California Ag Network

Category: Ag Economics

  • 2024 California Apple Forecast & New Campaign to Boost Sales

    As apple harvest begins this month in California, Matthew Malcolm from California Fruit & Vegetable Magazine met with the California Apple Commission’s new Director of Programs, Jacqueline Nakashian, to discuss the outlook of the crop this year and an exciting partnership and marketing campaign that will be launching during harvest to boost sales for California grown apples. Watch this brief interview and read more in California Fruit & Vegetable Magazine.

    Please thank this video’s sponsor Southern California Gas Company for their industry support.

  • Almond Harvest 2024 Predicted at 2.8 Billion Pounds, Carryout Expected to Drop Significantly

    The 2024 California Almond Objective Measurement Report published July 10th by the U.S. Department of Agriculture’s National Agricultural Statistics Service (USDA-NASS) estimates that the crop harvested in 2024 will come in at 2.80 billion meat pounds.

    The estimate is down 7 percent from USDA-NASS’s Subjective Forecast in May. It follows a generally solid bloom as well as a year in which growers faced a range of economic challenges. It also comes when the carryout is projected to drop to levels not seen in years as almond shipments set a record of 10 months straight of at least 212 million pounds shipped.

    “The Objective Measurement is in line with what the industry expected and a drop from the Subjective Estimate. It reflects both a good bloom and hard work by California almond growers during trying times,” said Clarice Turner, president and CEO of the Almond Board of California. “For perspective, demand has been strong, consistent and continues to grow, which has reduced the carryout to what may be the smallest in years. California almonds shipped at least 212 million pounds each of the first 10 months of this crop year and averaged 230 million pounds a month. Never before has the industry shipped even 200 million pounds 10 months in a row in the same crop year.”

    Turner said the Almond Board expects the almond supply to be similar to what was available in the past 2023-24 crop year.

    “The actual supply of California almonds available for the market is the combination of crop size and carryout from the previous year,” she said, “We expect only minor changes, if any, to the supply for market this next crop year because the forecasted increase in crop size will mostly be offset by the smaller carryout. Clearly, global demand is strong and consistent. We will continue to work hard to meet growing demand.”

    The 2023 harvest yielded 2.47 billion pounds, 5% below the 2023 Objective Report estimate, reflecting the difficulty of precisely forecasting crop size given the current fluctuations in weather and economic factors.

    USDA-NASS said the 2024 harvest is expected to be on schedule. “The 2024 almond crop experienced mostly favorable weather during the bloom period,” the report said. “Bee hours were reported to be significantly higher than last year. Wet and warm weather in April increased pest and disease pressure, but dry conditions and mild temperatures in May helped the developing crop. Multiple heat waves across the state during June and July required growers to increase irrigation on their orchards.”

    USDA-NASS’ forecasted yield is 2030 pounds per acre, up from 1,790 in 2023. The forecast for the average nut set per tree is 4,072 up from 3,953 in 2023, while the average kernel weight for all varieties sampled was 1.61 grams, down from the 1.67 grams in 2023. The Nonpareil average nut set of 4,137 is up from 4,004 last year, and the average Nonpareil kernel weight was 1.64, down from 1.69 grams last year.

    The 2024 Objective Report is based on actual almond counts using a statistically rigorous methodology. The survey was conducted from May 25 to June 28 and 1,904 trees were sampled in 952 orchards, the most ever, USDA NASS said. It was 40 more orchards than in 2023. USDA-NASS conducts the annual Objective Report, Subjective Forecast and Nursery Survey to provide the California almond industry with the data needed to make informed business decisions.

  • Introducing American Pistachio Growers’ New President and Vision

    American Pistachio Growers (APG) has announced a new President & CEO to lead their organization — veteran sports marketing leader Zachary Fraser. Following the Interim services of Joel Nelsen, Fraser has taken the helm with a new vision to expand the influence and consumption of American pistachios around the world.  Watch this brief interview as Matthew Malcolm from California Ag Network meets with Fraser and APG Chair Rich Kreps to get to know the new dynamic leadership and vision of the organization.

