What is the cost per acre to plant vineyards in Northern CA?

Question:Also, what would be your recommendation for minimum number of acres to make $$$ ?

Answers:
Price per acre (not including purchasing land) is about $10-15,000 per acre. In addition to that there is another $5000 to be expected in operational overhead. So going in well prepared for $20,000 per acre is a good start.

On-going costs are variable in farming but plan for between $2,500 - $3,500 per acre in annual farming costs.

Yield is roughly 5 tons per acre, on mature vines (3-4 years old).

The average price of Sonoma grapes is just under $2,000 per ton (higher in some areas, lower in others).

Each acre should generate $10,000 + in revenue annually.

After deducting the farming costs that leaves roughly $7,000 +/- $500 revenue.

If you were to invest in a 10 acre farm the cost of the initial investment (excluding land price) would likely be $250,000.

Add in the cost of land (at about $100,000 per acre) you are up to $1,250,000 initial investment.

Assuming some mix of equity and loans 40/60 is typical you would be servicing about about $600,000 in debt over a 20 year period = $4500/month or $54,000/ year.

Back to yields:

If you plant a mix of grapes and can manage to yield $2,500 per acre you will generate about $125,000 per year in revenue. After farming costs of $30,000 and loan service of $50,000 you aren't left with a whole lot of revenue from which to live.

Of course, if you already own the ,land, can get one of your relatives to buy it for you ;) or something ... grapes can be a very lucrative, prestigious endeavor.


* Cabernet Sauvignon: $2,300-3,000
* Merlot: $1,800-2,200
* Pinot Noir: $1,800-3,000
* (lower priced PN for sparkling)
* Chardonnay: $1,200-1,800
* Sauvignon Blanc: $1,100-1,300
* Syrah: $1,800-2,200
* Zinfandel: $2,200-3,000 (Old vines: $3,000+)