walnuts

High Heat, Low Demand Hurt Walnut Crop

By Christine Souza, California Farm Bureau

California farmers are tearing out walnut orchards, such as at this farm near Winters, in response to quality concerns due to a September heat wave, lower demand and prices, and other market issues. The California Walnut Commission estimates $1 billion in damages to the 2022 crop.

Walnut farmers are tearing out older trees and less desirable varieties as the price for the nut has plummeted well below the cost of production, causing some growers to rethink walnuts and look for alternative crops.

“I’ve seen several younger orchards that have come out already in Fresno, Merced and Madera counties,” said Kings County farmer Brian Medeiros of Hanford, who farms walnuts, almonds and row crops. “My neighbor had a walnut orchard that was about six years old, and he tore the whole thing out. He just said, ‘I’m losing money hand over fist. I’m not going to keep doing it.’”

A heat wave last September cooked the walnuts on the trees during a critical time of the growing cycle. High temperatures were followed by rain that led to mold problems.

“We had extremely high temperatures—up to 117 degrees for three to four days in some areas—and this occurred when walnuts were at their most sensitive stage in growth,” said Robert Verloop, president and chief executive officer of the California Walnut Board and California Walnut Commission. “We conducted our own informal survey of about 75% of the industry and documented pretty clearly that the range is anywhere from 30% to 40% of the (walnut) volume that was impacted. That means if the handler opens up 100 pounds of walnuts, 30 to 40 pounds is absolutely not usable.”

Walnut growers in Stanislaus County demonstrated to the county agricultural commissioner that there was 36% loss in crop volume, Verloop said. The growers provided damage information within the required 60 days, which led to a federal disaster declaration.

On Jan. 13, U.S. Agriculture Secretary Tom Vilsack designated a disaster declaration for Stanislaus County and contiguous counties of Alameda, Calaveras, Mariposa, Merced, San Joaquin, Santa Clara and Tuolumne for walnut losses due to the heat wave last September.

Farmers in qualifying counties have eight months from the date of the declaration to apply for emergency loans through the U.S. Department of Agriculture Farm Service Agency. The California Walnut Commission is working with federal lawmakers on additional aid, including walnut purchases by USDA for food banks and tree-pull programs.

With the price to growers for the 2022 walnut crop at about 40 cents per pound or less—and well below last year’s break-even price of between 70 and 90 cents per pound—walnuts were the obvious choice for removal for Medeiros, he said. He pulled out 16 acres of walnut trees to scale down his water use to comply with groundwater regulations and manage his allotment.

“Our orchard is only 15 years old, so when I was pulling out those 16 acres, it literally broke my heart because I’m pulling out beautiful trees that look gorgeous, and I’m bulldozing them over,” Medeiros said. “The (walnut) price is making it much easier, much quicker for us to move ahead because—unless this price changes dramatically in the coming year or we have some outstanding support from USDA—we’re probably pulling the rest of them out next year.”

Stanislaus County farmer Gordon Heinrich of Modesto, who farms walnuts and operates a huller and dehydrator, said the price of walnuts is at a 30-year low, and input costs have gone up substantially.

“We’re actually operating below the cost of production right now, and everybody’s scratching their heads trying to figure out where you can cut back on your inputs to survive this market situation,” Heinrich said.

“There’s not a lot of places you can cut,” he added.

Handlers are advising walnut growers to remove older, darker-kernel varieties such as Vina, Serr and Hartley, to maintain the supply of light walnuts, Chandler, Tulare and Howard, that global buyers demand.

“Growers are starting to realize that all those older varieties need to be taken out and replanted with a more modern variety, such as a Chandler,” Heinrich said. “The quicker that we can change our market strategy as far as being able to put a better product on the market, the longer this is going to last. It is going to right itself in time, but there’s a lot of farmers out there who are going to have a real tough time.”

Verloop said handlers reported 20% to 50% of the 2022 walnut crop was substandard in quality and is better suited for cattle feed. He said the commission estimates the farm-gate loss to growers is $1 billion.

Aside from quality problems, Verloop said many different factors affect the market for California walnuts, much of which are exported to Europe, Turkey, India, Spain, Japan, Korea and the Middle East.

