State officials have approved a $5 million bridge loan to assist Arkansas peanut farmers after Delta Peanut, a Jonesboro-based cooperative, announced a halt in operations earlier this month.
Governor Sarah Huckabee Sanders and Agriculture Secretary Wes Ward announced Thursday that the funding will come from the Governor’s Quick Action Closing Fund. The loan is intended to allow Delta Peanut to purchase and process this year’s crop while the company works to finalize a potential sale to a third-party buyer.
“Peanuts are an expanding crop market in Arkansas, and we can’t allow this year’s harvest to rot in the field and kill the entire industry,” Governor Sanders said in a statement. “My administration is stepping in to offer this short-term bridge loan and facilitate the purchase of this year’s harvest.”
Ward emphasized the broader impact on the agricultural community, stating the measure would preserve nearly 80% of the state’s peanut crop and prevent financial distress for affected farmers. “This bridge loan provides a responsible, short-term solution that will allow our producers to harvest this year’s crop, stay in business, and preserve the future of Arkansas’ peanut industry,” Ward said.
The loan will be used exclusively for operational expenses, including staffing, utilities, and overhead, according to the announcement. Farmers delivering peanuts to Delta Peanut as part of this arrangement will pay a $60-per-ton delivery fee and sign a bank subordination agreement, which gives the state priority status for loan repayment.
The situation began earlier in September when the U.S. Department of Agriculture (USDA) pulled Delta Peanut’s federal warehouse bond, citing financial concerns. As a result, the cooperative informed nearly 90 Arkansas peanut farmers it would not be able to dry, process, or store their harvest. To address this, the company was granted a $2.7 million line of credit to reinstate its USDA warehouse license, but additional funding was still necessary to cover operational costs.
According to the governor’s office, Delta Peanut is in ongoing negotiations with an outside buyer to transfer its operations after this harvest season. The loan aims to stabilize the company through this critical period and ensure that farmers can deliver their peanuts without incurring further losses.
Peanuts are considered a growing segment of Arkansas agriculture, and industry leaders hope the combination of state intervention and private investment will secure the crop’s future. Without this assistance, experts warn, a significant portion of the 2026 harvest would be at risk of spoiling in the fields.
Delta Peanut has played a key role in servicing growers across the region by providing processing facilities essential to the supply chain. A disruption in its operations could have jeopardized the livelihoods of farmers throughout the state.
State officials remain optimistic that the short-term financial support will safeguard the peanut industry in Arkansas while Delta Peanut charts a path to long-term stability under new ownership.