Private equity-funded almond farm folds before harvesting a single nut in Fresno County

A financially troubled almond farm with ranches in Fresno and Tulare counties, as well as other parts of California, is on the verge of becoming the latest farming company to call it quits.

Trinitas Farming LLC, an Oakdale-based company funded by a private equity firm, is getting ready to take offers on nearly 8,000 acres of young almond trees.

Trinitas filed for Chapter 11 bankruptcy Feb. 19 after amassing $188 million of debt.

The farming company was preparing to harvest its first crop — until it ran out of money.

Their bankruptcy filing follows the collapse of one of the tree fruit industry’s powerhouse company’s, Prima Wawona, which recently unloaded about 13,000 acres as part of its bankruptcy liquidation.

And the Assemi family, a major San Joaquin Valley pistachio grower, is evaluating its portfolio and “right sizing it.” The Assemi family, which remains in business, grows pistachios on approximately 52,000 acres.

Why almond farm is selling

Formed in 2015, Trinitas plans to sell parts, if not all, of the 7,856 acres of almonds it was hoping to begin harvesting soon. The 17 separate almond ranches are spread out in Fresno, Tulare, San Joaquin, Contra Costa and Solano counties.

Bankruptcy documents show it will use $30 million debtor-in-possession financing to maintain the ranches as it seeks to sell the properties.

Agriculture analysts say rising interest rates, escalating production costs, declining commodity prices and the implementation of new statewide watering rules have all contributed to the downfall of some farming companies.

Real estate experts add that the sudden abundance of farmland may also translate to a decline in land prices in areas without a reliable water supply.

“When you put that many acres on the market, it gives people other options and that can cause lower land prices,” said Mark Ming, an accredited rural appraiser for Lee & Associates in Bakersfield. “It’s supply and demand.”

Although there are signs that almond prices are slowly trending upwards, it may be a long climb back to profitability for some farmers, said Matt Woolf, a specialty crop analyst for Terrain, a group that provides insight and analysis to clients of several farm credit associations.

Woolf estimates the industry is about one to two years away from a better supply and demand balance. The industry normally carries over about 350 million to 400 million pounds of inventory, but this year that figure is estimated at 800 million pounds.

“There are still a lot of almonds out there, and for some growers, it is going to be a challenge,” Woolf said. “But things are moving in the right direction.”

Interest in almond ranches

Named as partners in the Trinitas bankruptcy filing are: Ryon Paton, Kirk Hoiberg and Ceil W. Howe III, a diversifed farmer from Stratford.

Howe serves as chief operating officer of Westlake Farms in Kings County, and is a partner and principal at Pomona Farming, which grows raisins, wine grapes, pistachios, and almonds in the Westlands Water District. Paton and Hoiberg are also principals with Pomona.

Handling the sale of the almond trees is Graham & Associates, a real estate company in Visalia. The company’s managing partner, Bradley Bickers, said there has been interest in the almond ranches, including from institutional investors.

Although Bickers declined to identify potential buyers or how many inquired about the land, he said the deadline to submit an offer on any of the property is May 17.

Landon Fernandes, an associate at Graham & Associates, said he still sees a lot of optimism among almond farmers, who have weathered the boom and bust cycles of agriculture before.

“They understand the ramifications of overplanting,” Fernandes said. “And you see a lot of trees coming out of production. They still see a bright future.”