California Ag Network

Category: Ag Economics

  • $700 Million to Connect People in Remote and Rural Areas to High-Speed Internet

    U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced nearly $700 million in grants and loans to connect thousands of rural residents, farmers and business owners in 22 states and the Marshall Islands to reliable, affordable high-speed internet through the ReConnect Program,funded by President Biden’s Bipartisan Infrastructure Law. This program is uniquely designed to fund the most difficult high-speed internet projects in the nation, which are the most rural, remote and unserved communities.

    Connecting all communities across the United States to high-speed internet is a central part of President Biden’s Investing in America agenda to rebuild the economy from the bottom up and middle out by rebuilding our nation’s infrastructure. This agenda is driving more than $500 billion in private-sector manufacturing investments, rebuilding America’s infrastructure, lowering costs, and creating good-paying jobs. And it’s transforming our country for the better – reaching communities in every corner of the United States, including those that have too often been left behind.

    “Keeping the people of rural America connected with reliable, high-speed internet brings new and innovative ideas to the rest of our country and creates good-paying jobs along the way,” Secretary Vilsack said. “Thanks to President Biden’s Bipartisan Infrastructure Law, we are connecting rural communities to a global marketplace. These investments will support economic growth and prosperity for generations to come.”

    Today’s high-speed internet investments are part of the fourth funding round of the ReConnect Program. Many residents and businesses in rural areas would not have high-speed internet service without the ReConnect Program, as the program is a key part of the Administration’s Internet for Allinitiative to connect everyone in America to high-speed internet by 2030. Today’s announcement includes $667 million in USDA investments in Alaska, Arkansas, Arizona, California, Illinois, Iowa, Kansas, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, Texas, Virginia, Washington, Wisconsin and the Marshall Islands.

    Today’s announcement includes several investments that will benefit people living in Rural Partners Network (RPN) communities. RPN works with hundreds of federal, state and local partners to address specific needs in rural communities that have long struggled to access government programs and funding. RPN helps these communities carry out locally driven plans to create jobs, build infrastructure and support economic growth and stability.

    Examples of projects in this announcement include:

    • In North Carolina, Star Telephone Membership Corporation is receiving a $24.9 million grant to benefit 2,674 people, 84 businesses, 117 farms and four educational facilities in Bladen, Columbus and Sampson counties. Bladen and Columbus are part of an RPN community.
    • In Oregon, Pioneer Telephone Cooperative is receiving a $24.9 million grant to benefit 2,239 people, 50 businesses, 205 farms and one educational facility in Lincoln, Lane and Benton counties.
    • In New Mexico, SWC Telesolutions Inc. is receiving a $9.2 million grant to benefit 4,962 people, 106 businesses, 11 farms and 17 educational facilities in Doña Ana and Sierra counties. Doña Ana County is part of an RPN community.

    Also, as part of USDA’s commitment to expand high-speed internet access, the Hood Canal Telephone Co. Inc. is receiving a $3.8 million loan through the Telecommunications Infrastructure Loan & Loan Guarantee Program. This investment will help construct 16 miles of fiber to provide high-speed internet access to 800 households and 10 businesses in Union, Washington.

    A full list of projects from today’s announcement is available online.

    Background: ReConnect Program

    Applicants to ReConnect Program funding must serve a rural area that lacks access to service at speeds of 100 megabits per second (Mbps) download and 20 Mbps upload. Applicants must also commit to building facilities capable of providing high-speed internet service with speeds of 100 Mbps (download and upload) to every location in the proposed service area. Additionally, to ensure that rural households that need internet service can afford it, all awardees will be required to apply to participate in the Bipartisan Infrastructure Law’s Affordable Connectivity Program (ACP). The ACP offers a discount of up to $30 per month toward internet service to qualifying low-income households and up to $75 per month for households on qualifying Tribal Lands.

    Background: Bipartisan Infrastructure Law

    President Biden forged consensus and compromise between Democrats, Republicans and Independents to demonstrate our democracy can deliver big wins for the American people. After decades of talk on rebuilding America’s crumbling infrastructure, President Biden delivered the Bipartisan Infrastructure Law – a historic investment in America that will change people’s lives for the better and get America moving again.

    The Bipartisan Infrastructure Law provides $65 billion to ensure every American has access to affordable, reliable high-speed internet through a historic investment in broadband infrastructure deployment. The legislation also lowers costs for internet service and helps close the digital divide, so that more Americans can take full advantage of the opportunities provided by internet access.

