Blue Diamond Almond Facts March-April 2023

This issue of Almond Facts features the first "President's Corner" by Blue Diamond's new President/CEO, Kai Bockmann. The issue also includes next steps on the $45 million grant from the USDA, finding solutions for the vast issues concerning California water, and covers an orchard media tour hosted by the Doherty family.

NEWS, VIEWS, AND INDUSTRY INSIGHT

MARCH‒APRIL 2023

Kai Bockmann Welcomed to “President’s Corner”

Record Setting Rain in Early 2023

$45 Million USDA Grant: What’s Next ?

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

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ALMOND FACTS

MAR–APR 2023

Contents

8 FIELD TEAM 10 NEWS IN A NUTSHELL 20 CORNERING THE MARKET 22 GROWING THE GOODNESS 24 ADVOCACY REPORT 26 CULTIVATING SUSTAINABILITY 28 IN YOUR ORCHARD 42 CLASSIFIED ADS

Features

6 President’s Corner President and CEO, Kai Bockmann reflects on his first two months at Blue Diamond with great joy and looks forward to the growth of the cooperative in

24 Record-Setting Rain in Early 2023 in California. Honestly, What’s New ? President/CEO of the Almond Alliance, Aubrey Bettencourt, discusses the vast issues involving water in the state of California. The Almond Alliance isn’t interested in playing “the blame game” but in finding solutions. 26 Update on the Climate-Smart Commodities Grant from the USDA Dr. Dan Sonke discusses the next steps for the $45 million USDA grant awarded to Blue Diamond . The grant will provide cost share to growers for the implementation of practices including annual cover cropping, conservation plantings, hedgerow plantings, and whole orchard recycling.

his first article for “President’s Corner.” 12 Doherty Family Hosts Orchard Media Tour

As winter ended, the Doherty family hosted several consumer media members from backgrounds in food, lifestyle, and parenting publications. Guests gained awareness of Blue Diamond ’s sustainability practices and learned about the health benefits, delicious flavor, and numerous uses for Blue Diamond products.

ON THE COVER: A Blue Diamond orchard in full bloom under the stars.

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MARCH–APRIL 2023

BOARD OF DIRECTORS Dan Cummings, Chairman of the Board | Chico Stephen Van Duyn, Vice Chairman | Modesto Dale Van Groningen | Ripon John Monroe | Arbuckle George A. te Velde | Escalon Nick Blom | Modesto Dan Mendenhall | Winton

Matthew Efird | Fresno Kent Stenderup | Arvin Joe Huston | Monterey Kristin Daley | San Francisco

OFFICERS Kai Bockmann, President and CEO Mark Jansen, CEO Emeritus Dean LaVallee, Chief Financial Officer/ Chief Operating Officer

ALMOND FACTS STAFF Blue Diamond Growers Communications Department, communications@bdgrowers.com Jillian Luna, Manager, Corporate Communications 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.

© Blue Diamond Growers 2023

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PRESIDENT’S CORNER

It is an honor to be addressing you in my first “President’s Corner” as your new president and CEO.

Since officially joining Blue Diamond in mid-January, I’ve enjoyed looking through past copies of this magazine and reading about industry news and the great work our growers are doing in the areas of sustainability and orchard management. I especially liked recognizing some faces in the last issue through photos of our grower families on the Rose Parade float.

Over the past few months, I’ve extensively toured our growing region, meeting with growers and directors in every one of our districts. I’ve made a concerted effort to personally meet as many of you as I can, in your orchards and sometimes in your homes. As I mentioned at the Grower Liaison Committee meetings in January and District meetings last month, I’ve been overwhelmed by the generous hospitality provided to me at every stop along the way. I can’t thank you all enough for the warm welcome — your kindness speaks volumes about the culture and values of this incredible co-op. I also want to take this opportunity to thank Mark Jansen for his gracious support as we navigated a smooth transition in leadership for the co-op. At the time I’m writing this, bloom is just finishing up in the later blooming varieties of our region. As you know better than anyone, the weather that Mother Nature provided for this year’s bloom was anything but typical. Orchards throughout the Central Valley experienced record amounts of rainfall along with snow at extraordinarily low elevations during much of the bloom. Our pollinator friends did the best they could during rare periods of favorable weather when they could leave their hives to forage. Our VP of Member Relations, Mel Machado, has been a wealth of information the last two months as I learn the behind-the-scenes intricacies of almond production. Mel and I talk almost every

day about crop progress, market pricing, and other challenges our growers face and how our co-op can continue to support you and your families. Mel is quick to reinforce that we won’t really know the true impacts of the chaotic bloom weather on the quality of this year’s crop until harvest time in the fall. While that uncertainty can be concerning, I recognize it is nothing new for those of you who farm for a living. I have the utmost respect for the resilient farmers and ranchers I’ve worked with throughout my career. As your new president and CEO, I pledge that the full resources of the Blue Diamond Growers co-op will continue to be ready to support you, our grower-owners, and the almond crop we will ultimately receive this year. Outside the orchards, our co-op’s talented leaders remain more committed than ever to the cutting-edge innovation and global market growth strategies that add value to the almonds you entrust us to market for a strong competitive return. Here’s to pleasant spring weather and a healthy growing season! I look forward to continuing along this journey with you all.

