Australia's historic 'peanut capital', Kingaroy, is running out of nuts because of climate change Peter Howlett is considering if future rainfall will be enough to continue to grow nuts. ( Share Print text only Cancel The Queensland town of Kingaroy is famous for its nuts — its farmers planted some of Australia's first commercial crops in 1901. Key points: Peanut production in the area is dwindling because of unpredictable summer rainfall Bega says its massive processing plant will stay in Kingaroy, despite fewer local nuts But drought and a shifting rainfall pattern in the South Burnett region are changing things. Second-generation peanut grower Peter Howlett said usually farmers would be in the middle of the harvest at this time of year.