How Much Is an Acre of Vineyard Worth?

Vineyard Prices in California

• The price of a vineyard in California can range from $50,000 to $1,000,000 per acre, with the average price around $150,000 per acre. Location is the most important factor.

Profit Potential and Yield

• A grower might know they can get a yield of 5 tons of quality fruit and sell it for $3,000 per ton, giving a gross profit of $15,000 per acre.
• The average price per ton also increased by 6.9% from $800 per ton to $855.

Profitability and Costs

• Grape growing can be profitable if production is consistent and price and demand remain high. Variable costs (not including land and equipment expense) are about $8,000 over a three-year period to bring an acre of grapes into production.

Production Calculation

• Winegrape vines can produce from 1 to 12+ tons per acre when mature, with the optimal range being between 3 to 5 tons per acre.

Profit Calculation

• The profit potential of a 35-acre vineyard is approximately $88,000 per year if it earns $2,500 per acre.
• On average, one acre of healthy vines produces 4 tons of grapes, resulting in 65 cases of wine, or 780 bottles per acre.

Installation Costs and Net Profit

• Installation runs $22,000 per acre. Vines spaced 4 feet apart in rows 10 feet apart makes 1,089 vines per acre.
• At $2,200 per ton and 5 tons per acre, an acre grosses $11,000. Subtract $5,150 in costs and the net is $5,850 per acre.