September-October 2024

This issue of Almond Facts highlights the harvest season and crop return, Blue Diamond almond grower Steve Moeller's operations, the Big Ten-Blue Diamond Almonds partnership, and how the Blue Diamond Government Affairs team is working hard on behalf of the Co-op.

NEWS, VIEWS, AND INDUSTRY INSIGHT

SEPTEMBER-OCTOBER 2024

Four generations (and counting) of almond farming. And how OSIP is impacting Moeller Farms.

President & CEO Discusses Harvest and Crop Return

OSIP Talk with Grower, Steve Moeller

Big Ten ® Partnership News

Almond Breeze ® Gets Spooky

All Top Self-Fertile Varieties Now Available

INDEPENDENCE ® (ALM-21 CV.)

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BOB FURMIDGE

RANDY FASANI

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MATTHEW HADDON

Contact your local field representative! Sierragoldtrees.com/reps • (530) 674-1145

Blue Diamond Growers does not endorse or verify statements made by advertisers within this publication.

ALMOND FACTS

SEPT–OCT 2024

Contents

8 FIELD TEAM 10 MARKET REPORT 14 NEWS IN A NUTSHELL 20 CORNERING THE MARKET 24 MEMBERSHIP BASICS 26 GROWING THE GOODNESS 28 ADVOCACY REPORT 34 IN YOUR ORCHARD 42 CLASSIFIED ADS

A sweet way to start your autumn, these baked apple donuts are cozy and delicious! (Page 19)

Features 6 President’s Corner

28 Advocacy Report with the Government Affairs Team Blue Diamond ’s Government Affairs team discusses that through our advocacy as a Cooperative and our associations, many of the 2,100+ bills introduced this year were either amended, mitigated or when favorable, pushed through. 30 Almond Grower, Steve Moeller Gets Real About OSIP Learn all about the pros and cons of cover cropping, the extra efforts it takes to participate in OSIP, and much more in this interview with Blue Diamond almond grower Steve Moeller.

In this President’s Corner, President and CEO, Kai Bockmann talks about the upcoming harvest season, pests in the orchard, and the crop return. He also gives a teaser of what’s to come at the 114 th Annual Growers Meeting in November. 20 The Big10 Partnership Learn the latest with exciting partnership between the Big Ten Conference and Blue Diamond Almonds. This football season is kicking off to a great start! 22 A Scary Good Halloween Almond Breeze ® dips into the spooky season since it is, after all, scary good for your bones!

ON THE COVER: Steve Moeller (right) pictured with son, Andrew (left) discusses OSIP. Photo Credit: Jake Sonke

SEPTEMBER–OCTOBER 2024

Matthew Efird | Fresno Joe Huston | Monterey Kristin Daley | San Francisco

Kai Bockmann, President and CEO

ALMOND FACTS STAFF Blue Diamond Growers Communications Department, communications@bdgrowers.com

Jillian Luna, Managing Editor Jake Sonke, Assistant Editor Mel Machado, Contributing Photographer Gray Allen, Advertising Sales 916.783.4334 & 916.765.3234

Blue Diamond , the world’s largest processor and marketer of almonds, exports to over 100 countries.

Almond Facts , established in 1922, is published bimonthly by Blue Diamond Growers , 1802 C Street, Sacramento, California 95811. Address all correspondence to the Editor, Almond Facts , P.O. Box 1768, Sacramento, California 95812. Advertising subscription rates provided upon request. Blue Diamond is a registered trademark and marketing brand of Blue Diamond Growers . Other registered trademarks are The Almond People, Smokehouse, Golden State, Celebration, From the Valleys of California, Confetti and Almond Facts . Blue Diamond Growers does not endorse or verify statements made by advertisers within this publication. Blue Diamond reserves the right to refuse advertising. All rights reserved. Reproduction in whole or in part without written permission is prohibited.

AlmondFacts.com

BlueDiamond.com

ALMOND FACTS

SEPTEMBER–OCTOBER 2024

PRESIDENT’S CORNER

This summer has been a scorcher! Here, in Sacramento, temperatures soared well over 100 degrees. Like the California summer heat, you have been relentless in cultivating your orchards and the team at Blue Diamond headquarters is relentlessly marketing your almonds and trying to get you the best possible return for them. Despite a brief respite from the heat in early August, we began receiving the first loads of almonds on August 5 and we are at peak harvest now. Last year’s unexpected hurricane and heavy rainfall during harvest made for a challenging season, so we look forward to a better crop this year. Many growers are still recovering from last year’s setbacks, and this year’s ongoing challenges have only added to the pressure. One of the biggest threats to our crop this year has been the carpophilus beetle coupled with webspinning mites, which Mel Machado and the team have been closely monitoring. Mites can prematurely defoliate trees and significantly reduce next year’s crop potential. We’ll continue to keep a watchful eye on the situation as harvest progresses.

Kai Bockmann President & CEO

Final Return for the 2023 Crop

Overall Average

Average of High Quality

Maximum Possible

Variety

Nonpareil & Sonora Inshell

$1.97

$2.04

$2.07

Nonpareil /Supareil Meats

$1.83

$1.91

$1.97

Sonora Meats

$1.81

$1.89

$1.93

Independence Inshell

$1.70

$1.73

$1.75

Independence Meats

$1.63

$1.67

$1.70

Carmel & Winters

$1.59

$1.62

$1.66

Monterey /Neplus

$1.56

$1.61

$1.66

California /Price /Fritz /Wood Colony

$1.51

$1.56

$1.59

Butte & Padre

$1.56

$1.59

$1.62

Mission

$1.38

$1.40

$1.43

Note: The above rates do not include Volume Premiums, Sustainability Incentives, Domestic Production Activities Deduction (DPAD) or IC-DISC advantages.

