Remarks” statement must show compliance or non-compliance with the MDD

minimum quality and handling standards for domestic and imported peanuts (7 CFR

Part 996). If the lot fails to grade and/or fails MDD requirements, ensure “See Remarks” 

always follows the grade statement. Further, anytime a lot fails to meet either the 

tagged grade or the requirements of the MDD regulations, make a statement giving the 

reason the lot failed. If additional screen sizes are shown that are not requirements of 

the grade determined, or the MDD minimum quality requirements, show an asterisk (*) 

to the left of that screen size and note under “Remarks” that these sizes were reported 

at applicant’s request. However, an asterisk is not needed if there is a letter on file with 

FSIS and/or FSIM from the applicant requesting this information be reported on all 

certificates. 
Inspection Instructions for Milled Peanuts (April 2023)

35

Each certificate must indicate whether or not the lot meets MDD human consumption or 

non-edible quality requirements as referenced in the Regulations. If the certificate 

shows the lot meets a “human consumption” grade, then no further mention of human 

consumption quality is necessary. However, if the lot fails to grade for any reason or is 

certified as meeting human consumption requirements with no grade referenced, but

the lot meets MDD Minimum Quality Standards, then make a statement under 

“Remarks” as follows: “Meets 7 CFR Part 996 for Human Consumption.” If the lot is 

certified as meeting non-edible requirements, then have the “Remarks” statement read 

as follows: “Meets 7 CFR Part 996 for Non-Edible Quality.”

Examples:

1. Tagged U.S. No. 1 Runner

Grade: “U.S. No. 1 Runner. See Remarks.”

Remarks: “Meets requirements of 7 CFR Part 996 for Human Consumption.”

2. Tagged for U.S. No. 1 Spanish

Grade: “Fails to grade U.S. No. 1 Spanish account splits or broken. See 

Remarks.”

Remarks: “Meets requirements of 7 CFR Part 996 for Spanish with Splits.”

3. Tagged U.S. Runner Splits and Runner Splits

Grade: “U.S. Runner Splits. Meets APSA “Runner Splits.”

Remarks: “Meets requirements of 7 CFR Part 996 for Human Consumption.”

OR

Grade: “U.S. Runner Splits. Fails to meet APSA requirements for Runner Splits 

account damage. See Remarks.”

Remarks: “Meets requirements of 7 CFR Part 996 for Runner Splits.”

4. Tagged U.S. No. 1 Runner & Jumbo Runner

Grade: “U.S. No. 1 Runner. Meets APSA Jumbo Runner.”

Remarks: “Meets requirements of 7 CFR Part 996 for Human Consumption.”

OR
Inspection Instructions for Milled Peanuts (April 2023)

36

Grade: “U.S. No. 1 Runner. Fails to meet APSA requirements for “Jumbo

Runner” account fall through. See Remarks.”

Remarks: “Meets requirements of 7 CFR Part 996 for Human Consumption.”

5. Tagged U.S. No. 2 Virginia

Grade: “Fails to grade U.S. No. 2 Virginia account damage and minor defects. 

See Remarks.”

Remarks: “Meets requirements of 7 CFR Part 996 for “No. 2 Virginia.”

OR

Grade: “Fails to grade U.S. No. 2 Virginia account damage and minor defects. 

See Remarks.”

Remarks: “Fails to meet requirements of 7 CFR Part 996 for “No. 2 Virginia”

account damage.”

OR

Grade: “U.S. No. 2 Virginia. See Remarks.”

Remarks: “Fails to meet requirements of 7 CFR Part 996 for “No. 2 Virginia”

account damage.”

6. Tagged U.S. No. 1 Runner (applicant requested count be certified with 

grade)

Grade: “U.S. No. 1 Runner - 36 count per ounce.”

Remarks: “Meets requirements of 7 CFR Part 996 for Human Consumption.”

NOTE: If the above lot had been tagged to a higher count range, such as “38-42 

count” or simply “38-42,” then the lot would have failed to meet count as marked.

7. Tagged U.S. Runner Splits & Runner Splits

Grade: “Fails to grade U.S. Runner Splits and APSA Runner Splits” account 

damage and minor defects. See Remarks.”

Remarks: “Fails requirements of 7 CFR Part 996 for Runner Splits account 

damage and minor defects.”

OR
Inspection Instructions for Milled Peanuts (April 2023) 

37

Grade: “Fails to grade U.S. Runner Splits and APSA Runner Splits account fall 

through. See Remarks.” 

Remarks: “Meets requirements of 7 CFR Part 996 for Runner Splits.” 

OR

Grade: “U.S. Runner Splits. Fails to meet APSA requirements for Runner Splits 

account damage. See Remarks.” 

Remarks: “Meets requirements of 7 CFR Part 996 for Runner Splits.” 

8. Tagged U.S. No. 2 Virginia and/or No. 2 Virginia

Grade: “U.S. No. 2 Virginia.” 

Remarks: “Meets requirements of 7 CFR Part 996 for “No. 2 Virginia.” 

LOTS HAVING NO GRADE DESIGNATION ON TAGS OR NO TAGS

For all lots of peanuts offered for inspection that have no grade designation on tags or 

for bulk lots without tags, apply the following:

The grade statement must show if the lot meets or fails to meet the grade requested by 

the applicant and the “Remarks” statement must show compliance or non-compliance 

with MDD Minimum Quality Regulations as well as any additional sizes reported at 

applicant’s request. However, if the applicant requests that the best possible grade

(“Jumbo Runner,” “Medium Runner,” “No. 1 Runner,” etc.) be determined for a lot of 

peanuts, show only the highest grade the lot meets under the grade statement. In such 

cases, show an asterisk (*) next to the grade statement with an additional statement 

made under “Remarks” that the grade was determined at applicant’s request. However, 

the asterisk is not needed if a letter from the applicant is on file requesting the highest 

grade be determined on all lots graded at that facility or for that company.

Examples:

1. Lot sized over the 21/64-inch screen for APSA “Jumbo Runner” and contained 

excess fall through for that grade, but met the requirements of the Medium 

Runner grade.

Grade: “*Meets APSA Medium Runner.” 

Remarks: “Meets requirements of 7 CFR Part 996 for Human Consumption. 

*Size and grade determined and reported at applicant’s request.” 

OR
Inspection Instructions for Milled Peanuts (April 2023) 

38

Grade: “*See Remarks.” 

Remarks: “Meets requirements of 7 CFR Part 996 for Runner with Splits. *Size 

and grade determined and reported at applicant’s request.” 

2. For lots known to be destined for the FSA PP-9 peanut purchase program, use 

the following statement(s) under “Remarks” in addition to those listed above:

Remarks: “Meets requirements of 7 CFR Part 996 for Human Consumption. 

Meets requirements of FSA Announcement PP-9 for peanut butter (or peanut 

granules or roasted peanuts, whichever applies).” 

CORRECTING OR VOIDING CERTIFICATES

Make every possible effort to enter accurate statements and data on certificates.

If a mistake is made on a handwritten certificate necessitating a correction, ensure to 

show that the change is official. Any change must be accompanied by the initials of the 

inspector. Do not erase or obliterate any incorrect data. Instead, draw a single line 

through the error, initial the error, and record the correct data, in ink, as close as 

possible to the change. 

Void or supersede computer generated certificates and reprint with the correct

information/data.

VOIDING CERTIFICATES

If a serious mistake or several minor mistakes have been made, it is preferable to void 

the certificate and subsequently issue another one. In such cases, write the word “Void” 

diagonally across the face of the certificate. Voids must be kept on file with copies of 

issued certificates. 

If copies have been issued and left the sight of the inspector, do not void but supersede 

the certificate, regardless of whether or not all copies are returned.

REINSPECTIONS

CHANGE IN QUALITY

Although peanuts are a fairly stable commodity, there will be instances when changes 

occur between the time of inspection and their final use. Always check with the Federal 

Program Manager (FPM) or State Supervisor prior to reporting the results of a 

reinspection. If they are in doubt as to what position to take regarding reinspections, 

they will contact National Programs Mission Support (NPMS) in Washington, DC for 

guidance.
Inspection Instructions for Milled Peanuts (April 2023) 

39

CONFIRMATION (UPDATE) INSPECTIONS

A receiver may request a subsequent inspection to ascertain that the quality of peanuts 

is satisfactory. In such cases, the applicant is not contesting the results of the original 

inspection, but only wants another inspection to ensure that the quality of the peanuts 

has not deteriorated since the original inspection.

When inspecting a shipment of peanuts showing evidence of a previous inspection, 

obtain information about the results of the first inspection. If the results of the second 

inspection are generally in agreement with those of the first inspection, the certificate 

may be issued with reference to the previous certificate made under “Remarks.” 

However, if the second inspection results are in conflict with the first inspection by a 

significant amount, contact the FPM for guidance, they will contact NPMS for a decision 

as to whether an “appeal situation” exists. 

Generally, an appeal situation exists if the conflict between the two inspections is due to 

a factor(s) that could not have changed since the first inspection, or if the difference 

between the two inspections is due to a progressive “condition” factor (wetness, mold, 

etc.) that is so great that the elapsed time between the two inspections cannot account 

for the difference. In such instances, the results of the first inspection are discarded and 

the applicant is given the option of requesting an appeal inspection. If NPMS decides 

that an appeal situation does not exist, the results of the original inspection will stand.

If the identity of the lot is not clearly tied to the shipping point inspection certificate by 

some form of lot identification, the shipping point certificate may be ignored and a new 

certificate issued without reference to it.

APPEAL INSPECTIONS

Any financially interested party may request an appeal inspection if it is believed that the 

original inspection report is in error. In such cases, if lot identification cannot be 

established with a reasonable degree of certainty, i.e., via PLI, USDA/FSIS seals, tags, 

or in some cases, car numbers or trailer licenses, then there is not sufficient basis for 

handling the inspection as an appeal.

INTRASTATE SHIPMENTS

Appeal inspections on intrastate shipments (those remaining in the boundaries of a 

state) must be computer generated, typed, or legibly handwritten and reported on the 

184-9A. Whenever possible, conduct appeals by two licensees, one of which must be 

approved for supervisory work.
Inspection Instructions for Milled Peanuts (April 2023) 

40

INTERSTATE SHIPMENTS

Report appeal inspections on interstate shipments (those moved to another state) on an 

SC-300 certificate and use an inspector who at the minimum has market licensee

status. Prior to reporting the results to the applicant or issuing the appeal certificate, 

report the findings of the appeal inspection to the FPM, they will coordinate with NPMS

regarding the outcome of the grade. Ensure the appeal inspection certificate includes a 

statement under “Remarks” showing whether the grade is sustained or reversed.

“REMARKS” STATEMENT EXAMPLES FOR APPEAL INSPECTIONS

Sustained Lot: “This certificate covers an appeal inspection of the above described lot 

that was previously inspected November 10, 2022, and reported on Georgia FederalState certificate number ______________ which is hereby sustained.” 

Reversed Lot: “This certificate covers an appeal inspection of the above described lot 

that was previously inspected November 10, 2022, and reported on Georgia FederalState certificate number ________ which is hereby reversed as to percentage of 

damage and minor defects.” 

FEES FOR APPEAL INSPECTIONS

The standard procedure for billing appeal inspections is to make no charge for an 

inspection that reverses the original inspection except for mileage, per diem, overtime, 

or related expenses. However, if the original inspection is sustained, apply the 

customary fee charges.

SECOND INSPECTION IN MARKET

When a reinspection is requested on a lot previously inspected in the market, handle it 

as an appeal unless there are some unusual circumstances justifying a new inspection. 

Handle such an appeal inspection in the same manner as described for handling appeal 

inspections on interstate shipments, with an entirely new sample drawn for the 

inspection.

REPORTING MOISTURE CONTENT

There are no moisture requirements in the U.S. Standards for Grades of Shelled or 

Cleaned in the Shell Peanuts. However, a moisture determination is required on all 

peanuts subject to MDD Regulations or APSA grades. Use a well-mixed portion from 

the grade sample for the moisture test. Determine moisture content by an officially 

approved electric moisture tester and report the actual percentage in hundredths. For 

example: 6.45%.
Inspection Instructions for Milled Peanuts (April 2023) 

41

SHIPPING POINT

All offices are equipped with electronic moisture testers for determining moisture 

content. Approved moisture testers include three Dickey-john models (GAC-II, GAC2000, and GAC 2100) and four Steinlite models (DMP, SL-95, PT-2B, and G). Refer to 

the Farmers’ Stock Inspection Instructions for details on the procedure for performing a 

moisture test. If a lot fails to meet the requirements of the MDD regulations account of 

moisture and is offered for reinspection at a later date, perform a complete grade 

analysis. Since the drying process can cause additional splits and/or fall-through, it is 

not permissible to restrict such subsequent inspections to “moisture only.” 

MARKET OFFICES

Moisture testers are not available in market inspection offices. Therefore, moisture 

determinations are made only upon request by an applicant. If so requested, place a 

moisture sample of at least 300 grams in an airtight, closed container for shipment to 

the laboratory. This will prevent any change in moisture content during the interval 

between sampling, transit, and analysis.

Analyses for moisture content can be made in one of two ways:

1. Electric meter: If the applicant requests analysis using an electric meter, send 

the sample to the FSIS office where the peanuts originated from. If unsure, 

contact FSIM for guidance. 

2. Air oven (standard reference method): If the applicant requests analysis using 

the air oven method, send properly identified samples to the USDA, AMS, 

Science & Technology Program (S&T) Laboratory in Blakely, Georgia. Their 

contact information follows: 

Address: USDA, AMS, S&T 

NSL Blakely

6567 Chancey Mill Road 

Blakely, GA 39823-2785

Phone: (229) 723-4570

Fax: (229) 723-3294

Moisture results are reported under the “Quality” heading on the certificate as follows: 

“Moisture content (by oven, if requested) 8.78%.” Further, make a statement under 

“Remarks” that the applicant requested the moisture test. Charge an additional fee for 

moisture analysis (check with your immediate supervisor for the current fee schedule). 

Federal-State Inspection Management will make provisions to transfer moisture test 

fees to the S&T. In cases where only a moisture determination is required, bill the 

applicant the current moisture analysis fee plus an hourly charge for the time required to 

draw the sample; and send it to the S&T Laboratory.
Inspection Instructions for Milled Peanuts (April 2023) 

42

DELAY IN RUNNING MOISTURE TEST

In cases where a delay of more than one-half day transpires prior to analysis, moisture 

content might be affected due to warm, dry air in the grading room. Because of this, 

make every effort to run moisture analyses at the time samples are first brought into the 

office or grading room. However, when this cannot be done and the moisture test is run 

on a different date than the analysis date, report the following under “Remarks:” 

“Moisture determined on [date].”

DISTRIBUTION OF THE 184-9A CERTIFICATE

Use the following as a guide for distributing copies of computer generated 184-9A 

certificates (copy distribution may vary from one district or State to another): 

1. Applicant

2. FSIS File (Main Office)

3. FSIS District Office / File

4. MDD / MDD Designee

5. Aflatoxin Laboratory

6. Aflatoxin Laboratory 

7. Oil Analysis

NOTE: For computer generated 184-9As, 6 certificates are printed for all lots except oil 

analysis lots, for which 7 certificates are printed.

Send copies of all milled peanut inspection certificates to MDD in Washington, DC or, in 

lieu of that, to a representative designated by MDD. This includes lots that meet as well 

as those that fail to meet the requirements of 7 CFR Part 996.

At present, MDD has requested that certificate copies be sent to their designated 

representative, Tabb & Associates. Their address is:

Tabb & Associates

2537 Lafayette Plaza Drive

Suite A

Albany, GA 31707
Inspection Instructions for Milled Peanuts (April 2023)

43

If copies must be sent directly to MDD, their address is:

USDA, AMS, Specialty Crops Program

Market Development Division

1400 Independence Ave SW

Stop 0237, Room 1406-S

Washington, DC 20250

Check with your supervisor to ascertain where to send certificate copies for any specific

growing and marketing season.
Inspection Instructions for Milled Peanuts (April 2023)

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Inspection Instructions for Milled Peanuts (April 2023) 

45

PART II – POSITIVE LOT IDENTIFICATION OF

MILLED PEANUTS

GENERAL

This section outlines the general procedure to follow for maintaining positive lot 

identification (PLI) of milled peanuts (cleaned in-shell and shelled stock). Included are 

instructions pertaining to the issuance of pre-stamped tags, tag accountability, 

assignment of lot numbers, and sampling. Any major deviation from these instructions 

must be approved by FSIM. 

PURPOSE

Positive identification of a lot of shelled/in-shell peanuts in connection with inspection is 

intended to tie the inspection certificate to the lot. This is done so that there can be no 

doubt that the peanuts delivered are the same as those described on a certificate.

METHODS OF IDENTIFICATION

LOT NUMBERED TAGS FOR INDIVIDUAL BAGS

This method consists of attaching a lot-numbered tag bearing the official stamp of the 

Inspection Service to each filled bag in the lot. This is the only approved method of 

PLIing bags. Number PLI tags according to the amount issued. This means for a 

typical 20 tote lot, number PLI tags 1 through 20. For certificates that involve more than 

one lot, identify totes by lot and tote number as designated by numbering on PLI tag.

SEALING LOADED CONVEYANCES

This method of maintaining a lot’s identity consists of loading a lot (other than bags) into 

a closed vehicle during or after sampling. After closing the door(s) of the vehicle, 

serially numbered seals are applied by the inspector or under their supervision. The 

serial numbers used are then reported on the certificate along with all other facts 

describing the lot. Only Use Federal or Federal-State issued seals. Under no 

circumstances will company or industry seals be permitted.

MDD AND COMMODITY CREDIT CORPORATION (CCC) LOT 

IDENTIFICATION REQUIREMENTS

All milled peanut lots shipped to the edible trade are required to be inspected and PLI’d.

NOTE: Lots that have been previously inspected and certified as meeting MDD

regulations and are reconstituted at the request of the receiver do not have to be 

reinspected, nor do they have to be PLI’d when shipped.
Inspection Instructions for Milled Peanuts (April 2023) 

46

SACK LOTS

For sacked peanuts, a lot-numbered tag bearing the official stamp of the Inspection 

Service must be attached to each filled sack in the lot. For shelled peanuts, the tag 

must be machine sewn into the closure of the sack. In-shell peanuts are permitted to be 

packed in hand sewn burlap or open mesh sacks. If heat-sealed plastic bags are used, 

the tag must be inserted inside the bag prior to sealing so that the official stamp is 

visible.

REUSE OF TAGS PROHIBITED

Do not use tags showing evidence of previous use, such as needle holes or a line 

perforation from a prior sewing. Any deviation from this policy must be approved by 

FSIM. 

MDD regulations require that “the crop year that is shown on the positive lot tag must 

accurately describe the crop year in which the peanuts were produced rather than the 

calendar year.” If the accuracy of the crop year listed on the PLI tags is questionable, 

notify the supervisor so that they can subsequently alert MDD or their designee.

BULK LOADS

Lots shipped in bulk, such as in hopper cars, must have their lot identity maintained by 

sealing the conveyance. A lot number must also be assigned.

NOTE: Lots that have been previously inspected and certified as meeting MDD

regulations and are reconstituted at the request of the receiver do not have to be 

reinspected, nor do they have to be PLI’d when shipped.

PLI OF PEANUTS IN BULK BINS

The Inspection Service recognizes there is no fool proof method of identifying bulk bins. 

The present system of taping tags to the bins is satisfactory, provided the system is 

carefully monitored. It is the Inspection Service’s responsibility to adequately train 

inspectors as well as industry personnel in properly applying tape and tags to lids and 

bins to ensure that PLI policies are followed. In order to maintain the credibility and 

integrity of PLI, adhere to the following basic requirements:

CONDITION OF BINS

Periodically check bins prior to use to ensure they are in a sanitary condition and free 

from filth, such as bird or rodent droppings, wood scraps, paper, plastic, or metal 

fragments, etc. If bins are found to be unsatisfactory, advise the appropriate plant 

personnel. If no attempt is made to correct this condition, notify the immediate 

supervisor.
Inspection Instructions for Milled Peanuts (April 2023) 

47

While the Inspection Service does not require that bins be new, they must at least be in 

fairly good condition. PLI can be refused if the containers cannot properly hold peanuts 

or if the containers rigidity/shape has been compromised to the point that tags, tape 

and/or strapping cannot be properly applied. Contact your supervisor if unsure whether 

bins are in a suitable condition to receive product and be PLI’d.

PLI 

Licensed inspectors are responsible for maintaining the PLI of each bulk lot certified to 

ensure that the certificate represents the same lot that was sampled and graded by 

FSIS.

Apply the PLI immediately after containers are filled, sampled, and lidded. If containers 

are moved unlidded to another area or location in the plant, it must be done under 

continuous surveillance of the Inspection Service.

To maintain and certify PLI of peanuts in large, bulk holding bins, follow the procedures 

below: 

1. Check the container to see that is it empty prior to filling.

2. Check the top of the container to ensure peanuts are going into the correct 

container.

3. To maintain PLI, use an FSIS lock or seal to secure the bottom of the container.

4. During the production of the lot, periodically monitor the official sampler, sample 

bin, and the conveyer dumping peanuts into the container. 

5. Upon completion of the lot, maintain PLI until the lot has been certified as 

meeting the USDA, MDD regulations for quality and aflatoxin, or until such time 

as the applicant reconstitutes a passing lot and requests that PLI no longer be 

maintained.

6. If the bulk container(s) have a lid, PLI it with a seal or lock. In lieu of this, the 

licensee at the inspection site must maintain surveillance of the lot to ensure PLI.

7. Any time the licensee is absent from the inspection site, secure and PLI the top 

of the container(s) or secure the conveyance (elevator/conveyor) that moves the 

product into the container(s) with an FSIS lock or seal to prevent movement of 

peanuts into any of the bulk containers.

