A month ago it was a promise. Now the contracts are signed. On Sept. 25, the U.S. Department of Agriculture awarded contracts to buy 12 million pounds of California walnut kernels through its Section 32 authority. That equals about 28 million pounds in-shell, and the purchase is valued at nearly $30 million, according to a California Walnut Commission release issued Sept. 28.

From Announcement to Signed Contracts

The award follows USDA’s Aug. 24 intent-to-purchase announcement, which The AG Center covered when it was first announced. At that point, USDA had only said it planned to buy. Last week’s contract awards confirm the purchase and put a hard number on how much product is moving.

Section 32 lets USDA buy surplus commodities and send them to domestic food programs. This award brings USDA’s total Section 32 walnut purchases for 2026 to $45 million. Altogether, that is nearly 17 million pounds of kernels going to food banks nationwide.

Why the Timing Matters for Growers

The industry is harvesting the 2026 crop while it is still shipping out the 2025 crop, which was the second largest on record. The carry-in from that crop has weighed on prices heading into the new season, and growers have dealt with several years of prices under $1 per pound while their costs keep rising.

“Lowering the carry-in inventory from 2025 is a critical step to putting our family farms and local rural communities on firmer footing,” said Robert Verloop, CEO of the California Walnut Commission. “This purchase is a positive boost that helps set the stage for a stronger, more balanced market as growers and handlers kick off the new selling season.”

Who the Commission Is Thanking

Verloop credited USDA Secretary Brooke Rollins, Under Secretary for Marketing and Regulatory Programs Dudley Hoskins, and AMS Administrator Erin Morris and her team for seeing the purchase through.

“They have consistently supported American agriculture and the California walnut industry, especially when we have been faced with excess inventories and challenging global markets,” Verloop said.

What It Means for Your Operation

A $45 million purchase will not fully offset a near-record crop or the trade pressure that has cut into exports. What it does is take a real volume of old-crop product out of storage just as the new selling season opens. That gives handlers more room to move the 2026 crop and puts a firmer floor under the market.

California produces more than 99% of U.S. walnuts. The California Walnut Commission represents more than 3,700 growers and about 70 handlers, whose walnuts are sold in 80 countries.