ALMOND FACTS

Huller and sheller operations are running at full capacity, and harvesting will continue for several weeks. It’s an exciting time to see the fruits of our labor from earlier this year. Although we won’t have a complete picture of the crop until harvest is over, you can see the latest crop return data on the chart on the left. The rates displayed on the left of the chart do not include Volume Premiums, Sustainability Incentives, Domestic Production Activities Deduction (DPAD) or ICDISC advantages. Your actual crop earnings, including those applicable additions, are shown in the box on the last page of your personal grower’s statement. At the end of August, the board approved our annual operating plan, marking the one-year point of our strategic plan. We’re excited to share more about our progress and upcoming initiatives at Blue Diamond ’s 114 th Annual Meeting on November 20 at the Modesto Centre Plaza. The team is working diligently to prepare for the meeting, and we’re all looking forward to sharing updates and discussing some of our new initiatives. There’s a lot to be excited about and we can’t wait to see you all there. We hope you’re enjoying a successful harvest and that the summer heat is starting to ease up wherever you are. We look forward to reconnecting with all of you in November!

Kai Bockmann President & CEO

SEPTEMBER–OCTOBER 2024

FIELD TEAM

Regional Managers

Vice President, Member Relations Mel Machado

Tehama, Butte, Glenn, Sutter, & Yuba Christine Ivory, (530) 518-9109 Colusa, Yolo & Solano Nicole Jansen, (530) 338-6440 Sacramento County, San Joaquin County, North of Hwy 205 & East of San Joaquin River KC Clendenin, (209) 596-5375 San Joaquin County, West of San Joaquin River & South of Hwy 205 Stanislaus County, North of Tuolumne River & Hwy 132 Justin Elam, (209) 303-7306 Stanislaus County, East of Hwy 99, South of Tuolumne River Austin Jackson, (209) 417-2010 Stanislaus County, West of Hwy 99, South of Tuolumne River, South of Grayson & Howard Road’s West of San Joaquin River Merced County, North of Merced River & Hills Ferry & Stuhr Roads Trent Voss, (209) 470-5981 Merced County, South of Merced River & Hills Ferry Merced County, South of Hwy 140 Madera County, North of Avenue 12, Firebaugh Blvd, Avenue 7½, & W. Nees Avenue Carla Youngblood, (559) 240-0906 Madera County, South of Avenue 12, Firebaugh Blvd, Avenue 7½ & W. Nees Avenue, Fresno County, North of Hwy 201/Avenue 400, North of Conejo Avenue & Kamm Fresno County, South of Hwy 201/Avenue 400, South of Conejo Avenue & Kamm Avenue, East of Derrick Avenue, Tulare County, Kings County, & Kern County Anthony Scudder, (559) 470-9731 Membership Office Jennifer Claussen Supervisor – Member Relations Administration (209) 545-6225 & Stuhr Roads, North of Hwy 140 Kenny Miyamoto, (209) 323-8454 Avenue, West of Derrick Avenue Ashley Correia, (559) 356-1584

(209) 545-6222 – Salida (209) 531-6352 – Cellular Director, Member Relations Ben Goudie (209) 225-0413

Daniel Dekeyrel Member Relations Coordinator (Delivery Tags) (209) 545-6261

ALMOND FACTS

2024 Grower Liaison Committee Members

LEGEND

DISTRICT 1

DISTRICT 2

Dan Cummings Fred Montgomery

John Monroe Elaine Rominger Gerald Rominger Jake Driver Ron Tadlock Jake Spooner

Chairman Vice-Chairman Ex-Officio Director Appointed (Member-at-Large) Almond Board Alternate

Daniel Varner Greg Overton

Darcy Jones Kevin Davies Timothy Perraie John Nock Meredith Christopher P. Samantha Lewis Larry Bradley Luke Konyn Tom Knowles

Amy Abele Kelli Evans

Carole M. Cain Catherine Cain Josh Pippit Catherine Marsh Michael Samra

Jacob Amsler Dustin Timothy

DISTRICT 3

DISTRICT 4

Dale Van Groningen Allen Sipma Bert Van Ryn Rudy Mussi Zack Reinstein Bruce Oosterkamp Donald Drake Noah Andersen Dirk Van Laar Tim Mohler Jeff Stuit Jack Dalton Clayton Bogetti

George te Velde Kevin Fondse Kenneth Roos Tim Roos Mike Ballatore

Dawn Price Ian Koetsier Lance Ioppini Wesley Eisenga Matt Visser Rick Van Vliet Spencer Franceschetti Martin Adrian Lukas Doornenbal Ed Tilma

For Grower Liaison contact information, please contact your regional manager.