“The problem is the pipeline to the consumer has a lot of walnuts in it already,” Verloop said. The carryover from the 2021 crop of about 135,000 tons, he said, and the 2022 crop is expected to be between 750,000 tons to 780,000 tons and much larger than the 720,000-ton crop forecast last September.

Retaliatory trade tariffs and the COVID-19 pandemic added to the walnut supply-demand imbalance and led to trucking and transportation challenges, congestion at the ports and a slowing of consumer demand. Inflation, the higher value of the dollar and the war in the Ukraine also are affecting customer confidence and buying power, Verloop said.

“We’re in the middle of that perfect storm,” Heinrich said of the global and economic stressors impacting the walnut market. “We’re hoping that we can just hang on. We’re lucky with our operation that we’re somewhat diversified, but even almonds are struggling with some of the same problems.”

Bill Carriere, president of Carriere Family Farms—a grower, processor and marketer of walnuts in Glenn County—said it is a very nervous time for growers and handlers.

“Sales were slow in general, and you had quality concerns that doubled the problem. That really hurt storage, so our storage is full. There are walnuts in warehouses that are not normally in warehouses,” said Carriere, who added that 20% of the 2022 walnut crop he received is not salable. “In our operation, we’re losing much more money as a grower than we are as a handler, but we’re losing in both.”

To recover from this year’s challenges, Verloop said, “the goal right now is to remove all of the substandard quality product off the market and let the good quality product price start to come up a little bit.”

For the next year or two, Verloop said he expects a downsizing of the walnut sector as growers remove less productive acres and less desirable heritage walnut varieties.

“We’re working with all of our trade agencies around the world to take a look at what can we do to recover from this year,” Verloop said. “We think there’s a lot of trust and confidence long term in our product from California because it’s been the gold standard. We’re working hard on several different fronts to make sure that we’re better positioned in the future.”

Growers seeking more information about disaster assistance and other program relief are encouraged to contact their local Farm Service Agency.

2023-02-01T14:36:16-08:00February 1st, 2023|

Produce Passes All Residue Testing in 2017

FDA Produce Residue Sampling “Once Again” Verifies Safety

Last week the Federal Food and Drug Administration (FDA) released its 2017 pesticide residue sampling data results. FDA concluded: “The latest set of results demonstrate once again that the majority of the foods we test are well below the federal limits set by the Environmental Protection Agency.”

Note the term “once again” in FDA’s statement. They used it because government residue sampling data year after year reaffirms the safety of our food and the exceptionally high level of compliance among farmers with laws and regulations covering the use of organic and conventional pesticides.

Let’s get a little technical for a moment and focus on how FDA residue sampling is protective of consumers. FDA employs a three-fold strategy to enforce the Environmental Protection Agency’s (EPA) tolerances or safety standards for pesticide residues.
If you haven’t heard – September is National Fruit and Vegetable month. Yes, it is time to celebrate the only food group health experts and nutritionists agree we should all eat more of every day for better health and a longer life.
While decades of studies have shown the nutritional benefits of fruits and vegetables are overwhelming and significant, the safety of both organic and conventional produce is also impressive. Government sampling data shows an over 99% compliance rate among farmers with the laws and regulations required for pesticide applications on organic and conventional fruit and vegetable crops. This led the United States Department of Agriculture to state that: “The U.S. food supply is among the safest in the world.”

Many health organizations are promoting National Fruit and Vegetable month to remind consumers about the importance of increasing consumption – only one in 10 of us eat enough of these nutrient-packed foods each day.

However, studies show a growing barrier to consumption is fear-based messaging which inaccurately calls into question the safety of the more affordable and accessible fruits and veggies. This messaging is predominantly carried by the same activist groups year after year despite studies which show that “prescriptions” for fruits and veggies could reduce health care costs by $40 billion annually. Or that 20,000 cancer cases could be prevented each year.

2019-09-23T15:06:22-07:00September 23rd, 2019|

California Crop Values for 2017 Released by CDFA

Full Statistics Now Available For the Crop Year 2017

News Release

The California Agricultural Statistics Review for crop year 2017 has been released. It reports that California’s farms and ranches received more than $50 billion in cash receipts for their output. This represents an increase of almost 6 percent in crop values compared to 2016.

