Arkansas is preparing to lose a major peanut processing operation as another food and beverage facility closure puts local jobs at risk. Delta Peanut in Jonesboro has told growers it is permanently closing, with 120 employees affected by the shutdown.
The farmer-owned company said in September that it would begin winding down operations because of funding issues. A WARN notice provided to local officials said initial layoffs are expected to begin around October 10, 2026, or within roughly two weeks of that date — a difficult time for growers because the shutdown overlaps with peanut harvest.
A major Mid-South peanut facility is winding down
Delta Peanut was created as a farmer-owned operation serving growers across Arkansas and the surrounding region. The Jonesboro facility opened in 2020 and was built to shell, store and market peanuts grown by its members, giving Mid-South farmers a nearby processing option in a crop sector that has expanded beyond its traditional Southeastern base.
According to Jonesboro Right Now, growers were informed in early September that the plant would permanently close. The facility was also de-registered after its federal warehouse bond was pulled. Delta Peanut told members that funding issues were forcing the company to wind down.
120 workers are affected
The closure notice says 120 employees will be affected. City officials said their focus is helping those workers and their families connect with other employment opportunities as the facility shuts down.
The timing also created an immediate problem for farmers who were expecting Delta Peanut to process and store the 2026 crop. Arkansas officials later announced a $5 million bridge loan from the Governor’s Quick Action Closing Fund to help facilitate the purchase of this year’s peanut harvest. That support addresses the harvest crunch, but local reporting says the plant closure and layoffs are still moving forward.
The impact stretches beyond the factory
Because Delta Peanut is owned by growers, its loss is more than a standard plant shutdown. The Jonesboro operation provided infrastructure for farmers who need shelling, storage and marketing services after harvest, and its closure leaves members looking for alternatives during one of the busiest periods of the year.
For Jonesboro, the immediate effect is clearer: 120 jobs are tied to the closure, and a relatively young agricultural processing facility that opened only six years ago is winding down. The longer-term question is where the region’s peanut growers will send their crops once Delta Peanut is no longer operating.
Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same
Leave a Comment