Kai Bockmann President & CEO

Kai Bockmann President & CEO

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ALMOND FACTS

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MARCH–APRIL 2023

FIELD TEAM

Regional Managers

Vice President, Member Relations Mel Machado (209) 545-6222 – Salida (209) 531-6352 – Cellular Director, Member Relations (North) Ben Goudie (209) 225-0413 Director, Member Relations (South)

Glenn, Butte, Tehama, Placer, Yuba & Sutter Christine Ivory, (530) 518-9109

Colusa, Yolo & Solano John Aja, (530) 338-6440 Sacramento, Calaveras, Alameda & San Joaquin West of Austin Rd Ben Goudie, (209) 225-0413 Stanislaus County North of Tuolumne River & West of San Joaquin River Justin Elam, (209) 303-7306 San Joaquin East of Austin Rd; Stanislaus South of Tuolumne, East of San Joaquin River & West of Hwy 99; Merced North of the Merced River, West of Hwy 99 KC Stone, (209) 596-5375 Stanislaus South of Tuolumne River, East of 99 & Merced North of Merced River, East of 99 Brian Noeller, (209) 417-2010 Merced County, West of 99 & South of Merced River, East of 99, North of Hwy 140 Trent Voss, (209) 470-5981 Merced County, South of Hwy 140 & Madera County Kenny Miyamoto, (209) 323-8454 Fresno County West of Hwy 99 & North of Hwy 180 Ashley Correia, (559) 356-1584 Tulare County East of Hwy 99 & Fresno County East of Hwy 99, South of Hwy 180 Christopher Miller, (559) 310-5085 Kern, Kings, and Tulare County west of Hwy 99 Anthony Scudder, (559) 470-9731 Membership Office Jennifer Claussen – Membership Coordinator (209) 545-6225 Daniel Dekeyrel – Membership Assistant ( Delivery Tags ) (209) 545-6261 Grower Accounting Joe Lavagnino – Grower Accounting Manager (916) 446-8591 Kristie Ezell – Grower Accounting Coordinator (916) 446-8368 Erika Martin – Grower Accounting Assistant (916) 446-8385

Christopher Miller (559) 310-5085

Sutter

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ALMOND FACTS

2023 Grower Liaisons Committee Members

LEGEND

DISTRICT 1

DISTRICT 2

P. Samantha Lewis Chris Alves Luke Konyn Robert Thill Brian Erickson Stacy Gore Jerry Montz Steve Carlos Fred Montgomery Daniel Varner Greg Overton Darcy Jones Dan Cummings W. Howard Isom

Cathy Marsh Sid La Grande

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

Joe Martinez Sarah Pippitt Maryann Warmerdam Don Bransford

Almond Board Alternate Almond Board Director Almond Board Chair

Ryan Finnen Brian Cahill Jake Driver Ron Tadlock Jake Spooner Amy Abele John Monroe

Elaine Rominger Gerald Rominger

DISTRICT 3

DISTRICT 4

Nick Alta Chris Rishwain Jack Dalton Don Van Vliet Rick Phillips Louie Tallerico

John Almeida Phil Mohler Jake Sonke Bryan Van Groningen Kevin Van Laar

Rick Morris Paul Adrian Wayne Bruns Tim Roos Mike Ballatore Dawn Price Ian Koetsier George te Velde

Mike Bogetti Allen Sipma Bert Van Ryn Rudy Mussi Zack Reinstein Dale Van Groningen John Thoming

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

Kevin Fondse Kenneth Roos

DISTRICT 5

DISTRICT 6

DISTRICT 8

DISTRICT 9

DISTRICT 7

Eric Heinrich Naomi A. Layland Alex Vanderstoel Ryan Valk John De Visser Manuel Furtado Lucas Van Duyn Grant Ardis Brandon Riddle Mark Giannini Dennis Bowers Stephen Van Duyn Neil Van Duyn

Christine Gemperle Don Clark

David Tolmosoff Robert Allen Jens Finderup RJ Maan Ryan Indart Lee Erickson Norman Pretzer

Mark Fanucchi Doug Kindig Ray Van Beek Mark Palla Gurcharan Dhillon Kyle Balakian Keith Gilbert Karamjit Jhandi Mark Tos Benjamin Wilson Paramjit Dosanjh

Frank Fagundes Jeffrey Baize Tim Lohman Rick Scoto Galen Miyamoto

Jared Serpa Hal Carlton Frank Borba Trent Voss Michael Mora Paul Danbom Eric Genzoli Rod Vilas

Joe Sansoni Jimmi Atwal

Steve Bains Mike Yager Neil Amaral Mason McKinney Blake Little Matt Efird George Goshgarian Aldo Sansoni