    To learn more about investment resources for rural areas, visit www.rd.usda.gov or contact the nearest USDA Rural Development state office.

    USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. For more information, visit www.rd.usda.gov.

  • Eight Startups Compete in 5th Annual California Dairy Innovation Competition

    The California Milk Advisory Board (CMAB) in partnership with innovation advisory VentureFuel, has announced the eight finalists selected to participate in the 5th Real California Milk Excelerator competition – the search to identify, curate, and accelerate the very best dairy-based products that introduce novel benefits and drive use of California milk and dairy in formulations.

    The largest global dairy accelerator, this year’s Open Innovation theme attracted dozens of applications from five countries, all with a goal of securing a spot as one of this year’s participants in the three-month program that provides access to non-dilutive funding, mentors, investors and buyers, and the California Milk Advisory Board’s specialized network of resources. The cohort represents themes of global flavors, functional benefits, and sustainability from upcycling byproducts of dairy production to packaging from renewable sources – all made with at least 50% real dairy.

    The eight members of the 2023 Real California Milk Excelerator cohort and their products are:

    Arbo’s Queso Dip (Memphis, Tenn.) – Gluten-free, keto-friendly queso-style cheese dips for retail.

    The Empanada Shop (Redondo Beach, Calif.) – Empanadas combining golden, flaky crust, creamy, melted cheese and a fusion of Latin American tradition and California flavors for retail and foodservice.

    New Alchemy Distilling (El Doradao Hills, Calif.) – A distillery making Spilt clarified milk punch cocktails in a can made with natural ingredients, zero stabilizers and upcycled whey from cheesemaking.

    Amazing Ice Creams (Stockton, Calif.) – Cookie Wild cookie wafer ice cream bar novelties enrobed in chocolate to stay crunchy.

    Noorysha Yo-Gut (Los Angeles, Calif.) – Specialty probiotic dairy product designed to support gut health.

    Petit Pot (Emeryville, Calif.) – French-style dairy desserts in paper-based cups made with >80% stainable/renewable fiber.

    Shakewell (Garden Grove, Calif.) – Fresh high protein drink made with five ingredients, including upcycled whey.

    WonderCow Nutrition (Valencia, Calif.) – All-natural bovine colostrum powder supplement that promotes immunity, muscle recovery and gut health.

    With real dairy’s versatility of benefits and functionality, from nutrition and flavor to texture and chemical composition, this open approach encourages innovation across product categories, all leveraging the versatility of the California dairy ecosystem.

    “The Open Innovation theme is exciting because of the variety of applications we received, and the myriad of ways startups and established brands are innovating with real milk and dairy ingredients,” said John Talbot, CEO of the CMAB. “We continue to see themes of global flavors and ingredients, a focus on sustainable sourcing and packaging, and products that go deep on the functional benefits inherent in dairy to address specific consumer needs from protein to gut health. Each member of the cohort brings something new and exciting to the marketplace and we’re looking forward to supporting their journey and ultimately seeing these products in the market with the Real California Milk seal.”

    These eight participants have access to a group stipend and a robust network of resources to refine and scale their product and business. They will also participate in the CMAB/VentureFuel Mentorship Program, consisting of elite counsel from successful founders, investors, leading corporate executives, and experts across design, marketing, sales, manufacturing, distribution, farming, and processing industries. Past mentors have included venture capitalists, successful entrepreneurs, and executives from organizations like Unilever, UNFI and Mondelez to name a few.

    “The Real California Milk Excelerator is a testament to the dairy community’s commitment to forging novel connections with consumers and unexplored markets,” said Fred Schonenberg, Founder and CEO of VentureFuel. “We’ve seen incredible displays of innovation and ingenuity from participants over the past four years, and our 2023 cohort continues to underscore the boundless possibilities within the dairy sector. VentureFuel is proud to be working with the California Milk Advisory Board for the fifth year of this program, and to continue working together to push conventional boundaries and influence transformative change in the market.”

    The cohort will present their companies and products at a live pitch event on November 16th where four of the eight participants will each receive $30,000 to grow and expand their product in California and gain access to an Investor/Buyer Virtual Roadshow. One participating company will unlock an additional $100,000 grand prize by establishing their presence in California and exhibiting the most promising growth within 12 months of the final competition. Total prize and program value is $500,000.

