January/February 2025

2025 State of the Industry Survey Report

In the fall of 2024, National Nut Grower surveyed U.S. tree nut growers to assess the state of the industry.

The survey found mixed results, with some growers reporting successful yields while others faced challenges with low prices, high input costs and environmental stresses.

Economic pressures and market saturation

Labor, water and energy costs were factors that impacted growers in 2024, with low commodity prices significantly affecting profitability, especially among almond growers. Market saturation drove prices down, and high input costs for fuel and labor further squeezed margins. These pressures forced some growers to operate at a loss or reduce staff, according to survey responses.

Crop management challenges

Respondents said challenges consisted of pests (33%), weeds (24%), labor (23%), diseases (14%) and “other” pressures. Growers who reported “other” challenges (49%) said weather and environmental factors, including droughts and hurricanes, were driving up fuel and production costs. One grower experienced significant damage from Hurricane Helene, while others faced delayed harvests due to extreme heat.

For respondents who noted weed management as a top issue, herbicide resistance was cited as an increasing problem, requiring more intensive control efforts.

Pest pressures and the resistance of insects to pesticides also led to more frequent applications and rising costs.

Key pest issues varied by region, but heat-resistant species including aphids and mites drove up spraying needs, with miticides proving less effective later in the season. Pests such as black aphids, codling moths, mites, pecan weevils and plant bugs were particularly problematic this season, according to the survey.

Respondents were asked to describe the pest pressures that arose in 2024. Recurring responses indicated that increased spraying was a necessary function this past year.

The following are some of the written responses:

• More pesticides and insecticides than used in past years”
• “Chemical weapons”
• “Stay on top of spraying”
• “Cost of inputs vs return per acre”
• “High input costs and low prices”
• “Energy costs, production costs and low prices”
• “The prices for selling our nuts!”

Around 20% of respondents felt extreme weather contributed to pest proliferation, which led to an increase in pesticide applications. Additionally, some respondents stated disease pressure was an issue due to high moisture levels that required more sprays to manage diseases like brown spot and blight.

For other survey participants, multiple factors were a challenge. “Costs, weeds, pest controls and fertilizers” were a major challenge, wrote one respondent.

“Alternaria is a tough one, same with navel orangeworm from poor sanitation and overwintering in neighboring fields. Plus, the nut crop prices aren’t good,” wrote one grower.

Cover crops

In 2024, 24% of respondents used cover crops to enhance soil health, moisture retention and nitrogen fixation. Benefits included improved water penetration, soil structure and reduced fertilizer usage. However, some
growers faced challenges with late planting, poor stand establishment and increased labor for biomass and weed management associated with cover crops.

Harvest and postharvest concerns

Yields varied across regions and nut varieties, with 48% of growers reporting increased yields, largely due to favorable weather and improved management practices. Meanwhile, 43% reported decreased yields due to adverse weather conditions.

During harvest some growers (31%) noted high temperatures and humidity were factors that affected timing and crop quality. Equipment shortages and labor issues created delays and bottlenecks in transportation, though some growers benefitted from improved logistics and storage options. A few respondents reported receiving government grants to help offset production costs.

One grower wrote: “Struggled through harvest with any help I could find.”

Another grower wrote that they “used savings to subsidize farming and did work ourselves at 80 and 82 years of age.”

Respondents also reported wildlife and pest interference during harvest and postharvest. However, processing and quality issues at facilities also impacted marketability for some crops.

Despite these challenges, several growers cited successes such as improved labor management, increased year-over-year yields and investments in technology that enhanced efficiency and reduced costs. Successes in water management were also noted, with some growers reporting lower power costs due to effective resource use.

“Reject numbers are lower than last year but still require more than normal amount of sprays,” wrote one survey participant.

Others also echoed similar sentiments.

“Our sprinkler system continues to be the biggest success we experience due to labor and tractor time savings,” a grower wrote.

Looking ahead to 2025

The economic market outlook for 2025 remains cautiously optimistic. Growers are concerned about pricing and overproduction, especially in almonds, with some removing trees to help balance supply.

Rising costs for labor, chemicals and equipment are squeezing margins, prompting calls for stronger marketing efforts to drive demand and improve prices for walnuts and pecans.

Survey results also indicated some growers are considering alternative income sources, such as solar panel installations, if market prices remain low.

Overall, the industry’s adaptability was evident, as growers invested in technology and strategic solutions to navigate an evolving landscape in 2024, with optimism for the coming year. All data was gathered and reported by Oct.1, 2024.