Nut Job: An Almond and Pistachio Development in California

We acquired this future, combined nut platform in 2017. The asset consists of 5,652 acres and includes both planted and development acres. Our plan is to diversify the asset with almonds and pistachios. We are converting the almonds to organic cultivation, which is unique in the industry, while the pistachios will continue to be grown using conventional methods. Like the apple asset in Washington profiled earlier, we continue to see growth in the organic nut sector. By diversifying this asset’s commodity stream, not only by crop-type, but also by organic and conventional growing strategies, we will have the flexibility to approach the market in ways that reflect evolving consumer interests. This asset sits within a very favorable growing region — one with excellent water resources. The soils and climate will allow for robust pistachio and almond production and two of the largest pistachio processors in California have major production facilities in the vicinity. The AgIS team has tremendous experience in planning, developing and operating almond and pistachio orchards in California and all of this expertise will be brought to bear in the management of this platform.

Jeff Hillberg (L) and Jeff Conrad (R) of AgIS Capital Inspect Recently Planted Pistachio Trees

Almonds and pistachios are becoming more mainstream commodities for U.S. consumers because they are a healthy alternative to traditional snack foods. Global export markets also are demonstrating increasing interest in the two varieties. Almond and pistachio producers in the United States account for between 85 and 90 percent of global exports and California produces 99 percent of the U.S. almond crop annually. Kern, Fresno, Stanislaus, Merced and Madera counties are at the epicenter of almond production — generating a combined 73 percent of California’s total output. Like almonds, pistachios also are an important crop for California. The state produces 98 percent of all pistachios grown in the United States and 96 percent of this production takes place in Kern, Madera, Fresno, Kings and Tulare Counties.

We encourage interested investors and their consultants to join us for tours of the farmland and agricultural operating company assets in which we have invested for our clients. Come meet our team, learn more about our investment and asset management strategies and become more knowledgeable about the types of investment opportunities available in the agricultural sector. For more information, please contact Stephen Kenney.

Source: University of California Davis, Pistachio Production in California, Daniel Geisseler and William Horwath

Disclaimer: Our belief of future market performance is based on expectations that may or may not come true. Investors should perform their own due diligence before undertaking farmland investments.

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