8. After the lot has been certified by FSIS, licenses must maintain close 

communications with the applicant’s representative concerning maintaining PLI, 

especially if the licensee(s) will be leaving the inspection site.
Inspection Instructions for Milled Peanuts (April 2023) 

48

Supervisors must ensure that all licensees receive, read, and comply with these 

instructions.

APPLICATION OF NON-BAR CODED PLI TAGS

BULK BINS

For non-barcode-type PLI tags, individual containers are considered PLI’d when tagged 

with two (2) FSIS lot tags and taped. Tape can be applied over the tag and lid in one of 

two ways:

1. Tape on and over lids, over the tags and down the side of the container (see Bulk 

Bins Illustrations 1 and 3). 

2. Tape is tucked under the lid allowing for expansion of the lid when containers are 

moved (see Bulk Bin Illustration 2). 

Use a clear tape that allows the tag to be seen through any portion of the tape.

Apply two straps. Although strapping does not constitute PLI, it is necessary for PLI to 

be maintained. The only exception to this two strap requirement is for lots that are 

going for manufacture on the same premises as the shelling operation. For these lots, 

only one strap is required. If the tape comes loose from the containers, the lot will lose 

its PLI and must be resampled.

TOTE OR SUPER SACKS

Bring flaps together, twist, and tie with either twine or plastic clips that can be tightened 

over the TOP flap. The bottom opening is not sealed.

PLI is a critical factor with the peanut industry and its credibility and significance can 

only be maintained through alertness by all responsible for it. Do not take anything for 

granted. Even the most conscientious operator does not know where their help is at 

times. Inspection Service personnel must realize that the peanut industry places 

unqualified trust in us to manage PLI error free.
Inspection Instructions for Milled Peanuts (April 2023) 

49

ILLUSTRATION 1: BULK BINS NON-BAR CODED PLI TAGS
Inspection Instructions for Milled Peanuts (April 2023) 

50

ILLUSTRATION 2: BULK BINS NON-BAR CODED PLI TAGS
Inspection Instructions for Milled Peanuts (April 2023) 

51

ILLUSTRATION 3: BULK BINS NON-BAR CODED PLI TAGS

Notice tag is attached by tape to lid & box.

Tag is put 1/2 under strap leaving room for tape to secure tag to box & lid.

DO NOT LET TAPE TOUCH STRAP

(OPTION)

Tag may be placed on this side of box. 
Inspection Instructions for Milled Peanuts (April 2023) 

52

APPLICATION OF BAR CODED PLI TAGS

TAGS

Some PLI tags have been designed to include bar coding as another way to 

monitor/track PLI tags and lots (see Illustration 4 below).

ILLUSTRATION 4: BAR CODED TAG

Bar coded PLI tags must include all the information required by the USDA for PLI and 

must include bar codes as determined by the e-Commerce Committee of the American 

Peanut Council. Generally, tags for tote/bulk sacks and bulk bins will have an adhesive 

backing, while bag tags will not.

BAGS

The bar coded PLI tag must be sewn onto each bag in the lot at the time the bag is 

sewn shut. Ensure the following:

• Stitching is approximately one inch from the edge of the tag on the end with the 

most space devoid of print.

• Tag is sewn parallel to the edge of the tag in such a way that it does not cross 

the bar code. 

• Tag is securely fastened to the bag.
Inspection Instructions for Milled Peanuts (April 2023) 

53

BULK BINS

Two tags must be applied to each bulk bin. One tag is used for PLI purposes and must 

also be accessible to a bar code reader. Ensure the following:

• Tag is placed on one side of the bin where the strap has been applied vertically 

around the bin. 

• Tag is heat sealed or secured with a permanent seal.

• The adhesive backing is removed. 

• End with the most space devoid of print is placed on the strap with approximately 

one inch of overlap.

• The overlap is folded back under the strap with at least 1/4 inch of the overlap 

adhering to the back of the tag. 

• Remainder of the tag is pressed and adhered onto the side of the bulk bin’s lid.

The second tag must be placed on the side of the lid of the bilk bin and on the opposite 

side of the tag used for PLI. This tag must be accessible to a bar code reader, but will 

not be acceptable for PLI purposes if not attached to the strap as mentioned in the 

above bullets (see Illustration 5 below). 

ILLUSTRATION 5: BULK BINS LOCATION OF SECOND TAG

TOTE OR SUPER SACKS

Ensure one tag is placed on the tie-string used to close the sack. Once the sack is filled 

and closed, the tie-string must be tied as close to the sack as possible. The end of the 

tag with the most space devoid of print must have approximately 2 inches of backing 

removed and must be placed on the strap with approximately one inch of overlap. The 

overlap is then folded back under the tie-string with at least 1/4 inch of the tag being 

adhered onto the back of the tag. This allows the tag to be used for PLI purposes while 
Inspection Instructions for Milled Peanuts (April 2023) 

54

also allowing for bar code scanning. An additional tag may be used for bar code 

purposes only at an applicant’s request. This tag may be applied in any way acceptable 

to the applicant (see Illustration 6 below). 

ILLUSTRATION 6: TOTE OR SUPER SACK LOCATION OF TAGS

BULK LOTS IN RAIL CARS

Official USDA PLI car seals must be used for applying PLI to rail cars. One tag for each 

lot in an individual rail car must be provided to the applicant. These tags are 

subsequently required to be placed on the placard of the rail car for bar code reader 

accessibility. 
Inspection Instructions for Milled Peanuts (April 2023) 

55

ILLUSTRATION 7: CARDBOARD BINS LOCATION OF BAR CODED PLI

Locations for Bar Coded PLI Tag and Scannable Identification Tag on Cardboard Bins

(Both tags are identical with duplicate sequential numbers)
Inspection Instructions for Milled Peanuts (April 2023) 

56

ILLUSTRATION 8: TOTE OR SUPER SACKS LOCATION OF BAR CODED PLI

Locations for Bar Code PLI & Scannable Identification Tag on Tote or Super Sacks

(Both tags are identical with duplicate sequential numbers)
Inspection Instructions for Milled Peanuts (April 2023) 

57

APPLYING PLI TAGS TO TRANSFERRED OUT-OF-STATE LOTS

Three methods of PLI are approved for tagging out-of-state peanut lots that are 

transferred from one type of container (bags, bins, totes, super sacks, etc.) to another.

1. Apply your own State’s PLI tag once the lot is transferred;

2. Request PLI tags from the originating State to apply to the transferred lot (this 

method may cause some delays); or

3. Create a PLI tag that actually states that the lot is a “transfer.”

Option three may prove beneficial in cases where the transfer takes place at a cold 

storage facility for which no house number exists. At the supervisor’s discretion, a 

house number may be assigned to a cold storage (CS) facility or, as an alternative, the 

abbreviation “CS” may be used as the house number.

Always make clear that the lot was originally graded and certified in another State to 

ensure the State of origin on the transferred lot is not misrepresented. To accomplish 

this, add the following statement in the “Remarks” section of the transfer certificate (SC184-12): “Lot originally certified by [State or origin] Federal-State Inspection Service.”

METHOD OF APPLYING TAGS

STAMP

Use an approved rubber stamp of uniform design, save for the name of the cooperating 

State, to mark the bag tags for identification. This stamp includes changeable plant 

numbers and lot numbers.

INSPECTOR’S STAMP

Each shipping point inspector who is required to PLI lots must be issued an inspection 

stamp. It will be assigned to the inspector for the duration of their assignment in that 

particular office or until the stamp is reassigned. Inspectors must keep the stamp 

exclusively in their possession and be responsible for it as long as it is on issue to them.

MILL IDENTIFICATION NUMBER

Each peanut shelling plant in the State must be assigned a number. Plants are not 

permitted to use a mill number that has been assigned to another plant, even in the 

case of multi-plant operations under one company name. The PLI tags must show the 

plant number where the actual milling or remilling is being done.
Inspection Instructions for Milled Peanuts (April 2023) 

58

LOT IDENTIFICATION NUMBER

Each lot must be assigned a number and the tag on every container in that lot must 

bear the same lot number. A specific lot number must not be used more than once at 

any one mill during a specific crop marketing year. This will ensure that every lot will

have its own distinct number.

TAGS

The tags used to identify the containers in the lot must be supplied by the sheller (or 

other applicant for inspection). They may be printed with the sheller’s name and the 

weight and grade of the peanuts, but the reverse side of the tags must bear no printing 

in order to allow room for the impression of the stamp.

STAMPING

The tag on every container in the lot must bear the inspection stamp mark. The tags 

may be stamped after they are sewn on the bags as the inspector draws the sample or 

they may be stamped before they are sewn on the bags. Whichever method is used, 

ensure it is agreed upon by the sheller and the Inspection Service and is subject to 

certain basic precautions to ensure the effectiveness of the system.

TAGS STAMPED WHEN INSPECTED

If the tags will be lot-number stamped as the lot is inspected, the sheller must stack the 

entire lot’s tagged sacks so that both ends of each sack are exposed to view. Thus, all 

of the sewn-on tags will be accessible. The inspector must (a) sample the lot in the 

prescribed manner, (b) stamp every tag in the lot with the appropriate plant number and 

a specific lot number, and (c) determine the exact number of sacks in the lot to be 

reported on the certificate. Records on such lots must be maintained in the same 

manner as described for lots using pre-stamped tags.

If all of the sacks in the lot inspected and covered by the certificate are not shipped, the 

certificate will be just as valid for the lesser number, whatever it may be. However, the 

certificate cannot be used to represent a greater number of sacks than the number 

shown on its face. If some of the sacks in the lot are not shipped, they may be handled 

as instructed under Maximum Lot Size for Edible Shipments section.

TAGS STAMPED PRIOR TO INSPECTION

In most cases, it is impractical to attempt to stamp tags after they have been placed 

onto the containers. Consequently, a system has been devised whereby the sheller 

may be supplied with a specific number of pre-stamped tags to be sewn onto sacks or 

attached to bulk containers as they are filled and closed to await sampling and analysis 

by the inspector.
Inspection Instructions for Milled Peanuts (April 2023) 

59

Follow the procedure outlined below:

• The sheller orders pre-stamped tags from the Inspection Service in advance, 

specifying the type, grade or quality, and the number of containers they intend to 

pack in each lot. Orders usually consist of sets of tags for several separate lots.

• Upon receipt of the order, all necessary information is recorded, and a lot number 

assigned to each lot (see Record Sheet section).

• The tags are then prepared by the Inspection Service. The FSIS inspection 

stamp, mill number, assigned lot number, and crop-year are imprinted on each 

tag. The tags are carefully counted to ensure the number conforms to the 

number requested by the applicant for that lot, plus a specified number (usually 

15) of extra tags for FSIS or emergency use. Stamp and retain one additional 

tag for the office records. Also, record the date the tags are issued.

• Packaging the tags consists of binding each set securely together and, if several 

sets are placed in a larger package, the package must be marked to describe the 

sets of tags included therein. The sets of tags are then delivered to the sheller. 

The sheller (or their representative) must sign a form acknowledging receipt of 

the tags with each delivery. Ensure the receipt form lists and briefly describes 

each lot of tags and the date issued. The signed receipt form must be filed with 

the sample tag under the name of the shelling plant to which the tags were 

issued. Each inspection office must systematically maintain records of all 

transactions involving “pre-stamped” tags. These records must be entered in a 

book similar to the inspection car record or certificate record book.

Shellers must be advised that they are held accountable by the Inspection Service for 

all pre-stamped tags issued to them. When more than 10 tags cannot be accounted for, 

the applicant must provide a written explanation to the FSIS office as to why the tags 

are missing. Also, FSIS must forward a copy of the letter of explanation to FSIM. 

Tags that are pre-stamped may be provided by the Inspection Service or by the sheller, 

depending upon local arrangements. Recommended material for the tags is strong, thin 

cardboard, approximately 4 x 8 inches in size. The color of tags may be varied to 

signify different types and/or grades of peanuts as designated by industry groups or 

individuals. One side of the tag may be printed in advance with information identifying 

the shipper and describing the quality and quantity of the contents of the container to 

which it will be attached.
Inspection Instructions for Milled Peanuts (April 2023) 

60

ASSIGNING LOT NUMBERS

There are several methods of assigning PLI lot numbers. Two methods are shown in 

the following paragraphs. However, regardless of the method used, extreme care must 

be taken to avoid duplication of lot numbers.

• Starting at the beginning of the crop year with lot No. 1, the lot, grade, and type 

of peanuts from each mill is assigned a consecutive number. For example, a mill 

will have lot No. 1 - Extra Large Grade, and lot No. 1 - Medium Grade, and lot 

No. 1 - U.S. No. 1 Grade, etc. Similarly, another mill will have lots No. 1 for 

Spanish and Runner U.S. No. 1 Grade, etc. However, no two lots of the same 

grade and type from one mill must bear the same lot number during a single 

crop-year.

• To avoid confusion and possible duplication of lot numbers, separate record 

sheets must be used for listing lot numbers (and number of tags issued for that 

lot) assigned for each different type and grade at each shelling plant.

• Another method of assigning lot numbers to an individual mill is to start with lot 

No. 1 at the beginning of the crop-year and use consecutive numbering for the 

remainder of that year, regardless of type or grade of the lots.

• Even though lot tags are not issued on bulk carriers (hopper cars or bulk loads), 

it will be necessary to assign lot numbers in order to assist handlers and MDD in 

handling potential complaints. Therefore, a lot number must be assigned to each 

load by the Inspection Service or the applicant. The lot number must be 

preceded by the letter “B” to denote “bulk” and must also appear on the 

certificate.

ATTACHING TAGS

The sheller must attach a pre-stamped tag to each container as they are closed after 

filling. For sacks, the sewing machine operator holds the tag against the sack in front of 

the machine in a position so that it is firmly stitched to the sacks. Tags must be held so 

that the stitching will cross them about an inch or more from the end, thus reducing the 

likelihood of the tags being accidentally torn off in handling.

The sheller must stack containers together in such a way that they are easily accessible 

for sampling. For example, for sacks, expose both ends of each sack. This avoids 

potential confusion or commingling with other lots that may be stored in the same area.

Any stamped tags not attached to containers after the entire lot has been filled and 

closed must be returned to the inspector who will destroy them after they are properly 

counted and recorded. The lot number assigned to this lot will not be used again.
Inspection Instructions for Milled Peanuts (April 2023) 

61

The inspector must do the following:

• Inspect and draw samples at random from containers scattered throughout the

lot in the prescribed manner.

• At the same time, examine the PLI tags on as many or more containers than 

were sampled to ascertain that all bear tags with the same lot identification. 

• Make a count of the containers, ensuring they do not exceed the number of prestamped tags previously prepared for the lot.

• Analyze a sample and issue a certificate reporting the grade, the brand marks on 

the containers, information on the tags, including the three identifying numbers, 

and the exact number of containers in the lot if sampled after packaging or an 

approximate count of containers in the lot if sampled with an in-line automatic 

sampler during packaging.

COLLECTING UNUSED PRE-STAMPED TAGS

Inspectors must obtain any unused pre-stamped tags for the lot being sampled from the 

sheller. The inspector must know in advance the exact number of tags issued to the 

sheller for that particular lot. For example, if the records show that the number of prestamped tags originally issued for lot No. 27 was 415 and there are only 400 sacks in lot 

No. 27, then the sheller must return the 15 unused tags or give a reasonable 

explanation of why some or all of them are missing.

Return all unused tags to the inspection office. The number of tags returned must be 

entered on the record sheet opposite the number of tags originally issued to the sheller. 

The number of sacks reported on the inspection certificate, plus the number of unused 

tags returned, must equal the number of pre-stamped tags originally issued to the 

sheller for that lot. Destroy unused tags after the records are complete. This must only 

be done by the Inspection Service, not by the sheller.

RECORDING INSPECTED LOTS

Upon completion of the inspection, record the following information on the record sheet 

opposite the entries made when the pre-stamped tags were originally issued for that lot:

• Date of inspection

• Certificate number

• Conformity to MDD minimum quality and handling requirements

• Number of containers in the lot
Inspection Instructions for Milled Peanuts (April 2023) 

62

• Number of unused tags returned

• Remarks (if any)

By law, lots that fail to meet MDD requirements may not be shipped to buyers for edible 

use. Failing lots must either be remilled in an attempt to bring them up to minimum 

MDD standards or diverted for domestic or export crushing. When a lot fails to meet 

MDD requirements, a notation stating this fact must be made on the record sheet in the 

appropriate space. Also, a copy of the grade certificate must be sent to MDD in 

Washington, DC (or their designated representative). If the lot is sold for oil stock or 

non-edible quality, the attached tags may be left on the sacks for identification purposes 

provided that a certificate is issued certifying that the lot meets MDD requirements for 

non-edible quality. The Inspection Service must inform applicants that PLI tags used on 

lots that are not inspected must be returned to FSIS for accountability.

CLOSING OUT TAG INVENTORY

All unused lots of pre-stamped tags must be reclaimed, accounted for, and destroyed at 

the end of the crop-year milling operation. When a shelling plant has completed its 

milling operation for the crop-year, the Inspection Service must review the record sheets 

to determine whether any lot(s) or pre-stamped tags issued to that plant are 

unaccounted for.

Any such unused tags must be obtained from the mill by the local inspector or 

supervisor and taken to the inspection office where they are counted, recorded on the 

record sheet, and subsequently destroyed. As previously noted, the Inspection Service 

requires a written explanation from the sheller for any unused lot tags not accounted for 

at the time. If the Inspection Service feels that the sheller’s explanation is insufficient, 

that steps have not been taken to rectify the problem, and/or that the integrity of the PLI 

program has been jeopardized, that facility may have to be issued a written warning 

requiring corrections to their PLI tag accountability system that are acceptable to

AMS/FSIS or face the possibility that PLI tags will have to be issued for future lots on a 

lot-by-lot basis.

RECORD SHEET

A sample of a record sheet is illustrated on the following page. It shows the suggested 

arrangement of columns for recording the information necessary for use of the PLI 

system. In lieu of maintaining a physical (hard copy) PLI Record Sheet, records may be 

stored electronically on computers. 
Inspection Instructions for Milled Peanuts (April 2023)

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THIS PAGE INTENTIONALLY LEFT BLANK
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PART III – THE NOTICE OF SAMPLING – FORM SC-187 AND 

SC-187-CG

GENERAL

The Notice of Sampling is a form used for identifying a sample of peanuts being sent to 

a laboratory for aflatoxin analysis. It also serves to provide a detailed description of a 

peanut lot sampled for grade as well as other products sampled for grade and/or 

chemical analysis. The Notice of Sampling may either be handwritten (SC-187) or 

computer generated (SC-187-CG). For the sake of simplicity, both forms will hereafter 

be referred to simply as the “187.” 

Because of the large number of samples analyzed in marketing peanuts in the U.S., it is 

essential that complete information accompany each sample to the laboratory.

The 187 (or the 184-9A, which also incorporates an abridged version of the 187) must 

be issued by the Inspection Service for every sample of peanuts sent to a laboratory for 

aflatoxin analysis. This includes samples sent to USDA-approved laboratories as well 

as those operated by USDA-S&T. Review Part IV of these instructions for special 

instructions for the various types of samples that may be requested.

COMPLETING THE 187 

Use the following instructions for completing the 187. The headings are mentioned in 

the order in which they appear on the form.

CAR, TRUCK OR SHIP

Leave blank if the lot is not loaded into the conveyance or write in “Lot Inspection.” 

APPLICANT

Enter here the name of the party to be billed for the laboratory analysis. In most cases, 

the name will be that of the sheller. In cases where the lot has been sold at the time of 

inspection, the buyer may be the applicant. Though unusual, if the request comes from 

MDD, they are considered the applicant.

RECEIVER

In many cases, the lot may not have been sold at the time of sampling. The inspector 

must obtain and write in the name of the buyer if one exists. Otherwise, enter “Not 

Given.” 
Inspection Instructions for Milled Peanuts (April 2023) 

66

SHIPPER

The sheller and shipper will usually be the same entity, but under some circumstances 

could be different companies or individuals.

TYPE

Check the appropriate block to indicate the type of peanuts in the lot (Runner, Spanish, 

Virginia, or Valencia).

CONTRACT NUMBER

If the sheller has a sales contract covering the lot of peanuts, enter the number. 

Otherwise, leave this space blank.

WEIGHT OF LOT AND NUMBER OF SACKS

Always enter these figures on the form because they are important to financially 

interested parties. They will usually be the shellers’ figures, but the inspector must still 

verify that the number of containers in the lot is generally accurate.

PLI MARKS

These 5 blocks are provided for quoting information from the PLI tags. As this 

information is extremely important, take great care to ensure these blocks are 

accurately completed.

QUALITY DESIGNATED BY SHIPPER

Provide an accurate description of the grade and size of the peanuts in each lot 

intended for the edible market.

Enter the description of the lot in the space for “Quality Designated by Shipper.” The 

shipper’s verbal statement or the printing on the tags may or may not adequately 

describe the grade/quality of the lot. If the lot fails to meet the designated grade, the 

lower quality must be noted by checking the block indicating the highest quality 

determined. Even though the lot meets the quality designated, check the appropriate 

block showing the highest quality determined.
Inspection Instructions for Milled Peanuts (April 2023) 

67

Check one of the following quality blocks for each lot tested:

If a lot fails to meet the grade intended or as tagged, but qualifies for a lower grade, that 

lower grade must be shown on the 187. For example, a lot tagged U.S. No. 1 Runner 

fails to grade only account of having 10% splits would qualify as “Runner with Splits.” 

However, if the lot contained more than 15% splits, the quality designation would drop 

to “Meets 7 CFR Part 996 for Human Consumption.” 

