CIRS Blog about Rural California
Raisin farmers and packers have settled on a price for the 2017 Natural Seedless raisin crop at $1,800 a ton, the second-highest in the industry’s history.
And while that would be great news in a normal year, this isn’t a normal year.
Raisin industry officials said the crop has been plagued with uneven growing weather and rain. A severe heat wave scorched the Fresno area in early June, damaging about 5 percent of the crop.
In September, heavy rains – two within a two-week period – further reduced the size of a crop that was already coming up short of the expected estimate of 235,000 tons.
“Despite this being the second-highest in history,” said Kalem Barserian, chief executive officer of the Raisin Bargaining Association, a grower group based in Fresno, “there will be no winners.”
Barserian said this is probably one of the four worst crops he has seen in his 52 years in the California raisin industry.
He said yields were off about 32 percent of normal.
“We ask everyone to be patient until things settle down so our growers and processors can get the product ready for market,” Barserian said.
This article published on the Fresno Bee website on Oct. 13.
California's farm sales fell from $54 billion in 2014 to $47 billion in 2015, largely because of the declining price of milk, whose value fell from $9.4 billion to $6.3 billion. The value of almonds fell by $0.5 billion, and the value of walnuts by almost $1 billion.
However, farmers are continue to plant more nuts. Bearing almond acreage has more than doubled from 418,000 acres in 1995 to 900,000 in 2016, and yields rose even faster from 370 million pounds to over two billion pounds. Walnut acreage rose from 177,000 in 1988 to 315,000 in 2016, and production more than doubled to 670,000 tons. California has 310,000 acres of pistachios expected to generate 555 million pounds in 2016.
Most nut farmers generate profits of $1,000 to $2,000 an acre, with pistachios the most profitable nut crop.
More acres of nuts are expected to come into production, including 220,000 acres of almonds, 70,000 acres of pistachios, and 65,000 acres of walnuts. The cost of establishing an acre of walnuts is estimated to be $3,800, an acre of almonds $2,300, and an acre of pistachios $1,900. Much of the new nut acreage is being developed by pension and hedge funds seeking current returns and capital gains as land prices rise.