In a plant in the heart of California’s farmland, millions of shells rush down a chute. Little pistachios tumble onto a conveyor belt where workers inspect, roast, package, and ship them around the world. Even more of the nuts are on the way.
California farmers are devoting more land to the crop. It’s hardy and drought-tolerant in a state with dramatic swings in precipitation. Pistachios generated nearly $3 billion last year in California. In the past decade, the United States surpassed Iran to become the world’s top exporter of the nut.
Much of the crop heads to China, where it’s a popular treat during Lunar New Year. But industry experts say Americans also are eating more pistachios. Shells on. Shells off. Salt and pepper. Honey roasted. They were rarely in grocery stores a generation ago but today are a snack food found almost everywhere.
Currently, almonds are California’s biggest nut crop. They generated nearly $4 billion in the state last year. But pistachio orchards can be sustained with minimal water during drought, unlike almonds. The trees rely on wind instead of bees for pollination and can produce nuts for decades longer. They produce more per acre than almonds while fetching a higher price, says analyst David Magaña.
Farmers who grow both nuts are applying lessons learned from almonds to the pistachio boom. Almond production also soared in California, but demand dropped—and so did prices. Meanwhile, farmers grappled with drought and rising production expenses.
Pistachio growers strive to keep demand for the nut ahead of supply. For example, American Pistachio Growers recently made an endorsement deal with a top cricket player in India. Farmers hope to promote pistachios to a new market there. In China, the group touts the nut’s nutrients.
The rise of pistachios is part of California farmers’ shift to perennial crops that command higher returns than products such as cotton, according to a 2023 report by the Public Policy Institute of California.
Perennial crops, which are not replanted annually, can’t just be swapped out during low-demand years, says researcher Brad Franklin. But pistachios have benefits other perennial crops don’t. They can go longer without water and grow in salty soils.
When farmers decide what to plant, “I think the biggest thing is the market,” Franklin says. “And water is right below that.”
Why? Successful farming manages costs and income well. Pistachio farmers can make a larger profit from pistachios than almonds, so you may see more of the little, green nuts at the grocery.