NOTE: PAC “With Splits” is no longer a valid grade. Instead, draw a line-through the 

word PAC and replace with MDD. Further, do not use “Domestic Crushing” and “Export 

Crushing (Fragmented),” since they are obsolete categories. 

Report any lot(s) that are crushed, fragmented, destined for non-human consumption, 

wildlife feed, etc., using the “Other (Specify)” block. When using this block, also show 

some other form of descriptive term (if known) that further describes the lot, such as 

“LSKs,” “fall through,” “pick-outs,” “screenings,” etc. Examples: “Non-Edible Quality – 

screenings,” “Non-edible quality - LSKs,” or “Wildlife Feed - Pick-outs.” 

If the sample is stated to be from Segregation (Seg.) 3 Farmers’ Stock, report this fact 

on the 187. For Example, “Applicant states above lot from Seg. 3 stock.” 

INSPECTION CERTIFICATE NUMBER

The space provided for this item must be completed if the certificate number used for 

the lot is known. However, if the laboratory samples are packaged and shipped before 

the certificate number can be ascertained, this space may be left blank. In such cases, 

enter the certificate number on the 4 remaining copies of the 187 prior to distribution.

SAMPLE DESIGNATIONS

This space is provided to indicate the type of sample sent to the laboratory for analysis. 

See Part IV of these instructions for details on sample designations.

SAMPLE SENT TO

Fill in these spaces with the name and address of the laboratory as well as the date the 

sample was sent.
Inspection Instructions for Milled Peanuts (April 2023) 

68

SAMPLE WEIGHT

Record sample weights on each sample and on the SC-187 Notice of Sampling 

Certificate. Ensure they are not less than the recommended 48 lb. weight.

FEES AND POSTAGE

Charges for sampling services are determined by each individual FSIS program. In 

some cases, the service may be furnished in connection with inspection and without 

additional charge. In case a sample is drawn for the sole purpose of having it sent to 

the laboratory, charge a special fee at a previously established rate. Fees shown on 

this form do not include the inspection fee.

Show on the form any postage that is prepaid by the Inspection Service. If the cost of 

mailing a sample to a specific location is known at the time the 187 is completed, 

include the amount on the 187. If this information will not be available until the package 

is taken to the post office, then the copy of the form placed inside the sample container 

will show nothing in the space for “postage.” In such instances, enter any mailing 

charges on the remaining four copies of the form prior to distribution.

DISTRIBUTION OF COPIES

For the distribution of computer-generated copies, print 4 certificates for all edible, nonedible, appeal 1-6, and quality control samples. Distribute as follows:

• Applicant

• FSIS Office

• District FSIS Office / File

• Laboratory

VOIDED 187S

If a mistake is made in some critical section of the 187, void by the same method used 

for other certificates, e.g., writing “VOID” in large letters diagonally across the face of 

the 187. Critical items that cannot be changed or marked through are:

• Weight of lot

• Date

• Number of sacks/bins
Inspection Instructions for Milled Peanuts (April 2023)

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• Mill number

• Lot number

• Crop year

Complete a new 187 to replace a voided 187. Since the 187 is serially numbered, any 

voided forms must be kept on file in numerical order with copies of the completed forms.
Inspection Instructions for Milled Peanuts (April 2023) 

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EXAMPLE OF COMPUTER GENERATED 187
Inspection Instructions for Milled Peanuts (April 2023) 

71

PART IV – REQUIREMENTS OF THE USDA MARKET 

DEVELOPMENT DIVISION, USDA FARM SERVICE AGENCY,

AND GRADES OF THE AMERICAN PEANUT SHELLERS 

ASSOCIATION

GENERAL

The following outlines procedures for inspecting milled peanuts subject to USDA Market 

Development Division (MDD) regulations, USDA Farm Services Agency (FSA) 

requirements for the peanut purchase program, and/or American Peanut Shellers 

Association (APSA) grades.

MDD MINIMUM QUALITY STANDARDS FOR HUMAN CONSUMPTION

AFLATOXIN SAMPLES AND SAMPLE DESIGNATIONS

Every lot of shelled peanuts marketed for edible trade as well as lots of cleaned in-shell 

peanuts that exceed 1.00% damaged kernels by mold, are required by MDD regulations 

to be pre-tested for the presence of aflatoxin. Samples are required to be sent to either 

a USDA or USDA-approved laboratory.

In addition to the official MDD samples, manufacturers may request that “Quality Control 

Samples” be analyzed for a more thorough check on the overall quality of the lot. The 

size of quality control samples vary from a single 5-pound sample to three 48-pound 

samples per lot. In order to furnish processors with additional samples upon request 

without drawing additional peanuts from a lot, most subsampling machines have been 

modified to provide an extra subsample of ground peanuts from the official Sample “#1” 

aflatoxin sample. However, such samples must not be furnished from official Samples 

“#2” or “#3” unless it can be confirmed by the laboratory performing the Sample #1 

(official) analysis that these samples will not be needed. When reporting the various 

types of peanut samples on the 187, maintain uniformity regarding sample designation. 

Use the sample designations described in Category I or II on the following pages, which 

are reported under the “Remarks” heading of each 187.

SAMPLING AND GRINDING PEANUTS FOR LABORATORY ANALYSIS

The following paragraphs outline the procedures required when sampling shelled 

peanuts for aflatoxin.

Draw a representative sample from at least 25% of the bags to total approximately 160 

pounds. Of this amount, 144 pounds is used for aflatoxin analysis, while the remaining 

16 pounds is used for a grade and a grade check sample.
Inspection Instructions for Milled Peanuts (April 2023) 

72

Prior to shipment to the laboratory, the 144-pound aflatoxin sample must be further 

divided into 3 smaller samples (approximately 48 pounds each) by use of the Dickens 

mechanical rotating divider. This device is designed to divide the sample into 4 parts.

Each of the three 48-pound samples must be placed in new burlap sacks or other 

suitable approved containers and tagged by either inserting or sewing a PLI tag to each 

sample container, conspicuously identifying them as Sample “#1,” Sample “#2,” and 

Sample “#3.” The inspector’s signature or some other type of identification must appear 

on each tag to ensure that the samples are/have not been tampered with. The original 

handwritten copy (or any computer-generated copy) of the 187 must be enclosed with 

the first 48-pound sample and designated as Sample “#1.” Per MDD Regulations, 

USDA or USDA-approved laboratories are permitted to grind Sample “#1” in lieu of the 

Inspection Service.

DISPOSITION OF SAMPLES

Detailed procedures for dividing and identifying the sample(s) are provided in the 

following paragraphs.

Sample “#1” 

This sample must be taken directly to a grinding station and the ground subsample 

prepared for laboratory analysis unless the applicant specifically requests that the 

sample be returned for testing at a later date or that the sample be returned to the 

applicant so that they may send it to a laboratory of their choice.

Sample “#2” 

This sample must be returned to the sheller at the time of sampling unless specifically 

requested to be taken to a grinding station at that time. In most cases, Sample “#2” will 

be left at the shelling plant and the sheller will either store or ship the sample with the lot 

of peanuts.

If the average results of laboratory tests “1-A” and “1-B” is 9 parts per billion (ppb) to 

and including 45 ppb, the applicant will request the Inspection Service to prepare for 

delivery and/or send Sample “#2” to the lab. If a high percentage of the sheller’s lots 

are showing levels of aflatoxin requiring Sample “#2,” the sheller may request both 

Sample “#1” and “#2” (and possibly Sample “#3”) be taken to the grinding station at the 

same time to avoid delay in laboratory results.

NOTE: If a 187 is issued on a different date than the date the sample is sent to the 

laboratory, then the “issue date” must be stated under “Remarks.” 
Inspection Instructions for Milled Peanuts (April 2023) 

73

Sample “#3”

The sheller’s options for handling this sample are the same as for Sample “#2,” except 

that Sample “#3” must be prepared for laboratory analysis when the average results of 

laboratory tests for “1-A,” “2-A,” “1-B” and “2-B” is 13 ppb to and including 23 ppb.

PREPARING AFLATOXIN SAMPLES

The 48-pound aflatoxin sample(s) must be prepared as follows: Grind the entire 48-

pound sample with a Dickens Subsampling Mill. The amount from the subsample 

output should be about 1,100 grams. However, in order to allow for variation in sample 

size from the subsampling mill, ground samples between 900 and 1,300 grams will be 

accepted by the laboratory. USDA-approved laboratories have been instructed to return 

samples outside this range to the submitting inspection office and report all 

unacceptable samples to FSIM. The entire amount of the ground subsample must be 

placed in a plastic bag or other suitable container and marked or labeled with the 

appropriate sample number and other necessary identification such as lot number, mill 

number, date, etc. Keep in mind you are not permitted to discard any portion of the 

ground sample to comply with the above requirements. Complete a 187 or a 184-9A 

and enclose a copy with each subsample sent to the laboratory. The date entered in 

the upper right corner of the form must be the date sampling began. When the 

sampling date is different from the date the subsample is prepared, it must be noted on 

the 187 in the “Date Sent” block.

NOTE: Ground samples received with less than 900 or more than 1,300 grams may be 

returned, which could prove cause for the lot having to be resampled.

CLEANING THE SUBSAMPLING MILL

1. After grinding a sample, let the mill run long enough to completely clean out the 

grinding chamber before stopping.

2. Remove the grinding chamber and carefully remove and discard all material from 

the screen, funnel, etc. Some type of air pressure is necessary to clean these 

parts.

3. Lift the hinged cover over the subsampling section and use a long-handled brush 

to sweep all material from inside the subsampling section and spout into the 

subsample pan.

4. Remove the subsample pan with the subsample from the mill.

5. Clean the inside edges of the vertical vanes to make sure no loose particles fall 

onto the grinding chamber platform after cleaning or when the grinding chamber 

is replaced. Carefully sweep all material from the blades of the mill and from the 
Inspection Instructions for Milled Peanuts (April 2023) 

74

grinding chamber platform. The blades may be rotated by hand to expose the 

entire platform.

6. Reclean the hinged top, the subsampling section, and the spout to make sure no 

loose particles are present. Close the cover.

7. Replace the grinding chamber and lock it in place with thumbscrews.

8. Clean the subsampling pan and return it to the mill.

9. A complete cleaning of the subsampling mill is required after grinding each 

sample.

10. The 1/4-inch screen is the largest opening permitted for official samples.

USE OF THE VERTICAL CUTTER MILL 

In addition to the Dickens Subsampling Mill, the vertical cutter mill (VCM) is also 

approved for grinding aflatoxin samples. This device produces a paste-like substance 

as opposed to the peanut meal produced by the Dickens Mill. Unlike the Dickens Mill, 

the VCM has no subsampling capability. Once the entire 48-pound aflatoxin sample is 

ground, the inspector must use a spoon or spatula to take small amounts of paste from 

various locations of the resulting mixture, eventually obtaining a portion of 

approximately 1,100 grams (again, labs may return samples outside the 900 to 1,300-

gram range). This sample must be placed in an airtight, non-leaking container (zip lock 

bag, etc.) for shipment to the lab for analysis. All other paperwork (187 or 184-9A) must 

be completed just as if using the Dickens Mill. Ensure that the entire VCM mixing 

apparatus is thoroughly cleaned before grinding the next sample.

AFLATOXIN SAMPLE DESIGNATIONS

The following designations are for ground subsamples and laboratory tests.

CATEGORY I 

The designations in this category are the only aflatoxin samples officially recognized by 

SCI, MDD, and FSA.

MDD SAMPLING PLAN FOR SHELLED PEANUT SUBSAMPLES

These are the ground subsamples from the initial three 48-pound official samples 

required by MDD for aflatoxin analysis.
Inspection Instructions for Milled Peanuts (April 2023) 

75

Subsample “1-AB”

“1-AB” is the designation used to identify the ground subsample extracted from the 

48-pound Sample “#1.” The two laboratory tests from this sample are identified as “1-A” 

and “1-B” and are analyzed by a USDA or USDA-approved lab. The original copy of the 

187 or designated copies of the 184-9A must be enclosed with subsample “1-AB.” A 

fee charge must be shown on the 187, to be paid by the handler or receiver of the lot. If 

any additional costs are involved for sampling or preparation of subsample “1-AB,” 

charge it on the 184-9A.

Subsample “1-CD” 

“1-CD” must be used to identify the second subsample from the 48-pound Sample “#1,” 

which is extracted at the same time as subsample “1-AB,” by use of the two-spout

grinder. The “1-CD” subsample is furnished only upon request. The two tests from this 

sample are identified as “1-C” and “1-D” and are analyzed by a USDA-approved 

manufacturers’ lab. When subsample “1-CD” has been requested, the Inspection 

Service will hold Subsample “1-AB” until notified whether it will be required. The “1-AB” 

sample will be required when the average test results “1-C” and “1-D” is reported to be 

more than 8 ppb or at applicant’s request. If this occurs, only a USDA-approved lab 

may be used to analyze Sample 1-AB.

Fill out a separate 187 for subsample “1-CD” and “1-AB.” If known, the results of the 

two laboratory tests from subsample “1-CD” must be reported under the appropriate 

heading of the 187 for subsample “1-AB.” 

Example: If the average ppb for “1-C” + “1-D” is reported to be more than 8 ppb, the 

results must be reported on the 187 and the original enclosed with subsample “1-AB” for 

delivery to the laboratory. However, if the average ppb for “1-C” + “1-D” is reported to 

be 8 ppb or less, state the following on the 187 for “1-AB”: “[Name of Lab] reported as 

negative on [Date].” The original copy of the 187 must be filed in the FSIS office. Then, 

with the applicant’s approval, subsample “1-AB” may be discarded.

Subsample “2-AB”

“2-AB” is used to identify the ground subsample extracted from the 48-pound “#2” 

sample. The two laboratory tests from this sample are identified a “2-A” and “2-B.” This 

subsample must be sent to a USDA or USDA-approved lab when the average test 

results for “1-A” + “1-B” is reported to be 9 ppb up to and including 45 ppb.

Enter the sheller, or any other financially interested party requesting aflatoxin sampling, 

as the applicant on the 187 and charge for normal costs of sample preparation for 

subsample “2-AB.” If extra expenses are involved due to retrieving the 48-pound 

sample from a location other than the sheller’s premises, then the sheller must be 

charged the additional cost. Mail the original copy of the 187 to the applicant and a 

copy enclosed with subsample “2-AB.” 
Inspection Instructions for Milled Peanuts (April 2023) 

76

The average ppb as reported by the laboratory for “1-A” + “1-B” must also be shown 

under the “Remarks” heading of the 187.

Subsample “3-AB”

“3-AB” is used to identify the ground subsample extracted from the 48-pound Sample 

“#3.” The two laboratory tests from this sample are identified as “3-A” and “3-B.” This 

subsample is to be sent to a USDA or USDA-approved lab when the average test 

results of “1-A” + “1-B” + “2-A” + “2-B” is reported to be 13 ppb up to and including 23 

ppb. The sheller will be listed as the applicant on the 187 and charged for normal costs 

involving sample preparation. The original copy of the 187 must be mailed to the 

applicant and a copy enclosed with subsample “3-AB.” If the average ppb for “2-A” + “2-

B” is reported by the lab, then this value must be shown in the “2-AB” heading in the 

sample designation area of the 187. If the average of “1-A” + “1-B” + “2-A” + “2-B” is 

given, then that value must be entered in the “2-AB” heading, including the word 

“average” (or the abbreviation “avg.”). See the following page for diagram of sampling 

plan.
Inspection Instructions for Milled Peanuts (April 2023) 

77

AFLATOXIN SAMPLING PLAN
Inspection Instructions for Milled Peanuts (April 2023) 

78

COSTS

All costs involved in sampling and testing “Subsample 1-CD” are applied to the lot 

buyer(s)’s account. The cost of the assay on “Subsample 1-AB” and a portion of the 

cost of drawing the three 48-pound samples, grinding Sample #1, and preparation and 

delivery of “Subsample 1-AB” (or Sample #1) to the laboratory, are applied to the 

applicant’s account. Also, apply the following costs to the applicant’s account:

1. Cost of grinding and subsampling Sample #2 and delivering “Subsample 2-AB” to 

the lab.

2. Cost of lab analysis for tests “2-A” and “2-B.” 

3. Cost of grinding and subsampling Sample #3 and delivering “Subsample 3-AB” to 

the lab.

4. Cost of lab analysis for tests “3-A” and “3-B.” 

If any of the samples/subsamples are lost, misplaced, or spoiled, and replacement 

samples are needed, the entire cost of drawing new samples is applied to the 

applicant’s account.

Packing Samples

Ensure that all containers are packed and closed securely before mailing or transporting 

to the laboratory.

Subsamples Given to Applicant

Discourage turning subsamples over to the applicant for delivery to the lab unless there 

is justification for doing so. When it is deemed necessary to give subsamples to the 

applicant for delivery to the lab, they must be bagged, sewn, and/or sealed in a manner 

in accordance with official PLI procedures.

Subsamples Designated as Appeal Sample “1-6” 

These samples are analyzed when the result of the original analysis is in question. 

Such samples may be drawn at shipping point or at destination. The sampling 

procedure and sample preparation for “Appeal Samples” is basically the same as 

outlined for subsample “1-AB,” “2-AB,” and “3-AB,” except as follows:

1. Draw sample from at least 50% of the bags (see Aflatoxin Appeals section for 

procedures when drawing samples from bulk containers or bulk trailers and 

cars).
Inspection Instructions for Milled Peanuts (April 2023) 

79

2. Grind the entire 144-pound sample and send only 1 subsample (the total output 

from the subsampling mill - approximately 3,300 grams) to the lab for analysis. If 

a Dickens Subsampling Mill is not available at destination, the unground 144-

pound sample may be sent to the lab. The laboratory will run 6 analyses for all 

appeals.

3. Mark the sample container “Appeal Sample 1-6.” If the sample consists of more 

than one container, mark them as “1 of 6,” “2 of 6,” “3 of 6,” etc.

4. Check the “Appeal” block under the “Sample Designated” section.

5. Charge all costs to the account of the applicant.

6. Send appeal samples only to USDA or USDA-approved laboratories. See the 

following for instructions.

AFLATOXIN APPEALS

FSA PEANUT PURCHASE PROGRAM

FSA requires that all lots offered for the Peanut Purchase Program must be pre-tested 

for aflatoxin in accordance with MDD regulations. If a lot’s initial aflatoxin certificate was 

negative, it is acceptable for the Peanut Purchase Program and will not have to be 

updated. If the lot has been certified positive for aflatoxin, it may either be appealed or 

blanched. A failing lot that is blanched must have its PLI maintained throughout the 

blanching process and then must be retested for aflatoxin. 

APPEAL AFLATOXIN SAMPLING PLAN

In addition to the initial sampling and testing pursuant to the official “Sampling Plan” on 

any lot of shelled peanuts, any financially interested party may request an “appeal” 

sample for aflatoxin purposes. Such requests must be made to a licensed inspector, 

FSIS, or the Federal Program Manager.

“Appeal” sampling may be applied to lots of peanuts packed in bags, bulk containers, or 

bulk railcars or trailers and before or after shipment from the handler’s premises. For 

bagged lots, draw appeal samples from at least 50% of the bags in the lot. If the lot is 

packed in bulk containers, railcars, or trailers, the appeal sample may be drawn by 

using an in-line mechanical sampler (while the initial sample is being drawn) provided

that the sampling rate is at least one sample cut from every 250 pounds of product at 

the handler’s premises and held by the inspector or (under PLI procedures) by the 

handler. The appeal sample may also be drawn by the inspector at the manufacturer’s 

plant provided that a mechanical device approved by the Inspection Service that is 

capable of extracting an appropriate sample is made available to the inspector and 

further provided that PLI has been maintained on the lot. PLI is considered to have 

been maintained on bulk carriers if the official seals remain intact on the latches of the 
Inspection Instructions for Milled Peanuts (April 2023) 

80

doors of all openings (normally used for unloading cargo) at the bottom of the bulk 

carrier.

The gross amount of peanuts drawn in each official appeal sample must be at least 144 

pounds. The inspector must forward the entire 144-pound sample to the lab. If an 

approved subsampling mill is made available, the entire 144-pound sample may be 

ground and subsampled with the entire portion of the ground material diverted by the 

subsampling mill (approximately 3,300 grams) forwarded to the lab. In order to allow for 

variation in sample size from the subsampling mill, ground samples weighing between 

2,700 and 3,900 grams will be acceptable. USDA and USDA-approved laboratories 

have been instructed to return samples outside this range to the submitting inspection 

office and report all unacceptable samples to FSIM.

Samples received with less than 2,700 or more than 3,900 grams may be returned by 

the lab, which would require the lot(s) to be resampled.

Either a 187 or a copy of the 184-9A must accompany the 144-pound sample (or 3,300-

gram subsample) to the lab. Only USDA or USDA-approved labs are eligible to analyze 

official appeal samples. 

The entire subsample can be analyzed as three subsamples of approximately 1,100 

grams each with two tests on each subsample, or as six subsamples of half that size 

with a test on each subsample. Regardless of the analysis method, show six test 

results on the certificate, listing the individual test results as: Subsample #1, 

Subsample #2, Subsample #3, Subsample #4, Subsample #5, and Subsample #6. 

All costs involved in appeal sampling and testing are applied to the applicant’s account. 

Accordingly, lab certificates must be issued to them in their name.

APPEAL AFLATOXIN SAMPLING OF SHELLED PEANUTS IN CARTONS, BULK BINS,

OR TOTE/SUPER SACKS WITH THE DICKENS PNEUMATIC AFLATOXIN SAMPLER

J. W. Dickens of ARS developed a method and procedure for drawing aflatoxin samples 

from bulk bins, cartons, or tote/super sacks. Samples drawn by this method must be 

used only for aflatoxin testing. It is the applicant’s responsibility to furnish the sampler 

outside of peanut producing areas.