DISTRICT 5

DISTRICT 6

DISTRICT 8

DISTRICT 9

DISTRICT 7

Stephen Van Duyn Neil Van Duyn Brandon Riddle Mark Giannini Dennis Bowers Arthur Bowman Matt Fredriks Harry (Sonny) Johns Danielle Higby LeBeouf Tim Baker James Kinzie

Nick Blom Charles Crivelli III Steve Vilas Eric Genzoli Rod Vilas Rick Alvernaz Gary Marchy Dirk Van Konyenburg

Matt Efird George Goshgarian Aldo Sansoni Mike Yager Neil Amaral Mason McKinney Blake Little Colin Unruh Daniel Babshoff Melvin Lubisich Nayiri Saghdejian John Locker Andrew Cunha Ryan Metzler Michael Keith Smith

Kent Stenderup Clinton Shick Mark Tos Benjamin Wilson Paramjit Dosanjh Lisa Marroquin Shaminder S. Brar Gerard A. Loaiza

Dan Mendenhall Robert J. Weimer David P. Souza James Ohki Jason Chandler Dan Smith Dan Clendenin Rodney L. Voumard Michael Temnyk Rodney E. Ratzlaff Jr. Steve Moeller John Pereira Bryan Jacobs Rick Scoto

Justin Romero Derek Coelho Robert Mailloux Steve Scheuber Allen Peterson Jeff Lee Matt Romero

Chris Couture Pete Romanini Ankit Behl

Gordon Heinrich Chris Vanderstoel Jon Beck

Sam Ghilarducci Garrett Gilcrease John Allen

SEPTEMBER–OCTOBER 2024

MARKET REPORT

ALMOND MARKET UPDATE

Blue Diamond Almond Market Update – September

OVERVIEW The California almond industry began the 2024 crop year with August shipments totaling 168.3 million pounds, a decrease of 6% from the previous month and 21% from last year. Domestic shipments were strong at 62.1 million pounds, up 1% from the previous year. In contrast, exports cooled to 106.2 million pounds, down 29% from the prior year. Overall, shipments fell short of expectations due to slower exports resulting from tight inventories at the end of the 2023 crop year. However, with new crop inventories now available, September shipments are anticipated to increase.

SHIPMENTS India:

India began the crop year on a high note with shipments totaling 27.9 million pounds, marking a 24% increase from the previous year. After a sluggish July, market activity picked up throughout the month due to dwindling local inventories and longer transit times. As a result, prices strengthened. Demand is expected to remain robust through October and into November as the market prepares to meet post-Diwali needs. China/Hong Kong/Vietnam: Shipments to the region totaled 5.5 million pounds, marking a 35% decline from last year. Chinese buyers have increasingly favored Vietnam due to its duty advantage, with Vietnam receiving 3.8 million pounds of this volume, a 71% increase from the previous year. Buyers have returned to the market, gaining confidence that prices are not likely to drop in the near term. The Chinese Mid-Autumn Festival, celebrated from September 15-17, will be closely monitored for insights into consumer demand. This holiday, a precursor to Chinese New Year, will significantly influence buying activity in the weeks leading up to the Festival.

ALMOND FACTS

Europe: Shipments to the region reached 38.7 million pounds, a 40% decrease from last year. In Europe, buying activity has slowed, resulting in a more cautious market. Buyers are currently making minimal purchases, looking for signs that prices might soften before placing larger orders. This hesitation is preventing significant buying beyond immediate needs. As prices remain stable without signs of decline, buying activity is anticipated to increase as the region gears up for upcoming holiday demand. Middle East: Shipments to the region totaled a modest 10.2 million pounds, marking a 41% decline from last year. This drop was anticipated due to limited buyer activity as they awaited softer prices to conclude the previous crop year. As local supplies have diminished, activity has increased recently, with buyers requesting prompt shipments. Demand is expected to remain strong in the coming weeks, driven by the early timing of Ramadan in 2025 and the need for buyers to secure coverage well in advance due to lengthening transit times. Domestic: In August, shipments totaled 62 million pounds, a modest 1% increase from the previous year. After a volatile year for monthly shipments, it's promising to see the domestic market begin positively despite limited inventories of in-demand products. New sales for the month were 9.1 million pounds, with total commitments down 26.8% compared to last year. On a positive note, recent weeks have shown a rise in sales as buyers adjust to post-Objective Estimate pricing. With substantial demand still to be met for the current crop year, buyer activity is expected to continue. COMMITMENTS Total commitments for the year started at 607.6 million pounds, a 2% decrease from last year. However, uncommitted inventories have dropped significantly to 11.1 million pounds, down 68% from the previous year. New sales have also fallen sharply by 62% to 159.3 million pounds, as buyers delay purchases in anticipation of lower prices. With an expected crop of 2.8 billion pounds, current shipments and commitments account for 24% of the total supply, compared to 26% last

SEPTEMBER–OCTOBER 2024

MARKET REPORT

Market Perspective The 2024 crop year began with mixed results. Shipments fell short of expectations due to softer demand at the end of the 2023 crop year. Buyers approached the new season with caution, anticipating potential price pressure as harvest commenced. Unlike last year, when the industry faced significant carry-in pressure, this year does not have the same burden. Despite the subdued demand, prices have remained stable with no signs of decline. As buyers begin to cover upcoming demand and replenish inventory, prices are expected to stay supported, particularly as regions prepare for the holiday season. As the harvest progresses, the industry will continue to assess crop quality and supply potential. The total supply outlook will remain uncertain until more clarity is gained on the carry-in figures. year. Although industry commitments are down by 2%, destination inventories are lighter than last season. Given the recent increase in demand for prompt shipments, the industry is anticipated to close this gap and regain the lost ground. The carry-in figure was the most notable surprise of this position report. The carry-out from July’s position report was adjusted with an actual loss and exempt percentage of 2.1%. This put the carry-in at 503 million pounds, which is significantly higher than the industry was expecting due to the lower 2023 crop quality, which had an average of 4.2% of rejects. CROP Crop receipts for the year began at 290.1 million pounds, reflecting a 314% increase compared to the previous crop year, which experienced a delayed harvest by 2-3 weeks. Recent concerns have emerged regarding lower yields from the southern region of the Valley, leading many in the industry to doubt the feasibility of a 3.0- billion-pound crop. Some are even speculating that the final yield could fall below 2.8 billion pounds. Consequently, California packers are adopting a cautious stance, limiting offers until there is greater clarity on the new crop’s potential.

