The species your referring to must be, I think, the acorn woodpecker (check out the citation for an image). They’re simply mistaking the side of your tree for the natural surfaces(usually trees) that they would hammer their acorns into for storage. If the side of your house is wood, it makes an attractive larder. They’re actually caching the acorns so that they can eventually eat the insect larvae that will grow inside — they don’t actually eat the acorns themselves. In this way, it’s almost like they’re “farming” the larvae.
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