The approved sampler consists of a 5 foot by 1 inch (inside diameter) thin-walled

aluminum (or steel) sample tube, a 15 foot by 1 inch (inside diameter) flexible hose with 

smooth bore, and a shop-vac with casters. The sample tube is connected to the flexible 

hose which is mounted to the intake of the shop-vac. 

The sampling tube, flexible hose, and fittings to connect the flexible hose to the shopvac may be purchased from Georgia Federal-State Shipping Point Inspection Service, 

Inc., P.O. Box 71767, Albany, Georgia, 31708-1767, Phone: 229-432-6201. The shop-
Inspection Instructions for Milled Peanuts (April 2023) 

81

vac may be purchased directly from a supplier. Contact your local FSIS office for a list 

of suppliers.

The pneumatic grade sampler may also be used to draw aflatoxin samples. However, a 

pneumatic aflatoxin sampler cannot be used to draw grade samples.

For appeal samples to have official status, PLI containers. Inspectors must check 

containers prior to sampling to assure that PLI has been maintained and the cover 

and/or taping of the PLI tags has not been removed.

The applicant is responsible for making containers accessible so the Dickens or 

Whitaker/Slate Pneumatic sampler can be rolled to at least one side of the carton.

Use the following procedure when aflatoxin samples are drawn from bins, 

cartons, or tote/super sacks:

Make openings for the sample tube by cutting crosses in the tops of the containers. 

Ensure each cut is approximately 3 inches long. In addition to providing entry for the 

sample tube, the opening must also provide for entry of the air removed by the sampler; 

otherwise, the sampler will not function properly.

With the fan operating, insert the sample tube through the opening in the top of the 

container and take a vertical probe from top to bottom of the container. Push the tube 

downward rapidly enough to avoid extracting an excessive quantity of peanuts. When 

the tube reaches the bottom, the fan may be stopped to prevent drawing additional 

peanuts as the tube is retracted. If the extra peanuts will not make the sample too 

large, the tube may be extracted with the fan operating. 

The quantity of peanuts taken per probe can be controlled by the rate at which the 

probe is inserted and withdrawn. Experience will enable the operator to draw the 

desired quantity of peanuts with one probe per container. The rate of sampling must be 

the same from top to bottom of a container and the same quantity must be taken from 

each container sampled. After probes are taken, close each opening with tape in order 

to maintain PLI of the lot.

CAUTION: The inspector must ensure that the Dickens or Whitaker/Slate Pneumatic 

sampler is operating properly prior to its use. If the sampler is leaking air or otherwise 

damaged, it will not sample the peanuts properly. If the inspector believes that the 

sampler is not sampling correctly, have the air velocity checked before resuming use.

Minimum Number of Probes per Container

Alternate the position of successive probes so they are taken either 1/4, 1/2, or 3/4 the 

distance from the center to one side of the container. If the first container is probed 1/4 

distance, probe the second 1/2 distance, the third 3/4 distance, etc. Take the second 

probe in a container opposite the first probe and take successive probes in the 
Inspection Instructions for Milled Peanuts (April 2023) 

82

container on center lines equal distances from those of the previous probes. Take 

multiple probes from the same container at different distances from the center of the 

container.

MECHANICAL DEVICE FOR SAMPLING BULK LOTS

A mechanical device is approved for use in drawing official appeal samples from bulk 

railcars or trailers. Availability and use of the device are as follows:

1. The sampler tube and accessories may be purchased from: Georgia FederalState Shipping Point Inspection Service, Inc., P.O. Box 71767, Albany, Georgia 

31708-1767, PH: 229-432-6201. A shop-vac with casters is also required.

2. The 25-foot flexible hose on the sampler tube allows the sample to be collected 

in the shop-vac container while it is located on the ground beside the railcar or 

trailer. Four-foot sections of the sampling tube are added as the probe is made 

from top to bottom of the shipment. These sections are then removed as the 

tube is withdrawn.

3. With the fan operating, take vertical probes from top to bottom of the shipment. 

Push the tube downward rapidly enough to avoid taking an excessive quantity of 

peanuts. The amount taken per probe can be controlled by the rate of insertion 

and withdrawal of the tube. Experience will enable the operator to draw the 

desired quantity of peanuts.

4. The rate of sampling must be the same from top to bottom and must also be the 

same through every loading hatch. In other words, make at least one top-tobottom probe through every loading hatch and make the same number of probes 

through all hatches. Have the first probe in the center of the hatch. If a second 

probe is necessary, take it at one side of the hatch.

5. If too much sample is drawn, the quantity may be reduced by properly 

subdividing the entire sample. If additional sample is needed after the first set of 

probes, make another probe through every hatch. Make the second set of 

probes more rapidly so the quantity of peanuts taken is less than taken by the 

first set of probes. The desired additional quantity of peanuts may be subdivided 

from those taken by the second set of probes and added to the peanuts taken by 

the first set.

DRAWING APPEAL AFLATOXIN SAMPLES ON SHELLED PEANUTS IN TERMINAL 

MARKETS

Sample a minimum of 50% of the containers from lots of bags and similar sized 

packages. However, if a request is made for both a grade and appeal aflatoxin 

samples, market inspectors must check with the appropriate shipping point office to 

determine if the lot was sampled with an automatic sampler. If an automatic sampler 
Inspection Instructions for Milled Peanuts (April 2023) 

83

was used at shipping point, sample 100% of the bags at the terminal market. Take at 

least one probe from every container on bulk bins and tote/super sack lots. Total 

sample weight must be approximately 144 pounds

Send the entire 144-pound sample or a ground subsample (approximately 3,300 grams) 

to an approved laboratory for analysis (see below). If requested to grind the 144-pound 

sample, the applicant must furnish a Dickens Subsampling Mill. The applicant (or their 

representative) may grind the sample, but it is the inspector’s responsibility to ensure 

that the mill is thoroughly cleaned prior to grinding.

NOTE: Inspectors must observe the grinding process, with the subsample kept under 

their surveillance at all times. 

For offices having not previously furnished ground subsamples, contact FSIM for 

additional instructions upon receiving the initial request to send a subsample in lieu of 

the 144-pound sample.

Issue a 187 for each lot sampled. See Part III of this handbook for instructions on 

completing and distributing copies of this form. Under the “Remarks” heading of the 

187, state “Appeal sample 1-6 sent to (name of laboratory and address).” Use the 

designation “Appeal sample 1-6” for either the 144-pound sample or the ground 

subsample. If the applicant requests to be notified of the laboratory results, show the 

phone number, fax number, mailing address, or e-mail address of the contact person 

under “Remarks.” 

Unless instructed otherwise by FSIM, appeal samples may be sent to any USDA or 

USDA-approved laboratory for analysis. Pay cost of shipping the sample at the point of 

shipment. If possible, arrange for the applicant to pay the charges, especially if an air 

freight service is used. The packaged sample must be turned over directly to the carrier 

by the Inspection Service. If it is necessary for the inspector to prepay the charges, bill 

the applicant for the cost.

AFLATOXIN SAMPLING REQUIREMENTS AND PROCEDURE FOR CLEANED IN-SHELL 

PEANUTS

MDD regulations do not require cleaned in-shell peanuts be tested for aflatoxin unless 

they exceed 1.00% kernels damaged by mold.

However, if tested, whether prior to or after shipment, use the following plan:

1. The applicant must contact the Federal or Federal-State Inspection Service and 

request that a sample be drawn. Sample a minimum of 10% of the containers in 

the lot (20% for appeal samples). Ensure the in-shell sample drawn is large 

enough to provide for 48 pounds of shelled kernels (approximately 70 pounds of 

in-shell peanuts). This sample is designated as “Sample #1.” 
Inspection Instructions for Milled Peanuts (April 2023) 

84

2. In the event “Sample #2” or “Sample #3” is later requested, the inspector must 

resample the lot and provide for 48 pounds of kernels for each sample 

requested.

3. In some instances, an applicant may request the inspector to draw a sample of 

sufficient size to provide for three 48-pound samples upon the initial sampling.

4. For appeals, draw all three samples at the same time.

5. In each case, the 48-pound samples are designated as “Sample #1,” “Sample 

#2,” or “Sample #3.” Analyze the samples using the existing pre-testing plan as 

described in the MDD Regulations.

AFLATOXIN SAMPLES FROM IMPORTED PEANUTS

Samples “1IMP,” “2IMP,” and “3IMP” 

These designations are used only for imported peanuts and alert aflatoxin lab personnel 

to treat the samples as imports. Use three 48-pound samples.

AFLATOXIN SAMPLES FROM PEANUT MEAL

Samples “M-1,” “M-2,” “M-3,” and “M-4”

These are samples drawn from peanut meal. When requested to draw an aflatoxin 

sample from peanut meal, sample as follows:

Draw a sample from at least 25% of the bags of sufficient size to provide 20 pounds of 

meal for aflatoxin analysis. Divide the 20-pound sample into two 10-pound samples by 

using an officially approved divider. Pack the two 10-pound samples in suitable 

containers with proper identification and mark as samples “M-1” and “M-2.” Enclose the 

original copy of the 187 with sample “M-1.” Both samples are mailed to a USDA or 

USDA-approved laboratory.

Depending upon the laboratory results of sample “M-1” and “M-2” the sheller or crusher 

may request the meal be resampled. For such requests, follow the same procedure as 

outlined above, except the two new samples are designated as “M-3” and “M-4.” On the 

second 187, state the aflatoxin results (in ppb) for the “M-1” and “M-2” samples and 

send a copy with the sample marked “M-3.” When requested by applicant, samples “M3” and “M-4” may be drawn at the same time samples “M-1” and “M-2” are drawn.

Apply all cost involved in the sampling, preparation, and delivery of the sample to the 

laboratory, and all testing for peanut meal, to the applicant’s account.
Inspection Instructions for Milled Peanuts (April 2023) 

85

UNOFFICIAL AFLATOXIN SAMPLES

CATEGORY II

The sample designations in this category are used for “special request” samples. Even 

though these samples are officially drawn, they do not have official status as related to 

MDD pre-testing requirements. When special requests are made for aflatoxin samples, 

1-AB, 2-AB, 3-AB, and numbers 1 through 6 are sample designations reserved only for 

samples officially recognized by MDD. 

SUMMARY OF UNOFFICIAL AFLATOXIN SAMPLES

Below is a list of sample designation codes and corresponding meanings provided as a 

reference to the various sources and types of unofficial quality control samples.

Use the number “8” as the lowest “number” when referring to unofficial quality control 

samples, except when the “1-CD” is not requested, and an extra ground sample is 

furnished from the second spout of Sample #1. Then, it is designated as “AF-7-CD.” 

If only 1 analysis is requested, designate the sample using the letter “C.” If 2 analyses 

are requested, designate the sample using the letters “CD.” 

CODE MEANING AND DESIGNATIONS

AF-7-CD: The ground subsamples from the second spout of a No. 1 aflatoxin sample 

when the “1-CD” has not been requested.

8: Whole peanuts drawn separately from the official 144-pound sample and submitted 

as whole peanuts. If peanuts are blanched, designate as “Blanched 8.” This 

designation may also be used for samples submitted for lots destined for the European 

Union (E.U.). 

8C: Same as above, except the sample has been ground and the 900-to-1,300-gram

subsample is submitted for 1 analysis. If peanuts are blanched, designate as “Blanched 

8C.” 

8CD: Same as above, except 2 analyses are requested. If peanuts are blanched, 

designate as “Blanched 8CD.” 

AF: Designations beginning with the prefix “AF” signifies samples from an unused 

portion of the official 144-pound sample. This designation may also be used for 

samples submitted for lots destined for the E.U.
Inspection Instructions for Milled Peanuts (April 2023) 

86

AF-EX: Sample designations ending with the letters “EX” signifies that extra peanuts 

were drawn at the same time as the official 144-pound sample. These “extras” are in 

addition to the official 144-pound sample. 

For the purpose of uniformity in reporting the various types of unofficial samples, the 

following designations have been adopted.

Samples “8,” “9,”, “10,” etc.

These designations are used when additional peanuts are drawn separately from the 

official sample and the unground sample is sent to the laboratory. Begin the 

designations with number “8” and continue in numerical order. If peanuts are blanched, 

designate as “Blanched 8,” “Blanched 9,” “Blanched 10,” etc. This designation may also 

be used for samples submitted for lots destined for the E.U.

Subsamples “8-CD,” “9-CD,” “10-CD,” etc.

These designations are used when additional peanuts have been drawn separately 

from the three official samples and only the ground subsample is sent to the lab. 

Sending subsamples designated with the letters “CD” indicates to the lab that they are 

to run two separate analyses. If the applicant specifically requests that only one 

analysis be made, the samples are designated as “8-C,” “9-C,” “10-C,” etc. If peanuts 

are blanched, designate as “Blanched 8-C,” “Blanched 9-C,” “Blanched 10-C,” etc.

Samples “AF-8,” “AF-9,” etc.

When samples are furnished from an unused portion of the official 144-lb. aflatoxin 

sample, their designation must be prefixed with the letters “AF.” For example, if official 

samples #2 and #3 were not required by the laboratory, but requested by the receiver, 

these samples would be designated “AF-8” and “AF-9” to indicate they were from the 

official aflatoxin samples 2 and 3. This designation may also be used for samples 

submitted for lots destined for the E.U.

Subsamples “AF-7CD,” “AF-8CD,” “AF-9CD,” etc.

Ground subsamples furnished from a portion of the official 144-lb. aflatoxin sample are 

prefixed with the letters “AF” as follows: “AF-7CD,” “AF-8CD,” etc. This indicates that 

the subsample is from the second spout of the subsampling mill and was prepared at 

the same time as the “1-AB” sample. This subsample can only be furnished when the 

“1-CD” is not requested.

Subsamples “AF-8-CD-EX,” “AF-9-CD-EX,” etc.

When samples are furnished that are in addition to the official 144-lb. aflatoxin sample, 

they must be prefixed with the letters “AF” and end with the letters “EX.” If an extra 

sample of whole peanuts (unground) is requested to be drawn at the same time as the 
Inspection Instructions for Milled Peanuts (April 2023) 

87

regular 144-lb. sample, designate as “AF-8-EX.” If a ground subsample is furnished, 

designate it as “AF-8-CD-EX.” 

“AF-8C” indicates a ground subsample from the official sample was previously marked 

as #2, but the #2 was not required. In this case, since the sample is marked only with 

the letter “C,” the lab will run only one analysis. Regardless if one or two analyses are 

to be run, the amount of the total ground sample sent to the lab must be within the 

previously mentioned 900-to-1,300-gram range.

“AF-9CD” indicates a ground subsample from the official sample that was previously 

marked as #3, but not needed.

MOISTURE

The maximum moisture content permitted for human consumption under MDD

Regulations is 9.00% for shelled and 10.00% for in-shell peanuts. Determine and report 

moisture content on every inspection certificate. Report “actual” moisture content. Do 

not round results to the nearest whole number. If moisture exceeds 9.00% for shelled 

or 10.00% for in-shell peanuts, the lot fails to meet MDD Outgoing Quality requirements. 

If the lot is offered for reinspection at a later date, perform a complete grade analysis to 

certify compliance with the MDD Regulations.

SIZE

All domestic lots of shelled peanuts shipped to edible trade must meet the tolerances for 

fall-through specified in the MDD Outgoing Quality Regulations. Further, they may also 

be certified to any U.S. (or APSA grade, if applicable) using the screen size and fallthrough tolerances specified for those grades.

REPORTING SIZE

When reporting size on the certificate, state the size of the openings of the screen used 

as well as the percentage that passes through the screen in the space provided on the 

184-9A. For example, “2.18% sound whole kernels passing 16/64 x 3/4-inch slot 

screen, 0.76% sound portions passing 17/64-inch round hole screen.” 
Inspection Instructions for Milled Peanuts (April 2023) 

88

MDD MINIMUM QUALITY STANDARDS – PEANUTS FOR HUMAN 

CONSUMPTION

Lots of Whole Kernels or Whole Kernels with Splits – Maximum Limitations

Type and 

Grade 

Category

Unshelled Peanuts & 

Damaged Kernels and 

Minor Defects

Total Fall 

Through, Sound 

Whole Kernels 

and/or Sound 

Split & Broken 

Kernels

Foreign 

Material Moisture

Runner 3.50% 6.00%; 17/64-

inch round screen 0.20% 9.00%

Virginia 

(Except No. 2) 3.50% 6.00%; 17/64-

inch round screen 0.20% 9.00%

Spanish & 

Valencia 3.50% 6.00%; 16/64-inch round screen 0.20% 9.00%

No. 2 

Virginia 3.50% 6.00%; 17/64-inch round screen 0.20% 9.00%

Runner with 

Splits (Not 

more than 

15% sound 

splits)

3.50% 6.00%; 17/64-

inch round screen 0.20% 9.00%

Virginia with 

Splits (Not 

more than 

15% sound 

splits)

3.50% 6.00%; 17/64-

inch round screen 0.20% 9.00%

Spanish & 

Valencia 

with Splits 

(Not more 

than 15% 

sound splits)

3.50% 6.00%; 16/64-

inch round screen 0.20% 9.00%
Inspection Instructions for Milled Peanuts (April 2023) 

89

Lots of “Splits” – Maximum Limitations

Type and 

Grade 

Category

Unshelled Peanuts & 

Damaged Kernels and

Minor Defects

Total Fall 

Through, Sound 

Whole Kernels 

and/or Sound 

Split & Broken 

Kernels

Foreign 

Material Moisture

Runner (Not 

less than 

90% splits)

3.50%

6.00%; 17/64-

inch round 

screen 

0.20% 9.00%

Virginia (Not 

less than 

90% splits)

3.50%

6.00%; 17/64-

inch round 

screen 

0.20% 9.00%

Spanish & 

Valencia 

(Not less 

than 90% 

splits)

3.50%

6.00%; 16/64-

inch round 

screen 

0.20% 9.00%
Inspection Instructions for Milled Peanuts (April 2023) 

90

SUMMARY OF TOLERANCES

U.S. Standards

Grade Category Other 

Types

Foreign 

Material

Damaged 

Peanuts & 

Unshelled 

Kernels

Total 

Damaged, 

Unshelled, & 

Minor Defects

U.S. Extra Large 

Virginia 0.75% 0.10% 1.00% 1.75%

U.S. Medium Virginia 1.00% 0.10% 1.25% 2.00%

U.S. No. 1 Virginia 1.00% 0.10% 1.25% 2.00%

U.S. Virginia Splits 2.00% 0.20% 2.00% 2.00%

U.S. No. 2 Virginia 2.00% 0.20% 2.50% 1 2.50% 1 

U.S. No. 1 Runner 1.00% 0.10% 1.50% 2.00%

U.S. Runner Splits 2.00% 0.20% 2.00% 2.00%

U.S. No. 2 Runner 2.00% 0.20% 2.50% 2 2.50%

U.S. No. 1 Spanish 1.00% 0.10% 1.50% 2.00%

U.S. Spanish Splits 2.00% 0.20% 2.00% 2.00%

1 The U.S. Standards for No. 2 Virginia-type peanuts provides for a tolerance of 2.50% for Total 

Damaged, Unshelled, and Minor defects, all of which may be strictly Damaged Peanuts and Unshelled 

Kernels. However, the 7 CFR Part 996 human consumption requirements provides for up to 3.50% for 

Total Damaged, Unshelled, & Minor Defects (column 5 above).

2 The U.S. Standards for No. 2 Runner-type peanuts provides for a tolerance of 2.50% for Total 

Damaged, Unshelled, and Minor defects, all of which may be strictly Damaged Peanuts and Unshelled 

Kernels. While the 7 CFR Part 996 human consumption requirements provides for the same 3.50% for 

Total Damaged, Unshelled, & Minor Defects (column 5 above).
Inspection Instructions for Milled Peanuts (April 2023) 

91

MDD Human Consumption Categories

Grade Category Other

Types

Foreign 

Material

Unshelled Peanuts & 

Damaged Kernels and 

Minor Defects

Moisture

Runner No Limit 0.20% 3.50% 9.00%

Spanish & 

Valencia No Limit 0.20% 3.50% 9.00%

Virginia 

(Except No. 2) No Limit 0.20% 3.50% 9.00%

No. 2 Virginia No Limit 0.20% 3.50% 9.00%

Runner Splits 

(Not less than 

90% splits or 

broken)

No Limit 0.20% 3.50% 9.00%

Spanish & 

Valencia Splits 

(Not less than 

90% splits or 

broken)

No Limit 0.20% 3.50% 9.00%

Virginia Splits 

(Not less 90% 

splits or broken)

No Limit 0.20% 3.50% 9.00%

Runner with 

Splits (Not more 

than 15% sound 

splits or broken)

No Limit 0.20% 3.50% 9.00%

Spanish & 

Valencia with 

Splits (Not more 

than 15% sound 

splits or broken)

No Limit 0.20% 3.50% 9.00%

Virginia with 

Splits (Not more 

than 15% sound 

splits or broken)

No Limit 0.20% 3.50% 9.00%

NOTE: “Splits” are what remains in the sample after separating out FM and any whole kernels.
Inspection Instructions for Milled Peanuts (April 2023) 

92

MAXIMUM LOT SIZE FOR EDIBLE SHIPMENTS

When a sheller desires to stockpile either shelled or cleaned in-shell peanuts and ship 

them in small lots over a period of time, tag the lots with a lot number, inspect, and 

certify as previously mentioned. Such lots may not exceed 200,000 pounds. As 

portions of the lot are shipped, the Inspection Service must, if so requested, issue 

transfer certificates covering the number of bags shipped and identify them with the 

original certificate. The 200,000-pound limitation also applies to bulk containers or bulk 

rail cars or trailers.