    The 2023 Real California Milk Excelerator celebrates the state’s role as the number one producer of dairy in the United States. California, known for innovation, has a reputation for quality dairy products and leads the nation in sustainable dairy farming practices. More than 1,100 family dairy farms produce the milk found in fluid milk, cheese, butter, yogurt, ice cream, and other dairy products identified by the Real California Milk seal.

    Over the past four years, the Real California Milk Excelerator has worked with more than 45 startups across numerous categories including food, beverage, direct-to-consumer platforms, textiles, and personal care. Representing nearly 40 percent of states across the U.S., program alumni have gone from idea to distribution with organizations such as UNFI and KeHE; and many can now be found on the shelves of retailers like Walmart, Safeway, Kroger, Amazon, and Whole Foods.

    Details about the 2023 cohort, mentors and the final pitch event are available at realcamilkexcelerator.com.

    About Real California Milk/California Milk Advisory Board

    The California Milk Advisory Board (CMAB), an instrumentality of the California Department of Food and Agriculture, is funded by the state’s dairy farm families who lead the nation in sustainable dairy farming practices. With a vision to nourish the world with the wholesome goodness of Real California Milk, the CMAB’s programs focus on increasing demand for California’s sustainable dairy products in the state, across the U.S. and around the world through advertising, public relations, research, and retail and foodservice promotional programs. For more information and to connect with the CMAB, visit RealCaliforniaMilk.com, Facebook, YouTube, Twitter, Instagram and Pinterest.

    About VentureFuel

    Founded in 2014, VentureFuel is an independent innovation advisory firm that helps the world’s best organizations commercialize innovation to ignite change. Its innovation programs solve clients’ biggest challenges via startup collaborations. VentureFuel provides organizations like Comcast NBCUniversal, Dick’s Sporting Goods and the State of California the tools to accelerate transformation with less risk, more speed, and greater proximity to the consumer than traditional innovation models. Learn more at: www.venturefuel.net, LinkedIn, Twitter and Instagram. You can listen to The VentureFuel Visionaries podcast on Apple, Spotify Simplecast or wherever you get your podcasts.

  • India’s Rice Export Ban: Short-Term Benefit, Long-Term Challenge for U.S. Rice

    U.S. rice producers and exporters stand to benefit from India’s recent decision to ban exports of white rice, as global demand for U.S. rice is expected to rise. Increased demand will temporarily lift prices for U.S. rice producers and the industry is well-positioned to meet higher demand for exports. However, the short-term benefits of India’s rice export ban will give way to the longer-term consequence of an oversupplied global market and severe price correction when the ban is ultimately reversed.

    According to a new research brief from CoBank’s Knowledge Exchange, higher global rice prices resulting from India’s export ban will prompt other countries to expand rice production, increasing global supplies. When India’s ban is reversed, presumably after the country’s elections next May, the growing rice surplus in India will be dumped on the export market and world rice prices will over-correct from the sudden flood in supply.

    “The good news is that the ban will benefit U.S. rice producers with stronger export demand, particularly from Iraq and possibly the Caribbean, as well as Central and South America,” said Tanner Ehmke, lead grains and oilseeds economist for CoBank. “Unfortunately, a prolonged period of abnormally depressed rice prices and lower incomes among rice farmers, including in the U.S., will likely follow the reversal of India’s rice export ban.”

    India’s government imposed a ban on non-basmati rice exports on July 20 following a jump in food inflation in June and erratic weather that negatively impacted the country’s spring-planted rice crop. The move was made to contain rising domestic rice prices amid higher overall food costs, geopolitical risk in the Black Sea raising wheat prices and the threat of El Nino diminishing Indian rice harvests.

    The threat of reduced global rice supplies sent India’s top importers across Asia, West Africa and the Middle East scrambling to secure supplies in anticipation of global shortages. Prices of white 5% broken rice in Thailand, the second largest rice exporter with about 13% of global market share, have climbed 18% since the Indian export ban was imposed. Should other rice-exporting countries also restrict exports, world rice prices including in the U.S. would become extremely volatile.

    So far, U.S. rough rice prices on the Chicago Mercantile Exchange have been virtually unchanged relative to other global exporters like Thailand since India’s export ban was imposed. However, the U.S. likely will see new demand emerge to backfill into markets that are more price-sensitive to higher Asian rice prices.

