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Earthmetrics Report - page 4 nonbearinq period [4 years] facilitating quicker inference about future bearing acreages than is possible for other tree fruits and nuts). The recent closure (bankruptcy) of California Canners and Growers, a major gr;;wer cooperative, and diminished cannery outlets in general, have resulted in the loss of economic outlets for canning apricots. The loss of marw'ets and weal%.ened demand for the fruit is reflected by the precipitous drop in average gross returns per acre of $1,551 in 1982 to only $1,137 in Walnut production in the San Joaquin `Dalley region increased significantly ove- the past several decades in response to the combination of higher yields per a=re and increased bearing acreages. Acreage nearly doubled in Me period from the mid -1960's to the mid -1970's. It has since remained fail-ly stable at about 90,000 acres Increased domestic and export dernnnCs for walnuts, and attractive tax provisions, drew large investments -c new walnut plantings in the 1970's. In recent years, the industry nas been severely challenged to market the increased product on wr;lle coping with the loss of foreign export markets and competition from other tree nuts In 1986, the industry fell victim to EEC retaliation and he'nhtened duty on inshell walnuts in the "Pasta War" which pitted higher uS tariffs on Italian pasta products and EEC imposed duties on walnuts and lemons Table 1 shows that the average price per ton for San Joaquin County walnuts fell by a third from an average price of $1,050 per ton in 1980-82 to $710 per ton in 1983-84. Acreage has stabilized at about 26,000 acres and a decline in nonbearing acreage seems in the immediate offing (Walnuts have relatively long nonbearing periods, ranging from 6 to 9 years depending on variety). The short run economic outlet for these two major tree crops is similar to that which exists for the bask agricultural commodities and for many California specialty perennial crops - namely, overproduction tendencies in the face of weakened total product demands have resulted in reduced grower returns and lesser economic viability of many agricultural enterprises. Crop estimates for 1986, when they become available later this Spring, will reveal atypically smaller crop yields due to adverse weather conditions early in the 1986 crop year. Even though San Joaquin County is a major production area, acreage is broadly distributed elsewhere in the Valley and other regions, so that the conversion of modest acreages to higher economic uses, where possible, will not. 13.3-7