MDD REGULATIONS FOR “NON-EDIBLE QUALITY” SHELLED 

PEANUTS

“Non-edible quality” applies to any lot that does not meet the minimum requirements for 

human consumption. The only requirement for non-edible quality lots of peanuts is that 

they be PLI’d using red tags. Further, make the following statement under “Remarks” 

on the 184-9A when certifying non-edible peanuts: “Meets 7 CFR Part 996 for nonedible quality.” 

Non-edible quality peanut lots that do not have an aflatoxin certificate or lots with 

aflatoxin certificates showing 300 ppb or higher may only be sent to a crusher or 

exported. Non-edible quality peanuts that have an aflatoxin certificate showing less 

than 300 ppb may be sent to any non-edible outlet, but are subject to action levels set 

by the Food and Drug Administration (FDA) for aflatoxin. Non-edible quality peanuts 

are not required to be fragmented or dyed.

LOTS PACKED FOR, BUT FAILING HUMAN CONSUMPTION REQUIREMENTS

Lots that fail to meet the minimum requirements for “Human Consumption” cannot 

legally be shipped to the edible trade. Failing lots may be:

1. Blanched: Regardless of the amount of damage, FM, moisture, or fall-through 

present in the lot. Lots previously certified as exceeding aflatoxin tolerances may 

also be blanched. Lots that are moved under this provision must be PLI’d, 

accompanied by a valid grade inspection certificate, and the title retained by the 

handler until the peanuts are blanched and certified as meeting all quality 

specifications for any of the human consumption grades in the MDD Regulations, 

including fall-through. Lots that have been certified as meeting the minimum 

requirements for fall-through, damaged kernels, and/or minor defects prior to 

blanching are exempt from these requirements after blanching. However, in 

such instances, make a statement under “Remarks” as follows: “Meets 7 CFR 

Part 996 for Blanched Peanuts.” If a lot fails on fall-through, damaged kernels, 

and/or minor defects prior to blanching, determine and certify these factors after 

blanching. Also determine all other factors after blanching.
Inspection Instructions for Milled Peanuts (April 2023) 

93

NOTE: 7 CFR Part 996.50(e) stipulates that a handler’s shelled peanuts may be 

moved without PLI and grade inspection to the handler’s blanching facility that 

blanches only the handler’s peanuts. Retain the title of such peanuts by the 

handler or importer until the peanuts have been certified by the Inspection 

Service as meeting MDD outgoing quality standards.

2. Remilled: By a USDA-approved remiller if failing “human consumption” for any 

reason. There are no limits for the amount of fall-through, damage, minor 

defects, or FM that a lot may contain before it is allowed to be remilled. Lots of 

peanuts that are moved to approved commercial remillers under this provision 

must be PLI’d and accompanied by a valid grade inspection certificate with title 

retained by the handler until the peanuts are remilled and certified as meeting 

specifications of any edible grade in the MDD Regulations. Any remilled lot must 

have a negative aflatoxin certificate before disposition for human consumption.

3. Disposed of to any non-edible outlet: Provided they are PLI’d and red tagged. 

An aflatoxin certificate is required unless the lot is going to be crushed.

NOTE: Treat all residuals from failing lots that are blanched or remilled the same

as non-edible quality peanuts (see MDD Regulations for “Non-Edible Quality” 

Shelled Peanuts).

ROASTED BLANCHED LOTS

Lots that have met all MDD quality requirements, but fail on aflatoxin, may be blanched 

and immediately roasted in the same process. This is only allowed by USDA-approved 

blanchers. The Inspection Service will then draw an aflatoxin sample from the roasted 

lot. Do this process under Inspection Service surveillance in order to maintain PLI. No 

determination of quality factors is made on roasted lots. Issue a transfer certificate on 

such lots to maintain PLI of the original red-skin lot and corresponding 184-9A. The 

aflatoxin sample must be accompanied by a 187 when sent to the lab and, under 

“Remarks,” must state “above lot blanched and roasted.” 

“SHELLER OIL STOCK” QUALITY

This term applies to all peanuts or portions of peanuts that are separated from edible 

quality peanuts during the milling process by screening, sorting, or other means. The 

only requirement for “sheller oil stock” lots is that they be PLI’d using red tags or other 

methods acceptable to the Inspection Service (the same as for “non-edible quality”). 

FM and moisture may be determined on “sheller oil stock” lots at the applicant’s 

request. Such lots may be disposed of in the same manner as any non-edible quality 

lot. Determine FM for sheller oil stock using the following procedure:
Inspection Instructions for Milled Peanuts (April 2023) 

94

SAMPLE SIZE

For all lots of screenings, the minimum size sample for FM analysis is 500 grams. For 

all lots of screenings mixed with LSKs or pick-outs, the minimum size sample is 1,000 

grams. For all straight lots of LSKs or pick-outs, follow the sampling guide listed under 

Weighing the Analysis Sample.

INSPECTION PROCEDURE 

Determining FM in lots of oil stock is often a tedious and time-consuming job, especially 

in lots of screenings that contain large amounts of peanut particles and meal. Examine 

all lots closely and pick over by hand to remove FM. A Farmers’ Stock peanut sheller 

may be used to separate very fine material. If unshelled peanuts, raisins, or twisters are 

present, remove the shells and weigh them with the FM.

Ensure all shelled stock offices have at least two screens, one having 1/8-inch openings 

and the other 1/16-inch openings (about the size of window-screen wire). After the 

sample has been picked by hand, pass it over these two screens. Examine closely the 

portion of the sample that passes through the 1/8-inch screen, but rides the 1/16-inch

screen, for small pieces of FM. Check the meal that passes through the 1/16-inch

screen for dirt.

NOTE: FM means all pieces or loose particles of any substance other than peanut 

kernels or skins.

SHELLED PEANUTS ORIGINATING FROM SEG. I, II OR III, FARMERS’

STOCK

All shelled peanut lots, regardless of their original Farmers’ Stock segregation, that are 

destined for human consumption must be PLI’d, certified to a MDD human consumption 

grade, and certified negative for aflatoxin. Lots that are sent to any non-edible outlet 

are only required to be PLI’d using red tags or other methods acceptable to the 

Inspection Service (same as for “non-edible quality”). An aflatoxin certificate is also 

required unless the lot is going to be crushed.

AFLATOXIN SAMPLES FOR NON-EDIBLE QUALITY PEANUTS

Aflatoxin testing requirements for non-edible quality depends upon the category of 

peanuts and the disposition of the lot. If requested to draw such samples, use the 

procedure as outlined for shelled peanuts for human consumption.

NOTE: Apply all costs involving sampling, sample preparation, delivery of the samples 

to the laboratory, and testing for non-edible quality to the applicant’s account. 
Inspection Instructions for Milled Peanuts (April 2023) 

95

MDD REQUIREMENTS FOR CLEANED IN-SHELL PEANUTS FOR HUMAN 

CONSUMPTION

Moisture: Not more than 10.00%.

Size: No requirement.

FM: Not more than 0.50%. 

Defects: Not more than 2.00% peanuts with damaged kernels. Not more than 1.00% 

kernels damaged by mold, unless tested and found negative for aflatoxin (see Aflatoxin 

Sampling Plan for Cleaned In-Shell Peanuts).

STORAGE LOTS

MDD regulations permit shellers to transfer lots of peanuts from one of their own plants 

to their own blanching facility which only blanches that handler’s peanuts without having 

a valid grade certificate or PLI.

PLI tags may be issued prior to inspection for lots that the sheller plans to have graded 

and placed into storage at a location beyond the surveillance of the Inspection Service. 

Since the words “Federal-State Inspected” appears on the PLI tags, the Inspection 

Service and the sheller, if applicable, must maintain accurate records of all tags issued 

to ensure that all such lots are inspected and accounted for. Refer to Part II of these 

instructions for details on accountability of tags. 

NOTE: Use of official FSIS PLI tags on lots of milled peanuts that have not been 

inspected is prohibited.

INSPECTING PEANUTS FOR THE FSA PEANUT PURCHASE PROGRAM

SCI and FSIS Inspectors have the obligation for determining compliance with the FSA 

Peanut Purchase Program (Peanut Product Announcement PP-9 or simply, “PP-9”). 

Also, SCI and FSIS inspectors are involved in ascertaining these quality requirements. 

FSIS inspectors are responsible for determining quality and size requirements, drawing 

aflatoxin samples from red skin or blanched lots, and maintaining PLI for custom 

blanched lots. SCI inspectors are responsible for maintaining PLI from the time raw 

peanuts are delivered to a processing plant through the processing of the end product. 

To assist SCI in determining compliance of the raw product, it is important that both 

update and transfer certificates indicate whether a lot meets PP-9 requirements. When 

requested to perform an update inspection, determine from the applicant if the lot is 

intended for the FSA purchase program. If so, state on the certificate whether the lot 

meets or fails to meet PP-9 for roasting, peanut butter, or granules, whichever 

applicable (see item #9 on following pages).
Inspection Instructions for Milled Peanuts (April 2023)

96

To comply with PP-9, shelled peanuts used in the manufacture of peanut butter, roasted 

peanuts, and peanut granules must meet the following requirements:

1. Produced in the USA.

2. Produced from the current crop year stocks or as specified in the applicable bid 

invitation.

3. Pre-tested for aflatoxin at the contractor’s expense in accordance with 7 CFR 

Part 996 by a USDA or USDA-approved laboratory and found to be negative.

4. If it is determined that the lot does not meet the aflatoxin requirements based on 

the original analysis or by means of an appeal inspection certificate, resample,

and test the lot for aflatoxin after blanching (provided blanching is required).

5. The quality of the shelled peanuts utilized in this program must be within the 

requirements of the current grades shown in Tables 1 and 2 (following page), 

provided that a tolerance of not more than 2.00% by weight is permitted for minor 

defects and damaged combined, including therein not more than 1.25% for 

damage; and provided further for lots required to be U.S. No. 1 Grade or better, 

peanuts may contain no more than 3.00% split or broken kernels; or when 

peanuts are removed from cold storage or when remilled prior to usage, the lot of 

peanuts may contain no more than 6.00% split or broken kernels. Alternatively, 

manufacturers are authorized to use U.S. No. 2 Virginia lots containing a 

minimum of 80.0% splits.

Grades listed in Tables 1 and 2 allow a damage tolerance in excess of the 

restricted 1.25% damage tolerance specified in the peanut purchase 

announcement. For example, a lot of Runner type peanuts containing 1.30% 

damage would grade U.S. No. 1 Runner and meet MDD Regulations for human 

consumption, but fail PP-9 purchase specifications.

NOTE: Tables 1 and 2 list the grades allowed for purchase under this announcement. 

All lots of peanuts meeting one of the grades in the following tables must also meet the 

requirements specified in item #5.
Inspection Instructions for Milled Peanuts (April 2023) 

97

Table 1: Peanut grades that may be used for peanuts processed into peanut 

butter and peanut granules. 

U.S. Grades APSA Grades

U.S. No. 1 Runner APSA Jumbo Runner

U.S. No. 1 Spanish APSA Medium Runner

U.S. No. 1 Virginia APSA No. 1 Runner

U.S. Runner Splits APSA Runner Grades with Splits

U.S. Spanish Splits APSA Runner Splits

U.S. Virginia Splits APSA No. 2 or Small Runner 

U.S. Extra Large Virginia Valencia type

U.S. Medium Virginia

U.S. No. 2 Virginia (minimum 80% splits)

Table 2: Grade and minimum sizes for peanuts processed from roasted peanuts. 

Grade Minimum Screen Size

U.S. No. 1 Runner 16/64 x 3/4-inch slot

U.S. No. 1 Spanish 15/64 x 3/4-inch slot

U.S. No. 1 Virginia 18/64 x 1 inch slot

U.S. Extra Large Virginia 20/64 x 1 inch slot

U.S. Medium Virginia 18/64 x 1 inch slot

APSA Jumbo Runner 21/64 x 3/4-inch slot

APSA Medium Runner 18/64 x 3/4-inch slot

Valencia type 15/64 x 3/4-inch slot

6. The rail cars or trailers in which peanuts are loaded must be clean, sanitary, and 

in a condition to protect the commodity during transit so that the peanuts arrive at 

destination free from contamination.

7. Except for lots where the finished product is unblanched roasted Spanish type 

peanuts, the contractor may elect to blanch the peanuts en route, in which case it 

is their responsibility to inform custom blanchers that the Inspection Service must 

be given advance notice of any incoming lot. The notice must include:

a. The dates the lot will arrive at the blanching facility;
Inspection Instructions for Milled Peanuts (April 2023) 

98

b. The lot manifest;

c. The lot identification;

d. The name of the prime contractor; and

e. The announcement and invitation number under which the lot is being 

tendered as well as the type of end product to be manufactured for 

delivery.

The Inspection Service must monitor the lot for PLI. Manufacturers of 

commercial peanut butter may use any USDA-approved blanching facility. The 

Peanut Purchase Program does not require a lot be inspected after blanching as 

long as it has a valid inspection certificate showing size and grade factors met 

the requirements of the announcement prior to blanching and PLI has been 

maintained.

NOTE: The Memorandum of Understanding (MOU) between MDD and approved 

blanchers requires all lots that fail the Outgoing Quality Requirements for any 

reason be inspected and certified as meeting MDD requirements for grade, size 

(unless meeting size prior to blanching), and aflatoxin before the lot may be 

manufactured into finished product or shipped to a manufacturer.

Once a lot that has met the requirements of the announcement has been 

blanched and PLI has been maintained, issue a transfer certificate containing a 

statement showing compliance with the announcement.

8. The original certificates for grade and aflatoxin showing that grade factors and 

aflatoxin levels met the requirements of the announcement is all that is required. 

Updates will not be required. However, maintain PLI.

9. A statement showing compliance with the announcement will usually not appear 

on the grade certificate since it is not normally known at the time of inspection if 

the lot is destined for the peanut purchase program. However, if this fact is 

known at the time of the original inspection and the lot meets the requirements of 

the announcement, then a statement showing compliance with the 

announcement may be shown on the grade certificate under “Remarks” to read 

as follows: “Meets Quality Requirements of FSA Announcement (number) for 

(Peanut Butter/Peanut Granules/Roasted Peanuts).” For example, “Meets 

Quality Requirements of FSA Announcement PP-9 for Peanut Butter.” 
Inspection Instructions for Milled Peanuts (April 2023) 

99

PART V – GUIDELINES FOR LOTS PROCESSED BY USDA

APPROVED BLANCHERS AND REMILLERS

OVERVIEW

Under the following provisions, blanching, remilling, and roasting may only be 

performed by those firms who agree to procedures acceptable to USDA (or their agent) 

and who are approved by USDA to do such blanching or remilling.

I. PEANUTS FAILING HUMAN CONSUMPTION REQUIREMENTS ACCOUNT QUALITY,

SIZE, AND/OR AFLATOXIN (TO BE BLANCHED) 

A. Sample at the same rate as other inspections for human consumption quality.

B. Determine all grade factors after blanching with the following exceptions:

1. Do not determine size, damage, and/or minor defects after blanching if the 

lot met these requirements before blanching. If not, determine size, 

damage, and minor defects after blanching.

2. When a lot meets these requirements before blanching, omit them on the 

certificate. However, if size, damage, or minor defects are requested to 

be shown on the certificate after blanching, include a statement in the 

“Remarks” section stating that they have been “determined and reported 

at applicant’s request.” 

C. Require PLI after blanching.

D. Apply all costs to the blancher’s account.

E. Place residuals (excluding hearts and skins) in containers suitable to USDA 

regulations and may be:

1. PLI’d using red tags and returned to the handler for further disposition; or

2. PLI’d and given to handlers who are crushers or to USDA approved 

crushers provided they comply will all requirements of USDA regulations.

F. Show under “Remarks” on the certificate:

1. Meets (or fails) Requirements of 7 CFR Part 996 for blanched peanuts.

2. Applicant states previous Lot No._________ and Certificate 

No._________________.
Inspection Instructions for Milled Peanuts (April 2023) 

100

II. PEANUTS FAILING HUMAN CONSUMPTION REQUIREMENTS ACCOUNT QUALITY,

SIZE, AND/OR AFLATOXIN (TO BE REMILLED) 

A. Sample at the same rate as other inspections for human consumption quality.

B. Meets all requirements of 7 CFR §996.31(a) after remilling.

C. Apply all costs to the remiller’s account.

D. Place residuals using same options as on blanched lots.

E. Show under “Remarks” on the certificate:

1. Compliance or non-compliance with 7 CFR Part 996 for Human 

Consumption.

2. Applicant states previous Lot No.________ and Certificate 

No._________________. 
Inspection Instructions for Milled Peanuts (April 2023) 

101

BLANCHING OUT-OF-GRADE LOTS – MEMORANDUM OF UNDERSTANDING

Memorandum of Understanding

Between the 

Specialty Crops Program, 

Agricultural Marketing Service, 

United States Department of Agriculture and: 

________________________________________________

(Blancher)

NAME OF PROJECT: Blancher Approval

OBJECTIVE: The purpose of this memorandum of understanding (Memorandum) is to 

authorize the United States Department of Agriculture (USDA) approved blanching

facilities the opportunity to carry out blanching under the provisions of the Peanut 

Quality and Handling Standards.

LEGAL AUTHORITY: Section 1308 of the Farm Bill Security and Rural Investment Act of 

2002 (Farm Bill) terminated the Peanut Administrative Committee (PAC), which locally 

administered the peanut marketing agreement and required the USDA to appoint a new 

Peanut Standards Board to consult with USDA on the development of peanut 

standards. Also, the Farm Bill required that all peanuts marketed in the United States 

must be officially inspected and graded by federal inspectors of federally licensed 

produced peanuts. The USDA has a Cooperative Agreement with Russ Tabb and 

Associates providing them the authority to serve as USDA Agents/Representatives with 

the ability to act on behalf of the USDA for purposes of peanut compliance. The terms 

of the program are specified in 7 CFR Part 996 Peanut Quality and Handling Standards 

for Domestic and Imported Peanuts Marketed in the United States (Standards), as 

published in the March 10, 2003, issue of the Federal Register.

REVISION: July 19, 2004 

EFFECTIVE DATE: August 2, 2004

ORGANIZATION: USDA/AMS/Specialty Crops Program/ Market Development 

Division/DC Marketing Field Office

LOCATION: Washington, DC / Riverdale, MD / Albany, GA
Inspection Instructions for Milled Peanuts (April 2023)

102

RESPONSIBILITIES:

A. Blanching Facility:

1. Blancher will, on an individual lot basis, custom blanch lots of shelled 

peanuts which fail to meet Section 996.31 (a) of the Standards for 

disposition to human consumption outlets. For the purposes of this 

Memorandum, custom blanching means the process of removing the skins 

from peanut kernels and the subsequent removal of damaged kernels, 

kernels suspect of aflatoxin contamination, and foreign material.

2. Blancher agrees to blanch each lot of peanuts as a separate unit; or 

alternatively, lots of peanuts, owned by the same handler, may be 

combined with compatible lots of peanuts of similar type and grade 

category and similar aflatoxin content, in a composite blanching operation.

3. Blancher agrees to maintain complete records on each lot to be blanched, 

including the number of containers and weight of the lot, the positive lot 

identification, covering grade certificate, and any other information as 

required by the USDA Agent/Representative.

4. Blancher agrees to maintain complete records on the blanching process, 

whether each lot is blanched as a separate unit or is combined in 

composite with other lots. The records shall consist of the identification of 

all peanuts included in the blanching process and all blanching information 

including: the number of containers and weight of each blanched lot, the 

positive lot identification, covering grade and aflatoxin certificates, reject 

peanuts and other material, and any other information as required by the 

USDA Agent/Representative.

5. Blancher agrees that records applicable to the lot, before and after 

blanching, shall be retained by Blancher for at least two (2) years from the 

date of blanching of the lot and shall be available for examination by 

representatives of the USDA.

6. Blancher agrees that the blanched product shall be positive lot identified 

and placed in suitable containers acceptable to the USDA 

Agent/Representative and the handler who owns the peanuts.

7. Blancher agrees to cause each lot of blanched peanuts to be sampled by 

an in-line automatic sampler operating in a manner acceptable to the 

USDA Agent/Representative and an inspector of the Federal or FederalState Inspection Service or, in the alternative, to cause samples to be 

drawn by the inspector. The sample shall be representative of the lot and 

the gross amount of the sample shall be large enough to provide for a 
Inspection Instructions for Milled Peanuts (April 2023)

103

grade analysis, for grading check-sample, and the prescribed samples for 

aflatoxin assay.

8. Blancher agrees that no lot of blanched peanuts shall be manufactured 

into finished product or shipped to a manufacturer, until the results of the 

grade and aflatoxin analysis on the blanched lot are known and the 

covering certificates have been received and examined. Furthermore, to 

be eligible for disposal into human consumption outlets, the peanuts after 

blanching, must be certified as meeting the requirements for disposition to 

human consumption outlets specified in the table in Section 996.31 (a) of 

the Standards and must be accompanied by an aflatoxin certificate 

determined, by USDA criteria, to be negative.

9. Blancher agrees that the residual peanuts, excluding skins and hearts, 

resulting from blanching under these provisions, shall be placed in suitable 

containers acceptable to the USDA Agent/Representative and red-tagged 

and disposition shall be that the peanuts are returned to the handler for 

further disposition; or in the alternative, the residuals shall be positive lot 

identified by a Federal or Federal-State Inspection Service, and shall be 

disposed of by Blancher to handlers who are crushers or to crushers who 

are not handlers under the Standards only on the condition that they agree 

to comply with the terms of paragraph (b) of Section 996.50 and all other 

applicable requirements of the Standards.

