S. Clark Jenkins and Mary P. Jenkins - Page 7

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          with the State treasurer as custodian for the department of                 
          agriculture fund.  The sums that have been deposited with the               
          State treasurer payable to the consumer shall not be subject to             
          claim by the consumer after 12 months from the date of                      
          assessment.                                                                 
               The "investigational allowance" allows for variations in               
          fertilizer sampling, handling, and laboratory analysis.  If a               
          deficiency exceeds the investigational allowance, then the                  
          penalty is assessed on the entire deficiency.                               
               The intent of the statute is to reimburse the consumer for             
          the cost of the deficient fertilizer ingredient, which the farmer           
          paid for but never received, and the lower crop production that             
          results from the deficiency in the fertilizer.                              
               Thus, under N.C. Gen. Stat. sec. 106-665, if a fertilizer is           
          deficient in one or more fertilizer ingredients from the amount             
          requested by, and guaranteed to, the customer/farmer, then a                
          penalty is imposed on the manufacturer.  The penalty under N.C.             
          Gen. Stat. sec. 106-665 is calculated on the amount and relative            
          value of the deficient product.  For example, for 25 tons (2,000            
          pounds per ton) of 10-10-10 fertilizer (10 percent nitrogen, 10             
          percent potash, and 10 percent phosphate) which contains only 8             
          percent nitrogen, the penalty is calculated as follows:  the                
          fertilizer is guaranteed to contain 200 pounds of nitrogen per              
          ton (i.e., 2,000 pounds x 10 percent), but it contains only 160             
          pounds of nitrogen (i.e., 2,000 pounds x 8 percent).  As a                  




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Last modified: May 25, 2011