California’s agricultural abundance includes more than 400 commodities. Over a third of the country’s vegetables and two-thirds of the country’s fruits and nuts are grown in California. California is the leading U.S. state for cash farm receipts, accounting for over 13 percent of the nation’s total agricultural value. The top producing commodities for 2017 include:

Dairy Products, Milk — $6.56 billion

Grapes— $5.79 billion

Almonds— $5.60 billion

Strawberries— $3.10 billion

Cattle and Calves — $2.53 billion

Lettuce— $2.41 billion

Walnuts— $1.59 billion

Tomatoes— $1.05 billion

Pistachios— $1.01 billion

Broilers— $939 million

Complete Report at this Link:

https://www.cdfa.ca.gov/Statistics/PDFs/2017-18AgReport.pdf

2019-01-10T15:52:42-08:00January 10th, 2019|

California Farm Bureau Federation Honors Paul Wenger

Former CFBF President Paul Wenger Gets Distinguished Service Award

News Release From California Farm Bureau Federation

Citing his passion for agriculture, his tenacity, and his decades of service to Farm Bureau, the California Farm Bureau Federation presented its Distinguished Service Award to former CFBF President Paul Wenger. Wenger accepted the award during the organization’s 100th Annual Meeting last night in San Diego.

A third-generation farmer who grows almonds and walnuts on a family farm in Modesto, Wenger served as CFBF president from 2009 to 2017, ending his term after serving the maximum eight years in office. He has been a Stanislaus County Farm Bureau member since 1980, serving as county farm bureau president before being elected to the CFBF board and then as a statewide officer beginning in 1997, when he was elected the organization’s second vice president. Wenger also served on the American Farm Bureau Federation Board of Directors.

Current CFBF President Jamie Johansson described his predecessor as “tireless” in his work on behalf of the farm bureau and California agriculture.

“In his speech to our Annual Meeting last year, Paul reminded us that those who work the hardest, the longest, and invest the most are probably going to be successful. Although he was referring to Farm Bureau, the words certainly apply to Paul himself. He has remained actively involved in Farm Bureau and agriculture, and we look forward to his continued contributions,” Johansson said.

In nominating Wenger for the award, the Stanislaus County Farm Bureau pointed to his “lifetime in leadership roles in agriculture,” starting as a state Future Farmers of America officer in 1973, and cited “his passion for the industry and his tenacity to resolve problems and get things done.”

The Distinguished Service Award has been presented annually since 1953 to dedicated Farm Bureau volunteers from California. In addition to the award to Wenger, CFBF presented the Distinguished Service Award to longtime Yuba-Sutter Farm Bureau leader James Marler.

The California Farm Bureau Federation works to protect family farms and ranches on behalf of nearly 36,000 members statewide and as part of a nationwide network of nearly 5.6 million Farm Bureau members.

2018-12-06T16:04:58-08:00December 6th, 2018|

California Walnuts Face Threatening Tariffs

Big Challenges For the Walnut Industry

By Mikenzi Meyers, Associate Editor

It takes one glance at current news headlines to know that agriculture trade is a hot-button issue within the industry. Amongst countless exported crops being hindered by tariffs, the California walnut industry is no different. With California English walnuts making up two-thirds of the world’s trade, the California Walnut Commission is on high alert to ensure that growers are protected from tariffs that could damage their markets.

Pamela Graviet, the commission’s senior marketing director, spoke deeper on this issue.

Pam Graviet

“If you look at the three major markets—China, Turkey, and India—where we have tariff issues,” Graviet said, “that represents twenty percent of our total shipments … it’s over $300 million we’re going to lose.”

Thus far, the walnut industry has avoided paying the full tariff direct to China through the “gray market,” or the sales of walnuts through other countries that feed into China.

“But when you’re tariff constrained or in a trade war” Graviet explained, “they are also cracking down on those other routes, and the gray market has also suffered.”

The California Walnut Commission will continue their work to protect nearly 100 handlers and 4,800+ growers that make up the California walnut industry.