10. Blancher agrees to maintain compliance with the provisions of Section 

996.74 of the Standards.

11. Except as provided herein, Blancher agrees not to blanch any lot of 

peanuts unless the peanuts meet the grade and size requirements for 

human consumption as defined in the Standards.

12. Nothing contained herein shall obligate either the USDA 

Agent/Representative or Blancher to any specific lot or any number of lots.

13. Blancher may terminate this Memorandum by written notice to the USDA 

Agent/Representative, but such termination shall not apply as to any 

peanuts to which the Memorandum was applicable prior to the effective 

time of termination, which shall be thirty (30) days after written notice.

14. USDA Agent/Representative may amend, suspend, or terminate this 

Memorandum by written notice to Blancher and the effective time shall be 

as specified in the written notice, after the date of the written notice. 

Specifically, the USDA Agent/Representative may terminate, or suspend 

for a specified period of time, this Memorandum upon USDA’s 

determination of Blancher’s failure to comply with the provisions stated or 

referred to herein.
Inspection Instructions for Milled Peanuts (April 2023)

104

B. USDA

1. USDA Agent/Representative will supervise the blanching of the first five 

(5) lots under the applicable Standards.

2. USDA Agent/Representative will examine each lot and appropriate 

certificates and other documents and determine whether the lot has been 

satisfactorily handled and has been “Successfully Blanched.”

3. USDA Agent/Representative will instruct the blanching facility 

management regarding the Standards as to blanching, record keeping, 

etc.

4. In carrying out its responsibilities, the USDA Agent/Representative 

reserves the right to take any corrective actions necessary to ensure that 

the blanching operations are properly administered in accordance with the 

Standards.

BASIS OF COOPERATION:

This Memorandum defines in general terms the basis on which the parties concerned 

will cooperate, and does not constitute a financial obligation to serve as a basis for 

expenditures. Each party will handle and expend its own funds. Any and all 

expenditures from Federal funds in the USDA made in conformity with the plans 

outlined in the Memorandum must be in accord with USDA rules and regulations and in 

each instance based upon appropriate finance papers. Expenditures made by any 

other cooperator will be in accord with its rules and regulations.

The responsibilities assumed by the cooperating parties under this Memorandum are 

contingent upon funds being available from which expenditures legally may be met.
Inspection Instructions for Milled Peanuts (April 2023)

105

DURATION:

This Memorandum shall be in force until terminated by either party upon thirty (30) days 

written notice or amended by mutual agreement of the undersigned.

We, the undersigned, agree to the terms of this agreement and understand the 

responsibilities outlined herein. It is further agreed that all parties can revise this 

agreement at any time upon mutual consent.

_______________________________ Sworn and subscribed before me this 

USDA Agent/Representative the ___ day of ______________, _____

(For the USDA Agent/Representative)

Title: ___________________________

Date: ___________________________

________________________________ Sworn and subscribed before me this

Blancher the ___ day of ______________, _____

(For the Blancher)

Title: ___________________________

Date: ___________________________
Inspection Instructions for Milled Peanuts (April 2023) 

106

CUSTOM REMILLING – MEMORANDUM OF UNDERSTANDING

Memorandum of Understanding

Between the 

Specialty Crops Program, 

Agricultural Marketing Service, 

United States Department of Agriculture and: 

________________________________________________

(Remiller)

NAME OF PROJECT: Remiller Approval

OBJECTIVE: The purpose of this memorandum of understanding (Memorandum) is to 

authorize United States Department of Agriculture (USDA) approved remilling facilities 

the opportunity to carry out remilling under the provisions of the Peanut Quality and 

Handling Standards.

LEGAL AUTHORITY: Section 1308 of the Farm Bill Security and Rural Investment Act of 

2002 (Farm Bill) terminated the Peanut Administrative Committee (PAC), which locally 

administered the peanut marketing agreement and required the USDA to appoint a new 

Peanut Standards Board to consult with USDA on the development of peanut 

standards. Also, the Farm Bill required that all peanuts marketed in the United States 

must be officially inspected and graded by federal inspectors of federally licensed 

produced peanuts. The USDA has a Cooperative Agreement with Russ Tabb and 

Associates providing them the authority to serve as USDA Agents/Representatives with 

the ability to act on behalf of the USDA for purposes of peanut compliance. The terms 

of the program are specified in 7 CFR Part 996 Peanut Quality and Handling Standards 

for Domestic and Imported Peanuts Marketed in the United States, as published in the 

March 10, 2003, issue of the Federal Register.

REVISION: July 19, 2004 

EFFECTIVE DATE: August 2, 2004

ORGANIZATION: USDA/AMS/Specialty Crops Program/ Market Development 

Division/DC Marketing Field Office

LOCATION: Washington, DC / Riverdale, MD / Albany, GA
Inspection Instructions for Milled Peanuts (April 2023)

107

RESPONSIBILITIES:

A. Remilling Facility:

1. Remiller will, on an individual lot basis, custom remill lots of shelled 

peanuts which fail to meet Section 996.31 (a) of the Standards for 

disposition to human consumption outlets. For the purposes of this 

Memorandum, custom remilling means a mechanical process whereby 

lots of shelled raw peanuts are sized, sorted and otherwise processed for 

removal of undersize or broken or damaged kernels, kernels suspect of 

aflatoxin contamination and foreign material.

2. Remiller agrees to hold and remill peanuts owned by one handler 

separate and apart from all other peanuts. However, a single remilling 

operation may include a composite of more than one lot of peanuts owned 

by the same handler, provided that the integrity of the peanuts involved in 

the composite remilling is maintained throughout the remilling process.

3. Remiller agrees to maintain complete records on each lot to be remilled, 

including the number of containers and weight of the lot, the positive lot 

identification, covering grade certificate, and any other information as 

required by the USDA Agent/Representative.

4. Remiller agrees to maintain complete records on the remilling process, 

and the new lot (or lots) resulting from the remilling and peanuts removed 

in the remilling process, including: the number of containers and weights 

on each resulting lot, covering grade and aflatoxin certificates and any 

other information as required by the USDA Agent/Representative.

5. Remiller agrees that records applicable to the lot, before and after 

remilling, shall be retained by Remiller for at least two (2) years from the 

date of remilling of the lot and shall be available for examination by 

representatives of the USDA.

6. Remiller agrees that after remilling, each new lot of peanuts shall be 

positive lot identified and placed in commercial peanut burlap bags, or in 

other suitable containers acceptable to the USDA Agent/Representative 

and the handler who owns the peanuts.

7. Remiller agrees to cause each remilled lot of peanuts to be sampled by an 

in-line automatic sampler operating in a manner acceptable to the USDA 

Agent/Representative and an inspector of the Federal or Federal-State 

Inspection Service or, in the alternative, to cause samples to be drawn by 

the inspector. The sample shall be representative of the lot and the gross 

amount of the sample shall be large enough to provide for a grade 
Inspection Instructions for Milled Peanuts (April 2023)

108

analysis, for grading check-sample, and the prescribed samples for 

aflatoxin assay.

8. Remiller agrees that no lot of peanuts remilled under these provisions 

shall be blanched or roasted or further processed, or manufactured into 

finished product or shipped to a manufacturer, until the results of the 

grade analysis and all aflatoxin certificates on the remilled lot are known 

and the covering certificates have been received and examined. 

Furthermore, to be eligible for disposal into human consumption outlets, 

the peanuts after remilling, must be certified as meeting the requirements 

for disposition to human consumption outlets specified in the table in 

Section 996.31 (a) of the Standards and must be accompanied by an 

aflatoxin certificate determined, by USDA criteria, to be negative. Remiller 

further agrees that any lot not eligible for disposal to human consumption 

outlets after remilling, shall be returned to the handler; or in the alternative, 

the lot shall be held by Remiller until further disposition, as requested by 

the handler, and is directed by the USDA Agent/Representative. Any 

further disposition shall also be reported to the USDA 

Agent/Representative as specified.

9. Remiller agrees that the residual peanuts removed in remilling under 

these provisions, shall be bagged and red-tagged and disposition shall be 

that the peanuts are returned to the handler for further disposition; Or, in 

the alternative, the residuals shall be positive lot identified by a Federal or 

Federal-State Inspection Service, and shall be disposed of by the Remiller 

to handlers who are crushers or to crushers who are not handlers under 

the Standards only on the condition that they agree to comply with the 

terms of paragraph (b) of Section 996.50 and all other applicable 

requirements of the Standards.

10. Except as provided herein, Remiller agrees not to remill any lot of peanuts 

unless the peanuts meet the grade and size requirements for human 

consumption as defined in the Standards.

11. Nothing contained herein shall obligate either USDA Agent/Representative 

or Remiller to any specific lot or any number of lots.

12. Remiller may terminate this Memorandum by written notice to the USDA 

Agent/Representative, but such termination shall not apply as to any 

peanuts to which the Memorandum was applicable prior to the effective 

time of termination, which shall be thirty (30) days after written notice.

13. USDA Agent/Representative may amend, suspend or terminate this 

Memorandum by written notice to Remiller and the effective time shall be 

as specified in the written notice, after the date of the written notice. 

Specifically, the USDA Agent/Representative may terminate, or suspend 
Inspection Instructions for Milled Peanuts (April 2023)

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for a specified period of time, this Memorandum upon USDA’s 

determination of Remiller’s failure to comply with the provisions stated or 

referred to herein.

B. USDA

1. USDA Agent/Representative will supervise the remilling of the first five (5) 

lots under the applicable Standards.

2. USDA Agent/Representative will examine each lot and appropriate 

certificates and other documents and determine whether the lot has been 

satisfactorily handled and has been “Successfully remilled.”

3. USDA Agent/Representative will instruct the remilling facility management 

regarding the Standards as to remilling, record keeping, etc.

4. In carrying out its responsibilities, the USDA Agent/Representative 

reserves the right to take any corrective actions necessary to ensure that 

the remilling operations are properly administered in accordance with the 

Standards.

BASIS OF COOPERATION:

This Memorandum defines in general terms the basis on which the parties concerned 

will cooperate, and does not constitute a financial obligation to serve as a basis for 

expenditures. Each party will handle and expend its own funds. Any and all 

expenditures from Federal funds in the USDA made in conformity with the plans 

outlined in the Memorandum must be in accord with USDA rules and regulations and in 

each instance based upon appropriate finance papers. Expenditures made by any 

other cooperator will be in accord with its rules and regulations.

The responsibilities assumed by the cooperating parties under this Memorandum are 

contingent upon funds being available from which expenditures legally may be met.
Inspection Instructions for Milled Peanuts (April 2023)

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DURATION:

This Memorandum shall be in force until terminated by either party upon thirty (30) days 

written notice or amended by mutual agreement of the undersigned.

We, the undersigned, agree to the terms of this agreement and understand the 

responsibilities outlined herein. It is further agreed that all parties can revise this 

agreement at any time upon mutual consent.

_______________________________ Sworn and subscribed before me this

USDA Agent/Representative the ___ day of ______________, _____

(For the USDA Agent/Representative)

Title: __________________________

Date:___________________________

________________________________ Sworn and subscribed before me this

Remiller the ___ day of ______________, _____

(For the Remiller)

Title: __________________________

Date:___________________________
Inspection Instructions for Milled Peanuts (April 2023) 

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FURTHER PROCESSING OF LOTS PREVIOUSLY CERTIFIED AS MEETING HUMAN 

CONSUMPTION REQUIREMENTS

LOTS PREVIOUSLY CERTIFIED AS MEETING 7 CFR PART 996 HUMAN 

CONSUMPTION REQUIREMENTS AND PROCESSED AT THE HANDLER’S OWN 

PROCESSING FACILITY

Usually, these lots are being further processed for the account of an end-user 

(manufacturer) to meet their unique specifications. Because these lots are being 

commingled and/or reconstituted at the receiver’s request, inspection and PLI are not 

required by the Regulations. The applicant may, however, request the Inspection 

Service to inspect and certify these lots and/or draw aflatoxin samples. Certification of 

such lots differs from lots that are required to be certified as meeting 7 CFR Part 996 

regulations and must be certified under the following guidelines:

Lots may be certified as to compliance or non-compliance of any U.S. grade or APSA 

grade. Lots may also be certified as to compliance or non-compliance with 7 CFR 

Part 996 with the certification statement immediately followed by “and reported at 

applicant’s request.” This “applicant’s request” statement need not be shown on 

certificates for lots that fail to meet 7 CFR, Part 996 human consumption requirements.

If an applicant requests an appeal for aflatoxin, designate samples for these lots as

“Appeal Sample 1-6.” If an applicant is not requesting an appeal, but is requesting an 

official quality control sample, designate those samples as “8” (unground), or “8C” 

(ground), or “8-CD” (ground). Only aflatoxin samples for lots handled under USDA 

Regulation 7 CFR Part 996 can be designated as “Sample 1” or “1-AB.” 

If the residue from these in-grade lots is commingled into a new lot and retained in the 

name of the Handler instead of being shipped with the good lot back to the receiver, 

then these new commingled lots must be inspected and certified for compliance or noncompliance with USDA Regulations for either human consumption or non-edible quality.

LOTS PREVIOUSLY CERTIFIED AS MEETING 7 CFR PART 996 HUMAN 

CONSUMPTION REQUIREMENTS AND FURTHER PROCESSED AT A CUSTOM 

BLANCHER/REMILLER

Usually, these lots are further processed to meet a customer’s unique specifications. 

Since the “USDA Memorandum of Understanding” with a Custom Blancher/Remiller 

only covers lots that fail to meet MDD outgoing quality and aflatoxin requirements, these 

lots are not covered under USDA Regulations and must be certified as follows:

Lots may be certified as to compliance or non-compliance of any U.S. grade or APSA 

grade. These lots may also be certified as to compliance or non-compliance with edible 

quality and size requirements of the USDA Regulations with the certification statement 

immediately followed by “and reported at applicant’s request” in the “Remarks” section 
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of the certificate. If a blancher requests an inspection to determine quality factors, 

except size, damage, and/or minor defects, on a lot that previously met the 

requirements of the USDA Regulations, then after the certification statement state “for 

blanching, and reported at applicant’s request.”

The residue from these lots is usually retained by the blancher and commingled into 

new lots. These commingled lots are not covered by the USDA Memorandum of 

Understanding and inspection is not required. However, the blancher may request a 

grade and aflatoxin certification on these lots. Such lots of commingled residue culled 

from in-grade lots may be certified as outlined above or may be certified to non-edible 

quality for the USDA Regulations with the certification statement showing that it is being 

reported at applicant’s request.

NOTE: In the above situation, always cross out the “Meets Requirements of ...” and 

“Fail Requirements of ...” on the 184-9A. This will help to prevent someone from 

interpreting the certificate as being a certification required under the USDA regulations.

If an applicant requests an aflatoxin sample on any of these lots, designate the sample 

as follows:

If the lot is being certified for compliance or non-compliance with the USDA regulations, 

then the aflatoxin sample may be designated as “Appeal 1-6” or an officially drawn “8”

or “8-CD” sample. The designations “Sample No. 1” or “1-AB,” etc., cannot be used for 

these lots.
Inspection Instructions for Milled Peanuts (April 2023) 

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APPENDIX I – OFFICIAL TRADING RULES OF THE AMERICAN PEANUT 

SHELLERS ASSOCIATION (APSA)

The American Peanut Shellers Association (APSA) has established kernel size and 

grade classifications as part of the Association’s Official Trading Rules. The following 

pages contain instructions pertaining to these grade classifications. They may also be 

accessed by visiting the following link:

http://www.peanut-shellers.org/pdf/tradingrules.pdf. 

Use caution in determining the exact percentages of various classes of defective 

kernels even though they may exceed the U.S. grade tolerance or tolerances 

established by the Association. Adjustments in prices are sometimes made on the 

basis of the exact percentage reported on the certificate regardless of whether the 

percentage is within or exceeds a given tolerance.

AMERICAN PEANUT SHELLERS ASSOCIATION SHELLED, IN-SHELL TRADING 

RULES, REVISED MAY 19, 2021

APSA SHELLED RUNNER PEANUTS - GRADES

Section 1. Jumbo Runner. Jumbo Runner consists of shelled Runner type peanut 

kernels of similar varietal characteristics which are whole and free from foreign material, 

damage, and minor defects, and which will either meet an average of 38-42 count per 

ounce or which will not pass through a screen having 21/64 x 3/4-inch openings.

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight, shall be permitted:

(1) 1.00 percent for other types of peanuts;

(2) 5.00 percent for sound peanuts which are split or broken;

(3) 3.50 percent for damage and minor defects combined;

(4) 0.20 percent for foreign material;

(5) 9.00 percent for moisture;

(6) 6.00 percent for sound whole kernels which will pass through the prescribed 

screen as to fall through; or if size is based on count per ounce, the average 

count per ounce shall be within the specified range.

(7) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through.

Section 2. Medium Runner. Medium Runner consists of shelled Runner type peanut 

kernels of similar varietal characteristics which are whole and free from foreign material, 

damage, and minor defects, milled through a screen having 21/64 x 3/4-inch openings 

and which will not pass through a screen having 18/64 x 3/4-inch openings. In order to 
Inspection Instructions for Milled Peanuts (April 2023) 

114

allow for variations incident to proper grading and handling, the following tolerances, by 

weight, shall be permitted:

(1) 1.00 percent for other types of peanuts;

(2) 5.00 percent for sound peanuts which are split or broken;

(3) 3.50 percent for damage and minor defects combined;

(4) 0.20 percent for foreign material;

(5) 9.00 percent for moisture;

(6) 6.00 percent for sound whole kernels which will pass through the prescribed 

screen as to fall through; and

(7) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through.

Section 3. APSA No. 1 Runner. No. 1 Runner consists of shelled Runner type 

peanut kernels of similar varietal characteristics which are whole and free from foreign 

material, damage, and minor defects, milled through a screen having 18/64 x 3/4-inch 

openings and which will not pass through a screen having 16/64 x 3/4-inch openings. 

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight, shall be permitted: 

(1) 1.00 percent for other types of peanuts; 

(2) 5.00 percent for sound peanuts which are split or broken; 

(3) 3.50 percent for damage and minor defects combined; 

(4) 0.20 percent for foreign material; 

(5) 9.00 percent for moisture; 

(6) 6.00 percent for sound whole kernels which will pass through the prescribed 

screen; and 

(7) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through.

Section 4. Runner Grades with Splits. Runner grades described in foregoing 

Sections 1, 2 and 3 and further identified by the words “with splits” as follows: “Jumbo 

Runner with Splits,” “Medium Runner with Splits,” and “No. 1 Runner with Splits”. 

Tolerances to allow variations incident to proper grading and handling shall be the same 

as those set forth in the above sections; except 15.00 percent for sound peanuts which 

are split or broken, of which not over 6.00 percent will pass through a 17/64-inch round 

opening screen, shall be permitted.

Section 5. Runner Splits. Runner Splits consists of shelled Runner type peanut 

kernels of similar varietal characteristics which are split or broken, but which are free 

from foreign material, damage and minor defects and which will not pass through a 

screen having 17/64-inch round openings. Not less than 90.00 percent, by weight, shall 

be splits.
Inspection Instructions for Milled Peanuts (April 2023) 

115

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight shall be permitted:

(1) 2.00 percent for other types of peanuts;

(2) 3.50 percent for damage and minor defects combined;

(3) 0.20 percent for foreign material;

(4) 9.00 percent for moisture; and 

(5) otherwise meet Minimum Quality Standards for splits published in 7 CFR Part 

996 as to fall through and percent split and broken kernels. 

Section 6. APSA No. 2 Runner. No. 2 Runner consists of shelled Runner type 

peanut kernels of similar varietal characteristics which may be split or broken, but which 

are free from foreign material, damage, and minor defects, and which will not pass 

through a screen having 17/64-inch round openings. 

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight, shall be permitted:

(1) 2.00 percent for other types of peanuts;

(2) 3.50 percent for damage and minor defects combined;

(3) 0.20 percent for foreign material;

(4) 9.00 percent for moisture; and 

(5) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through.

Section 7. Application of Tolerances. The tolerances provided in these standards 

are on a lot basis and shall be applied to a composite sample representative of the lot. 

However, any container or group of containers in which peanuts are obviously of a 

quality materially different from that in the majority of containers shall be considered a 

separate lot, and shall be sampled separately.

APSA SHELLED SPANISH PEANUTS - GRADES

Section 1. Jumbo Spanish. Jumbo Spanish consists of shelled Spanish type peanut 

kernels of similar varietal characteristics which are whole and free from foreign material, 

damage and minor defects, and which will either meet an average of 42-58 count per 

ounce or which will not pass through a screen having 18x64 x 3/4 inch 

openings.

In order to allow for variations to proper grading and handling, the following 

tolerances, by weight, shall be permitted:

(1) 1.00 percent for other types of peanuts;

(2) 5.00 percent for sound peanuts which are split or broken;

(3) 3.50 percent for damage and minor defects combined;

(4) 0.20 percent for foreign material;
Inspection Instructions for Milled Peanuts (April 2023) 

116

(5) 9.00 percent for moisture;

(6) 6.00 percent for sound whole peanuts which will pass through the prescribed 

screen; and

(7) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through.

Section 2. No. 1 Spanish. No. 1 Spanish consists of shelled Spanish type peanut 

kernels of similar varietal characteristics which are whole and free from foreign material, 

damage and minor defects, and which will not pass through a screen having 15x64 x 

3/4-inch openings.

In order to allow for variations to proper grading and handling, the following tolerances, 

by weight, shall be permitted:

(1) 1.00 percent for other types of peanuts;

(2) 5.00 percent for sound peanuts which are split or broken;

(3) 3.50 percent for damage and minor defects combined;

(4) 0.20 percent for foreign material;

(5) 9.00 percent for moisture;

(6) 6.00 percent for sound whole peanuts which will pass through the prescribed 

screen; and

(7) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through.