Louis Bandoni David P. Souza James Ohki Jason Chandler Dan Smith Dan Mendenhall

Rick Alvernaz Gary Marchy Nick Blom Charles Crivelli III Steve Vilas Bill Brush

Lisa Marroquin Kent Stenderup Clinton Shick

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MARCH–APRIL 2023

NEWS IN A NUTSHELL

Almond Alliance Celebrates National Almond Day

A Handful a Day Helps You and the USA

Costa, McClintock, and Garamendi entered into the record a Congressional Resolution saluting everyone involved with the growing, harvesting, and bringing to market this amazing food called almonds. In addition, the Almond Alliance distributed packs of almonds to Congressional member offices on Thursday, the 16th, to celebrate National Almond Day. In California, Senators Marie Alvarado-Gil (D-Jackson) and Angelique V. Ashby (D-Sacramento) and Assemblymembers Juan Alanis (R-Modesto) and Heath Flora (R-Ripon) introduced Senate Concurrent Resolution No. 19 to proclaim February 16, 2023, as California Almond Day. There are currently 7,600 almond farmers in the state of California; over 90% are family farms, and many are operated by third and fourth generations of families. The almond industry in California employs over 110,000 people and contributes about $9.2 billion to California’s economy. 100% of the almonds grown in the United States, and 80% of the worldwide market of almonds, are grown by almond farmers in California. Bettencourt continued, “Almond farmers are protectors of our land and environment here in California. They have been for generations. To them, the land is their livelihood to produce this amazing nut. They continue to adjust, be flexible and adapt to changing climate and resources to provide almonds for our country and protect the land for the next generation of almond growers. And while providing a heart-healthy food for our people, almond farmers are also the heart of our communities, especially in the Central Valley, where they employ people, support small businesses, and give back to the community every single year in so many ways.

The Almond Alliance celebrated February 16, 2023, as “National Almond Day” by encouraging Americans to eat a handful of almonds a day to help themselves and the U.S.A. “Almonds have become a staple in our diet, whether for snacking, baking, or cooking,” stated Aubrey Bettencourt, President and Chief Executive Officer of the Almond Alliance. “They are a reliable source of protein, healthy fats, and fiber; have essential vitamins and minerals; and support heart health, healthy cholesterol levels, and healthy blood sugar levels. More than that, almonds are at the heart of our economy in California and our communities in the Central Valley.” In celebration of this day, which recognizes work done by the acre, not the hour, Congressmen Duarte, Valadao,

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ALMOND FACTS

So, on February 16th, the Almond Alliance encouraged everyone to go nuts for almonds, have a handful of almonds to celebrate the men and women who bring this amazing food source to everyone in the United States and to many around the world. Remember, a handful a day helps YOU and the U.S.A.” About the Almond Alliance Almond Alliance is the leading authority in state and national policy, championing American almond farmers, industry, and community for the continued global growth, innovation, and success of American almonds and agriculture. As the voice of almonds , the Alliance represents the fourth-largest commodity in the United States and the third-largest American export. Established in 1980, the Almond Alliance is a non-profit trade association with a local and international network of almond processors, hullers/shellers, growers, and allied businesses. The Alliance is dedicated to providing resources and solutions for our members, ensuring industry success and growth opportunities. Learn more at almondalliance.org.

Article contributed by the Almond Alliance of California.

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

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MARCH–APRIL 2023

NEWS IN A NUTSHELL

Doherty Family Hosts Orchard Media Tour

As winter wrapped up, the Doherty family, third-generation Blue Diamond growers at Chamisal Creek Ranch, welcomed members of the media to their beautiful orchard in Western Colusa County, CA.

The sprawling hills, dotted with almond trees, were bursting with blossoms and buzzing with bees on the first clear, sunny day the region had seen in weeks. The guests, comprised of consumer media members from diverse media backgrounds such as food, lifestyle, and parenting publications were treated to an immersive experience to help them gain awareness of the health benefits, delicious flavor, and manifold applications for Blue Diamond products. Along with that, the tour provided a special glimpse into Blue Diamond ’s unique sustainability practices.

Upon arrival, the guests were welcomed by Jason Merideth, VP of Global Marketing, Blue Diamond . They then enjoyed a build-your-own trail mix snack bag (featuring Blue Diamond

almonds) before Michael Doherty and Blue Diamond ’s VP of Member Relations, Mel Machado, opened with a lesson on rootstock varieties selected for almond trees. Doherty and Machado guided the group through the almond trees, passing by a Blue Diamond Water for Bees bucket that was covered with pollinators stopping for a drink. From within the blooming trees, Machado and Doherty taught the group about several facets of almond farming including weather effects on almond crops, harvest timelines based on almond variety, soil health, and how to determine whether an almond blossom has been pollinated or not.

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ALMOND FACTS

Doherty then led the guests to his solar panel field where he excitedly educated the group on the fuel and power savings his operation has made from the use of the solar panels. In fact, the farm’s panels often generate enough energy to cover the needs of the entire farming operation and more! Just in the last five years, the panels have saved over 527,000 gallons in fuel and mitigated more than 35 tons of carbon emissions. Blue Diamond ’s Director of Sustainability, Dr. Dan Sonke, introduced the reporters and editors to Blue Diamond ’s landmark Orchard Stewardship Incentive Program (OSIP) and its benefits. Sonke also explained the process of whole orchard recycling, sequestering carbon by use of cover crops and conservation planting/hedgerows before moving on to the importance of bee health, Bee Friendly Farming, and Project Apis m .’s Seeds for Bees program.

