State officials have approved a $5 million bridge loan aimed at ensuring Northeast Arkansas farmers can salvage this year’s peanut harvest after a warehouse closure temporarily halted operations.
Gov. Sarah Huckabee Sanders announced the funding Thursday, which will support Delta Peanut’s operating costs through the current harvest season. The decision comes as roughly 80% of Arkansas’ peanut crop, valued between $55 million and $60 million, hangs in the balance.
By law, harvested peanuts in Arkansas must be stored in federally bonded warehouses. However, a September decision by the U.S. Department of Agriculture to revoke Delta Peanut’s warehouse license left the region’s farmers in limbo, with no approved facilities to store their crop. The closure affected more than 90 growers across the state.
Craighead County peanut farmer Gordon Miller, who manages 400 acres, said the timing couldn't have been more critical, as local crops reached the standard 150-day maturity during the crisis.
"I’m just pretty much hoping to find a place to go with the peanuts," Miller explained, noting that growers faced mounting uncertainty until the state’s intervention. "That’s what was going through everyone’s head. It was going to get ugly if we couldn’t go anywhere with them."
Under the terms of the state loan, farmers will need to pay a $60-per-ton delivery fee and comply with a bank subordination agreement to access the storage Delta Peanut provides.
This intervention aims to stabilize the region’s peanut industry while growers and Delta Peanut work to recover from the unexpected disruption.