Almond prices rising, page-5

The jobs data from the US late last week show the unemployment rate over there has fallen below 6% for the first time in years. In southern Califonia the median house price rose to a post recession high last month, suggesting that the economic recovery in the US is starting to flow through to property prices.

Californian property prices slumped between 2007 and 2010. These years also saw a significant expansion of the total almond acreage in California, so it would seem the lower land prices gave the almond farmers an opportunity to expand. Since 2007 the US dollar has also been fairly weak by historical standards, providing an extra boost to US almond exporters, though this period of weakness now looks to be ending.

Like south-eastern Australia, California has a fairly densely concentrated population living on a narrow coastal corridor. So the higher property prices may provide a way out for many struggling almond farmers, giving them the chance to sell their land for a decent price.