Laura Gerhard, Vice President of Ingredients and International Branded, Blue Diamond Growers

ALMOND FACTS

NEWS IN A NUTSHELL

Blue Diamond Growers Annual Meeting Voting What is a Proxy & Why is a Quorum Needed at Annual Meeting? The Blue Diamond Annual Meeting is more than a luncheon or a social gathering; it is a required business meeting that is defined in the cooperative’s bylaws. To be valid, a quorum of the membership must be present, either in person or by proxy. Since it is a business meeting, the quorum is required if a motion is made from the floor and a vote of the membership is required. Annual General Election It is time for the Blue Diamond annual general elections. This is a great opportunity for you to exercise one of your fundamental rights as a voting member to shape the future of your Blue Diamond Growers cooperative: electing members of the Board of Directors and Grower Liaison Committees. This year, you have the opportunity to vote for District Directors in districts 1, 4 and 6 . You also have the opportunity to vote for Grower Liaisons in each of the nine districts. Ballots will be mailed the week of October 3 to voting members with Crop Agency Agreements. Voting will close on November 8, 2024. Only ballots received by this date will be counted. Your vote matters! Be sure to submit your ballot in plenty of time so your vote is received before this deadline. How to Vote Like last year, there are three ways to vote: paper ballot, online, or by phone. Your election packet will include the paper ballot, return envelope and instructions for online and phone voting. This year, if you choose to vote by proxy, you will be able to return the Proxy Card by mail or assign a proxy online.

BY PHONE 3

ONLINE

PAPER

Like last year, you will be able to vote by paper ballot, online or by phone.

BALLOT

This year, you will be able to return the proxy card by mail or assign a proxy online.

PROXY CARD

ONLINE

PAPER

Make Sure You Are Represented — Return the Proxy Card! Not sure if you can attend the annual meeting ? No problem! You may assign your vote to a proxy—another voting member—to vote on your behalf. This year, you will be able to return the Proxy Card by mail or assign a proxy online. Mail in your Proxy Card (separate from the ballot) and rest assured that you are being represented in the election and annual meeting, even if you can’t directly participate. If you do decide to attend the meeting yourself, know that your presence always comes first. The Proxy Card is a backup plan for if you can’t attend.

ALMOND FACTS

SEPTEMBER–OCTOBER 2024

NEWS IN A NUTSHELL

#WeAreBlueDiamond Social Media Activity Blue Diamond began the season by celebrating World Honey Bee Day and highlighting our partnership with the Blue Diamond Climate-Smart Grant partners Pollinator Partnership and Project Apis m ., whose Seeds for Bees ® program began delivering free cover crop seed to almond growers’ orchards in August. Blue Diamond also kicked off the annual #WelcometotheOrchard harvest series with weekly highlights from regional managers across the Valley. Our Almond Breeze ® and Snack Almonds pages highlighted new

ways to enjoy Blue Diamond products, from poolside treats to fall-favorite drinks.

ALMOND FACTS

BLUE DIAMOND INVESTMENT PROGRAMS Current Investment Rates available as of October 1, 2024

Blue Diamond Growers offers members short-term and long- term investment programs. The objective of these programs is to serve as a competitive investment alternative for our members and provide Blue Diamond Growers with a steady source of funds. The interest rates effective October 1, 2024, for the program are listed here:

Short-Term Investment Certificate (STIC)

Long-Term Investment Certificate (LTIC) (Maturity Date of 6/30/2027)

Initial Investment Required

$1,000

$50,000

Interest Rate

5.75%

4.50%

(Variable, subject to change)

(Fixed rate)

For more information, contact your local Regional Manager, or Member Services at (209) 545-6225.

This summary does not constitute an offer to sell or a solicitation to purchase investment certificates. We will provide a package of documents for the programs to those members who are California residents and who express an interest in participating in the program.

SEPTEMBER–OCTOBER 2024

NEWS IN A NUTSHELL

Fog City Fondue Recipe Cook Time: 45 minutes Difficulty: Medium Servings: 8

Ingredients 1½ cups vegetable broth 1 cup Almond Breeze ® Unsweetened Original Almondmilk 2 cloves minced garlic 8 ounces Teleme, Brie, Camembert, Fontina, Boursault or Havarti cheese 3 cups shredded sharp cheddar cheese 1 cup shredded Swiss or Jarlsberg cheese 2½ Tablespoons flour 1 teaspoon spicy brown mustard ½ teaspoon Maggi Seasoning, or to taste Freshly ground pepper to taste Cubed San Francisco Sourdough Bread

Directions 1. Place broth in a medium saucepan and bring to a boil. Reduce heat to medium and reduce to ½ cup. Add Almond Breeze ® and garlic and bring to a simmer. Tear Teleme (or alternative) cheese into pieces and add to pot, stirring until melted; remove from heat. 2. Place cheeses and flour in a medium bowl and toss to coat cheese evenly with flour. Add cheeses to saucepan a little at a time, placing back over very low heat and stirring until fondue is smooth and cheese is fully melted. Stir in mustard and pepper. Serve with cubed San Francisco Sourdough Bread.