  • Central Valley Wine Industry Losing Share in Brandy Market, Compounding Other Challenges

    To compound the troubles Central Valley wine grape growers are already facing with a depressed global wine market amidst increased production costs, Allied Grape Growers President Jeff Bitter shared some new trends in the brandy market that are beginning to negatively impact growers invested in that beverage category.  Watch his brief interview with Matthew Malcolm from California Ag Network, and read more in American Vineyard Magazine.

  • USDA Expands Insurance Options for Specialty and Organic Growers

    The U.S. Department of Agriculture (USDA) is expanding crop insurance options for specialty and organic growers beginning with the 2025 crop year. USDA’s Risk Management Agency (RMA) is expanding coverage options by allowing enterprise units by organic farming practice, adding enterprise unit eligibility for several crops, and making additional policy updates. This is the first of several announcements this summer, which will include the expansion of the shellfish policy in the Northeast and new coverage for grape growers in the West and beyond. These expansions and other improvements build on other recent RMA efforts to better serve specialty crop producers and reach a broader group of producers.

    “The Risk Management Agency is excited to expand coverage options for specialty and organic growers including the availability of enterprise and optional units for many producers,” said RMA Administrator Marcia Bunger. “Expanding our coverage options gives producers more opportunities to manage their risks. We will continue to build on our work through future announcements later this summer.”

    The following changes will be made beginning with the 2025 crop year:  

    • Enterprise and Optional Units:
      • Expand Enterprise Units (EU) to almonds, apples, avocado (California), citrus (Arizona, California, and Texas), figs, macadamia nuts, pears, prunes, and walnuts.
      • Allow non-contiguous parcels of land that qualify for Optional Units (OU) to also qualify for EU.
      • Allow EUs by organic farming practice for alfalfa seed, almonds, apples, avocado (California), cabbage, canola, citrus (Arizona, California and Texas), coarse grains, cotton, ELS cotton, dry beans, dry peas, figs, fresh market tomatoes, forage production, grass seed, macadamia nuts, millet, mint, mustard, pears, potatoes (northern, central, and southern), processing tomatoes, prunes, safflower, small grains, sunflower seed, and walnuts. 
      • Expand OUs by organic practice to all remaining crops where OUs are available, and the organic practice is insurable.
    • Walnut Quality Adjustment: Allow sunburned damaged walnuts to be eligible for indemnity payments through quality adjustment.
    • Almond Leaf Year: Expand insurance coverage to younger trees by including trees in their fifth leaf year after being set out.

    These revisions come through the Expanding Options for Specialty and Organic Growers Final Rule published today by the Federal Crop Insurance Corporation (FCIC). This Final Rule will update the Common Crop Insurance Policy Basic Provisions, Area Risk Protection Insurance Basic Provisions, and includes changes to individual Crop Provisions. The enterprise unit availability will continue to be rolled out throughout the year with each crop’s contract change date and RMA will continue to evaluate expanding EUs to additional crops.

    Additional changes in the June 30 Final Rule include:

    • New Breaking Acreage:
    • Reduce administrative burdens on growers and the delivery system by removing written agreement requirements on new breaking acreage.
    • Reduce coverage penalties on perennial specialty crop producers and producers of intensively managed crops, such as alfalfa, when they move to row crop production. This allows for a seamless transition without losing crop insurance coverage.
    • Assignment of Indemnity: Provide flexibility for an indemnity payment to be issued via automated clearing house (ACH) or other electronic means when these methods do not allow for multiple payees.
    • Good Farming Practices (GFP): Streamline and shorten the FCIC GFP reconsideration process by closing the administrative file following FCIC’s initial GFP determination.
    • Double Cropping and Annual Forage: Clarify a producer must prove insurance history for the annual forage crop and meet the current double cropping requirements to receive a full prevented planting payment.

