So many fields of new almond trees have been planted in Central California in recent years that production has reached a point where prices are beginning to slide.
Almonds have taken an image hit in the last few years in part due to publicity about how much water in drought stricken California is needed to produce a crop. A gradual loss in value has been taking place.
The price per pound of the nut has declined about 20 percent since late 2014.
That 20 percent price decline due to over supply translates into a loss of about $1.8 billion to farmers. A lot of new almond trees have been planted over the last three years.
When the price of almonds rose from around $2.50 per pound three years ago to over $4 per pound in 2014, farmers became over zealous and many replaced their lower-priced crops, like grapes or cotton, with fields of almonds. That flooded the market, and the price dropped to around $3 per pound.
Adding to the problem was the strength of the dollar in 2015. It began to cost more for places like China and India to buy almonds. In turn, Asian markets are shelling out less cash for the crop.
It killed off demand as fewer almonds were purchased.