ALMOND FACTS

Baked Apple Donuts Cook Time: 15 minutes Difficulty: Easy Servings: 6 Ingredients Donuts: 1 cup apple sauce ⅓ cup butter

Caramel Glaze: ¼ cup almond butter ¼ cup honey 1 teaspoon vanilla 2 Tablespoons butter

1 teaspoon cinnamon 1 Tablespoon vanilla ¼ teaspoon salt 1½ cups Blue Diamond Almond Flour

½ cup Blue Diamond

gluten-free flour blend ( recipe below ) 1 teaspoon baking soda

1 egg white ½ cup sugar

Directions Donuts: 1. Preheat oven to 350°F. 2. Place apple sauce, butter, egg white, sugar, cinnamon, vanilla and salt into a mixer and blend until well combined. 3. Mix almond flour and gluten-free flour blend. Slowly add to wet ingredients in the mixer. Mix for 2 minutes. 4. Turn off mixer and stir in baking soda by hand. 5. Butter donut pans and fill to rim with batter. Bake for 15 minutes. 6. Allow to fully cool before dipping into caramel glaze. Caramel Glaze: 1. In a microwave-safe bowl wider than the width of the donuts, add all ingredients for caramel glaze. Microwave for 2 minutes, stopping and stirring every 30 seconds until smooth. 2. Dip donuts into caramel and top with favorite toppings.

Gluten-Free Flour Blend: Makes about 7 cups Ingredients 2 cups brown rice flour 2 cups white rice flour 2 cups tapioca flour 1 cup corn starch ½ Tablespoon xanthan gum

Directions

1. Sift all ingredients together thoroughly. 2. Store in an air-tight container. Refrigerate for up to 3 months or freeze for up to 6 months. 3. Bring flour to room temperature before use.

SEPTEMBER–OCTOBER 2024

CORNERING THE MARKET

Kicking off the Football Season With The Big Ten ®

The 2024-25 college football season just got serious about snacking! Blue Diamond is the Official Snack of the Big Ten Conference this year, giving an exciting bump to the Cooperative’s exposure to Big Ten college football fans across the country. The Big Ten Conference — whose legacy stretches over 125 years — is a can’t-miss partnership opportunity for Blue Diamond . The investment in the Big Ten Network includes television and streaming commercials

for Blue Diamond Almonds in all Big Ten Saturday football games on BTN, plus the occasional Thursday and Friday games. The partnership also includes tailgate sponsorships

early in the season as well as one in mid-November at USC. These tailgate events offer Snack Nut samples, Blue Diamond -themed cornhole and similar games, and additional social media exposure via the Big Ten’s social media handles. Additionally, we’ll have a big presence at the Big Ten Championship Game Fan Fest in Indianapolis on December 7. The Blue Diamond — Big Ten partnership includes social media, online video, and streaming audio outlets. The collaboration also features Blue Diamond ’s first ever Athlete/Influencer program, partnering with Big Ten Football athletes to create almond centric content for Instagram and TikTok launching in September. As the football season progresses, be on the lookout for exciting appearances by Blue Diamond Almonds when you tune in to the next Big Ten football game.

ALMOND FACTS

Blue Diamond Growers does not endorse or verify statements made by advertisers within this publication.

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SEPTEMBER–OCTOBER 2024

CORNERING THE MARKET

Almond Breeze ®: Scary Good for Bones Many Almond Breeze ® drinkers also happen to be major fans of Halloween! So, there’s no better season than fall to dig deep into the brand's many health benefits, especially its richness in calcium that does a world of good for the bones. This integrated campaign will focus on leveraging the goodness of almondmilk on these chilly autumn days and challenge the consumer to reach beyond dairy for a glass of Almond Breeze ® to satisfy the nutritional needs of their skeletons. Inspired by popular skeleton décor trends, Blue Diamond Almond Breeze ® is excited to make a spooky splash at Nights of the Jack with an unforgettable 20-foot animatronic skeleton and giant Almond Breeze ® Almondmilk cartons located in the graveyard experience. Almond Breeze ® will be served at hot chocolate stands around Nights of the Jack, providing guests with a delicious non-dairy milk to support strong and healthy bones. The 120 thousand attendees are invited to pick up exclusive coupons for Almond Breeze ® , so they can support their own bone health at home. As an excellent source of calcium, Almond Breeze ® is scary good for bones.

ALMOND FACTS

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Blue Diamond Growers does not endorse or verify statements made by advertisers within this publication.

SEPTEMBER–OCTOBER 2024

MEMBERSHIP BASICS

Three Things to Evaluate After Harvest As the dust settles on the 2024 harvest, I want to suggest you review three areas that will help you produce a successful crop next year. I’m sure you have taken a preliminary look at your Delivery Advance statements to see what grades you had on each lot. This harvest has been swift and quite the whirlwind, so it’s good to get fully organized and do a full review after all the information comes in. One of my favorite principles is to “Begin with the end in mind” made famous by Stephen Covey. As it relates to harvest, evaluating what happened in 2024 is the best way to begin the next crop cycle to ensure you successfully produce a strong, quality crop, and receive the best results, come this time next year.

