Bid Results Highlight Difficulty in California Almond Industry

The bid results of the almond ranches owned by Trinitas Advantaged Agriculture Partners IV, LP fund highlight the difficulty facing the California almond industry. The forced sale of ~7,500 acres of almond ranches, nearly 88% of the fund’s portfolio, was approved on June 14 at an weighted average price per acre of $16,161. 

Here’s a quick look at these ranches and approved bids using Acres’ proprietary data and court documents.

At a Glance: The fund’s portfolio comprised 25 almond ranches covering 8,610 acres across 5 counties. These ranches ranged from 4th leaf to 9th leaf, meaning 4 to 9 years in age. Almond orchards reach full maturity at 6th leaf and are generally considered economical until their 25th leaf.

How Much Buyer Interest Did These Almond Ranches Generate?

The ranches were marketed for over three months. Thousands of parties were contacted with over 190 parties signing non-disclosure agreements and ultimately 17 bidders submitted bids and deposits. Total approved bids hit approximately $121.5M.

Remaining Ranches

Expected total proceeds including the remaining ranches are $135M to $140M. This implies a 45% markdown from the lender’s most recent appraised value.

What Do These Bid Results Mean for California Almond Ranches?

Limited bidder price interest across a large amount of land led to an ultimate price per acre that is illustrative of a difficult time for almond ranches in California’s Central Valley.