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

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MARCH–APRIL 2023

NEWS IN A NUTSHELL

After the sustainability lesson, a special lunch was served in the Doherty’s beautiful barn. The meal featured several dishes made with Blue Diamond products, including Almond Breeze ® , to showcase the many uses for Blue Diamond almondmilk, whether it be for drinking on its own or in coffee, or for use in baking or cooking sweet and savory dishes alike. Nutritionist Bonnie Taub-Dix educated the guests on the nutritional value of Almond Breeze ® and

how to incorporate this healthy food into everyday life. After lunch, the activities concluded with a hands-on workshop on tending to honey bees led by a professional, local beekeeper. As just one of the social media posts generated that day shows (left), it’s quite likely that this exclusive experience made new advocates of Almond Breeze ® and Blue Diamond products for life!

Jillian Luna, Manager, Corporate Communications Blue Diamond Growers

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ALMOND FACTS

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LIFE SCIENCES

NEWS IN A NUTSHELL

#WeAreBlueDiamond Social Media Activity Blue Diamond has had a very full spring so far! We highlighted some of our community grant recipients, we served as a sponsor for the Sacramento Kings vs. Los Angeles Clippers basketball game with our Almond Breeze ® Extra Creamy leading the way. We celebrated National Almond Day and welcomed special visitors to our Sacramento campus including Senator Alvarado-Gil and Sacramento ’ s Mayor Steinberg. The Doherty family ( Blue Diamond grower-owners) hosted a special orchard tour for members of the media to get to know more about our co-op. Finally, we provided a 6-part educational video series featured on social media surrounding our bloom season titled “Welcome to the Orchard.”

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ALMOND FACTS

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BLUE DIAMOND INVESTMENT PROGRAMS Current Investment Rates available as of April 1, 2023

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 April 1, 2023, for the program are listed here:

Short-Term Investment Certificate (STIC)

Long-Term Investment Certificate (LTIC) (Maturity Date of 6/30/2025)

Initial Investment Required

$1,000

$50,000

Interest Rate

5.75%

2.95%

(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.

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MARCH–APRIL 2023

NEWS IN A NUTSHELL

Almond Macarons Cooking Time: 15 minutes Difficulty: Medium Servings: 24

Ingredients Batter: • 1⅛ cups Blue Diamond Almond Flour • 1½ cups powdered sugar • 3 large egg whites, room temperature • 2 tablespoons granulated sugar • ½ teaspoon cream of tartar Vanilla Buttercream Filling: • 4 tablespoons unsalted butter, room temperature • ¼ teaspoon salt • 1 cup powdered sugar • 1 teaspoon vanilla extract

Directions 1. Preheat oven to 300°F. 2. L ine two baking sheets with parchment paper. 3. Combine Blue Diamond Almond Flour and powdered sugar in a food processor and process until very fine, about 40 seconds. Sift into a bowl to remove any large clumps. 4. In a stand mixer, whip egg whites on medium-high speed until soft peaks form. Add granulated sugar and cream of tartar while machine is running. Continue to whip until stiff and glossy peaks form. 5. Using a rubber spatula, gently fold in almond flour mix one third at a time. Do not overmix. Transfer mixture into a large piping bag.

6. Pipe 1-inch circles onto the parchment paper, leaving 2 inches of space in between. Tap trays against the countertop to release extra air from cookies. Let sit for 30 minutes, until they form a dry skin. 7. Bake 18 to 20 minutes, turning pans halfway through baking. Keep a close eye, as they will brown quickly. 8. L et cookies cool completely before removing from pans. 9. F or filling, beat butter and salt until fluffy, about 2 minutes. Slowly add powdered sugar and vanilla and beat until light and smooth, about 3 to 4 minutes. Transfer to piping bag and pipe between two cookies.

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ALMOND FACTS

Spring Roasted Vegetable “Risotto” Cooking Time: 60 minutes Difficulty: Medium Servings: 6

Ingredients • Olive oil • 1 bunch of asparagus, washed and chopped • 1 cup grape tomatoes • 2 bell peppers, sliced • Salt and pepper to taste • 11 cups short grain brown or white rice • 1 tablespoon butter • 1 shallot, finely minced • 2 cloves of garlic, minced • 1 cup white wine (or vegetable broth) • 1 cup vegetable broth • 2 cups Almond Breeze ® Unsweetened Original Almondmilk • 2 4 oz. crumbled goat cheese ( optional ) • F resh chopped parsley for garnish

Directions 1. Preheat the oven to 400°F and spray a standard cookie sheet with olive oil or nonstick spray. 2. A dd asparagus, tomatoes and bell peppers to the cookie sheet, drizzle with olive oil and season well with salt and pepper. 3. P lace in the oven and cook for 30 to 40 minutes. 4. Start the rice. In a large saucepan on medium-low heat, add the butter, shallot and garlic. Heat for 3 to 5 minutes, until translucent, turn the heat to low and add the wine to scrape up the bits from the bottom of the pan. 5. Add the broth, the Almond Breeze ® almondmilk and rice. 6. Bring up to high heat, then reduce to a simmer and cover. 7. Make sure to stir frequently and that there is always enough liquid to prevent the rice from burning. This will take about 45 minutes. 8. W hen the rice is fully cooked, stir in the goat cheese ( optional ), the roasted vegetables and top with chopped fresh parsley.