Verify the accuracy of the acreage you have listed in the Portal. This is what we use to calculate the yield figures under the “Production” tab. If you don’t use the Portal, ask your regional manager to provide you with a copy of your “Exhibit to Crop Agency Agreement” which lists all your acreage details. If something looks incorrect, let your regional manager know and they will do an acreage update to reflect the accurate information on your account. Review your grade information to identify any outliers. You may see that most of your grades were in a relatively tight range, say, 1-2% rejects, but one load shows a significantly higher value. This could be an end-run lot that could have lower quality than the bulk of your product. In the case of box deliveries, end-runs are typically smaller, weighing just a few hundred pounds. End-runs also typically have higher foreign material and reject values as these problems can accumulate during the sheller run and wind up in the last box. However, if the delivery is not an end- run, and its values do not align with the rest of your deliveries from that orchard it may be worth requesting a retest for further evaluation. Samples are taken at the time of receipt according to a strict protocol, but sometimes, due to field variation, pockets of higher-than-average insect damage or foreign material can occur. At our Sacramento Test Room, the samples are divided, with one-half of the sample stored in a reference library for use in the event a retest is requested. The reference samples are retained for at least 60 days. The process of requesting a retest starts with a call to your regional manager. You may also want to consult your huller to get their opinion on the delivery. Huller operators typically maintain notes on each delivery and may be able to shed some light on the situation. Your regional manager will advise you on the retest process as there is a possibility of negative financial impact if the grade deteriorates in the retest process .

Begin with the end in mind. — Stephen Covey

Get Your Records Straight! Sit down at your desk and either pull out all your statements and final summary statement that you received through harvest or open the Blue Diamond Portal on your computer and review all your information together. On the Portal, you can look primarily at the “Deliveries” or “Production” tabs on the home page for a great overview. There are also several reports available to help you view the data in different aspects. If you are a grower with a single orchard, this is a straightforward process and takes little time. If you have multiple Blue Diamond accounts and subcontracts, this review is essential! Double check your statement weights between subcontracts. Does one subcontract look light and another look heavy ? It is possible that a delivery arrived under the wrong subcontract. If that’s the case, we can move delivery lots to the correct subcontract though a “Delivery Transfer.”

ALMOND FACTS

Make sure that all your names line up on contract and subcontract with your other business interests (trust name, partnership name, exact corporate name) or other legal purposes. Most often, crop insurance companies will require your statements (including the names and acreage of each subcontract) to correspond exactly with what is detailed in the policy. Orchard Removals Planning for orchard removals and replanting occurs year- round, and right after harvest is the best time to let us know if an orchard that was harvested in 2024 will be pulled and going out of production for 2025. Be sure to let your regional manager know of any acreage changes such as pullouts, orchard sales, or ownership transfers sooner rather than later. Most importantly, this helps Blue Diamond keep our current acreage basis straight. Better to let us know now! If you plan on replanting but haven’t figured out what variety or exactly when you’ll replant, no problem. We can list that subcontract as an unknown variety and put in a tentative replant date that we can track and update later. Set an Appointment with your PCA/CCA Having a meeting right after harvest with your PCA is arguably the most important step you can take to “Begin with the end in mind,” or in terms of harvest, end with the beginning in mind . Your grade results will have a direct impact on planning implications for the next crop cycle. Gather your statements, or pull a “Variety by Grade Summary” report from the Portal, in order to provide all the data you need to have that conversation. If your grades for 2024 looked great, congratulations! What you did last year was effective and you should use that as the basis for your IPM plan again next year. You could also look for opportunities to fine tune your IPM program and be ready for emerging pest threats in the coming season. If some of your grades didn’t look good or you had greater challenges in 2024 than in prior years, you are not alone. Although overall rejects are coming in lower in 2024 than 2023, they are still higher than any other prior year in recent history, including what we referred to as the “Wreck” in 2017. A key factor this year is the damage caused by the plant bug complex on top of high navel orangeworm pressures. Added to that, many growers saw damage from the emerging pest,

Sample Breakdown Test for Rejects

Brown Spot

45.71%

Beetle

11.43%

Orange Worm 40.00%

Mold

2.86%

the Carpophilus truncatus beetle. This combined pressure has driven reject values higher than what many growers experience with navel orangeworm alone. The focus on your statements should not just be on the total reject percentage, but on any reject breakdowns that were performed this year. We have made a major push to bring awareness to the value of having at least one reject breakdown performed on each orchard. This gives you the fractional breakdown of the total reject damage and list the proportional impact of each type of pest ( as illustrated in figure 1 ). If you did not request a reject breakdown and would still like to get the information, you can request a retest that is “information only” which will not affect your grade. Our regional managers are available to support this process as well. We often meet jointly with member- growers and their PCAs to provide our perspective. These services are just one reason why Blue Diamond ’s member- growers produce the highest quality almonds, leading to higher grower returns. (Figure 1) The reject breakdown will show the proportions of damage that occurred by each causal pest. In this case, the overall total reject percentage “Reject meats” was 3.5% (not shown here as it appears on the main line of the statement) and each percent listed is a fractional percent of the overall 3.5%.

Ben Goudie, Director, Member Relations, Blue Diamond Growers

SEPTEMBER–OCTOBER 2024

GROWING THE GOODNESS

Giving Tuesday is December 3 rd To join Blue Diamond in Giving the Gift of Blue on Giving Tuesday on December 3, 2024, visit calaged.org or mail a check payable to: California FFA Foundation P.O. Box 186 Galt, CA 95632

Thank you for investing in the next generation of California farmers!