    The U.S. will be well-positioned to meet higher export demand with all-rice production expected to reach 203.6 million cwt., a year-over-year increase of 26.9%, according to USDA. Potential new export business that emerges because of the ban will most likely be for long-grain rice, which is projected at 146.8 million cwt., up 14.5% year-over-year. Longer term, the U.S. rice industry should prepare for a period of heightened market volatility.

    Read the research brief, India Rice Ban Will Benefit U.S. Rice Exports, Increase Market Volatility.

    About CoBank

    CoBank is a cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 76,000 farmers, ranchers and other rural borrowers in 23 states around the country.

    CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

  • Ag Boosters Barbecue Supports Students and Programs

    Celebrating 46 years, the Ag Boosters Barbecue has become a tradition for supporters and friends of the Ag One Foundation and the California Women for Agriculture , raising more than $1 million for student scholarships and programs that support California agriculture.

    The annual fundraising event will be at 4 p.m. on Sunday, Sept. 10, at George’s Ranch (8805 CA-41, Fresno), formerly known as Panoche Creek River Ranch.

    The barbecue dinner will be served from 5:30 to 6:30 p.m. with the San Joaquin River as the backdrop. Guests can enjoy farm products grown and produced by Fresno State students, including award-winning wine, grapes, raisins, extra virgin olive oil, sausage and more. In addition, there will be a country store filled with handmade arts, crafts and baked goods.

    Silent and live auctions under the stars offer guests the opportunity to bid on vacation getaways and specialty items unique to the Ag Boosters Barbecue. In addition, the winner will be drawn for the Ag One “Fantasy Vacation” raffle, featuring a choice of destinations including Eastern Europe, national parks in Wyoming and South Dakota, the Mississippi River, Portugal and Alaska.

    Event proceeds benefit students and programs in the Jordan College of Agricultural Sciences and Technology at Fresno State as well as the educational efforts of California Women for Agriculture.

    Since 1979, Ag One has provided about 5,200 students with over $9.4 million in scholarships as well as program support. In the 2023-24 academic year, more than $920,000 will be awarded to deserving students and programs. Funds also support the California Women for Agriculture mission to tell the story of California agriculture through education and legislative programs. California Women for Agriculture provides nearly $100,000 in student scholarships annually.

    Tickets are available online for $75 per person or $700 for a table of 10. Ticket prices increase to $85 per person or $800 for a table of 10 beginning Thursday, Aug. 31. Visit www.agonefoundation.org for more information or call 559.278.4266.

  • UC Davis Scientists Collaborate with Deep Look on Bindweed Turret Bees

    Microbiologist Shawn Christensen, a fifth-year doctoral candidate in the Rachel Vannette laboratory, UC Davis Department of Entomology and Nematology, and Vannette, his major professor, were among those collaborating with the producers of KQED Science’s Deep Look for its wildlife video on bindweed turret bees.

    The newly released video, titled “This Fly Torpedoes a Bindweed Bee’s Nest,” appears on YouTube at https://youtu.be/gJHCoP4WqMc.

    “Shawn has done a lot of work on this bee and with Deep Look, and he also leads our lab’s work on Anthophora bomboides, a bumble bee mimic, and studies microbial associates of pollen and solitary bees,” said community ecologist and associate professor Rachel Vannette, a Chancellor’s Fellow and vice chair of the Department of Entomology and Nematology.

    The Deep Look crew filmed the bees, Diadasia bituberculata, in a nesting area outside the UC Davis Stebbins Cold Canyon Reserve, near Winters.

    Microbiologist Shawn Christensen of the Rachel Vannette Lab, UC Davis Department of Entomology and Nematology

    The bees, also known as digger bees or chimney bees, are specialists on bindweed, commonly known as morning glory.  “The females use pollen only from one plant species and are active through the late spring and early summer,” said Vannette, an international leader in microbial ecology who studies interactions between plants, insects and microbes.

    Native to California, the bindweed turret bees build nests (turrets); provision them with pollen for their future offspring; and then lay their eggs.

    In an example of kleptoparasitism, the video shows a female bee fly (family Bombyliidae) flying over a vertical turret and dropping her eggs inside. The fly eggs hatch into larvae, which feed on the stored pollen and then eat the bee larvae. Horizontal turrets with sideway tunnels (also shown in the video) prevent the flyover egg drop.

    Gabriela Quirós, coordinating producer of Deep Look,  consulted with the UC Davis scientists, obtaining information on the location of the bee nests, as well as information on the brood cells, pollen, and turrets. The Deep Look production includes UC Davis images taken inside a bee nest.

