Agricultural News
Clint Williams Co. Bankruptcy Devastating Peanut Industry
Fri, 30 Jan 2015 20:23:21 CST
The bankruptcy of the U.S. peanut processor Clint Williams Company could cripple the peanut industry through the southwest. The company, along with its affiliates the Texoma Peanut Company, Clint-Co Peanut Co., and the Clint Williams Co - Western Division, filed for Chapter 11 reorganization in November. At a town hall meeting Friday with U.S. Ag Secretary Tom Vilsack and Oklahoma Congressman Frank Lucas, Oklahoma Peanut Commission Executive Director Mike Kubicek voiced his concerns on how this bankruptcy is impacting a lot of peanut farmers.
"It's a massive, historical event actually because it covers peanut producers not only in Oklahoma, but Arkansas, Mississippi and Texas," Kubicek said. "FSA has never seen anything of this scale and actually we need protection from FSA because in an attempt to protect our producers they are invoking the U.S. Warehouse Act, that really wasn't designed for peanuts, in an essence they would actually be asking our producers to forfeit their marketing loans and there's not a market for peanuts right now and it would be devastating to all of our producers."
Radio Oklahoma Network Farm Director Ron Hays interviewed Kubicek at the town hall meeting. Click on the LISTENBAR below to listen to the full interview.
Peanut farmers had contracts with the Clint Williams Company, but those contracts were voided because of the bankruptcy. Kubicek said 80 percent of the state's peanut crop is being tied up in this bankruptcy and sizable portions in the other states. The Oklahoma Peanut Commission is working with its colleagues in other states in working with House Ag Committee staff and with FSA leadership in Washington D.C. to see what can be done for peanut farmers that have not been paid for their 2014 peanut crop.
This comes after Oklahoma produced one of its best crop in years. Kubicek said the state had record production with a crop averaging 4,000 pounds per acre and it was one of the highest quality crops farmers have ever produced.
"What a shame it would be to lose that crop and not to get it out to our consumers," Kubicek said.
The Clint William Company has begun selling its assets. The Madill, Oklahoma shelling plant has been sold to the Golden Peanut Company, a subsidiary of Archer Daniels Midland. On Monday, Associated Press reported the Clarksdale, Mississippi peanut buying and drying facility was also sold to ADM. Terms of the sale were not made public.
In looking at the 2015 peanut crop, this brings a lot of uncertainty to the peanut industry. This will likely lead to a decline in peanut acres this year in the four states, but there is also concern what this will mean longer term about peanut farming in the region.
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