    RMA continues to explore ways to improve risk management tools for specialty crop producers and will be announcing additional program enhancements later this summer. Some of those improvements include:  

      Piloting the Fire Insurance Protection – Smoke Index (FIP-SI) crop insurance program for grapes in California for the 2025 crop year. The pilot program is an index-based endorsement to the Actual Production History (APH) Grape policy that provides additional protection against smoke damage and covers the liability between the APH policy’s coverage level and 95%.

      Expanding the Enhanced Coverage Option (ECO) to walnuts and citrus crops and increasing premium support to be consistent with the Supplemental Coverage Option.

      Expanding the Grapevine insurance program to an additional 29 counties in California. Grapevine insurance offers protection against vine losses in the event of several named perils.

      Releasing new Organic Practice Guidelines to producers for the 2025 crop year. These guidelines are to help producers report planted or perennial acreage insured under a certified organic or transitional practice.

    More Information

    This announcement further advances USDA’s recently announced Specialty Crops Competitiveness Initiative, a Department-wide effort to increase the competitiveness of specialty crops products in foreign markets, enhance domestic marketing, and improve production and processing practices.

    Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. Learn more about crop insurance and the modern farm safety net at rma.usda.gov or by contacting your RMA Regional Office.

  • Western United Dairies and Almond Alliance Help Secure Placement of Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act on Ballot

    This week, Legislature passed SB 867 (Allen) the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, that will be placed before voters on the November General Election ballot. The bond would authorize $10 billion in general obligation bonds to finance projects for drought, flood, and water resilience; wildfire and forest resilience; biodiversity and nature-based climate solutions; and climate-smart, sustainable, and resilient farms, ranches, and working lands, among other priorities.

    The bond will provide significant investments for dairy farmers and almond growers to increase groundwater quality and supply in critical areas of the state. The bond would allocate $386,250,000 for the Department of Water Resources (DWR) for projects related to groundwater banking, groundwater recharge, and instream flow projects that support the conjunctive use of groundwater and surface water supplies.

    The two organizations have collaborated with the California Department of Water Resources (DWR) on a number of high-priority initiatives to promote improving water resiliency and management. Among these initiatives is LandFlex, a program designed as a tool for real-time flood control, protection of communities and properties, and developing long-term groundwater recharge capability. DWR has steadfastly supported the implementation of LandFlex, and with the passage of the bond, LandFlex will be prioritized within a larger water suite of programs that will assist in improving water quality and supply for agricultural regions of the state. LandFlex also accelerates compliance with the Sustainable Groundwater Management Act (SGMA), allowing farmers to explore innovative farming methods that align with our long-term sustainability goals.

    “Placing the Climate Bond on the ballot will allow voters to determine key investments to improve water availability for dairy farmers,” said Frank Mendonsa, President of Western United Dairies. “Our partnership with DWR has been instrumental in advancing projects that support water conservation and provide long-term certainty in sustainable agriculture. LandFlex is a prime example of how we can achieve these goals, and we are optimistic about its future with resources included in the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024.”

    “We are excited about the Legislature passing and the acting Governor signing the Climate Bond legislation,” said Blake Vann, chairman of the Almond Alliance. “Our collaborative efforts with DWR on initiatives like LandFlex demonstrate our commitment to innovative solutions that benefit both the environment and our agricultural communities. We look forward to voters approving the bond in November and allowing LandFlex to be a long-term water resiliency program.”

    The organizations would like to recognize and thank Assemblywoman, and Chair of the Agriculture Committee, Esmeralda Soria (D-Fresno) and Senator Anna Caballero (D-Merced) for championing the inclusion of funding for DWR and LandFlex programs. We would also like to extend our sincere appreciation to Pro Tem Mike McGuire (D-Santa Rosa) and Speaker Robert Rivas (D-Salinas) and their staff for working with AA & WUD on the inclusion of key funding priorities for dairy farmers and almond growers. Of course, without the support of Governor Newsom and key members of his administration, this bond and core funding for water programs would not be possible.

