June 25, 1999

USDA will provide $2 million in compensation to some growers, handlers, seed companies, grain storage facility owners and flour millers for losses and expenses from karnal bunt during the 1997-98 crop season.

USDA will compensate for the loss of value of the 1997-98 crop only if the wheat is tested by the Animal and Plant Health Inspection Service and found positive for karnal bunt.

Growers, handlers and seed companies will get compensation equal to 60 cents per bushel; compensation will not exceed $1.80 per bushel and be based on the difference between the contract price, if sold under contract, or the estimated market price and the actual price received.

Grain storage facility owners are eligible if they were required to clean and disinfect their facilities because of karnal bunt. They will be compensated on a one-time basis for up to 50% of the cost, not to exceed $20,000 per facility.

Participants in the national karnal bunt survey whose wheat tests positive also are eligible. Again, compensation will not exceed $1.80 per bushel. Flour millers are eligible if they heat-treated mill feed from wheat that tested positive at a rate of $35 per short ton of mill feed.