LITTLE ROCK, Ark. — Drought and strong prices could push more peanut production out of traditional regions and into states such as Arkansas and Mississippi not known for growing peanuts but with ample water to give it a try.
Some major peanut states, including Georgia and Texas, have struggled to grow the crop amid an extended drought, leading farmers elsewhere to consider cashing in on prices that have soared as production dropped.
In 2010, American farmers harvested 2.1 million tons of peanuts, according to the National Agriculture Statistics Service. That fell to 1.8 million tons in 2011, a 15 percent drop that caused prices to more than double to about $1,000 a ton.
“Peanuts are going to be a real good option,” said Greg Gill, who has started growing peanuts on his farm near Walnut Ridge, in northeastern Arkansas.
Gill said he was growing rice on his sandy soil, but as fuel prices rose, it became increasingly costly to run pumps needed to flood his fields. Besides avoiding that cost, he said peanuts don’t require as many costly treatments for weeds and pests as other crops common to the area, such as soybeans, corn and cotton.
“You get a lot more net money on the farming side on those types (of sandy) soils,” Gill said.
Although more farmers are considering peanuts, Gill remains a rarity in Arkansas. This year, farmers in the state planted only 4,000 acres, up from 1,000 acres in 2010.
Georgia produces by far the most peanuts, though it dropped from 565,000 acres planted in 2010 to 475,000 acres in 2011. Alabama and Texas are the other big producers, with smaller crops in states including North Carolina, Florida and Oklahoma.
Kerry Colbert, who signs up farmers to sell their crops to peanut processor Clint Williams Co. of Madill, Okla., said Mississippi growers planted about 16,000 acres in 2011 and could expand to 30,000 acres next year.
One stumbling block, Colbert said, is that farmers need closer collection points. Clint Williams is trying to respond to that concern by building up to three new collection centers in Arkansas and Mississippi.
Colbert, who put more than 11,000 miles on his truck last month traveling to meet with farmers, said his company wants to ensure a more consistent supply.
“If you are centered in one area, it’s a great risk. We can spread our risk out by getting out in a different area,” Colbert said.
So far, they have been pleased with the response.
“We’ve been relatively surprised at the amount of interest,” he said. “We knew there would be some, but we didn’t know so many would completely go in.”
The abundant water sources in Arkansas from lakes, rivers and aquifers makes the state attractive for peanuts and other crops. Still, growing peanuts is an adjustment for farmers, who must change their techniques to harvest the bean, which grows underground.
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