2018-10-11T14:42:10-07:00October 11th, 2018|

Lessening Negative Feelings Over Trade War

Walnut Processors Maintain Optimism

By Patrick Cavanaugh, Editor

California Ag Today recently spoke with Paul Wenger, past president of the California Farm Bureau Federation. He farms 700 acres of almonds and walnuts in Stanislaus County. He said that California Farmers and other stakeholders of the industry need to be less negative about the current trade war with China.

Almond and Walnut Grower Paul Wenger

“The more we talk negatively, the more that negative things are going to happen,” he said. “As I talked to walnut processors. They’re optimistic. That’s good news. I’ve talked to some walnut processors and said, ‘Well, what’s going to happen this year?’ We shouldn’t expect much as far as prices.”

“Marketing is always a self-fulfilling prophecy and it’s more psychology than it is anything,” Wenger said. “We are one of the largest producers now. Certainly, China is the largest producer. But China had a terrible crop and so they need walnuts, and so strange things can happen and the Chinese are always one that can bend the rules when they need.”

“We know that’s why President Trump has been going after China supposedly over some of these intellectual properties. Certainly, those aren’t the things that hurt agriculture, but we in agriculture are paying the price as we look at these countervailing tariffs that are coming on,” Wenger said.

Wenger explained that the Chinese know that, throughout the Midwest, it was the farm vote that helped and the rural states that helped bring home a victory for the president, so they’re going to go after President Trump.

A large amount of product was sold last season at a low price.

“We just go through the Affordable Care Act and then the port slowdown on the 2015 crop, which went into the 2016 crop, which was a little better We got a little bit better than 2017 crop was a good year for us,” Wenger said. ‘So you’re looking at a pretty good ’18 and now this happens.”

2018-09-04T13:42:28-07:00September 4th, 2018|

Increased Chinese Tariffs Could put California Producers in a Tight Spot

There is Fear China Could Turn to Other Countries For Ag Products

By Mikenzi Meyers, Associate Editor

The ongoing threat of Chinese tariffs on American agriculture has recently been the topic of conversation for agriculturalists. With China posing a possible 25 percent tariff on U.S. soybeans back in April, it seems this conversation is here to stay. The added tariff could drive Chinese buyers to choose other markets on many California commodities, including walnuts, tree fruit and beef.

Matt Lantz, vice president of global access for Bryant Christie Inc., deals with international trade, and these issues on a daily basis. Bryant Christie is an international affairs management firm that is based in Sacramento and Seattle, where they help U.S. commodity groups and agricultural companies with their international trade issues in order to export their products.

Lantz explained that this new threat is a major concern for California agriculture.

“China is an incredibly important market for California fruit and vegetable exploiters, and any tariff or increased inspection makes it more difficult to export,” he said.

Making matters worse, Lantz pointed out that buyers are going to turn to the countries without the tariff—which can be bad news for producers.

2018-06-28T16:49:05-07:00June 28th, 2018|

Additional Chinese Tariff on Ag is Disruptive

Growers Concerned Over Added Tariff into China

By Patrick Cavanaugh, Editor

Trade to China is so important to California, and for that reason, the 15 percent added Chinese tariff on ag products is devastating. It’s due to the retaliation of the Trump administration tariff, which he put on steel and aluminum exported by China.

Jeff Colombini with Lodi Farming Co.

It’s worrisome for growers such as Jeff Colombini, the president of Lodi Farming, with partners that grow cherries, apples, walnuts, and olives. He noted that apples and walnuts are an essential crop to China and he’s concerned.

“Trade is significant to the apple crop for California apples, but particularly for Washington state. Apples in Washington state is the largest producer of apples. They export greater than 25 percent of their crop,” Colombini said.

“Both China and Mexico take apple varieties that have fallen out of favor for U.S. consumers. So really, it’s a match made in heaven,” he said.

Colombini said growers have made decisions over the last 10 to 15 years on planting orchards based on these growing export markets.

“Then when the markets slam shut, what do we do with all this excess production/ This becomes disruptive to the markets … not to mention it significantly affects the farmer’s bottom line,” he explained.

Colombini said apples require a lot of labor—a big economic boost to many communities—and disruption in getting that crop to China is not good.