    The Almond Alliance and Western United Dairies remain committed to leading the way in establishing long-term water policies to promote sustainable agricultural practices and look forward to continued collaboration with the Governor’s Administration, DWR, and Legislative Champions to ensure passage of the bond in November and implementation of these vital initiatives for dairy farmers and almond growers.

  • Gearing Up to Celebrate International Year of the Woman Farmer

    USDA Foreign Ag Service — Did you know that women are responsible for roughly half of the world’s food production? The United Nations’ designation of 2026 as the International Year of the Woman Farmer gives the global community a chance to highlight that fact and celebrate the incredibly important role women play in ensuring global food security. At the same time, it’s an unprecedented opportunity to underscore – and to address – the myriad social and economic challenges that women in agriculture face worldwide.

    We’re so proud of USDA’s role in leading U.S. government efforts to introduce and generate support for the resolution, which was cosponsored by 123 other nations and passed by the UN General Assembly in May. This marked the first time in history that the United States was the lead sponsor of an “international year” at the UN, demonstrating just how important the role of women in agriculture is to our department, our nation and the world.

    USDA recently hosted a gathering of more than 200 partners and stakeholders on USDA’s Whitten Patio (along with another 800 who joined us online!) to celebrate the resolution’s passage and to begin networking and sharing ideas for how to make the 2026 observance of the International Year of the Woman Farmer a momentous and transformational one.

    In addition to the many female agricultural leaders in attendance, we were joined onstage by Oklahoma Secretary of Agriculture Blayne Arthur, who also serves as president of the National Association of State Departments of Agriculture, and Lauren Phillips, who serves as Deputy Director of Rural Transformation and Gender Equality at the UN Food and Agriculture Organization. We’re grateful to them for sharing their insights and experiences and we’re also grateful that U.S. Ambassador to the UN Linda Thomas Greenfield was able to join us via video to issue a call to action.

    “The International Year of the Women Farmer offers governments, civil society, the private sector and other stakeholders the opportunity to better understand the challenges women face, help close the gender gap and get us closer to achieving the UN Sustainable Development Goals,” Ambassador Thomas-Greenfield said. “Together, let’s amplify the voices of women farmers and better understand their financial and technological needs. Let’s ensure access to credit markets, education and technology and build strong networks for mentorship and knowledge exchange. Let’s support changes in social norms that empower women farmers and implement policies that give them access and control over their land.”

    We’re deeply grateful for the hard work women farmers do day in and day out to feed our nation and our world. As we continue along the road towards 2026, we encourage everyone to join our efforts to elevate and empower women in agriculture worldwide. You can learn more at www.usda.gov/iywf.

  • 5-Year Biostimulants Market Forecast Reveals Tremendous Growth

    According to MarketsandMarkets, the biostimulants market is projected to reach USD 7.6 billion by 2029 from USD 4.3 billion by 2024, at a CAGR of 12.0% during the forecast period in terms of value. The global biostimulants market is experiencing significant growth with growing concerns about the environmental impact of conventional farming methods and the need to address issues like soil degradation and water scarcity, farmers and agricultural stakeholders are turning to biostimulants as a more sustainable alternative.

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    Biostimulants offer a way to improve crop productivity and resilience while reducing reliance on synthetic chemicals, thereby aligning with the goals of sustainable agriculture. Additionally, there is a growing need for improved crop yields and quality to meet the demands of a growing global population. Biostimulants offer solutions to enhance nutrient uptake, stress tolerance, and overall plant health, thereby helping farmers achieve higher yields and better-quality crops. This need for increased agricultural productivity, coupled with the challenges posed by climate change and environmental degradation, further drives the adoption of biostimulants.