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MARCH–APRIL 2023

CORNERING THE MARKET

Almond Breeze ® Named “Most Admired Brand” in Thailand Almond Breeze ® has been awarded “2023 Thailand’s most admired brand” in the plant-based milk category by BrandAge Magazine. As this is based on a consumer survey conducted by the magazine, it

demonstrates the success of Almond Breeze ® in winning consumers’ hearts and trust as Thailand’s number one almondmilk brand! This encourages Blue Diamond ’s pursuits of promoting a healthy lifestyle amongst Thai consumers.

Caption Translation: Brand: Blue Diamond Almond Breeze ® , Category: Plant-based milk, Group: Consumer goods Walaitip Suetrongmankong, Communication Director of Heritage Snacks & Food Co., Ltd.

Blue Diamond Visits Dubai

At the end of February, the Blue Diamond team attended the Gulf Food Show in Dubai. Blue Diamond team members who attended were Warren Cohen, Chris Cromwell, Bjorn Grobler, Larry Steinbach (not pictured) and Dale Tipple. The Blue Diamond booth was highly visible in its position as the gateway to the U.S.A. pavilion the morning of February 20 as part of the ribbon cutting ceremony.

L to R: Bjorn Grobler, Dale Tipple, U.S. Counsel General to the UAE Meghan Gregonis, USDA Administrator Daniel Whitley, Warren Cohen, and Chris Cromwell

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ALMOND FACTS

Blue Diamond Visits Delhi, India Blue Diamond team members attended the Almond Board of California’s, India Conference in Delhi, India. In addition to the meeting, the group also visited with the USDA at the U.S.A. Embassy in Dehli where they discussed the opportunities before Blue Diamond in further accelerating the sale of almonds and Almond Breeze ® in this crucial market. Those attending all events for Blue Diamond included Laura Gerhard, Nitin Batra, Dale Tipple, and Warren Cohen who also served as a panelist. It’s truly amazing seeing the rapid transformation of this market and the role Blue Diamond plays today and the potential for the future.

L to R: Warren Cohen, Laura Gerhard, Dale Tipple, Nitin Batra and Mufaddel Yousef (owner of Tahoe Private Limited – Blue Diamond’s sales and distribution partner in India)

Costco Visits a Blue Diamond Orchard This picture from the orchard of a grower family during a meeting with Costco. Notice they are sporting Blue Diamond hats! L to R: Mike Murrow – Sales Director – Channels (Blue Diamond Growers), Andy Vennum – D12 Buyer (Costco), Marissa Guches – Business Manager, Northwest Region (ADW), Jim Leavitt – Director of Sales, Channel/Broker Accounts (Blue Diamond Growers)

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MARCH–APRIL 2023

GROWING THE GOODNESS

Mark Jansen Recipient of Distinguished California Cultivator Award Ag Council celebrated Mark Jansen, CEO Emeritus, Blue Diamond Growers , as the 2023 California Cultivator Award recipient on March 30, 2023, during the association’s 104th Annual Meeting in Monterey. This award recognizes and honors a person who clearly has made significant contributions to agriculture or who has demonstrated leadership and personal commitment beyond the normal expectations of a person serving the farmer-owned business sector.

Blue Diamond ’s Chairman of the Board, Dan Cummings said, “Mark has earned the respect and admiration of our grower-owners with his personable style and engagement in the industry.” Cummings added, “His contributions have poised us for future growth and success.” Congratulations to Mark on being selected to receive this distinctive award! Mark has earned the respect and admiration of our grower-owners with his personable style and engagement in the industry. -Dan Cummings, Blue Diamond's Chairman of the Board

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

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ALMOND FACTS

Blue Diamond at the Tulare World Ag Expo At the end of winter, Blue Diamond hosted a booth at World Ag Expo ® , one of the largest Ag trade shows in the world with more than 1,200 exhibitors on 2.6 million square feet of exhibit space. The Blue Diamond Member Relations team did a great job on the booth as it was a hit amongst attendees.

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MARCH–APRIL 2023

ADVOCACY REPORT

California Coast Hit by Fourth Storm Since Clean-Up. -New York Times – 1/27/1983

California Storms – Wettest Weather Years so far in 122 Years of Record. -Mercury News – 3/8/2017

California Rain Breaks All-Time Records. -Los Angeles Times 10/25/2021

Record Setting Rain in Early 2023 in California. Honestly, What’s New?