Section 3. Spanish Splits. Spanish Splits consists of shelled Spanish type peanut 

kernels of similar varietal characteristics which are split or broken but are free from 

foreign material, damage and minor defects, and which will not pass through a screen 

having 16/64-inch round openings. Not less than 90.00 percent, by weight, shall be 

splits.

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight shall be permitted:

(1) 2.00 percent for other types of peanuts;

(2) 3.50 percent for damage and minor defects combined;

(3) 0.20 percent foreign material;

(4) 9.00 percent for moisture; and

(5) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through and percent split and broken kernels.

Section 4. No. 2 Spanish. No. 2 Spanish consists of shelled Spanish type peanut 

kernels of similar varietal characteristics which may be split or broken, but which are 

free from foreign material, damage and minor defects, and which will not pass through a 

screen having 16/64-inch round openings.
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117

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight, shall be permitted:

(1) 2.00 percent for other types of peanuts;

(2) 3.50 percent damage and minor defects combined;

(3) 0.20 percent foreign material;

(4) 9.00 percent for moisture; and

(5) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through. 

Section 5. Application of Tolerances. The tolerances provided in these standards 

are on a lot basis and shall be applied to a composite sample representative of the lot. 

However, any container or group of containers in which the peanuts are obviously of a 

quality materially different from that in the majority of containers shall be considered a 

separate lot, and shall be sampled separately.

APSA SHELLED VIRGINIA PEANUTS

Section 1. Extra Large Virginia. Extra Large Virginia consists of shelled Virginia 

type peanut kernels of similar varietal characteristics which are whole and free from 

foreign material, damage and minor defects, and which will not pass through a screen 

having 20/64 x 1-inch openings. 

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight, shall be permitted:

(1) 0.75 percent for other varieties of peanuts;

(2) 5.00 percent for sound peanuts which are split or broken;

(3) 3.50 percent damage and minor defects combined 

(4) 0.20 percent for foreign material; and

(5) 9.00 percent for moisture

(6) 6.00 percent for sound, whole peanuts which will pass through the prescribed 

screen; and 

(7) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through.

Section 2. Medium Virginia. Medium Virginia consists of shelled Virginia type 

peanut kernels of similar varietal characteristics which are whole and free from foreign 

material, damage and minor defects, and which will not pass through a screen having 

18/64 x 1-inch openings. 

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight, shall be permitted:

(1) 1.00 percent for other varieties of peanuts;

(2) 5.00 percent for sound peanuts which are split or broken;
Inspection Instructions for Milled Peanuts (April 2023) 

118

(3) 3.50 percent for damage and minor defects combined.

(4) 0.20 percent for foreign material

(5) 9.00 percent for moisture; 

(6) 6.00 percent for sound, whole peanuts which will pass through the prescribed 

screen; and 

(7) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through.

Section 3. No. 1 Virginia. No. 1 Virginia consists of shelled Virginia type peanut 

kernels of similar varietal characteristics which are whole and free from foreign material, 

damage and minor defects, and which will not pass through a screen having 15/64 x 1-

inch openings. 

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight, shall be permitted:

(1) 1.00 percent for other varieties of peanuts;

(2) 5.00 percent for sound peanuts which are split or broken;

(3) 3.50 percent damage and minor defects combined;

(4) 0.20 percent for foreign material

(5) 9.00 percent for moisture

(6) 6.00 percent for sound, whole peanuts which will pass through the prescribed 

screen; and 

(7) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through. 

Section 4. Virginia Splits. Virginia Splits consists of shelled Virginia type peanut 

kernels of similar varietal characteristics which are free from foreign material, damage 

and minor defects, and which will not pass through a screen having 20/64-inch round 

openings. Not less than 90.00 percent, by weight, shall be splits.

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight, shall be permitted:

(1) 2.00 percent for other varieties of peanuts;

(2) 3.50 percent for damaged or unshelled peanuts and minor defects;

(3) 0.20 percent for foreign material;

(4) 9.00 percent for moisture; 

(5) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through and percent split and broken kernels.

Section 5. No 2 Virginia. No. 2 Virginia consists of shelled Virginia type peanut 

kernels of similar varietal characteristics which may be split or broken, but which are 

free from foreign material, damage and minor defects, and which will not pass through a 

screen having 17/64-inch round openings.
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119

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight, shall be permitted:

(1) 2.00 percent for other varieties of peanuts;

(2) 3.50 percent for damaged or unshelled peanuts and minor defects;

(3) 0.20 percent for foreign material;

(4) 9.00 percent for moisture; and

(5) otherwise meet Minimum Quality Standards published in 7 CFR Part 996 as to 

fall through.

Section 6. Application of Tolerances. The tolerances provided in these standards 

are on a lot basis and shall be applied to a composite sample representative of the lot. 

However, any container or group of containers in which the peanuts are obviously of a 

quality materially different from that in the majority of containers shall be considered a 

separate lot, and shall be sampled separately.

APSA IN-SHELL VIRGINIA PEANUTS - GRADES

Section 1. Jumbo Hand Picked. Jumbo Hand Picked shall consist of cleaned 

Virginia type peanuts in the shell which are mature, dry, and free from loose peanut 

kernels, dirt or other foreign material, pops, paper ends, and from damage caused by 

cracked or broken shells, discoloration or other means. The kernel shall be free from 

damage from any cause. In addition, the peanuts either shall not pass through a screen 

having 37/64 x 3-inch perforations or shall not average more than 176 count per pound. 

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight, shall be permitted:

1. 11.00 percent total for pops, peanuts having paper ends or damaged shells, 

loose undamaged peanut kernels, and dirt or other foreign material, but not more 

than one-twentieth of this amount, or 0.50 percent shall be allowed for dirt or 

other foreign material.

2. 15.00 percent for peanuts which will pass through the prescribed screen, but 

which are free from pops and from peanuts having paper ends or damaged 

shells, or if the size is based on count per pound, the average count per pound 

shall not be more than 176 count per pound.

3. 3.5 percent for peanuts with damaged kernels and damaged loose kernels.

Section 2. Fancy Hand Picked. Fancy Hand Picked shall consist of cleaned Virginia 

type peanuts in the shell which are mature, dry, and free of loose peanut kernels, dirt or 

other foreign material, pops, paper ends, and from damage caused by cracked or 

broken shells, discoloration or other means. The kernels shall be free from damage 

from any cause. In addition, the peanuts either shall not pass through a screen having 

32/64 x 3-inch perforations, or shall not average more than 225 count per pound. 
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120

In order to allow for variations incident to proper grading and handling, the following 

tolerances, by weight, shall be permitted.

1. 12.00 percent total for pops, peanuts having paper ends or damaged shells, 

loose undamaged peanut kernels, and dirt or other foreign material, but not more 

than one twenty-second of this amount, or 0.50 percent, shall be allowed for dirt 

or other foreign material.

2. 15.00 percent for peanuts which will pass through the prescribed screen, but 

which are free from pops and from peanuts having paper ends or damaged 

shells, or if the size is based on count per pound, the average count per pound 

shall not be more than 225 count per pound.

3. 3.5 percent for peanuts with damaged kernels, and damaged loose kernels.

Section 3. Unclassified. Unclassified shall consist of cleaned Virginia type peanuts 

in the shell which fail to meet the requirements of either of the foregoing grades. The 

term “unclassified” is not a grade within the meaning of these standards but is provided 

as a designation to show that no definite grade has been applied to the lot.

Section 4. Application of Tolerances. The tolerances provided in these standards 

are on a lot basis and shall be applied to a composite sample representative of the lot. 

However, any container or group of containers in which peanuts are obviously of a 

quality materially different from that in the majority of containers shall be considered a 

separate lot, and shall be sampled separately.
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121

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR U.S.

STANDARDS FOR SHELLED PEANUTS
Inspection Instructions for Milled Peanuts (April 2023) 

122

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR APSA GRADES 

FOR SHELLED SPANISH PEANUTS
Inspection Instructions for Milled Peanuts (April 2023) 

123

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR U.S. GRADES 

FOR SHELLED SPANISH PEANUTS
Inspection Instructions for Milled Peanuts (April 2023) 

124

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR APSA GRADES 

FOR RUNNER PEANUTS
Inspection Instructions for Milled Peanuts (April 2023) 

125

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR APSA GRADES 

FOR SHELLED VIRGINIA PEANUTS
Inspection Instructions for Milled Peanuts (April 2023) 

126

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR U.S. GRADES 

FOR SHELLED VIRGINIA PEANUTS
Inspection Instructions for Milled Peanuts (April 2023) 

127

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR APSA

GRADES FOR IN-SHELL VIRGINIA PEANUTS

 
Inspection Instructions for Milled Peanuts (April 2023) 

128

SUMMARY OF SCREEN SIZES AND TOLERANCES (BY WEIGHT) FOR MDD GRADES 

FOR HUMAN CONSUMPTION (7 CFR PART 996)
Inspection Instructions for Milled Peanuts (April 2023) 

129

SUMMARY OF SHELLER OIL STOCK REQUIREMENTS
Inspection Instructions for Milled Peanuts (April 2023)

130

THIS PAGE INTENTIONALLY LEFT BLANK
Inspection Instructions for Milled Peanuts (April 2023) 

131

APPENDIX II – LIST OF OFFICIAL USDA PEANUT VISUAL AIDS

Do not use the reproduced photos below for color critical comparison, but use 

the official hardcopies of the visual aids. The photos below are for identification 

only (showing what the visual aid looks like).

PN-2 (revised 1983)

Shell Discoloration on Valencia type 

peanuts.

PN-CP-1 and PN-CP-2 (August 1986)

Top photo: Surface Discoloration 

(PN-CP-1).

Bottom photo: Adhering Dirt on peanuts 

(PN-CP-2).

PN-CP-5 (January 1996)

Adhering material on peanut kernels.
Inspection Instructions for Milled Peanuts (April 2023)

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PEN-CP-3 (revised September 1982)

Aspergillus Flavus Mold identification.

PEN-CP-3-A (June 1989)

“Mini-Mold” and A-Flavus comparison.

PEN-CP-3-B (June 1989)

“Mini-Mold” and A-Flavus comparison.

PEN-CP-4 (December 1973)

Shell Discoloration of Virginia type milled 

peanuts.
Inspection Instructions for Milled Peanuts (April 2023)

133

PEN-CP-6 (revised September 1989)

Peanut kernels showing freeze damage.

PEN-CP-8 (June 1996)

Farmers’ stock peanuts showing “Not 

Raisins” and “Raisins” (“Twister”).

PN Photo No.7 (June 1968)

Guide for scoring Virginia type peanuts in 

the shell showing “not damaged” and 

“damaged” shells.

PN-1 (revised 2010)

Peanut Color Comparator for Brown, Gray, 

Blue-gray and Purple Skin Discoloration on 

peanuts.

PN-CC-1 (April 2014)

Peanut Color Comparator for minimum 

Light Yellow Color for scoring Flesh 

Discoloration.
Inspection Instructions for Milled Peanuts (April 2023)

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PNT-CP-7 (September 1992)

High moisture foreign material for peanuts.

PNT-CP-9 (July 2000)

Visual aid for Purple Flesh Discoloration, 

maximum allowed before minor.

PNT-CP-10 (February 2003)

Visual aid for Green Flesh Discoloration, 

maximum allowed before minor.

PNT-CP-11 (February 2014)

Identification only for concealed Rancid, 

Mold, and Decay.
Inspection Instructions for Milled Peanuts (April 2023) 

135

APPENDIX III – CERTIFICATE EXAMPLES

EXAMPLE 1: MEETS 7 CFR PART 996 FOR BLANCHED PEANUTS. 
Inspection Instructions for Milled Peanuts (April 2023) 

136

EXAMPLE 2: RUNNER TYPE PEANUTS. MEETS 7 CFR PART 996 FOR HUMAN 

CONSUMPTION. 
Inspection Instructions for Milled Peanuts (April 2023) 

137

EXAMPLE 3: U.S. NO. 1 RUNNER. MEETS APSA “MEDIUM RUNNER.” 
Inspection Instructions for Milled Peanuts (April 2023) 

138

EXAMPLE 4: BLANCHED U.S. RUNNER SPLITS. MEETS APSA “RUNNER 

SPLITS.”
Inspection Instructions for Milled Peanuts (April 2023) 

139

EXAMPLE 5: SC-184-12-CG TRANSFER CLEARANCE CERTIFICATE
Inspection Instructions for Milled Peanuts (April 2023) 

140

EXAMPLE 6: SC-187-CG NOTICE OF SAMPLING. NO. 2 AFLATOXIN SAMPLE. 
Inspection Instructions for Milled Peanuts (April 2023) 

141

EXAMPLE 7: MEETS 7 CFR PART 996 FOR NON-EDIBLE QUALITY. 
Inspection Instructions for Milled Peanuts (April 2023) 

142

EXAMPLE 8: SC-184-12CG TRANSFER CLEARANCE CERTIFICATE ON A NONEDIBLE QUALITY LOT. 
Inspection Instructions for Milled Peanuts (April 2023) 

143

APPENDIX IV – 7 CFR PART 996, EFFECTIVE FEBRUARY 1, 2018 

7 CFR, Agriculture, CHAPTER IX

AGRICULTURAL MARKETING SERVICE (Marketing Agreements and Orders; 

Fruits, Vegetables, Nuts), DEPARTMENT OF AGRICULTURE

PART 996 - MINIMUM QUALITY AND HANDLING STANDARDS FOR DOMESTIC 

AND IMPORTED PEANUTS MARKETED IN THE UNITED STATES

DEFINITIONS

Sec.

996.1 Act and scope 

996.2 Conditional release 

996.3 Crop year

996.4 Handle

996.5 Handler 

996.6 Importation

996.7 Importer

996.8 Incoming inspection 

996.9 Inshell peanuts 

996.10 Inspection Service

996.11 Negative aflatoxin content

996.12 Outgoing inspection

996.13 Peanuts

996.14 Person

996.15 Positive lot identification

996.16 Producer

996.17 [Reserved]

996.18 Secretary

996.19 Shelled peanuts

996.20 USDA

996.21 USDA laboratory

996.22 USDA-approved laboratory 

QUALITY AND HANDLING STANDARDS

996.30 Incoming quality standards

996.31 Outgoing quality standards

996.40 Handling standards

996.50 Reconditioning failing quality peanuts

996.60 Safeguard procedures for imported peanuts

REPORTS AND RECORDS

996.71 Reports and recordkeeping

996.72 Confidential information
Inspection Instructions for Milled Peanuts (April 2023)

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996.73 Verification of reports

996.74 Compliance

996.75 Effective time

Authority: 7 U.S.C. 7958.

Source: 67 FR 57140, Sept. 9, 2002, unless otherwise noted.

DEFINITIONS

§ 996.1 Act and scope. Act means Public Law 107-171, or the Farm Security and 

Rural Investment Act of 2002, enacted May 13, 2002. None of the definitions or 

provisions of this part shall apply to any other part or program (including, but not limited 

to, any program providing for payments or loans to peanut producers or other persons 

interested in peanuts or peanut quotas) unless explicitly adopted in such other part or 

program. 

§ 996.2 Conditional release. Conditional release means release from U.S. Customs 

Service custody to the importer for purposes of handling and USDA required sampling, 

inspection and chemical analysis.

[68 FR 1157, Jan. 9, 2003]

§ 996.3 Crop year. Crop year means the calendar year in which the peanuts were 

planted as documented by the applicant for inspection.

[81 FR 50287, Aug. 1, 2016]

§ 996.4 Handle. Handle means to engage in the receiving or acquiring, cleaning and 

shelling, cleaning in-shell, or crushing of domestic or imported peanuts and in the 

shipment (except as a common or contract carrier of peanuts owned by another) or sale 

of cleaned in-shell or shelled peanuts or other activity causing peanuts to enter into 

human consumption channels of commerce: Provided, That this term does not include 

sales or deliveries of peanuts by a producer to a handler or to an intermediary person 

engaged in delivering peanuts to handler(s): And provided further, That this term does 

not include sales or deliveries of peanuts by such intermediary person(s) to a handler. 

§ 996.5 Handler. Handler means any person who handles peanuts, in a capacity other 

than that of a custom cleaner or dryer, an assembler, a warehouseman or other 

intermediary between the producer and the person handling peanuts. 

§ 996.6 Importation. Importation means the arrival of foreign produced peanuts at a 

port-of-entry with the intent to enter the peanuts into channels of commerce of the 

United States. 
Inspection Instructions for Milled Peanuts (April 2023)

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§ 996.7 Importer. Importer means a person who engages in the importation of foreign 

produced peanuts into the United States.

[68 FR 1157, Jan. 9, 2003]

§ 996.8 Incoming inspection. Incoming inspection means the sampling, inspection, 

and certification of farmers stock peanuts to determine segregation and grade quality. 

§ 996.9 Inshell peanuts. Inshell peanuts means peanuts, the kernels or edible portions 

of which are contained in the shell in their raw or natural state which are milled but 

unshelled.

[81 FR 50288, Aug. 1, 2016]

§ 996.10 Inspection Service. Inspection Service means the Federal Inspection 

Service, Specialty Crops Program, Agricultural Marketing Service, USDA or the 

Federal-State Inspection Service.

[81 FR 50288, Aug. 1, 2016]

§ 996.11 Negative aflatoxin content. Negative aflatoxin content means 15 parts per 

billion (ppb) or less for peanuts that have been certified as meeting edible quality grade 

standards. 

§ 996.12 Outgoing inspection. Outgoing inspection means the sampling, inspection, 

and certification of either: shelled peanuts which have been cleaned, sorted, and 

otherwise prepared for further processing; or in-shell peanuts which have been cleaned, 

sorted, and otherwise prepared for further processing.

[81 FR 50288, Aug. 1, 2016]

§ 996.13 Peanuts. Peanuts means the seeds of the legume Arachis hypogaea and 

includes both in-shell and shelled peanuts produced in the United States or imported 

from foreign countries and intended for further processing prior to consumption by 

humans or animals, other than those intended for wildlife or those in green form for 

consumption as boiled peanuts.

(a) Farmers Stock. “Farmers stock peanuts” means picked and threshed peanuts 

which have not been shelled, crushed, cleaned or otherwise changed (except for 

removal of foreign material, loose shelled kernels, and excess moisture) from the 

form in which customarily marketed by producers. 

(b) Segregation 1. “Segregation 1 peanuts” means farmers stock peanuts with not 

more than 3.49 percent damaged kernels nor more than 1.00 percent concealed 

damage caused by rancidity, mold, or decay and which are free from visible 

Aspergillus flavus.
Inspection Instructions for Milled Peanuts (April 2023)

146

(c) Segregation 2. “Segregation 2 peanuts” means farmers stock peanuts with more 

than 3.49 percent damaged kernels or more than 1.00 percent concealed 

damage caused by rancidity, mold, or decay and which are free from visible 

Aspergillus flavus.

(d) Segregation 3. “Segregation 3 peanuts” means farmers stock peanuts with 

visible Aspergillus flavus.

[67 FR 57140, Sept. 9, 2002, as amended at 81 FR 50288, Aug. 1, 2016; 82 

FR 48758, Oct. 20, 2017]

§ 996.14 Person. Person means an individual, partnership, corporation, association, 

any other business unit or legal entity.

§ 996.15 Positive lot identification. Positive lot identification is a means of identifying 

those peanuts meeting outgoing quality regulations as defined in § 996.31 and relating 

the inspection certificate issued by the inspection service, as identified in § 996.10, to 

the lot covered so that there is no doubt that the peanuts in the lot are the same 

peanuts described on the inspection certificate.

[81 FR 50288, Aug. 1, 2016]

§ 996.16 Producer. Producer means any person in the United States engaged in a 

proprietary capacity in the production of peanuts for market. 

§ 996.17 [Reserved]

§ 996.18 Secretary. Secretary means the Secretary of Agriculture of the United States 

or any officer, employee, or agent of the United States Department of Agriculture who 

is, or who may hereafter be authorized to act in the Secretary's stead.

§ 996.19 Shelled peanuts. Shelled peanuts means the kernels or portions of kernels 

of peanuts in their raw or natural state after the shells are removed.

§ 996.20 USDA. USDA means the United States Department of Agriculture, including 

any officer, employee, service, program, or branch of the Department of Agriculture, or 

any other person acting as the Secretary's agent or representative in connection with 

any provisions of this part.

§ 996.21 USDA laboratory. USDA laboratory means laboratories of the Science and 

Technology Programs, Agricultural Marketing Service, USDA, which chemically analyze

peanuts for aflatoxin content.

§ 996.22 USDA-approved laboratory. USDA-approved laboratory means laboratories 

approved by the Science and Technology Programs, Agricultural Marketing Service, 

USDA that chemically analyze peanuts for aflatoxin content.
Inspection Instructions for Milled Peanuts (April 2023)

147

QUALITY AND HANDLING STANDARDS

§ 996.30 Incoming quality standards. 

(a) All farmers stock peanuts received or acquired by a handler shall be officially 

inspected by the Inspection Service, and certified as to segregation, moisture 

content, and foreign material. 

(b) Moisture. No handler or importer shall receive or acquire farmers stock peanuts 

for subsequent disposition to human consumption outlets containing more than 

10.49 percent moisture: Provided, That peanuts of a higher moisture content may 

be received and dried to not more than 10.49 percent moisture prior to storing or 

milling; and Provided further, That Virginia-type peanuts used for seed may be 

received or acquired containing up to 11.49 percent moisture.

