Will a Bad Water Use Reputation Hamper the Almond Boom? | Global AgInvesting

Will a Bad Water Use Reputation Hamper the Almond Boom?

Will a Bad Water Use Reputation Hamper the Almond Boom?

By Elizabeth Penney

 

After four years of drought in California, one of the state’s top agribusinesses is taking heat for water use. “Where water is being used and how it’s being used is the issue,” says Ben King, principal of Arbor Nutrio, an orchard management company overseeing 3,000 acres of almonds and other nut crops. As water resources dwindle, debate about residential versus agricultural use—and which crops have priority—has become fierce.

 

At stake is a primary competitive advantage California almond growers possess, the perfect climate for nuts. The state produces 80% of the world’s almonds and in 2014, over 1 million acres were in production, according to California Department of Food and Agriculture. A recent study by the University of California Agricultural Issues Center reports that almond growing and processing has a $11 billion direct impact on the state’s economy, a figure that rises to $21 billion when indirect and induced economic activity are included. The nuts are the state’s largest export crop and the third highest value crop, at over $4 billion per year. Over 100,000 jobs are supported by the industry.

 

The permanence of almond crops, production leadership, growth, and high value has made almonds and other nuts attractive to investors. TIAA-CREF is one such institutional investor, with a stated strategy to divide agricultural investments 70-30 between row and permanent crops.

 

So why is the almond industry receiving such criticism? Growth in production and acreage as farmers convert row crop fields to orchards along with local allocation battles and shortages have resulted in a perception that almonds use too much water. In fact, Irrigation of Agricultural Crops in California, a presentation by the Land, Air and Water Resources at the University of California, shows a different story. Using three-year averages, alfalfa and other forage crops were by far the greatest users of water, with alfalfa absorbing double what almonds and other trees require. Cotton and rice also use more.

 

At issue is also the source of water. As the available volume of surface water dropped during the drought, farmers began to drill more wells. Now the health of aquifers is a concern. The California Department of Food and Agriculture’s 2014 Almond Drought Survey found that just over 50% of almond growers planned to pump more groundwater in 2014 than in 2013, due to a drop in surface water allocations.

 

The Almond Board of California is taking a proactive stance toward correcting facts about water use while implementing new sustainability initiatives. “Almond growers are laser focused on getting the most crop per drop,” says Carissa Sauer, manager of industry communications for the board. She makes the point that the amount of water needed to grow a pound of almonds has decreased 33 percent over the past decade thanks to improved irrigation techniques.

 

With concerns about groundwater use now escalating, the board recently partnered with Sustainable Conservation to “explore the potential of California’s one-million acres of almond orchards for groundwater recharge,” Sauer reports. Groundwater supplies can be replenished by capturing excess storm water rather than allowing it to run off into streams and rivers.  Canals and on-field flooding are two techniques successfully tested in California vineyards.

 

Growers like Ben King have already implemented water efficiency measures as part of a larger sustainability strategy. On his own acreage, he uses drip irrigation managed by sensors measuring soil moisture at three levels. King’s family has been raising permanent crops for over 100 years and he keenly feels the responsibility to be a good steward of the land. In addition to water-saving initiatives, he uses solar power in his operation with an aim of energy self-sufficiency. Ensuring long-term soil fertility by replenishing organic matter is also a priority.

 

When asked about the water—almond debate, King said he found it, “disheartening.” He made the point that California rainfall is cyclical and hopes that farmers, residents, and water districts can “find common ground” and take a “long-term view.”  King also noted that each water basin faces different issues and demands so a blanket water policy won’t work for all.

 

“Food takes water,” he says, “and it’s a noble use,” of the resource. With almonds a top California crop enjoying high global demand, supporting industry needs may also be a wise investment for the state’s economy.