    Quirós also consulted with seven other scientists: Stephen Buchmann, University of Arizona; Andy Calderwood,Ventura County Deputy Agricultural Commissioner;  Neal Evenhuis, Bishop Museum of Honolulu, Hawaii; Paul Havemann, UC Davis Natural Reserve System; Keng-Lou James Hung,  University of Oklahoma; Doug Yanega, UC Riverside, and James Carey, a naturalist who researches and videos bindweed turret bees in the Santa Monica Mountains National Recreational Area.

    Senior video producer Josh Cassidy, the lead producer and cinematographer, filmed all the footage except for the male bees fighting with each other (00;17;14- 00;25;22 in the video).  James Carey, who filmed that footage, “has been regularly monitoring and filming bindweed turret bees since 2016 in Rancho Sierra Vista/Satwiwa, an open space in the Santa Monica Mountains,” Quirós said. “James also filmed the shot at 04;17-04;21 showing nests in the Santa Monica Mountains covered up at the end of the nesting season.”

    Evenhuis and Calderwood, both bee fly experts, identified the bee flies as Paravilla fulvicoma.  “Neal explained the life cycle of these bee flies and advised me on the animation,” Quirós said. Deep Look editor and motion graphics expert Kia Simon created the animation of the bee fly larva eating the bee larva.

    “How I got interested in producing an episode of Deep Look about bindweed turret bees was that Rachel Vannette told me about these bees in 2021,” Quirós related. “Rachel told me that Shawn Christensen, a doctoral student in her lab, was studying their pollen. Later, I saw on the Native Bees Facebook group, the videos that James Carey had recorded of bee flies dropping their eggs into the nests of bindweed turret bees in Rancho Sierra Vista/Satwiwa, in the Santa Monica Mountains. I hadn’t known about bee flies until I saw his videos.”

    “I became interested in trying to film a video about the interactions between bee flies and bindweed turret bees. I contacted Shawn Christensen in January of this year, and Shawn and I started checking in regularly to figure out when the bindweed bees would emerge. When they finally did come out in large numbers–they were later this year than usual–we were, luckily, ready to jump into action and film an episode.”

    Quirós credited Paul Havemann, manager at the UC Davis Natural Reserve System, as instrumental in finding the filming location. “On a Sunday in early June, he clambered up the mountain at Stebbins to show me where the bees had emerged. On the way out, he told me he’d show me a parking lot where they also had emerged. The parking lot turned out to be a perfect filming location. It is very accessible and there were plenty of bees. We didn’t need to haul our gear up the mountain.”

    About 70 percent of the world’s bee species are ground-nesting.  “Females tirelessly scoop earth with their mandibles, softening it by dousing it with nectar they collected earlier,” Deep Look related. “They work side by side, but each is /queen/ of her own castle.”

    More than 4,000 species of bee flies comprise the family Bombyliidae. “How do you tell a bee fly from a bee?” Deep Look asked. “Even though bee flies have hairy bodies like bees, if you look closely, you can tell them apart. Bee flies have big eyes that cover a large area of their heads. And bee flies’ antennae are short compared to bees’ antennae.”

    Viewers are raving about the video with such online comments as:

    • “The camera work is nothing short of amazing. Great job!” (Cassidy’s photography equipment included a 100mm and 65mm macro lenses and a probe lens, a wide angle macro lens.)
    • “Love the pollen pants, and I felt so bad for the bees whose hard work was spoiled by those pesky bee flies.”
    • “This channel truly deserves much more recognition than it has, the amount of information and clear footage is marvelous.”
    • “Thanks. It’s not often I see a good short video on a native bee species or any native pollinator for that matter.”

    Christensen, a member of the UC Davis Microbiology Graduate Group and anticipating his doctorate in the spring of 2024, is an evolutionary biologist turned microbiologist. Christensen also researches other native bees,  including Melissodes and Colletes.

    Vannette focuses her research on the chemical and microbial ecology of plant-pollinator interactions and how microbes influence plant defense and resistance against insect pests.  On its website, the Vannette lab is described as “a team of entomologists, microbiologists, chemical ecologists, and community ecologists trying to understand how microbial communities affect plants and insects–sometimes other organisms, too. We often study microbial communities in flowers, on insects or in soil. We rely on natural history observations, and use techniques from chemical ecology, microbial ecology and community ecology.  In some cases, we study applied problems  with an immediate application including pathogen control or how to support pollinators.”