ALMOND FACTS

Application Cycle Opens December 1

ADVOCACY REPORT

California’s legislature adjourned the 2023-2024 legislative session in the early morning hours of September 1. More than 2,100 bills were introduced this year with major topics ranging from Artificial Intelligence, retail theft, warehouse regulations, social media reform to campaign finance. By the end of session, hundreds of bills were approved by the Legislature and now sit on Governor Newsom’s desk where he has until September 30 to decide whether or not they become law. As Blue Diamond ’s Government Affairs team, our job is to advocate for our grower-owners and represent the Cooperative. We work each day to provide a voice for Blue Diamond and our grower-owners at key decision- making tables. Our team sifts through bills to find those that could have the most impact, positive or negative, and advocate accordingly. A large part of advocacy is developing relationships with a wide range of government officials, both elected and appointed, and building their understanding of the Cooperative, its membership, and the almond industry. Doing this in partnership within our industry

associations, like the Almond Alliance, Agricultural Council of California, and California Manufacturers & Technology Association, allows us to ensure strong coalitions around priority issues and the protection of our Blue Diamond brand and growers. This year, advocacy was critical as multiple bills on water rights, pesticides, and labor and manufacturing were introduced, all having an impact on Blue Diamond and our growers’ operations and bottom line. Through our advocacy as a Cooperative and with our associations, many of these bills were either amended, mitigated or in some cases and when favorable, pushed through with support. These outcomes were possible because of the robust relationships Blue Diamond has with our associations and with legislators and their staff. As the legislative year closes, all focus, both in California and in Washington, is on the election. This is a pivotal year with many elected positions, from the presidency to city council, up for grabs. In the state legislature alone, at least

ALMOND FACTS

Bill Outcomes: Please note at the time of printing, the governor had not yet signed these bills. AB 1963 – Paraquat Evaluation – Requires the Department of Pesticide Regulation to reevaluate the herbicide paraquat dichloride by January 1, 2029, and determine whether to retain, cancel or suspend its registration or place new restrictions on the herbicide. This could have an impact on agriculture’s ability to utilize the herbicide. Status: Passed the Legislature – awaiting governor signature AB 2113 – Pesticide Tax Increase – The governor’s budget included a proposal to increase the mill tax paid for by farmers on pesticides. While the mill tax was passed, agriculture was able to negotiate a deal that brought some long-sought-after wins to agriculture, including an increased timeline from two years to four years for the increase, expedited timelines required for DPR to register new products and active ingredients, and that new staffing hires be for registration of new products. The increase will begin immediately upon passage. Status: Passed the Legislature – awaiting governor signature SB 399 – Employer Communications – Restricts how businesses communicate with their employees. The aim is to limit discussions between employees and employers on “political matters,” though it could impact employers’ ability to discuss new law or regulations with their employees. Status: Passed the Legislature – awaiting governor signature AB 98 – Warehouse and Logistics Measure – Prohibits cities and counties from approving a new or expanded logistics use unless specific standards are met. Requires logistics facilities to submit truck routing plans that prioritize routes designed for heavy duty and other commercial vehicles. Status: Passed the Legislature – awaiting governor signature SB 366 – CA Water Supply Plan – Creates a water supply planning target of nine million acre-feet of additional water, water conservation, or water storage capacity to be attained by 2040, as part of the 2028 update to the California Water Plan. Status: Passed the Legislature – awaiting governor signature

34 seats will turn over — representing 25 percent of each house. While Blue Diamond is not involved in elections, we will certainly be watching the outcomes. Coming out of the elections, it will be critically important to build our relationships with these newly-elected officials and ensure their understanding of the Cooperative and our issues. This work is foundational to our success in advocacy. Blue Diamond is fortunate to have a long history of strong relationships with representatives at all levels of government. Our success can be attributed to our continued engagement and the strength of the Blue Diamond brand. The Cooperative and grower story and our delicious, nutritious product resonate with all types of elected leaders, opening the door to engage on policy discussions and important issues. This fan-based connection to our innovative products and story has created the unlikeliest of almond champions and in turn, created a broader voice for the Cooperative and our growers. In times such as these, having supporters from across the political spectrum is important for successful advocacy. Come January, we will have a new year, a new president and new elected members at all levels. Whether it is building connections to the Blue Diamond story, relationships with representatives or coalitions with our associations, your Government Affairs team continues to ensure the Cooperative and its members have a strong voice within the halls of government.

Mallorie Hayes Taasaas, Government & Public Affairs Manager, Blue Diamond Growers

Alicia Rockwell, Chief Government

& Public Affairs Officer, Blue Diamond Growers

SEPTEMBER–OCTOBER 2024

CULTIVATING SUSTAINABILITY

Moeller Farms and OSIP Implementing Blue Diamond’s Orchard Stewardship Incentive Program (OSIP) and the practices supported by the USDA-funded Climate-Smart Grant (CSG) may seem daunting. Steve Moeller, Triple Diamond OSIP member, who runs a fourth-generation almond farm with his family, shares his story, stewardship practices and how these have impacted their farming operations. Steve is a member of his district’s Grower Liaison Committee and has been a Blue Diamond member since 1985. Moeller Farms is Bee Friendly Certified and is operated by Steve and Micki Moeller, Andrew Moeller, Chris Moeller, and Carrie Davis. Almond Facts (AF): Thank you for letting Almond Facts join you at your farm to talk about your involvement in OSIP and CSG in your operations at Moeller Farms. Your children are the fourth generation working this almond farm, and the fifth generation is still too young to jump in and join at this point, but we know that’s the hope! As a member of the Grower Liaison Committee whose operations are Bee Friendly Farming Certified and Triple Diamond status in OSIP, it’s clear you’re all doing a lot here. Could you share a little about your operations and your history with Blue Diamond ? Steve Moeller (SM): I’ve been a Blue Diamond member since 1985. But before that, my wife’s grandfather, Alfred Koehn, was a member who joined in the 1940s. The family ran a small dairy farm back then. AF: So, if it started as a dairy, how did your family get into almonds ? SM: I wasn’t around when that began, but Alfred started growing almonds because he could see the potential in almond farming. My father-in-law, Willis Nichols, farmed alfalfa, sweet potatoes and watermelon before he planted almonds in the 1960s. I grew up in agriculture in the Patterson area, and I began working with almonds when my wife and I got married in 1980.

