A recent study by the University of California Cooperative Extension analyzes the costs of establishing a vineyard and producing wine grapes. The document, “Sample Costs to Establish a Vineyard and Produce Winegrapes,” focuses on Cabernet Sauvignon. The 19-page document explains that this is a hypothetical farm with 35 acres of which 30 are wine grapes. Some of the acreage is being replanted. The first several pages of the report are very detailed but for those who want a brief look at the cost of vineyards, the final pages of the report show a detailed list of what many vineyards require. Table 1 provides the “Costs per acre to establish a vineyard.” More tables become more detailed. For anyone who is entertaining the thought of starting his or her own vineyard, this report provides a good sense of what grape growing entails.

It provides an informative look at some of the inherent costs of producing wine in a renowned wine region such as Napa Valley. Just the cost of creating a vineyard in Napa Valley is significant. We’ve met numerous winemakers who decided that purchasing land in Napa Valley and planting a vineyard are too costly. These same winemakers decided to plant vineyards and develop a winery in lesser-known areas of the United States and appear to be successful.

For wine lovers who think wine is too expensive, this report provides common sense to why wines are the prices they are. For the small winery and vineyard owners who are pursuing winemaking for the love of it or as a “hobby” it can be very costly. Keep that in mind and when visiting a winery, consider buying a bottle of your favorite wine.

Cheers! Kathy