  • USDA Accepting Applications for Angola Agribusiness Trade Mission

    The U.S. Department of Agriculture Deputy Secretary Xochitl Torres Small will lead the first-ever U.S. agribusiness trade mission to Luanda, Angola on Nov. 28 – Dec. 1. USDA Foreign Agricultural Service is now accepting applications from U.S. exporters who wish to participate in this trade mission.

    “When it comes to trade opportunity, Sub-Saharan Africa is both promising and often over-looked, and the USDA trade mission to Angola presents an incredible prospect for U.S. food and agriculture exporters to expand and explore new business opportunities,” said Torres Small. “Angola is one of the largest markets in Africa, and with imports making up more than half of its food market, Angola is a perfect location for U.S. exporters to introduce more American-made products to African consumers.”

    While in Angola, participants will conduct business-to-business meetings with potential buyers, receive in-depth market briefings from FAS and industry trade experts, and participate in site visits and other networking opportunities. In addition to meeting with importers in Angola, U.S. participants will also meet with buyers from neighboring Democratic Republic of the Congo and the Republic of the Congo.

    With a population of nearly 36 million people, many of whom are middle- and high-income consumers, Angola is looking for high-quality imported products. In 2022, U.S. food and agriculture exports to Angola totaled $236.8 million, making it the 7 largest African market for U.S. exporters. Consumer-oriented products accounted for more than 99 percent of U.S. agricultural and food exports to Angola in 2022. Angola was the largest U.S. poultry market in Africa, and the sixth largest globally last year, importing more than $232 million of American poultry and poultry products.

    The Angolan market presents strong export opportunities including poultry, pulses and dry beans, wheat, and wine. Local and U.S. industry partners also see opportunities for other products, including rice and soy and vegetable oils, and other consumer-oriented products, including beef, pork, sauces and condiments, and distilled spirits.

    The deadline to apply for the Angola trade mission is Friday, August 25. The application form is available online. To learn more about this and other USDA agribusiness trade missions, visit fas.usda.gov/topics/trade-missions.

  • Opportunities for Almond Cover Crop Funding Through the Pollinator Alliance

    Interested in planting cover crops down your orchard rows, but tight on funding?  Watch this brief interview with Doug Iten from Great Valley Seeds as he explains their recent collaboration with the Almond Alliance of California to provide grant funding for growers through the new Pollinator Alliance.  Read more about it in Pacific Nut Producer Magazine.

    Please thank this video’s sponsor G3 Enterprises for their industry support.

  • Growers Optimistic about Pre-Season 2023 California Walnut Outlook

    What a difference a year makes! The California walnut industry is gearing up for a stellar 2023 harvest and shipping season after several years of drought, record low grower returns, COVID disrupted markets with supply chain challenges and a devastating heat wave in September 2022 that negatively impacted the entire crop. Here’s why this season is lining up to be a different story.

    Quality is expected to be excellent due to favorable growing conditions.

    Last winter’s prolonged heavy rains in the California walnut growing regions helped restore deep soil moisture and provided for healthy root zones, enabling trees to better tolerate late season high temperatures. The state also benefitted from an extensive snowpack which has provided all growing regions with sufficient water to support the trees and the crops through this season.

    The much-needed chilling hours were at normal levels, placing the trees into a much-needed deep winter dormancy and a prolonged “rest and recuperation” period. Mild spring temperatures were ideal and produced full, vibrant, vigorous tree canopies which supported strong pollination, resulting in robust nut sets throughout the orchards.

    “This year, our trees are more capable of handling higher temperatures than the previous years when the trees were under stress due to long-term deficit irrigation,” commented fourth-generation grower and handler Bill Carriere of Glenn, California. “Long-time growers have commented that the trees have not looked this strong and healthy in at least six to seven years. The full leaf canopy provided excellent temperature control and sun protection during the spring and summer months, allowing the walnuts to grow evenly with minimal sunburn. I am very optimistic that this year will mark a return to the premium quality walnuts we are known for in California.”

