Is there a picnic area

Definitely

Yes.

And

Tables under trees by the entrance next to a caboose, and in the center by the former location of the gift shop, and back in-between the locomotives where you can wave at the riders on the miniature locomotive that circles the property

Thanks everyone

Yes there is

Yes. You can even reserve a train car for your picnic in advance. I don't know the process, but attended a birthday party recently there and the host did it. There's also a few outside picnic tables at least one under a tent like an eazy-up. Have fun!