Executive summary

Almonds are often cited as one of the most unsustainable crops grown in California. In a state that faces extreme drought and threats of water shortage, almond growers and sustainability advocates debate over almond production, with an increasing number of calls to curb agricultural water use by the almond industry. However, almond growers insist that they are not to blame for California’s water depletion. The debate between sustainability and business growth comes to a head in California’s valley.

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History

  Almonds have been a prominent agricultural commodity for California’s industry since 1853. Today, we see 82% of the world’s almonds harvested in California. The Golden State also supplies 100% of the United States commercial market. This industry has been California’s most valuable export crop, generating more than 100,000 jobs and billions of dollars for the state. But how has such a lucrative industry for the state of California caused such unrest and controversy when it comes to policy?

Current Stances

Currently, we observe that the high degrees of water consumption for growing almonds have caused unrest amongst interest groups. According to a 2017 study published by Science Direct, one California almond has an average "water footprint" of 12 liters or 3.2 gallons, and in a state notorious for droughts, there is a high degree of concern when it comes to how much California should invest in its industry. The Pacific Institute, a group that looks to address water issues, argues that certain irrigation methods, such as regulated deficit irrigation, a water management technique that involves applying less water to crops than what is required for full growth, can cut water consumption by as much as 30% or more. But, these are not widely applied yet, and such methods also may affect crop yields and quality. 

There is also heavy concern about almond trees and their land efficiency. Below is a chart that depicts the land usage of almonds compared to other nuts. Environmental interest groups such as Food and Water Watch argue that the rapid expansion of agricultural land in California can pose a risk to local communities. These risks include potential taking over of communities, water pollution, and more.  Local opposition to new orchards is growing rapidly, and a backlash is likely. 

A spotlight is being shined on the role of corporate investors in the agricultural sector. Conversely, Investing-companies such as Paine Schwartz Partners and Nuveen have been focusing on the sustainable development of agriculture. 

On the other hand, we can observe just how much the almond industry has truly done for California. The Almond Board of California claims that 90% of almond Farms are local, family-run businesses that provide billions of dollars for small communities across the state. Their website states that “[almonds] are part of the fabric of their local communities, supporting local schools, businesses, and civic and religious organizations.”

Many industry advocates resist further regulation, such as water-use restrictions, citing the economic importance of almond farming. Groups like the California Farm Bureau Federation argue that over-regulating almonds could make California’s agricultural sector less competitive on the global stage, leading to a loss of market share to countries like Australia or Spain, which are also growing their almond industries.

Policy Problem

A. Stakeholders

‍Key stakeholders include almond farmers, who depend on a reliable and sufficient water supply for their crops, and agricultural workers, whose livelihoods are tied to the industry's health. Environmental groups are also significant stakeholders, serving as advocates and informants for sustainable water practices. Policymakers, while not always at the forefront of this issue, still play a role in regulating water usage and addressing water availability challenges. Water management authorities, such as the California Department of Water Resources and regional water districts, are responsible for allocating water resources and ensuring sustainable usage. Lastly, consumers and export markets, which drive the demand for almonds, are also stakeholders, as their purchasing behavior can influence agricultural practices and sustainability. Balancing the interests of these various stakeholders in relation to the California almond industry and water supply is crucial for ensuring long-term water sustainability and finding effective solutions.

B. Risks of Indifference

The risk of not addressing the California almond industry's relationship to water supply is extremely significant. Without action to counter unsustainable practices, the over-extraction of water could, and already has, lead to severe water scarcity. Groundwater reserves are depleting, limiting availability for other sectors, including urban needs. In drought-prone regions, this poses a serious long-term threat to California’s water security. Environmental degradation is also a major concern, as ecosystems and wildlife habitats are at risk while soil quality deteriorates, further exacerbating environmental damage. Beyond environmental impacts, the economic consequences are inevitable. Reduced water availability negatively impacts almond farmers, leading to significant financial losses for the industry and potentially destabilizing California’s agricultural economy.