    Acreage adjustments

    Record low prices, brought on by an oversupply of darker than normal walnut kernels and weak demand in international markets, have taken a toll on growers, some opting to remove orchards from production. “Our family decided to pull out a productive orchard planted by my father in the early 2000s, it was a difficult decision, but the numbers told the story,” said Don Barton, a fourth-generation family farmer in Escalon, California. “We pulled a few acres with legacy varieties that are no longer desired by the broader buying community. Further south, walnut growers had removed trees due to new water restrictions that resulted in a lack of long-term availability to groundwater. Overall, the last few years have been devastating for growers and we are making some difficult decisions.”

    The extent of the acreage shift became more evident in an acreage survey conducted by the California Walnut Board between October 1, 2022, and June 30, 2023. For the first time ever, the acreage of California walnuts declined with 23,000 acres removed during the nine-month period. The industry will likely see additional reductions between July and December 2023, as more growers decide to shift to other crops and the needed tree removal equipment becomes available.

    Favorable New Crop Volumes and Inventory levels

    However, even with the removal of these orchards, the industry has a strong production base with approximately 380,000 producing acres and 37,000 younger non-bearing acres. USDA/National Agricultural Statistics Service Information (NASS) is currently conducting the annual walnut crop objective evaluation which counts and measures walnuts in a representative cross-industry sampling protocol. Incorporating the recently updated acreage report with the sampling results. USDA will release the official California walnut industry crop estimate on September 1, 2023.

    “This week, the California Walnut Board released the monthly and year-to-date shipment report which highlighted an additional reason why I am bullish about the upcoming season,” remarked Martin Mariani, a grower/processor from Winters, California, “The data shows that we have shipped the equivalent of 730,488 tons this season from an available inventory of 880,000 tons.” He went on to explain that when taking into consideration the high sales commitments going into the fall, “we are virtually sold out of available inventory, which bodes well for the industry. I can’t wait to bring the new crop to market.”

    Global and Domestic Market Outlook

    With a focus on inshell markets, Chile is anticipated to be sold out by the time the new California crop starts shipping this fall. With minimal inventories of export-quality walnuts on hand, coupled with the current limited supply of walnut halves in global markets, the fresh California crop of premium quality walnuts, inshell and kernels, will be in high demand.

    “Domestically, sales have increased 28% which helped our industry work through the high inventory numbers we saw at the start of the season” said Mike Poindexter of Poindexter Nut Company in Selma, California. “Major US retailers significantly increased their promotional efforts, which stimulated consumer sales.  This is continuing through the fall and will provide nice momentum going into the U.S. holiday season for new crop kernels and inshell sales.”

    Market Development and Sales Expansion

    Acknowledging the difficulty California walnut industry growers have faced in recent years, Robert Verloop, CEO and Executive Director for the California Walnut Commission (CWC) and Board, said the organization has taken several steps to aid growers.

    Robert Verloop, CEO and Executive Director, California Walnut Commission (CWC) and Board

    “There have been successful efforts during the season to respond to the heat wave impacted crop, yet with low prices and high input costs, the squeeze on family farms has been relentless. Through the Commission, we continue to work with our representatives in Washington, D.C. and Sacramento for emergency relief for growers,” he said.

    “Also, working with the CWC Board of Directors, industry handlers/processors, many volunteer leaders and elected officials and regulators, we have successfully secured a record USDA Section 32 purchase this season for up to $90 million; this funding is being used to help move the current crop out of our storage and into 1,400 food banks across the U.S., providing additional nutrition to thousands of families. In addition, the 20% reduction in tariffs recently announced by India will help us regain our footing in the Indian market.”

    About the California Walnut Board

    The California Walnut Board (CWB) was established in 1948 to represent the walnut growers and handlers of California. The CWB is funded by mandatory assessments of the handlers. The CWB is governed by a Federal Walnut Marketing Order. The CWB promotes usage of walnuts in the United States through publicity and educational programs. The CWB also provides funding for walnut production, food safety and post-harvest research.

    About the California Walnut Commission 

    The California Walnut Commission, established in 1987, is funded by mandatory assessments of the growers. The Commission is an agency of the State of California that works in concurrence with the Secretary of the California Department of Food and Agriculture (CDFA). The CWC is mainly involved in health research and export market development activities. For more industry information, health research and recipe ideas, visit www.walnuts.org.

  • Turlock Irrigation District Comments on Serving Farmers in a Wet Year

    With the bountiful supply of much needed rain and snowpack over the winter and spring, watch this brief interview with Michelle Reimers from Turlock Irrigation District as she shares how they are utilizing it, serving and protecting their farming customers this summer with full water allocations.

