Peanut farmers deal with fallout from salmonella

ALBUQUERQUE, N.M. (AP) - There will be significantly fewer peanuts pulled from the ground in eastern New Mexico this harvest season because of lingering fallout from the bankruptcy and sale of a peanut-processing plant which was at the heart of a 2012 salmonella outbreak and nationwide recall.

Peanut farmers are expected to bring in 6 million pounds less this year, according to forecasts released this week by the U.S. Department of Agriculture. That represents nearly a 30 percent drop in production in New Mexico from the year before.

The forecast calls for nationwide production to approach 5 billion pounds, an increase over last year, but those numbers won't include as many Valencia peanuts as in years past. Grown along the New Mexico-Texas border, the sweet variety is coveted for making natural butters and is what fueled the processing plant in Portales before it closed.

With no plant, there were no contracts and no bonuses for farmers to grow Valencia peanuts this year.

Portales residents remain anxious because it's unclear whether the plant's new owner, Golden Boy Foods, will resume operations.