‍C. Nonpartisan Reasoning

There are two differing positions on this topic, each driven by distinct concerns. The first perspective focuses on economic growth and advocacy, which includes stakeholders such as almond farmers, agricultural advocates, and economic proponents. Almond farmers emphasize that continued access to water is crucial for supporting their livelihoods and maintaining agricultural productivity, allowing their crops to thrive. They argue that water conservation measures can help balance water use with economic needs. Economic advocates support this viewpoint, stressing the importance of almond production as a key contributor to California's agricultural revenue. Both groups believe that limiting water access would undermine the state's productivity in the market.

The second perspective comprises stakeholders involved in environmental conservation and urban interests, including environmental organizations, state and local policymakers, and urban residents. Environmentalists argue that, despite the economic benefits of almond farming, the amount of water allocated to almond production is excessive and disproportionately impacts California's water resources, particularly in drought-prone areas. This threatens long-term water security and environmental health. Urban residents express similar concerns about the unequal allocation of water, advocating for more equitable and public use of resources. Policymakers, while varying in their approaches, face the challenge of ensuring sustainable water practices and addressing environmental concerns while also considering the needs of the agricultural sector.

Policy Options

The federal government, state government, and almond grower organizations have all attempted to regulate how almond growers use water. In 2009, California passed SB X7-7, the Water Conservation Act of 2009, which required agricultural water suppliers serving more than 25,000 acres to submit and implement an Agricultural Water Management Plan. Pertaining to California almonds, SB X7-7 created the Delta Stewardship Council, a governing body tasked with managing water usage in the Sacramento-San Joaquin River delta. In 2013, the Council adopted the Delta Plan, which directly impacts how growers access water for almonds. The plan has continually affected access to water for almond growth. While the plan has been successful at reducing overdrafts of groundwater, critics argue that it may have hindered the economic success of the almond industry. Government regulations are cited as number five in “The Top Five Challenges of Almond Farming in California” due to the combination of the Delta-Plan and Sustainable Groundwater Management Act, both of which reduce the amount of water that can be diverted to almond orchards.  

While government regulations have impacted almond growers’ use of water, internal organizations have also attempted to regulate water use and increase sustainability. A key player in almond policy, the California Almond Board, has created resources and tools to assist growers in sustainability efforts. One of these programs is the California Almond Stewardship Platform (CASP), which is “comprised of research, grower education, almond-based tools and self assessment data.” While CASP does have a sustainability goal, they prioritize economic gains over environmental progress, “buyers and consumers are driving sustainability by asking for evidence that California almonds are grown and processed with sustainable practices.” Another group with almond production and economic growth as a main goal is the Almond Alliance, whose 2023 Advocacy Report includes lobbying for groundwater regulation and decreased business regulations. Notable bills they have supported include AB 429, which would prohibit permit approvals for groundwater use in overdrafted basins until the relevant groundwater sustainability agency verifies that the well can be used consistently. SB 659, which has since been signed by the governor, requires the Department of Water Resources to provide actionable recommendations to develop additional groundwater recharge opportunities.

Conclusions

The dilemma within the almond industry in California can be easily paralleled to the broader debate of balancing business interests and environmental protection. As the industry expands, a sharp divide has formed between those concerned about its environmental impact and those who emphasize its economic value. On one hand, environmentalists argue that the industry's high water usage and impact on ecosystems pose significant risks, particularly in a state frequently affected by drought. On the other hand, industry advocates highlight the innovative strides in water efficiency and sustainable farming techniques, trusting that the market’s progress can mitigate these concerns.Policy plays a pivotal role in balancing the demands of both sides. The almond industry’s future hinges on how policymakers navigate these tensions, determining whether innovation and market forces will be enough to sustain it or if stricter environmental regulations will reshape the landscape.

Acknowledgment

The Institute for Youth in Policy wishes to acknowledge Eli Solomon, Anagha Nagesh, Nolan Ezzet and other contributors for developing and maintaining the Policy Department within the Institute.

References

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