Decatur-Based Peterson Farms Settles Illinois River Pollution Lawsuit

Peterson Farms agrees to pay $950,000 and limit poultry litter application in the watershed as part of settlement with Oklahoma.

Published on Feb. 26, 2026

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Peterson Farms Inc., a poultry company based in Decatur, Arkansas, has agreed to settle its portion of Oklahoma's long-running lawsuit against Northwest Arkansas poultry companies for polluting the Illinois River. The settlement requires Peterson Farms to pay $950,000 for watershed restoration and attorney fees, as well as limit the application of poultry litter as fertilizer in the Illinois River watershed over the next several years.

Why it matters

The Illinois River lawsuit has been ongoing for over 20 years, with Oklahoma alleging that poultry companies in Northwest Arkansas have contributed to phosphorus pollution in the river through the application of poultry litter as fertilizer. The settlement with Peterson Farms is a significant development, as it leaves only two remaining defendants in the case - Cal-Maine Inc. and Simmons Foods.

The details

Under the settlement agreement, Peterson Farms will limit the land application of poultry litter produced in the poultry houses supplying the company. In the first two years, the application of litter in the Illinois River watershed cannot exceed 20% of the total litter produced. This limit will then decrease to 10% for the following two years and 5% for the five years after that. Peterson Farms no longer has any contract growers in the watershed, so the litter limits will only apply to any future operations.

  • The lawsuit was filed in 2005.
  • The settlement agreement was filed in court on Tuesday, February 26, 2026.
  • A hearing on the settlement proposal for George's Inc. and George's Farms Inc. is scheduled for this Friday.
  • A hearing on the settlement proposals for Tyson Foods Inc. and Cargill Inc. is scheduled for March 6.

The players

Peterson Farms Inc.

A poultry company based in Decatur, Arkansas, that has agreed to settle its portion of Oklahoma's lawsuit against Northwest Arkansas poultry companies for polluting the Illinois River.

Gentner Drummond

The Oklahoma Attorney General who is leading the lawsuit against the poultry companies.

Gregory Frizzell

The presiding judge of the U.S. District Court in Tulsa who has yet to approve any of the negotiated settlements.

Cal-Maine Inc.

One of the two remaining defendants in the lawsuit, along with Simmons Foods and their affiliates.

Simmons Foods

One of the two remaining defendants in the lawsuit, along with Cal-Maine Inc. and their affiliates.

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What’s next

Judge Gregory Frizzell of the U.S. District Court in Tulsa has yet to approve any of the negotiated settlements, including the one with Peterson Farms. The first hearing on a settlement proposal is scheduled for this Friday, February 28, 2026, for the settlement agreement between Oklahoma and George's Inc. and George's Farms Inc. of Springdale. A hearing on the settlement proposals for Tyson Foods Inc. and Cargill Inc. is scheduled for March 6.

The takeaway

The settlement with Peterson Farms represents a significant development in the long-running Illinois River pollution lawsuit, as it leaves only two remaining defendants - Cal-Maine Inc. and Simmons Foods. The agreement requires Peterson Farms to pay a substantial sum and limit the application of poultry litter as fertilizer in the watershed, demonstrating the ongoing efforts to address the environmental impact of the poultry industry in the region.