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Influences on grower returns, including quality, market conditions and regulations, were dissected by industry panelists at West Coast Nut’s Almond Day.
Panelists had no silver bullet to ease the loss of grower income for their crop but offered common-sense advice for growers facing regulatory and financial issues.
Water Availability Challenges
Water, or the lack of a reliable supply, was listed first by certified agricultural consultant panelist Paige Gilligan. She pointed out the significant impact of the Sustainable Groundwater Management Act on agriculture. Property values have decreased in the past two years, she said, wiping out grower equity.
“Growers have been saying SGMA will be okay, but it’s not all right,” Gilligan said.
Panelist Roger Isom, president and CEO of the Western Tree Nut Association, noted the widespread loss of farmland from Merced to Tulare, resulting in the loss of farm jobs and infrastructure for the cotton industry. He pointed out that only six cotton gins remain in operation in Fresno County. There are fewer planting options for annual crops, he added. Land IQ maps confirm a dramatic change in land use due to restrictions on groundwater pumping.
“Tumbleweeds and solar farms are taking the place of food production in California’s Central Valley. Communities are lost and infrastructure is gone. It is incredibly sad,” Isom said.
Panelists’ advice for growers to improve returns on their investment was straightforward: stay in compliance, Gilligan said. It will be survival mode for growers to stay in business.
“Where you can cut costs, be efficient and optimize technology,” she said.
Growers should take a hard look at their return on investment and realize not everything works well. Look at input costs and the return per acre. Maximize the use of equipment, she added.
Protecting Returns
Timing and management decisions late in the growing season can have an impact on crop value. Gilligan reminded growers they need to do the right thing at the right time in pest control and irrigation. Check where costs can be cut early without sustaining damage.
Panelist Mel Machado, chief agriculture officer at Blue Diamond Growers, advised growers to master the basics of farming and pay attention to detail in their operations. Ask the tough question, he said: Will a 2,500-pound crop make you money? Will it cost more to produce a 3,000-pound crop than you will make?
Machado also noted growers can be overwhelmed with paperwork required by state regulators. It is important to stay on top of paperwork and do a good job of reporting.
To be successful in the next five years, growers need to be proactive and involved, Machado said.
“California legislators want you to show up. Push back,” he advised.
Almond growers also have the opportunity through the California Almond Stewardship Platform to report practices they are implementing in their orchards to enhance the environment, Machado said.
Tumbleweeds and solar farms are taking the place of food production in California’s Central Valley. Communities are lost and infrastructure is gone. It is incredibly sad. – Roger Isom
Gilligan advised growers to maximize assets and produce useful management reports to know what they have.
“Focus on the details and stay in compliance with environmental regulations,” she said.
She also advised growers to prioritize their financial decisions and emphasized the importance of making bank loan payments.
“Don’t think you have to hit a home run to get on base,” she said. “Make small changes and work on your business, not in it. Working on it puts money in your pocket.”
Regulatory Considerations
Isom also highlighted regulatory and compliance considerations for harvest.
He lamented the lack of funding for low-emissions tractors but noted that electric truck and forklift rules were dead, for now.
The California Air Resources Board is trying to make up for lost emissions by proposing Tier V regulations.
On the food safety front, the Produce Safety Rule preharvest agricultural water requirements have been finalized. For custom harvesters, growers will collect documentation on training, sanitation logs and water testing. They are no longer required to collect these documents from the huller or processor.
On water quality, a panel is working on recommendations to the State Water Resources Control Board specific to nitrogen application and reporting. No significant changes to current reporting are expected.
On outdoor and indoor heat illness, AB 2243 requires Cal/OSHA to propose revisions. The trigger is 95 degrees outdoors and 82 degrees indoors. Key requirements include a new acclimatization schedule, with work restricted to 20% on Day 1, 40% on Day 2, 60% on Day 3 and 80% on Day 4. Isom said there has been no response to opposing comments yet.
On the wildfire smoke standard, Cal/OSHA has proposed lowering the Air Quality Index threshold from 500 to 301 for outdoor farmworkers, requiring mandatory respiratory protection.
On pesticide issues, Isom noted the Sustainable Pest Management Plan seeks to eliminate all priority pesticides by 2050. An advisory committee has been established, and eight chemicals per year will be reviewed. Proposed rodenticide regulations would limit applications to 35 consecutive days and 105 days per year. They would also require a sustainable rodent management plan.
Isom noted the Western Tree Nut Association is leading the effort to oppose the proposal. The rat issue has been problematic for many tree nut growers, and Isom said meetings with CDFA continue. An agricultural coalition is working to bring a University of California Cooperative Extension specialist to the Parlier and West Side field stations. They are also looking into strychnine for rat control.
Publisher’s Take
The Big Picture: What to do Next
1. Stay in compliance
Environmental and regulatory requirements continue to expand, making compliance essential for protecting your operation.
2. Evaluate every input
Review production costs and return on investment to determine which practices truly improve profitability.
3. Master the basics
Timely irrigation, pest management and attention to detail remain some of the biggest drivers of crop value.
4. Prepare for regulatory changes
Water, labor, air quality and pesticide regulations continue to evolve, requiring growers to stay informed.
5. Focus on continuous improvement
Small operational and financial improvements can have a meaningful impact on long-term profitability.
Cecilia Parsons | Associate Editor
Cecilia Parsons has lived in the Central Valley community of Ducor since 1976, covering agriculture for numerous agricultural publications over the years. She has found and nurtured many wonderful and helpful contacts in the ag community, including the UCCE advisors, allowing for news coverage that focuses on the basics of food production.
She is always on the search for new ag topics that can help growers and processors in the San Joaquin Valley improve their bottom line.
In her free time, Cecilia rides her horse, Holly in ranch versatility shows and raises registered Shetland sheep which she exhibits at county and state fairs during the summer.