Walker Farms Operations
What was the total size of the Walker Farms property?
23,000 acres.
What was the water allocation for Walker Farms in the case due to the drought?
Zero surface-water allocation.
How many siblings does Pete have, and what positions do they hold in Walker Farms?
Pete has three sisters and two brothers, and they are all equal shareholders.
What alternative did Pete consider that would generate returns similar to farming without needing irrigation?
Leasing land for solar panels.
What does Pete need to explore to ensure the long-term sustainability of Walker Farms, according to experts?
A strategy that includes drilling wells, moving to organics, and considering solar panels
What is the main product Walker Farms specializes in?
Almonds, pistachios, and tomatoes.
What is the main challenge with groundwater compared to surface water for the farm?
Groundwater contains dissolved salts that can eventually damage crops
Who was the first person to raise concerns about the impact of climate change on the farm’s future water supply?
Mary, Pete’s oldest sister.
How long would the solar lease last if Walker Farms agreed to the proposal?
25 years
What alternative water allocation system is mentioned as being more efficient in other countries like Australia?
A water market system where water can be traded based on supply and demand.
What was the fallow land size that Pete had to leave unused during the drought?
6,000 acres.
What is the surface-water allocation system that determines how much water farmers get in California?
The Central Valley Project.
What was the primary role Pete was elected to after his father’s retirement?
CEO of Walker Farms.
What crop option did Sam suggest could help Walker Farms generate higher revenue despite water issues?
Organic crops, which have higher premiums compared to conventional crops.
Which strategy did one of the experts recommend as a good backup if the drought continues?
Leasing land to solar companies as a hedge against the drought.
What is the name of Pete Walker’s father, who was the former CEO?
Grant Walker
How much does it cost Walker Farms to obtain water from their wells per acre-foot?
$200 per acre-foot.
Which family member jokingly suggested selling the farm and moving to Seattle?
Sally, Pete’s wife
What did Pete consider doing with the 6,000 acres of fallow land to address the water issue?
Transitioning to organic farming, which would increase revenue but still require groundwater.
What is the main challenge Pete faces in improving the water allocation system in California?
Navigating bureaucratic and governmental barriers.
Which processing plants did Walker Farms invest in around a decade ago?
Three Central Valley plants processing almonds, tomatoes, and frozen vegetables.
How much can water from other districts cost per acre-foot when purchased from another farm?
$800 per acre-foot.
What was Pete’s father’s advice regarding the future of the farm?
Grant believed Pete could handle the tough challenges and that California was still the best place for farming.
What is the potential downside to drilling more wells, according to Mary?
It could damage the trees due to the salts in the groundwater and cause land subsidence.
What advice did one expert give Pete about the future of Walker Farms and the possibility of selling?
Recapitalization or selling part of the farm to private equity to offset risks.