There’s a lot of people employed in the apple industry throughout the United States, and so a trade war can have a significant impact on many thousands of families.

Colombini said it took many years to get that China market open, and when it finally got opened in 2015, it has grown to be their sixth largest export market.

“Similarly, the export disruptions for walnuts is extremely concerning to that industry,” he said.

2018-05-04T14:42:44-07:00May 4th, 2018|

Walnut Blight Protection is Important

Disease Prevention in Walnut Orchards

By Brianne Boyett, Associate Editor

California Ag Today recently spoke with Jim Adaskaveg, professor of plant pathology at UC Riverside. He’s a plant pathologist, microbiologist and epidemiologist. He discussed the importance of protecting walnut trees from walnut blight.

Adaskaveg explained how walnut blight is problematic due to the higher rainfall in the northern part of the state.

“We’ve been working on this for a number of years, and overall, the northern part of the state is always higher at risk because of the higher rainfall in Glenn County,” he said. “There is much higher risk for disease in Northern California, so a lot of the growers have planted later blooming varieties such as Chandler to avoid the blight infections.”

“Rick Buchner [at UC Cooperative Extension] Tehama County and his group called that the prayer stage, which is when the female flower becomes exposed as it emerges from the bud. Those two timings would be for high disease pressure. If you had a history of the disease and you know that the disease is in your orchard, then we would suggest that timing,” Adaskaveg said.

“If you don’t have disease, and you still want to protect yourself, we say just spray at the pistillate flower emergence or the prayer stage. That sets a good way to initiate the spray program,” Adaskaveg explained.

Growers must keep in mind canopy expansion when applying materials.

“Walnuts are big trees, and as they go through bloom, all the leaves started emerging almost weekly. The tree canopy in that first three weeks of the season is doubling in size. By the time you get three or four weeks after that, the catkin flowering trees in full canopy will require a reapplication of materials,” Adaskaveg said.

2021-05-12T11:01:57-07:00December 29th, 2017|

Navel Orangeworm Control Critical

Orchard Sanitation is Critical This Season To Lower NOW Numbers

By Patrick Cavanaugh, Farm News Director

Emily Symmes is the area Integrated Pest Management farm advisor for the Sacramento Valley in the statewide IPM program. She recently spoke to California Ag Today about the high level of Navel Orangeworm (NOW) damage in nut orchards throughout California this past season.

“We had a lot of unique circumstances. The amount of rainfall we got in late 2016 into 2017 was pretty unprecedented and really led us into a really bad navel orangeworm year because we couldn’t get out and sanitize our nut crops,” she said.

Emily Symmes

“NOW is ubiquitous, and there is an increased nut crop footprint in California, with more than one million acres of almonds, plus pistachios and walnuts,” Symmes explained. “All play host to NOW, as well as a host of natural plants. This thing isn’t going anywhere. And it was pretty bad in 2017 in terms of harvest damage.”

One of the key factors for higher navel orangeworm damage was not being able to get into the fields because of the standing water.

“There were a couple of other factors as well. Typically, rainfall and moist conditions can help NOW mortality in the winter. We tend to think that it can help rot the nuts and do us some favors, but we have to be able to get out and get the nuts shaken or get pulling crews in and get those things on the ground. And then them being on the ground is not always a sure thing. Sanitation was huge in terms of NOW problems this year,” Symmes said.

Heat units also played a part in the development of more NOW pressure. There were a lot of moths flying around longer and laying eggs.

“It got hot in mid to late June, and it seemed to just not let up. What that meant was, in terms of our degree-day models or the heat unit that drive insect development, it ended up getting pretty far out ahead of what is typical, if there is anything such as typical. But certainly ahead of the last couple of years,” Symmes explained.

By September, we were about two weeks ahead in degree-days and that means that the moths were out earlier. They’re flying around. They’re laying eggs on the nuts when they’re still on the trees.

Symmes stressed that the importance of sanitation is to minimize the site where the NOWs mature.

“It’s really important to remember that sanitation efforts aren’t just directly killing any worms that are over-wintering in your orchard. Yes, it does that. But it also minimizes those sites where your first and second generations are going to develop next year,” she said.

2021-05-12T11:01:58-07:00November 29th, 2017|
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