Steve Moeller examining an almond just prior to harvest

AF: What motivated you to continue your family’s Blue Diamond membership after all these years ? SM: Stability. I was busy working as a pharmacist, as well as a hands-on farmer. I didn’t want to have to track down payments for my almond crops. I don’t have to do that with Blue Diamond . Blue Diamond was going through a rough patch in the 1980s and some growers went to independent handlers, but I didn’t want to do that. I’d drop my product off and the banker would say, “ Blue Diamond , you’ll get your money.” Blue Diamond is dependable, and the payments come through quickly. I like farmer-owned co-ops like Blue Diamond because you may not always get the top dollar, but you’re going to get near the top dollar, and there’s stability and assurance that you will be paid. AF: Now let’s talk a little bit about Blue Diamond ’s Orchard Stewardship Incentive Program (OSIP). Why did you decide to join OSIP ? SM: We were already doing some of what OSIP required that wasn’t being reported, so when Blue Diamond started putting a financial incentive value to what we were already doing, we thought, why not get credit for it ? I retired from the pharmacy recently, and I am still farming with my sons. I had a talk with them years ago and I decided that if they

ALMOND FACTS

Andrew (L) and Steve (R) Moeller with their regional manager, Kenny Miyamoto (C)

Andrew Moeller explaining differences in almond varieties to Blue Diamond’s Jillian Luna while Kenny Miyamoto looks on

want to run the farm, great! They both wanted to continue farming, and they’ve learned how to do it all. They handle repairs, reports, accounting, fabrication, installations, building and maintenance, as well as the day-to-day farming. We do as much as we can ourselves to cut back on costs, so it’s been a blessing to have them both. They are very good at what they do. So yeah, it comes down to the dollars. We were already planting cover crops, so if you’re going to pay me to do that, I might as well take advantage of whatever I can and do the little extra work to get the extra money. AF: Do you feel like it’s been worthwhile doing the extra work for OSIP and CSG ? SM: Yes, but you need to do certain things. You must consider when to terminate your cover crop, what the impacts are to mowing vegetation in the middles, and how it impacts you at harvest. Conditioning the almonds once they are in windrows can be an important consideration. Conditioners remove most of the extraneous wood, soil and debris from the crop prior to picking up. My son, Andrew, said that in one 40-acre field he cut out three hours of picking up time by using a conditioner. The conditioner can make all the difference in the world when picking up. AF: Regarding the implementation of the practices for OSIP and the USDA CSG grant, which have been the easiest and hardest and what practices do you anticipate will have long term agronomic benefits ? SM: The hardest part of the OSIP implementation is the paperwork. We were already doing most of the cover crop

work. A lot of growers already focus on water penetration, soil revitalization and caring for the bees. But you must get it registered in the program. So, we do the paperwork because we get paid for doing it. If I can get paid per acre to do the cover crop, which I'm already doing now, and Blue Diamond is going to buy me the seed, then why not ? It does cause problems at harvest, though. AF: What are the problems with cover crop at harvest ? SM: Getting the cover crop seed to germinate at the proper time is the first challenge. For a lot of people, that means relying on rainfall. If your irrigation system can adequately cover the middles, you can irrigate the crop up. Orchards using drip irrigation will not be able to get water to the middles and you’re forced to rely on winter rainfall. The next challenge is when to terminate the cover crop. Obviously, you want the cover crop to bloom so you have food for the bees prior to the start of the almond bloom. If you let the cover crop grow through the almond bloom, it can get pretty tall, depending on what you planted. You’ll want to time the termination of the cover crop to have a clean orchard floor in time for harvest. It can be hard to get the cover crop to dry and deteriorate in time. Gophers can be a challenge too. The gophers will feed on the cover crop roots, and the tall cover crop plants will hide their mounds, making it difficult to see and maintain them. So, they can be quite damaging to the trees’ root systems. AF: How has the farm benefited from OSIP ? And what benefits do you see for the next generation of almond farmers, this fifth generation of farming Moellers who are being trained up ?

SEPTEMBER–OCTOBER 2024

CULTIVATING SUSTAINABILITY

SM: Number one is the financial benefit. But even if there was no incentive, we’re already doing a lot. Getting recorded for your Double or Triple Diamond requires paperwork and time. It’s meeting with your regional manager to get your stuff lined out, taking pictures, and turning the documents in. It’s the stuff that no farmers really like to do. It does take time, but you're going to do it. And it's financially rewarding. Blue Diamond is incentivizing growers to assist in growing the market for our crops. As growers, we help Blue Diamond promote our crops, which ultimately comes back to all of us. There is also a benefit to our soils. Cover crop helps restore the organic compounds within the soil, it’s the natural way of doing it. We also do moisture monitoring in our orchards. Irrigating is not cheap, and we don’t want to flush our fertilizers into the groundwater. Monitoring our soil moisture levels and the needs of the trees means that I’m not putting anything further than a three-foot root zone. It’s simply a matter of documentation. And it’s also what I like to do to ensure that we’re not causing problems for the next generation.

ALMOND FACTS

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