Rain in California isn’t new. We know it’s coming, we know it comes after a drought, so why aren’t we doing anything about it ? We knew 40 years ago, and if you look back at the cycle of drought and rain in California we knew even as far back as the 1860’s, but all we do is play the blame game on who gets the water when it rains.

Today, one million Californians lack access to clean drinking water, hundreds of thousands of agricultural acres fallow, and specific fish populations continue to dwindle. There is no villain in this situation, only victims. California’s water challenges shouldn’t be an “us versus them” situation. That’s not how we find a solution. Our water infrastructure was last updated 55 years ago for less than half our current population. This system was originally built for two water users, people, and food producers. Because of numerous state and federal regulations and legislation, we now have a third straw: protected species and environmental protection legal requirements. Everything impacted by water is essential for our state whether it’s growing food like almonds and citrus, or dairy and salmon. As the fifth largest economy in the world, we should not have one million of our people living without water in their homes. After knowing for decades what the ecosystem is, we should be able to figure out a way to save the water we need for the future. We need to stop talking and start doing. We applaud Governor Gavin Newsom and his administration for looking at all sides, listening to various groups, and working to produce short-term solutions as we

Enough is enough.

We need to stop the blame game, the fight on dividing water, and work to find solutions. We would be in a better position to do so if over the last four decades our elected leaders did something to preserve water when we get it. But that’s water under the bridge — literally. The question is what we do now, today, to start solving this problem. California’s lack of 21st-century water storage, technology, and policy impacts us all. Allowing farmers to use existing infrastructure for movement and storage right now helps everyone — fish, people, farmers, and the environment. It is better to store water now than run into the ocean, because that water can be used later by fish, underrepresented communities, cities, and farms.

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ALMOND FACTS

work on providing long-term infrastructure, technology, and policy upgrades. None of us will agree with 100% of what he wants to do, but at least he is listening and trying to weigh everything to find workable and sometimes imperfect solutions. Breaking the cycle of rhetoric without action, to try something new. The most recent and monumental examples being the Executive Order expediting groundwater recharge on working farmland in order to assist in providing immediate public health and safety protection from flooding and contributing to the long-term health and safety of our communities by recharging our aquifers. An emergency such as this is absolutely a stressor and a challenge, but perhaps can be an opportunity to see if we can maximize existing infrastructure resources for multiple benefits. A Los Angeles Times column recently serves as the shining example of how we got into this mess in the first place by laying blame, seeking to divide people and groups, and offering no solutions. The article points out that groundwater recharge needs to be improved, yet the same authors oppose the governor’s recent Executive Order allowing just that. This perpetuates the sins of the past in its aim to pit California food producers, especially almonds, against salmon. We’ve heard that one before; it’s getting old. I’m anxiously awaiting something new. Picking winners and losers is the old way of doing things — the way that has gotten us here in the first place. The Almond Alliance is not interested in repeating past mistakes

or joining a chorus of complaints. We are in the business of offering solutions and solving problems, and we will work with anyone who will help us achieve that. Once we are in a drought, and we all know it will be again, it is too late to do anything. As history shows, like other droughts in the past, this drought has not been solved by smart people, government officials, or policymakers. Mother Nature has solved it. So, weirdly enough, during a flood, the real question we should all be asking is, what are we doing to prepare for the next drought ? The Almond Alliance has practical and doable ideas that can be done immediately and won’t break the bank. Because farmers deal in solutions, we firmly believe farmers and working lands are a part of the water, sustainability, environmental, and equity solution, not the problem, and we are committed to being leaders in developing those solutions. We will work with any organization or elected officials — either party — or sit down with any reporter or columnist to offer concrete solutions, not hollow rhetoric, to finally address our water challenges in California now.

Aubrey Bettencourt, President & CEO, Almond Alliance

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The Almond Alliance team has the volume cranked to ten as we prep for this year’s 41st annual convention, Won’t Back Down, in La Quinta, CA, April 24-27, 2023. Register at almondalliance.org/convention/

25

MARCH–APRIL 2023

CULTIVATING SUSTAINABILITY

SUSTAINABLY SPEAKING, WITH DR. DAN

Update on the Climate-Smart Commodities Grant from the USDA Previously in this column, I discussed the announcement of a $45 million grant to Blue Diamond Growers from the USDA Partnerships for Climate-Smart Commodities fund. We will be using these funds to support growers in implementing specific “climate-smart” practices on Blue Diamond

takes time, and as I am writing this, we are in the process of submitting our third round of revisions. We will continue to keep our members informed as we work to move towards having a signed contract with the USDA. Believe it or not, we are told that we are one of the first organizations to get this far. As I previously reported in this column, growers and partner organizations cannot be reimbursed for any work related to the grant until the contract is completed and signed . Once we have a contract, we will define the processes and policies for our staff and our partners to use in applying for the planting material and/or cost share reimbursement dollars. We recently hired a new staff person who will begin this planning even before the contract is finalized. However, other planning activities with our partners are directly funded by the grant and thus cannot be addressed before the contract is in place. Here are some of the details the team will be working on between now and harvest: •  Application materials — All members who apply for funds through this grant must also participate in the Orchard Stewardship Incentive Program (OSIP), so we will be integrating the materials for both programs. As the OSIP program also provides

member orchards. Our primary partners in the grant include Project Apis m . and Pollinator Partnership, two organizations that have frequently contributed to Almond Facts in the past. This grant will provide cost share to growers for the implementation of one or more of the following practices:

• Annual cover cropping

• C onservation plantings (i.e. permanent cover outside the orchard/bee pastures) • H edgerow plantings (pollinator-friendly trees and shrubs)

• Whole orchard recycling

In addition to aiding farmers in adopting these practices, funds will be devoted to connecting these climate-smart practices to markets to enhance sales for the cooperative. As always, at Blue Diamond , our goal is to maximize returns to our growers, while we deliver the benefits of almonds to the world. For this issue, I want to give a brief update on where we are with the grant process and the anticipated next steps. What happens next? Even though the award was announced in September, all grant awardees must have a signed contract with the USDA before the funds are made available. There are many requirements related to how federal funds must be spent which must be addressed in writing. To address these requirements, we have been actively collaborating with the USDA through a series of back-and-forth revisions. This all

a higher return for your crop delivery, it is an additional source of funding to members for going through this effort.

•  Cost share and Incentives — Our latest draft proposal sent to USDA certainly estimates the cost share dollars for each practice, but we cannot finalize and publicly share these until the contract is signed and all the above items are addressed. Nonetheless, the cost share dollars for three of the practices are anticipated to lower the cost of

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ALMOND FACTS

implementing the practices needed for an orchard to become Bee Friendly Certified, which is one factor in getting the top OSIP payment per pound. Our hope is that these combined resources will be a significant benefit to participating members. •  Documentation requirements — One of our partners recently commented that a strength of our proposal is that we intentionally plan to keep the measurement requirements for growers as minimal as possible. Many climate-smart programs require time consuming measurements and costly soil testing. We are committed to reducing this burden to our growers. That said, as we are using Federal dollars, there will be documentation requirements that will have to be followed by all parties. Documents will certainly include application forms but may also include reports from an online carbon calculator and/or receipts and photographs of the activities in the orchard. •  Internal procedures — We will be coordinating activities by members, our partners, our Grower Accounting team, and our Member Relations team. And that is just on the work related to grower practices and payments. There will also be workstreams related to carbon accounting and tracking the almonds we sell through the market development efforts funded by the grant. All of these will require verifiable internal documentation procedures. Given the procedural requirements around U.S. government grants, there is a lot of work ahead. Thus, growers should not plan on implementing eligible grant practices until after this year’s crop harvest . What to do while you wait Growers should register for and participate in OSIP if not already doing so. If you plan to take advantage of the USDA grant in the future, being a part of OSIP will reduce your workload when you submit your application. Contact your Regional Manager for details on how to register. They

Photo credit: Chris Rishwain

have already been conducting OSIP workshops this winter and spring and can share tips they’ve learned to make the process easier. The program has also been streamlined compared to prior years. There is also a financial reward for participants in the form of a payment on the crop already delivered in 2022. The deadline to participate in OSIP for this crop year is approaching on May 26 ; don’t miss out on this opportunity unique to Blue Diamond membership.

Dr. Dan Sonke, Director of Sustainability, Blue Diamond Growers

27

MARCH–APRIL 2023

IN YOUR ORCHARD

THE BEE BOX

Cover Crops in Almonds, What We Know and What We Don’t Overview of a Recent Research Paper With more farmers adopting cover cropping each year, it is important to understand its benefits, implications, and current unknowns. An article recently published in the Journal of Soil and Water Conservation by UC Davis researcher, Dr. Vivian Wauters et al. titled “Developing cover crop systems for California almonds: Current knowledge and uncertainties” covers what we currently know and don’t know about cover crops in almond orchards.¹ Although the practice of cover cropping in almonds is still relatively new, researchers are dedicating time, thought, and experimentation to this practice, expanding the science to answer our questions. Here are takeaways from the article, which includes several cover crop questions and concerns, and how the scientists addressed them.

California Almond Orchards and Cover Crops: The Big Picture Almond orchards are a highly productive crop which dominates the California landscape. While a bare orchard floor is required for harvest, there is a window for using cover crops during the winter season which can provide a variety of benefits for the orchard, the grower, and pollinators. Below ground, cover crops can loosen compacted soil, increase organic matter, improve water infiltration, increase microbial diversity, and, depending on cover crop variety, potentially reduce nematode populations. Above ground, cover crops can suppress weeds, slow soil water evaporation, and support beneficial insect populations, such as pollinators and predators and parasites of pest insects. More specifically, a flowering cover crop can hugely benefit the honey bees present in the orchard before, during, and after bloom by providing ample nutrition that stimulates population growth and supports a healthy workforce of bees for almond pollination.

Erik Stanek, Blue Diamond Growers’ Sustainability Specialist, stands in a field of blooming cover crop. Photo Credit: Dr. Dan Sonke

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ALMOND FACTS

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IN YOUR ORCHARD

Chico, CA on January 12th, 2023. Standing water can be seen where no cover crop is present. Photo credit: Project Apis m.

