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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 ma;nr grower cooperative, and diminished cannery outlets in general, have resulted in the loss of economic outlets for canning apricots. The less of markets and wea4,ened demand for the fruit is reflected by the precipitou drop in average gross returns per acre of $1,551 in 1982 to only $1,13 in 19h5 Walnut produrtior, in the San Joaquin `Dalley region increased significantly over, trig past several decades in response to the combination of nigher yiFirjS per arra ?nb increase -,i bearing acreages Acreage nearly dour -ler' in tree period from trig mid -1960's to the mid -1970's. It has since remained fa?riv, stable a* about 90,000 acres Increased domestic and export dern.3rid for walnuts, and attractive tax provisions, drew large investments tc nevewalnut plantings in the 1970's. In recent years, the industry has been severely challenged to market the increased produrtior, while coping with the loss of foreign export markets and competition from othe., tree nuts In 1986, the industry fell victim to EEC retaliation, and he,nhtened duty or, inshell walnuts in the "Pasta War" which pitted hig",er US. tariffs on Italian pasta products and EEC imposed duties on walnuts and lemons Tanle 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 basic 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 mayor 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