    Please thank this video’s sponsor G3 Enterprises for their industry support.

  • Phased Increase of “Mill” Fee from Pesticide Retailers to Fund California DPR

    The Department of Pesticide Regulation (DPR) today released the results of an independent study designed to evaluate the department’s main funding source, the mill fee. The study examined proposed structures and rates to provide long-term sustainable funding that would allow DPR to continue to fulfill its mission and incentivize sustainable pest management.

    To accelerate the transition to sustainable pest management in California, the 2021-2022 state budget funded an investment in the independent Mill Assessment Study to assess the long-term funding needs for the department. The study found that DPR is critically underfunded, which jeopardizes its ability to continue to operate foundational programs that protect people and the environment from pesticide risks. The study also found that the department lacks funding to support the development and implementation of safer, more sustainable alternatives for effectively managing pests, including bacteria, rodents, insects and weeds, in agricultural, urban and wildland settings.

    To help ensure long-term, stable funding for the department, the Mill Assessment Study recommends a phased-in increase of the mill – from the current $0.021 for every dollar in sales, up to $0.0339 per dollar in sales. The study also recommends the consideration of a future tiered mill structure to support and incentivize sustainable pest management.

    Over the last several decades, the department has added and expanded essential programs to address the risks and impacts of pesticide use on people and the environment, incorporate new technologies for studying and monitoring pesticide risks, and engage with communities impacted by pesticide use – but the current mill assessment has not increased in nearly 20 years. Since 2013, the department has been operating with a structural imbalance.

    Critically, the 2023-24 state budget provides $1.9 million in immediate funding to begin to address the department’s most urgent funding needs for pesticide registration and evaluation and strategic planning and initial implementation of the Sustainable Pest Management Roadmap, and to study fumigant pesticide alternatives.

    Adequate, stable, long-term funding is essential for the department to scientifically and efficiently evaluate pesticides for safe use in California; monitor pesticides in air and water; track reported human health impacts; consider of emerging science related to pesticide risks; mitigate pesticide-related risks; and enforce pesticide use laws and regulations that keep workers, communities and the environment safe. An efficient registration and evaluation process is essential to address changing pest pressures and efficacy of current and future pest management tools and resources.

    “This study highlights the urgent need to provide short- and long-term funding for the department to continue to improve protections for people and the environment and ensure the availability of safe, effective pest management tools,” DPR Director Julie Henderson said. “The way pests are managed impacts human health and the environment. The department needs effective long-term, stable funding to ensure pest management approaches across the state protect people and the environment and support agriculture, community well-being and our wildlands.”

    In January 2023, a group of diverse stakeholders released the Sustainable Pest Management Roadmap for California to chart a course for pest management approaches in California that address human health and equity, consider broader environmental factors, support community well-being, and safeguard the future of our agricultural and food supply sector. The recommended mill increase would provide needed long-term support for foundational department work and fund the accelerated statewide transition to sustainable pest management. The increase would also fund pesticide-related programs at the California Department of Food and Agriculture and the pesticide enforcement programs on a local level that are implemented by county agricultural commissioners.

    “To truly build a healthy and safe California for all, we must transition to sustainable pest management and decrease our dependence on high-risk pesticides. That includes ensuring DPR has adequate, long-term funding to expedite the registration of safer tools and improve its evaluation of currently registered pesticides,” said CalEPA Secretary Yana Garcia. “DPR plays a vital role in protecting human health and the environment from potential pesticide exposure, but it needs additional resources to continue to fulfill its mandate and move forward with the implementation of the Sustainable Pest Management Roadmap.”

    For more on the mill study, see DPR’s website.

    ABOUT THE DEPARTMENT OF PESTICIDE REGULATION

    The California Department of Pesticide Regulation’s mission is to protect human health and the environment by fostering safer and sustainable pest management practices and operating a robust regulatory system to monitor and manage the sale and use of pesticides across the state. DPR’s work includes registering all pesticides sold or used in California, conducting scientific evaluation of pesticides to assess and mitigate potential harm to human health or the environment, monitoring for pesticides in the air and water, and enforcing pesticide regulations in coordination with 55 County Agriculture Commissioners and their 500 field inspectors. DPR also conducts outreach to ensure pesticide workers, farmworkers and local communities have access to safety information. DPR invests in innovative research to encourage the development and adoption of integrated pest management tools and practices. More information about DPR can be found at www.cdpr.ca.gov.