Diving in: Below the Orchard Floor Compaction

Soil Microbes Cover crops support a diverse variety of soil dwelling organisms that can benefit tree crops. Cover crops in perennial agriculture systems increase arbuscular mycorrhizae — a type of fungi which colonizes tree roots and helps provide almond trees with greater access to nutrients and water. Greater diversity in the soil environment may also decrease soil-borne pathogens. Organic Matter The decomposition of plant matter, particularly roots, increases soil organic matter. The bulk of the chemical composition of organic matter is carbon. Because of this, sequestering carbon from the atmosphere through cover crops is a major potential environmental service that is actively being studied in almond systems. Currently, it is suggested to add compost along with cover crops to reliably build soil carbon levels.

Cover crops can reduce soil compaction by simply forcing compacted particles apart through root growth. This root growth helps build stable soil pores and channels, improving soil aeration and water infiltration, thus reducing run-off of fertilizer material and pesticide residues. In one study, it was shown that soil compaction could be reduced by almost 40% using cover crops. Soil Water There is some concern that cover crops might compete for, or increase overall water use. Recent research has shown that cover crops can have a minimal impact on total water consumption. In some vineyards cover crops have been shown to increase water content in deeper soil levels. This is thought to be due to increased water infiltration. Cover crop evapotranspiration and soil evaporation have not been fully studied in almonds and further research is needed to understand all its effects. In particular, drip irrigation systems and how they relate to cover crop growth and soil water conditions is under investigation. Some of these water-related research questions are currently being studied at UC Davis, funded by Project Apis m .²

Seeing the Action: Above the Surface Suppression of Weeds

Cover crops may suppress weed growth in the areas of the orchard they are grown by outcompeting and shading weeds or reducing weed seed germination via the cover crop termination process.

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ALMOND FACTS

Orchard Pests The use of cover crops can help with managing above ground insect pests. Most notably cover crops can provide harborage and breeding habitat for beneficial insect species. It is important to plan cover crop planting around pest control practices. Of greatest note is Navel orangeworm (NOW), a problematic pest for almonds. Winter sanitation practices, where mummy nuts are shaken from the trees and destroyed, are vital in NOW control. There are many ways to work cover crop around winter sanitation. For example, cover crop could be planted in every other row, leaving clear rows available for mowing

A daikon radish — an example of how cover crops break up compacted soils and increase organic matter beneath the surface. Photo Credit: Project Apis m.

Cover crops are exceptional places for pollinators and beneficial predatory insects Long-term implementation and proper management is the key to success in using cover crops for integrated pest management (IPM) in almonds. Photo Credits: Project Apis m.

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MARCH–APRIL 2023

IN YOUR ORCHARD

mummy nuts. Interestingly, cover crops have been shown to reduce the number of NOW. This is thought to be due to changed orchard floor conditions which accelerate the decomposition of mummy nuts on the ground and increased mortality of the NOW larvae. Cover cropping is not a replacement for winter sanitation but can work synergistically with NOW suppression.

pollen and nectar resources that can benefit honey bee health. Flowering cover crops present an opportunity to expand nutritional resources for bees and increase brood stimulation and thus pollination productivity and efficacy. For years, almond growers rightfully asked whether a blooming cover crop would compete with almond blossoms for bee visitation and pollination. This research article showed that a flowering cover crop does not compete with nor decrease pollination effectiveness in almonds. In some instances, the presence of non-almond flowering plants has been shown to improve almond pollination. When bee hives are placed in orchards in the late winter, honey bees will not have yet received the signals to begin growing their numbers and preparing for spring. The first pollen brought into the hive by early foragers serves as that signal. Once the queen bee notices there are new pollen sources, she will begin laying eggs. This stimulates the colony to begin collecting more pollen and nectar. Cover crops — which flower before the almond bloom — kick-start this early foraging behavior, meaning that when the almond bloom time arrives, it’s met by bees that are ready to go rather than just waking up. One of the reasons why almond pollination services have become so expensive is because beekeepers have been forced to start this process of stimulation by adding pollen patties and sugar water at high cost to have hives ready to go when they arrive in the orchards. Just like growers, the more inputs and “touches” to any beekeeping operation, the higher the costs go. Cover Crop Termination and Harvest Managing cover crops for pollinator health may entail some tradeoffs. When 50% of the cover crop is in bloom, the carbon to nitrogen balance in plant matter begins to favor carbon. As less nitrogen is available compared to the amount of carbon, plant matter break down is slowed. Thus, as Project Apis m .’s Seeds for Bees program advises growers, it is imperative to manage the cover crop properly. If the above ground biomass of the cover crop is not properly managed, crop residues may indeed become a nuisance during harvest. Proper management has shown

Seeds for Bees’ Pollinator Brassica Mix blooming with colonies in the orchard. Photo Credit: Project Apis m.

Pollination and Bees Cover crops also provide strong pollination benefits. The vast majority of commercial almond orchards depend on pollination services provided by managed honey bees. However, most almond orchards lack diverse

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