NM pecan crop fetches record-high prices

LAS CRUCES — As the winter pecan harvest winds down, New Mexico pecan farmers and backyard growers are receiving record-high prices for the crop.

Some farmers are experiencing delays raking in the crop because of periodic storms that have swept through the region, muddying orchards and preventing heavy machinery from passing through. But many growers have wrapped up the harvest.

A federal report issued Wednesday for farmers in New Mexico, Arizona and West Texas shows the price paid for a common variety of pecans, known as Western Schley, is ranging between $2.88 to $3.05 per in-shell pound.

Zia Pecan Co. on South Valley Drive buys small lots of pecans from backyard growers. Owner John Ortiz said the company is paying higher prices when it buys the crop from residents and is receiving higher prices when it sells the crop to shelling companies.

"We're paying more than we ever have," he said, noting the company has been in business about 20 years. "The margin moves; it's more expensive to buy and sell."

A previous record high for New Mexico pecan prices happened in 2010, when growers received about $2.83 per pound on average for the season. And while the current harvest season must end before the average price can be determined, it's likely to be higher with pecans often fetching above $3 an in-shell pound, farmers said.

Las Cruces-area pecan farmer Greg Daviet said he wrapped up harvesting last week — later than usual because of winter rains. He said that, just before Christmas, he'd been within hours of finishing the harvest. But then a storm hit.

"I needed six to eight hours to finish, and it took me three weeks," he said. "It doesn't matter how little you have left, you still have to wait for the orchards to dry out to harvest."

Daviet said overall, the season went well and is yielding higher-than-ever prices.

"We're still at record-levels for harvest-season prices," he said, referencing the fact the crop also can be stored and sold throughout the remainder of the year. "There have been times prices were higher at various points in the year, when inventory gets tight, but for harvest prices, I'm not aware of the price being higher."

John White, executive director for the Western Pecan Growers Association, based in Las Cruces, said several factors are contributing to the record prices, including problems experienced by farmers in major growing regions in the southeastern United States. That reduces the supply, boosting the prices for other farmers.

"The Southeast has had some problems with insects, disease and storms," he said. "Some of that crop is off. That works to our advantage; somebody suffers while somebody reaps the benefit. Unfortunately that's part of agriculture right now."

Jay Hill, who farms south of Las Cruces, said his operation managed to avoid the rain delays by carrying out a whirlwind, week-long harvest late last year. He said the orchards had "some amazing yields; this was the best production year we've had."

As for the prices, "I sold in the middle of the harvest, so I probably didn't see peak of the market," he said. "But I sold at a very comfortable rate."

Growers had a delayed start to the harvest because of unusually warm autumn temperatures. Most farmers rely on cold weather to prep the trees and get them ready for harvesting.

Dave Slagle, who farms pecans in Leasburg, said he harvested some of the early crop with green hulls — the protective covering around the shell of the pecan — and, with some extra processing of the nuts, was able to start the harvest anyhow.  He said the weather caused some delays, but the harvest went smoothly. And the market was strong.

"It was an off-year for production; it was an on-year for price," he said.

The Doña Ana County pecan harvest was expected to be a light production year, or "off" year, in a two-year pattern that tends to yield a light crop one year and a heavy crop the next, pecan farmers said. Even so, for a light year, the volume of pounds produced was expected to be greater than normal.

Luna County pecan farmer Rick Holdridge said he and other farmers have had difficulty harvesting his orchards because of the weather. He estimated he's about 25 percent finished with another three weeks remaining — absent more rain.

"We're almost always done by the end of January," he said. "You can't get in the field when it's muddy with the tractors."

Continued Holdridge: "It's not like it's going to kill us; it's just an inconvenience."

Despite rain delays, the harvest is looking good for farmers, White said. He estimated 90 percent of the crop has been pulled in so far.

"The quality looks pretty good," he said. "The price is good for the grower, which is good for the local economy, but consumers might have to pay a little bit more for them."

Ortiz said he expects residents with backyard pecan trees will continue harvesting their pecans over the next couple of months.

Concerns remain

While the prices are high, growers said that's not all positive.

"The specific part of that I'm concerned about is not where price is at, it's how quickly it moved to this price," Daviet said. "When prices move quickly — in just about everything — there's usually a correction. In our industry, that correction is particularly devastating to the middle part of our industry, the part between the farm and the consumer."

That market correction prompts a "cooling" of the market, which can be "harsh," Daviet said.

"We've seen that repeatedly in the pecan market," he said.

As the season winds down, White said he's gearing up for the 51st Annual Western Pecan Growers Association Conference, which is set for March 5-7 at Hotel Encanto in Las Cruces. Pecan farmers and industry experts from across the region attend the event, which focuses upon research and industry updates.

Diana Alba Soular may be reached at 575-541-5443, dalba@lcsun-news.com or @AlbaSoular on Twitter.

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Pecan Production

Below are crops by year, average per-pound price, and in-shell pounds produced.

New Mexico Pecan Crop

2004: $2.28/ 39 million lbs.

2005: $1.70/ 65 million lbs.

2006: $1.85/ 47 million lbs.

2007: $1.30/ 74 million lbs.

2008:$1.45/ 43 million lbs.

2009: $1.76/ 68 million lbs.

2010: $2.83/ 66 million lbs.

2011: $2.67/ 61 million lbs.

2012: $1.70/ 65 million lbs.

2013: $1.90/ 72 million lbs.

2014: $2.10/ 67 million lbs.

2015: $2.50/ 73 million lbs.

U.S. Pecan Crop

Below are crops by year, average per-pound price, and in-shell pounds produced.

2004: $1.76/ 185.8 million lbs.

2005: $1.45/ 280.2 million lbs.

2006: $1.56/ 207.3 million lbs.

2007: $1.12/ 387.3 million lbs.

2008: $1.34/ 194.1 million lbs.

2009: $1.43/ 291.8 million lbs.

2010: $2.30/ 293.7 million lbs.

2011: $2.43/ 269.7 million lbs.

2012: $1.57/ 302.3 million lbs.

2013: $1.73/ 266.3 million lbs.

2014: $1.96/ 264.1 million lbs.

2015: $2.20 / 254 million lbs.

Source: U.S. Department of Agriculture