Home   >   NEWS & VIEWS   >   News

  • What does almond price drop mean for Californian growers

    Feb 1st, 2016

    Almonds are now America's favorite nut, having overtaken the peanut in 2014. In August 2015, high demand for almonds caused their wholesale price to soar to $4.70 a pound. Subsequently more farmers started to plant the crop, saturated the market and caused the price to drop to $2.60. Defaults by traders in Asia and the Middle East created uncertainty for buyers which also contributed to lower prices.California almond farmer Jenny Holtermann said she has yet to feel the effects of the price drop, but will make adjustments if she does."We may not buy as many tractors or as much equipment this year as may have in the last past years," Holtermann said.She said some farmers with older orchards may have to take them out and replace them with younger, higher-producing trees.And while almonds are one of the highest yielding crops in the county, second only to table grapes, the county assessor's office said in the big picture, it's a drop in the bucket for county revenue."When it comes down to it, a decrease in the commodity price of almonds really isn't going to affect the county in any way shape or form," said supervising appraiser in the agricultural department Jerel Hansen.Holtermann said she works with a lot of other industries to harvest and transport her crop, so it's not just growers that will be affected by low prices.