Seed found in Armagnac or nearby (5)
I believe the answer is:
acorn
'seed' is the definition.
(I've seen this before)
'in armagnac or nearby' is the wordplay.
'in' indicates the answer is hidden within the clue.
'ACORN' can be found hidden inside 'armagnac or nearby'.
'found' is the link.
(Other definitions for acorn that I've seen before include "Fruit-seed of the oak" , "fruit in a cup" , "form of seeding" , "old computer?" , "From which a mighty oak may grow?" .)