UBCD announces funding for peanut plant in Flomaton
UB Community Development LLC announced Oct. 29 $11.6 million in New Market Tax Credits (NMTC) funds to Escambia Peanut Co. LLC, in Flomaton.
According to a release, Escambia Peanut serves as a buying point and warehousing facility for peanut producers in southwest Alabama and northwest Florida. The granting of the tax credit funds will help minimize transactional cost to the plant in Flomaton.
United Bancorporation of Alabama acted as tax credit investor and United Bank provided leverage for the transaction.
Escambia Peanut Co. LLC is a 109,000-square-foot peanut buying point that utilizes cleaners, dryers, storage sheds and handling equipment to clean and store peanuts prior to shipment to the peanut shelling plant. The Flomaton plant will now deliver their peanuts to the new Atmore shelling plant project, Coastal Growers LLC, also a farmer owned facility utilizing New Markets Tax Credits for its financing.
Operating for more than seven years, Escambia Peanut serves family farmers in the rural counties of Monroe, Escambia (Florida and Alabama) and Santa Rosa, Fla.
With more than 30 existing farmer members, Escambia Peanut utilized NMTC financing to purchase new equipment, expand existing facilities and most importantly consolidate ownership amongst the family farmers. Escambia Peanut began as a partnership between family farmers in Alabama and Florida with a family owned peanut sheller. After a multi-national corporation acquired the sheller, the farmers decided they need to acquire control of the company.
“UB Community Development works daily to improve the financial viability of our rural communities and their residents,” said Alex Jones, president of UB Community Development. “By assisting the family farmers in their ownership acquisition of Escambia Peanut, we have ensured that they will gain more of the economic benefit from the peanuts they plant and harvest every year.”