It is indeed a genuine US Army Seacoast-Defense timefuze plug. It was used only in roundshells, not cylindrical-body shells. The reason this specimen's surface looks "sandy" is it was found in salty soil (such as a coastal saltmarsh), and the salt corrosion has caused what relic-collectors call "brass disease." Note, this fuze did not have its current "look" when it was dug -- it has been cleaned, probably by Electrolysis, which entirely removed the patina-crust, exposing the salt-caused pitting of the brass.
About its current dollar-value:
Very importantly, it is 100%-intact, except for the mild surface-corrosion. Also, it appears to have no explosion or impact damage. I haven't seen one of these rare fuzes for sale in a while, so I am not currently "up-to-date" on its present value. Therefore, Emike can give you a more accurate current value-appraisal about this one than I can.
Regards,
Pete