The California Drought: What Is Happening To The World’s Top Almond Supplier?

A historic drought across the U.S. West is taking a heavy toll on California's $6 billion almond industry, producing roughly 80% of the world's almonds. As temperatures recently reached triple digits, farmers in California's agriculture-rich San Joaquin Valley have turned to deficit irrigation- providing less water than needed. Most farmers have had to even sacrifice several acres of their almond trees after the late summer harvest. Some hadn't expected to do this for years.

However, this is the least of the farmers' plight. More and more farmers are ditching their orchards as water becomes scarce and expensive in California. Buying water is expensive, and it is just sustainable. Growers leaving the market is a reversal of California's relentless expansion of almond trees in the region. With its Mediterranean-like climate and reliable water systems, the Central Valley had been the perfect spot to grow the majority of the world's almond crops. 

California’s History Of Almond Production

California's almond production grew in the early 2000s, capping at a record 3.1 billion pounds in 2020, according to statistics provided by the U.S. Department of Agriculture. Before the draught, it had projected the almond crop for 2021 to hit a record 3.2 billion pounds, but it had to scale back in July to 2.8 billion pounds, citing the lack of water ability and rising temperatures as the reason behind this.

This is a massive blow to an industry that exports 70% of its almonds to India, Europe, and East Asia. However, the reason behind this may have something to do with previous farming practices during another draught.

Previously, between 2012 and 2016, California experienced a drought which led to global almond prices rising. This gave incentive to farmers and investors to plant hundreds of square miles to new areas that lacked reliable irrigation systems. While the almond boom was successfully able to run its course during that period, it cannot do so given today's climate conditions. 

What Is Being Done To Protect The Almond Trees?

The U.S. Drought Monitor reported that 88% of the state was in "extreme drought" in mid-August, with the Central Valley facing the worst of it. It has drained reservoirs that supply water to Central Valley farms. In early August, Shasta Lake, the state's largest, was also reported to be only 30% full. Lake Oroville, the second-largest, was only 24% full, as per the California Department of Water Resources.

State and federal officials have reduced water usage for agriculture, forcing many farmers to abandon their orchards altogether or shift to crops that use less water. As the drought drains reservoirs, Governor Gavin Newsom calls on residents to voluntarily reduce water use by 15%. 

This doesn't abode well with urban dwellers. It seems pointless to make people suffer from growing crops that aren't compatible with California anymore. Calls have been raised to permanently ban the growth of almond crops in areas that don’t have reliable irrigation systems.

While the federal government is doing its best to save California's almond production, several suppliers have even come out to say that almond production isn't as profitable as it once was. In fact, it is more complicated and requires much more time, energy, and capital to run a successful almond orchard.

Farmers are turning to other crops that will benefit them even more. For now, the future of California's almond production looks bleak unless something is done about the drought that brought about rising temperatures and not enough water systems in the region.