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nia’s entire organic walnut crop.
Poindexter attributed the increase in
organic walnut production to existing
orchards being transitioned to organic
and increased production numbers per
acre due to higher yielding varieties.
Irrigation and nutrients are important
components in organic farming practices,
he noted, but neither of those are
new developments in walnut farming.
Pricing Premium, Higher Costs
Water costs and debt service make
up a large part of the cost structure.
Poindexter said that typically, higher
yielding walnut varieties would have a
drop in production due to the inefficiencies
of organic fertilizers compared
to synthetics. Other farming costs, including
weed control, for example, also
tend to be higher in organic production.
In order to achieve comparable returns
on a per acre basis, he said there needs
to be a 30% premium per pound on
average.
“We have seen substantially higher
premiums in years past, but I expect
the normal bump on pricing will be
much closer to 30% to 40% over conventional
pricing moving forward.”
Poindexter said that ideal locations
for organic production would be areas
with lower insect pressure and without
close proximity to conventional farms
to eliminate the need for a buffer zone
to account for drift of pesticide applications.
Because of the difficulty in overcoming
deficiencies in the soils, starting
in good walnut ground, class 1 soils
with good water penetration, would be
ideal. Poindexter sources organic walnuts
from growers in the San Joaquin
Valley and in the Paso Robles area.
He said that in the past, there have
been many walnut orchards that were
no longer economically viable under
conventional methods and were
converted to organic to stretch the
productive life of the orchard. With the
recent rise in supply of organic walnuts,
Poindexter said that older orchards
or those with lower yielding varieties
are again getting pushed into negative
margins. The market won’t pay the
premium necessary for older varieties
that do not have production or the crop
quality. Color is the main quality driver
for sales and pricing.
“If a grower wants to farm organically,
they should be farming one of
the newer varieties: Chandler, Ivanhoe,
Tulare, Howard or Solano,” Poindexter
said.
Visual aspects are very important
as the largest segment of consumption
for organic walnuts is in retail sales
for culinary use. Institutional baking
and ingredient use of organics is still
a very small part of the market, Poindexter
explained, so the older varieties
are going to struggle to find a market
amid the expanding supply of premium
varietals.
Finding a Home
Lake County has historically led
the way in acres of organically grown
walnuts in California. UCCE Farm
Advisor Rachel Elkins said that 2018
statistics show the county had 1,700
acres producing organic walnuts. San
Luis Obispo County listed 650 acres,
San Benito County listed 564 acres and
the Solano/Yolo counties combined
listed nearly 2,000 acres.
Many growers of organic walnuts
in Lake County are now struggling, Elkins
said, with the loss of a major huller/dryer
and marketer for their nuts.
Two dry winters have also stressed the
trees and made them more vulnerable
to freezing temperatures. Many walnut
orchards in Lake County are also older
varieties, she said.
“There is a short crop here this year,
and the big issue is finding a home for
those walnuts,” Elkins said.
Grower Challenges
The Fillmore family in Gridley, Calif.
is a certified organic walnut grower and
processor. Ryan Fillmore said growers
who choose to farm organically have a
different set of challenges compared to
conventional walnut growers.
“Those challenges are manageable,
but you have to think ahead.”
Continued on Page 72
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