    In the active ingredients segment, Seaweed extracts hold the largest share of the biostimulants market.

    Seaweeds are rich sources of naturally occurring compounds such as cytokinins, auxins, and gibberellins, which have been shown to stimulate plant growth and development. These bioactive compounds act as potent biostimulants, promoting root growth, enhancing nutrient uptake, and improving stress tolerance in plants. Secondly, seaweed extracts contain a diverse array of micronutrients, vitamins, and trace elements essential for plant health, making them highly effective in supplementing soil fertility and correcting nutrient deficiencies. Additionally, seaweed possesses unique polysaccharides and other organic compounds that stimulate beneficial microbial activity in the soil, fostering a healthier rhizosphere environment for optimal plant growth.

    In the crop type segment fruits & vegetables hold the largest share of the biostimulants market

    Seaweed extracts sourced from Ascophyllum nodosum and Ecklonia maxima are commonly used biostimulants to enhance fruit quality. Protein hydrolysates are another effective option, improving plant nutrition and consequently fruit and vegetable quality. Extracts derived from Ulva lactuca, Pterocladia capillacea, and Jania rubens have been shown to increase fruit length and diameter in hot peppers, while Ascophyllum nodosum extracts have led to higher soluble sugar content in eggplants. Inorganic compounds containing carboxylic acids have demonstrated the ability to enhance fruit dimensions, including width, length, and thickness in apricots. Protein and nitrogen-based biostimulants are recognized for their capacity to improve fruit color. For instance, the capsicum variety Palermo exhibited enhanced fruit color through increased carotenoid levels after application of a commercial biostimulant composed of amino acids and vitamins as a leaf and fruit spray. Furthermore, humic and fulvic acids have been found to positively impact fruit length in apricots. Application of humic acids as foliar and soil sprays has resulted in increased total soluble solids and an improved ratio of BRIX to acidity, ultimately enhancing the taste of various fruits.

    The Asia Pacific region is projected to be the fastest growing in the biostimulants market

    With a growing population and shrinking arable land, there’s a pressing need for higher crop yields and improved crop quality in the Asia-Pacific region. Biostimulants, by enhancing nutrient uptake, stress tolerance, and overall plant health, can help farmers meet these demands. The Asia-Pacific region is increasingly adopting advanced agricultural technologies, including biotechnology and precision farming practices. These technologies drive innovation in the development and application of biostimulants, making them more effective and tailored to the region’s diverse crops and farming systems.

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    Key Players in the Market

    • BASF SE (Germany)
    • Syngenta Crop Protection AG (Switzerland)
    • UPL (India)
    • FMC Corporation (US)
    • Rallies India Limited (India)
    • Sumitomo Chemical Co., Ltd. (Japan)
    • Corteva. (US)
    • Nufarm (UK)

    Browse Related Reports:

    Agricultural Biologicals Market

    Biofertilizers Market

    Biological Seed Treatment Market

    Humic-based Biostimulants Market

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  • USDA Begins to Survey Farmers’ Conservation Estimates in 2024

    As the 2024 crop season moves forward, the U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS) will contact producers nationwide to determine the effects of conservation on working lands.

    “The USDA’s Conservation Effects Assessment Project is an expanded effort to help the farming community better understand the environmental impacts of conservation practices,” said Gary R. Keough, NASS Pacific Regional Director. “CEAP is vital to help determine what resources farmers may need to further protect the soil, water and related resources in their area.” NASS representatives will visit farms between August 2024 and February 2025 to collect information such as on-farm production practices; chemical, fertilizer and manure applications; integrated pest management activities; and installed conservation practices.

    USDA NASS safeguards the privacy of all respondents. The information provided will be used for statistical purposes only. In accordance with federal law, responses will be kept confidential and will not be disclosed in identifiable form.

    The survey data will be published in the Crop Production report in 2025. This and all other NASS reports are available online at www.nass.usda.gov/Publications. For more information, call the NASS Pacific Regional Field Office at 1-800-851-1127.