[67 FR 57140, Sept. 9, 2002, as amended at 68 FR 1157, Jan. 9, 2003; 70 FR 44046, 

Aug. 1, 2005; 81 FR 50288, Aug. 1, 2016] 

§ 996.31 Outgoing quality standards. 

(a) Shelled peanuts: No handler or importer shall ship or otherwise dispose of 

shelled peanuts for human consumption unless such peanuts are positive lot 

identified, chemically analyzed by a USDA laboratory or USDA-approved 

laboratory and certified “negative” as to aflatoxin, and certified by the Inspection 

Service as meeting the following quality standards: 
Inspection Instructions for Milled Peanuts (April 2023) 

148

Minimum Quality Standards: Peanuts for Human Consumption

Whole kernels and splits – Maximum limitations

Excluding Lots of “Splits”

Type and grade 

category

Unshelled 

peanuts and

damaged kernels

and minor defects

Total fall through

sound whole 

kernels and/or 

sound split & 

broken kernels

Foreign 

materials 

Moisture

Runner 3.50% 6.00%; 17/64 inch

round screen 0.20% 9.00%

Virginia 

(Except No. 2) 3.50% 6.00%; 17/64 inch 

round screen 0.20% 9.00%

Spanish & 

Valencia 3.50% 6.00%; 16/64 inch round screen 0.20% 9.00%

No. 2 Virginia 3.50% 6.00%; 17/64 inch 

round screen 0.20% 9.00%

Runner with 

Splits (Not more 

than 15% sound 

splits)

3.50% 6.00%; 17/64 inch 

round screen 0.20% 9.00%

Virginia with 

Splits (Not more 

than 15% sound 

splits)

3.50% 6.00%; 17/64 inch 

round screen 0.20% 9.00%

Spanish & 

Valencia with 

Splits (Not more 

than 15% sound 

splits)

3.50% 6.00%; 16/64 inch 

round screen 0.20% 9.00%
Inspection Instructions for Milled Peanuts (April 2023) 

149

Lots of “Splits” 

Type and grade 

category

Unshelled 

peanuts and

damaged kernels

and minor defects

Total fall through

sound whole 

kernels and/or 

sound split & 

broken kernels

Foreign 

materials 

Moisture

Runner 

(Not less than 

90% splits)

3.50% 6.00%; 17/64 inch 

round screen 0.20% 9.00%

Virginia (Not less

than 90% splits) 3.50% 6.00%; 17/64 inch round screen 0.20% 9.00%

Spanish & 

Valencia (Not less

than 90% splits)

3.50% 6.00%; 16/64 inch 

round screen 0.20% 9.00%

(b) Cleaned in-shell peanuts: No handler or importer shall ship or otherwise dispose 

of cleaned in-shell peanuts for human consumption unless such peanuts are 

Positive Lot Identified and are determined by the Inspection Service to contain: 

(1) Not more than l.00 percent kernels with mold unless a sample of such 

peanuts, drawn by an inspector of the Inspection Service, is analyzed 

chemically by a USDA laboratory or a USDA-approved laboratory and 

certified “negative” as to aflatoxin;

(2) Not more than 2.00 percent peanuts with damaged kernels; 

(3) Not more than 10.00 percent moisture; or

 

(4) Not more than 0.50 percent foreign material. 

[67 FR 57140, Sept. 9, 2002; 67 FR 63503, Oct. 11, 2002, as amended at 68 FR 46924, 

Aug. 7, 2003; 68 FR 53490, Sept. 11, 2003; 81 FR 50288, Aug. 1, 2016] 

§ 996.40 Handling standards.

(a) Identification: Each lot of shelled or cleaned in-shell peanuts intended for human 

consumption shall be identified by positive lot identification prior to being shipped 

or otherwise disposed of. Positive Lot Identification (PLI) methods are tailored to 

the size and containerization of the lot, by warehouse storage or space 

requirements, or by necessary further movement of the lot prior to certification. 

Positive Lot Identification is established by the Inspection Service and includes 

the following methods of identification. For domestic lots and repackaged import 

lots, PLI includes PLI stickers, tags or seals applied to each individual package or 
Inspection Instructions for Milled Peanuts (April 2023)

150

container in such a manner that is acceptable to the Inspection Service and 

maintains the identity of the lot. For imported lots, PLI tape may be used to wrap 

bags or boxes on pallets, PLI stickers may be used to cover the shrink-wrap 

overlap, doors may be sealed to isolate the lot, bags or boxes may be stenciled 

with a lot number, or any other means that is acceptable to the Inspection 

Service. The crop year means the calendar year in which the peanuts were 

planted as documented by the applicant. All lots of shelled and cleaned in-shell 

peanuts shall be shipped under positive lot identification procedures. However, 

peanut lots failing to meet quality requirements may be moved from a handler’s 

facility to another facility owned by the same handler or another handler without 

PLI so long as such handler maintains a satisfactory records system for 

traceability purposes as defined in § 996.73.

(b) Sampling and testing shelled peanuts for outgoing Inspection: Prior to shipment, 

the following sampling and inspection procedures shall be conducted on each lot 

of shelled peanuts intended for human consumption. The lot size of shelled or 

cleaned in-shell peanuts presented for outgoing inspection in bags or bulk shall 

not exceed 200,000 pounds. 

(1) Each handler or importer shall cause appropriate samples, based on a 

sampling plan approved by the Inspection Service, of each lot of shelled 

peanuts intended for human consumption to be drawn by the Inspection 

Service. The gross amount of peanuts drawn shall be large enough to 

provide for a grade analysis, for a grading check sample, and for three 48-

pound samples for aflatoxin chemical analysis. The three 48-pound 

samples shall be designated by the Inspection Service as “Sample 1,”

“Sample 2,” and “Sample” and each sample shall be placed in a suitable 

container and positive lot identified by means acceptable to the Inspection 

Service. Sample 1 may be prepared for immediate testing or Sample 1, 

Sample 2, and Sample 3 may be returned to the handler or importer for 

testing at a later date. Imported peanuts shall be labeled “Sample 1IMP,”

“Sample 2IMP,” and “Sample 3IMP” and handled accordingly. 

(2) Before shipment of a lot of shelled peanuts to a buyer, the handler or 

importer shall cause Sample 1 to be ground by the Inspection Service, a 

USDA laboratory or a USDA-approved laboratory, in a “subsampling mill.” 

The resultant ground subsample from Sample 1 shall be of a size 

specified by the Inspection Service and shall be designated as 

“Subsample 1-AB” and at the handler’s, importer’s or buyer’s option, a 

second subsample may also be extracted from Sample 1. It shall be 

designated as “Subsample 1-CD.” Subsample 1-CD may be sent as 

requested by the handler or buyer, for aflatoxin assay, to a USDA 

laboratory or USDA-approved laboratory that can provide analyses results 

on such samples in 36 hours. The cost of sampling and testing 

Subsample 1-CD shall be for the account of the applicant. Subsample 1-

AB shall be analyzed only in a USDA laboratory or USDA-approved 
Inspection Instructions for Milled Peanuts (April 2023)

151

laboratory. Both Subsamples 1-AB and 1-CD shall be accompanied by a 

notice of sampling or grade certificate, signed by the inspector, containing, 

at least, identifying information as to the handler or importer, and the 

positive lot identification of the shelled peanuts. 

(3) The samples designated as Sample 2 and Sample 3 shall be held as 

aflatoxin check samples by the Inspection Service or the handler or 

importer and shall not be included in the shipment to the buyer until the 

analyses results from Sample 1 are known.

(4) Upon call from the laboratory, the handler or importer shall cause Sample 

2 to be ground by the Inspection Service, USDA or USDA-approved 

laboratory in a “subsampling mill.” The resultant ground subsample from 

Sample 2 shall be of a size specified by the Inspection Service and it shall 

be designated as “Subsample 2-AB.” Upon call from the laboratory, the 

handler shall cause Sample 3 to be ground by the Inspection Service, 

USDA or USDA-approved laboratory in a “subsampling mill.” The 

resultant ground subsample from Sample 3 shall be of a size specified by 

Inspection Service and shall be designated as “Subsample 3-AB.” 

“Subsamples 2-AB and 3-AB” shall be analyzed only in a USDA laboratory 

or a USDA-approved laboratory and each shall be accompanied by a 

notice of sampling. The results of each assay shall be reported by the 

laboratory to the handler and to USDA. 

(5) Handlers and importers may make arrangements for required inspection 

and certification by contacting the Inspection Service office closest to 

where the peanuts will be made available for sampling. For questions 

regarding inspection services, a list of Federal or Federal-State Inspection 

Service offices, or for further assistance, handlers and importers may 

contact: Specialty Crops Inspection Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence Avenue SW., Room 1536-S, (STOP 

0240), Washington, DC, 20250-0240; Telephone: (202) 720-5870; Fax: 

(202) 720-0393.

(6) Handlers and importers may make arrangements for required chemical 

analysis for aflatoxin content at the nearest USDA or USDA-approved 

laboratory. For further information concerning chemical analysis and a list 

of laboratories authorized to conduct such analysis contact: Science and 

Technology Program, AMS, USDA, 1400 Independence Avenue, SW. 

STOP 0270, Washington, DC 20250-0270; Telephone (202) 690-0621; 

Fax (202) 720-4631.

(c) Appeal inspections. Any “holder of the title” to any lot of peanuts may request an 

appeal inspection if it is believed that the original aflatoxin test results were in 

error. Appeal inspections would be conducted in accordance with Federal or 

Federal-State inspection procedures for milled peanuts. The aflatoxin appeal 
Inspection Instructions for Milled Peanuts (April 2023)

152

sample would be drawn by Federal or Federal-State Inspection Service officials 

and the appeal analysis would be conducted by USDA or USDA approved 

laboratories. Any financially interested person may request an appeal inspection 

if it is believed that the original quality inspection is in error. Quality appeals 

would be conducted by Federal or Federal-State Inspection Service officials in 

accordance with the Federal or Federal-State inspection procedures of milled 

peanuts. The person requesting the appeal inspection would pay the cost of 

such appeals. The appeal inspection results shall be issued to the person 

requesting the appeal inspection and a copy shall be mailed to USDA or its 

agent. 

[67 FR 57140, Sept. 9, 2002, as amended at 68 FR 1157, Jan. 9, 2003; 68 FR 46924, 

Aug. 7, 2003; 81 FR 50289, Aug. 1, 2016]

§ 996.50 Reconditioning failing quality peanuts.

(a) Lots of peanuts which have not been certified as meeting the requirements for 

disposition to human consumption outlets may be disposed for non-human 

consumption uses: Provided, That each such lot is positive lot identified using red 

tags, identified using a traceability system as defined in 996.73, or other methods 

acceptable to the Inspection Service, and certified as to aflatoxin content (actual 

numerical count), unless they are designated for crushing. However, on the 

shipping papers covering the disposition of each such lot, the handler or importer 

shall cause the following statement to be shown: “The peanuts covered by this 

bill of lading (or invoice, etc.) are not to be used for human consumption.”

(b)

(1) Sheller oil stock residuals shall be positive lot identified using red tags, 

identified using a traceability system as defined by § 996.73, or other 

methods acceptable to the Inspection Service, and may be disposed of 

domestically or to the export market in bulk or bags or other suitable 

containers. Disposition to crushing may be to approved crushers. 

However, sheller oil stock residuals may be moved from a handler's facility 

to another facility owned by the same handler or another handler without 

PLI so long as such handler maintains a satisfactory records system for 

traceability purposes as defined in § 996.73.

(2) If such peanuts are not tested and certified as to aflatoxin content, 

pursuant to paragraph (a) of this section, the handler or importer shall 

cause the following statement to be shown on the shipping papers: “The 

peanuts covered by this bill of lading (or invoice, etc.) are limited to 

crushing only and may contain aflatoxin.”

(c) Remilling. Handlers and importers may remill, or cause to have remilled, lots of 

shelled or cleaned-inshell peanuts failing to meet the applicable outgoing quality 
Inspection Instructions for Milled Peanuts (April 2023)

153

standards in the table in § , 996.31(a). If, after remilling, such peanut lot meets 

the applicable quality standards in § 996.31, the lot may be moved for human 

consumption under positive lot identification procedures and accompanied by 

applicable grade and aflatoxin certificates.

(d) Blanching. Handlers and importers may blanch, or cause to have blanched, 

shelled peanuts failing to meet the outgoing quality standards specified in the 

table in § 996.31(a). If, after blanching, such peanut lot meets the quality 

standards in § 996.31(a), except fall through standards as specified below, the lot 

may be moved for human consumption under positive lot identification 

procedures and accompanied by applicable grade and aflatoxin certificates. 

Peanut lots certified as meeting fall through standards as specified in § 996.31(a) 

prior to blanching shall be exempt from fall through standards after blanching. 

(e) Lots of shelled peanuts moved for remilling or blanching shall be positive lot 

identified and accompanied by valid grade inspection certificate, Except That, a 

handler's shelled peanuts may be moved without PLI and grade inspection to the 

handler's blanching facility that blanches only the handler's peanuts. Lots of 

shelled peanuts may be moved for remilling or blanching to another handler 

without PLI if the handler uses a traceability system as defined in § 996.73, 

Except That, any grade inspection certificates associated with these lots would 

no longer be valid. The title of such peanuts shall be retained by the handler or 

importer until the peanuts have been certified by the Inspection Service as 

meeting the outgoing quality standards specified in the table in §996.31(a). 

Remilling or blanching under the provisions of this paragraph shall be performed 

only by those remillers and blanchers approved by USDA. Such approved 

entities must agree to comply with the handling standards in this part and to 

report dispositions of all failing peanuts and residual peanuts to USDA unless 

they are designated for crushing.

(f) Residual peanuts resulting from remilling or blanching, of peanuts shall be red 

tagged, identified using a traceability system as defined in § 996.73, or identified 

by other means acceptable to the Inspection Service, and returned directly to the 

handler for further disposition or, in the alternative, such residual peanuts shall 

be positive lot identified by the Inspection Service and shall be disposed of two

handlers who are crushers, or to approved crushers, Except That , a handler may 

move the residual peanuts without PLI to a facility for crushing owned by the 

handler. Handlers who are crushers and crushers approved by USDA must 

agree to comply with the terms and conditions of this part.

(g) Re-inspection. Whenever USDA has reason to believe that domestic or imported 

peanuts may have been damaged or deteriorated while in storage, USDA may 

reject the then effective inspection certificate and may require the owner of the 

peanuts to have a re-inspection to establish whether or not such peanuts may be 

disposed of for human consumption. 
Inspection Instructions for Milled Peanuts (April 2023)

154

(h) The cost of transportation, sampling, inspection, certification, chemical analysis, 

and identification, as well as remilling and blanching, and further inspection of 

remilled and blanched lots, and disposition of failing peanuts, shall be borne by 

the applicant. Whenever peanuts are presented for inspection, the handler or 

importer shall furnish any labor and pay any costs incurred in moving, opening 

containers, and shipping samples as may be necessary for proper sampling and 

inspection. The Inspection Service shall bill the applicant or other responsible 

entity separately for applicable fees covering sampling and inspection, delivering 

aflatoxin samples to laboratories, positive lot identification measures, and other 

certifications as may be necessary to certify edible quality or non-edible 

disposition. The USDA and USDA-approved laboratories shall bill the applicant 

or other responsible entity separately for applicable fees for aflatoxin assays.

[67 FR 57140, Sept. 9, 2002, as amended at 68 FR 46924, Aug. 7, 2003]

§ 996.60 Safeguard procedures for imported peanuts. 

(a) Prior to arrival of a foreign-produced peanut lot at a port-of-entry, the importer, or 

customs broker acting on behalf of the importer, shall submit information 

electronically to the United States Customs and Border Protection, which 

includes the following: The Customs Service entry number; the container 

number(s) or other identification of the lot(s); the volume of the peanuts in each 

lot being entered; the inland shipment destination where the lot will be made 

available for inspection; and a contact name or telephone number at the 

destination.

(b) Additional standards.

(1) Nothing contained in this section shall preclude any importer from milling 

or reconditioning, prior to importation, any shipment of peanuts for the 

purpose of making such lot eligible for importation into the United States. 

However, all peanuts entered for human consumption use must be 

certified as meeting the quality standards specified in §996.31(a) prior to 

such disposition. Failure to fully comply with quality and handling 

standards as required under this section, will result enforcement action by 

USDA. 

(2) Imported peanut lots sampled and inspected at the port-of-entry, or at 

other locations, shall meet the quality standards of this part in effect on the 

date of inspection. 

(3) A foreign-produced peanut lot entered for consumption or for warehouse

may be transferred or sold to another person: Provided, That the original 

importer shall be the importer of record unless the new owner applies for 

bond and files Customs Service documents pursuant to 19 CFR 141.113 
Inspection Instructions for Milled Peanuts (April 2023)

155

and 141.20: And provided further, That such peanuts must be certified and 

reported to USDA pursuant to §996.71 of this part. 

(4) The provisions of this section do not supersede any restrictions or 

prohibitions on peanuts under the Federal Plant Quarantine Act of 1912, 

the Federal Food, Drug and Cosmetic Act, any other applicable laws, or 

regulations of other Federal agencies, including import regulations and 

procedures of the Customs Service. 

[67 FR 57140, Sept. 9, 2002, as amended at 68 FR 1158, Jan. 9, 2003; 81 FR 50289, 

Aug. 1, 2016]

REPORTS AND RECORDS

§ 996.71 Reports and recordkeeping.

(a) Each handler and importer shall maintain a satisfactory records system for 

traceability purposes as defined in § 996.73.

(b) USDA shall maintain copies of grade and aflatoxin certificates on all peanut lots 

inspected and chemically tested. USDA and USDA-approved lab- oratories shall 

file copies of all aflatoxin certificates completed by such laboratories with the 

Southeast Marketing Field Office, Marketing Order and Agreement Division, 

Specialty Crops Program, AMS, USDA, 1124 1st Street South, Winter Haven, 

Florida 33880; Telephone (863) 324-3375, Fax: (863) 291-8614, or other address 

as determined by USDA.

[67 FR 57140, Sept. 9, 2002, as amended at 81 FR 50289, Aug. 1, 2016]

§ 996.72 Confidential information. All reports and records furnished or submitted by 

handlers and importers to USDA which include data or information constituting a trade 

secret or disclosing a trade position, financial condition, or business operations of the 

particular handlers or their customers shall be received by, and at all times kept in the 

custody and control of one or more employees of USDA, and, except as provided in 

§ 996.74 or otherwise provided by law, such information shall not be disclosed to any 

person outside USDA. 

§ 996.73 Verification of reports.

(a) For the purpose of checking and verifying reports kept by handlers and importers 

and the operation of handlers and importers under the provisions of this Part, the 

officers, employees or duly authorized agents of USDA shall have access to any 

premises where peanuts may be held at any time during reasonable business 

hours and shall be permitted to inspect any peanuts that meet outgoing quality 

regulations, so held by such handler or importer and any and all records of such 

handler with respect to the acquisition, holding, or disposition of all peanuts 
Inspection Instructions for Milled Peanuts (April 2023)

156

meeting outgoing quality regulations, which may be held or which may have been 

disposed by handler.

(b) Reports shall be maintained by the handler for nonconforming products to assure 

traceability throughout the supply chain. The traceability system must include 

documented records, which enable a full product history to be produced in a 

timely manner and must ensure product can be traced forward (raw material to 

distribution) and backwards from distribution to the warehouse feeding the 

shelling plant, and ensure that all associated tests and all relevant records have 

been completed. The traceability system shall include identification of all raw 

materials, process parameters (for specific lot), packaging and final disposition. 

The handler shall be able to identify the warehouse in which the peanuts were 

stored immediately prior to shelling. Traceability must be maintained throughout

production runs with specific lot codes, and there shall be complete linkage from 

raw material receipt through final disposition.

[81 FR 50289, Aug. 1, 2016]

§ 996.74 Compliance.

(a) A handler or importer shall be subject to withdrawal of inspection services, for a 

period of time to be determined by USDA, if the handler or importer:

(1) Fails to obtain outgoing inspection on shelled or cleaned-inshell pea- nuts, 

pursuant to § 996.31, and ships such peanuts for human consumption 

use;

(2) Ships failing quality peanuts, pursuant to § 996.31, for human 

consumption use;

(3) Commingles failing quality pea- nuts with certified edible quality pea- nuts 

and ships the commingled lot for human consumption use without meeting 

outgoing quality regulations;

(4) Fails to maintain positive lot identification, pursuant to § 996.40(a), on 

peanut lots certified for human consumption use;

(5) Fails to maintain and provide access to records, pursuant to § 996.71, and 

the standards for traceability and non- conforming product disposition 

pursuant to § 996.73, on the reconditioning or disposition of peanuts 

acquired by such handler or importer; and on lots that meet outgoing 

quality standards; or

(6) Otherwise violates any provision of section 1308 of the Act or any 

provision of this part.
Inspection Instructions for Milled Peanuts (April 2023) 

157

(b) Any peanut lot shipped which fails to meet the outgoing quality standards 

specified in § 996.31, and is not reconditioned to meet such standards, or is not 

disposed to non-human consumption outlets as specified in § 996.50, shall be 

reported by USDA to the Food and Drug Administration and listed on an 

Agricultural Marketing Service Web site.

[67 FR 57140, Sept. 9, 2002, as amended at 81 FR 50290, Aug. 1, 2016]

§ 996.75 Effective time. The provisions of this part, as well as any amendments, shall 

apply to current crop year peanuts, subsequent crop year peanuts, and prior crop year 

peanuts not yet inspected, or failing peanut lots that have not met disposition standards, 

and shall continue in force and effect until modified, suspended, or terminated.

[81 FR 50290, Aug. 1, 2016]

Below is a link to 7 CFR Part 996:

https://www.ecfr.gov/current/title-7/subtitle-B/chapter-IX/part-996