Arkansas Gives Delta Peanut A $5 Million Bridge Loan
The Harvesters — Pieter Bruegel the Elder, 1565
What Happened
Arkansas approved a $5 million bridge loan to Delta Peanut of Jonesboro after the company announced it was closing and told nearly 90 growers it couldn't process their harvest. The loan covers operational costs so the company can buy and process this year's peanuts while it looks for a buyer.
Why It Matters
Officials say the loan saves close to 80% of the state's peanut crop and keeps multiple farms in business. Farmers still have to sign on for a $60-per-ton delivery fee and give the state first claim on repayment — the rescue comes with strings attached. A crop doesn't fail because nobody wants it. Sometimes it fails because the one company standing between the field and the buyer runs out of money first.
What's Next
Delta Peanut is negotiating with a third party to buy the company and take over operations after this harvest.