If you have a picture book text that’s too long for publishers’ requirements, have you considered the short story market?  There are a small number of magazines out there, both in print and online, that accept children’s stories and will happily consider a longer length.  Here’s my current (short) list which also includes markets for older children’s fiction and young adult; if you know of any others please do comment and I will add them.

Cricket Media submissions

The US-based Cricket family of children’s print and digital magazines includes Babybug for up to three years, Ladybug for 3-6 years, Spider for 6-9, Cricket for 9-14 and Cicada for over 14s.  They all have different submission requirements so be sure to check out the word counts required by each one.

The Caterpillar Magazine

This beautifully produced Irish-based print magazine accepts stories up to 1,000 words as well as poetry and art.