Do pistachio farmers make money?
Written by
Tina Carter
Reviewed by
Prof. Charles Hartman, Ph.D.Pistachio farming has the potential to be profitable and is all about weighing the risks against the rewards for your location. I advised a Central Valley grower, who after twelve years, and several wild weather episodes, produced $12k/acre per year. Remember, it took twelve years to get to this point through drought and price drops. Initial investments will take some guts, imagine investing $15k-$20k per acre before even one nut drops!
Increasing Yield
- Rootstock selection: UCB1 hybrids boost verticillium resistance
- Pollination density: 1 male per 8 female trees
- Precision irrigation: 50-60" annual water via drip systems
Cost Management
- Cooperative buying: 15-20% discount on fertilizers/pesticides
- Mechanical harvesting: Cuts labor costs by 60% vs hand-picking
- Multi-cropping: Interplant drought-tolerant crops early years
A Fresno County farming operation that I consulted with demonstrates the risk. They spent $18,000/acre in 2010. Then, with the price dropping to $2.80/lb in 2015, they wondered how they could pay their mortgage and stay afloat without buying equipment. By 2021, prices were but not much above $4.50/lb. They made all of their costs back, and they netted a 22% return. Timing markets is more of a necessity than an option.
Water costs are critical to margins, and a Kern County grower was able to decrease their water costs by 30% using soil moisture sensors and deficit irrigation. In 2022, their yield dropped by 8%, but their profits rose 12% from lower costs associated with pumping water for irrigation. In arid environments, management of water to promote production efficiency frequently results in more profit than producing maximum yield.
The global competitive landscape can reshape returns. For example, the Iranian overproduction in 2019 collapsed prices, while the drought in California raised prices in 2021. The farmers I work with are savvy. They hedge 40% of their cropped area with futures contracts, which allows them to plant confidently despite uncertainties with weather and trade.
Read the full article: How to Grow Pistachios: 9 Essential Steps for Success