  • Climate-Smart Ag & Food System Investments Secured in Climate Bond

    California’s Climate Resilience Bond (SB 867, Allen), if approved by voters in November, will catalyze a wide range of powerful climate solutions, including nature-based farming practices, and investments to improve historically underserved communities’ access to healthy food and safe drinking water. The Food and Farm Resilience Coalition applauds the legislature for the inclusion of $1 billion of our Coalition’s priority investments in climate-resilient sustainable agriculture, local food system infrastructure, and farmworker well-being.

    The proposed investments related to the Coalition’s agriculture chapter priorities are five times greater than those in Proposition 68, the last successful climate bond to include food and farming investments.

    This boost in food system priorities is the direct outcome of a multi-year campaign by the Food and Farm Resilience Coalition and the tireless advocacy of legislative leaders Assemblymember Lori Wilson and Speaker Robert Rivas.

    “Fires, droughts, and floods continue to increase food prices and threaten the livelihoods of farmers and farmworkers,” said Brian Shobe, Policy Director at CalCAN, a co-founding member of the Food and Farm Resilience Coalition. “This November, voters can act by voting to approve the climate bond to make our food and farm system more resilient. California’s family farmers and farmworkers are worth the investment.”

    Over $1 billion in proposed investments across all four of our Coalition’s priority areas were included in the Climate Resilience Bond. This includes funding for these programs:

    • State Water Efficiency and Enhancement Program (SWEEP): Funds on-farm water conservation and energy efficiency measures.
    • The Healthy Soils Program (HSP): Supports farming practices that improve soil health, reduce greenhouse gas emissions, and increase carbon sequestration.
    • Farmland Conservation: Easements funded through the California Farmland Conservancy Program permanently protect valuable farmland from urban development.
    • Farm equipment-sharing programs: Offers small farmers access to expensive farm equipment for healthy soils practices.
    • Local Food Infrastructure: Supports urban agriculture, farmers’ markets, mobile markets, and tribal food production which supports local food systems and improves access to fresh, healthy foods.
    • Farmworker Safety and Well-being: Funds energy-efficient retrofits for housing and safe, affordable drinking water infrastructure for farmworkers and their communities

    “The same week the Climate Bond was printed, extreme heat alerts hit the Central and Imperial Valleys, where many farmworkers labor in 100-degree heat. While labor laws protect them outdoors, who helps them cool down at home?” said Nayamin Martinez, Director at Central California Environmental Justice Network, a member of the Food and Farm Resilience Coalition. “Investments in energy-efficient programs for farmworkers, like the ones included in the bond, are instrumental to guarantee energy equity and resiliency for those more heavily impacted by extreme heat.”

    Given California’s budget deficit and the lack of resources in the Governor’s 24-25 budget, this bond may be the only source of funding for several of these popular programs and much-needed investments.

    In the coming months, the Food and Farm Resilience Coalition will actively educate voters about the critical need for this bond measure.

    “With climate change exposing the fragility of our state’s agricultural supply chain, the time is now to build the infrastructure that small farmers need to provide healthy and nutritious food throughout our state,” said Arohi Sharma, a senior policy analyst with NRDC (Natural Resources Defense Council), a co-founding member of the Food and Farm Resilience Coalition. “The local and regional food infrastructure investments proposed in SB 867 present a ripe opportunity for voters to help get food from California fields to Californians’ plates.”

    About the Food and Farm Resilience Coalition (FFRC): 

    The Food and Farm Resilience Coalition includes 17 agricultural, environmental, farmworker, public health, and food security organizations that came together in 2021 to create a more equitable and resilient food and farming system. The Coalition has been a strong advocate for securing food and farming investments in the Climate Resilience Bond, SB 867 (Allen). The group originally sponsored AB 125 (Rivas) and AB 408 (Wilson). Learn more at ResilientFoodSystem.org.