How to buy a vineyard
Some of the things you should know beforehand
By John Bergman
Which are the best grapes to invest in?
There are hundreds of different varieties of grape. The more popular grape varietals naturally fetch top dollar when sold. Grapes grown in Napa Valley continue to bring the highest price per ton of any premium grapes grown in California.
The 1999, average prices for "ultra premium" Napa and Sonoma Valley grapes are as follows:Cabernet Sauvignon $2,000 to $3,000 per tonMerlot $2,000 to $2,800 per tonCabernet Franc $1,950 to $2,500 per tonChardonnay $2,000 to $3,000 per tonPinot Noir $1,800 to $3,000 per tonZinfandel $1,800 to $3,000 per ton
It follows that the more valuable the grape, the more valuable the vineyard. It is particularly important to when evaluating a vineyard for purchase to take note of whether or not the varietal is properly matched to the vineyard.Chardonnay, for example, likes warm days and cool nights for best results. Cabernet Sauvignon favors a warm environment. If the varietal was not properly matched to the soil, water and temperature characteristics of the vineyard, it will not produce the quality of grape that will bring top dollar. These factors need to be considered when appraising a vineyard.
Appellation
The geographic location, micro-climate, temperature, soil characteristics, and average temperatures all make a big difference in the quality of the grapes grown there.
Napa and Sonoma Counties have several appellations whose combined characteristics produce a distinctly superior grape.There are other appellations that have been designated, but are still struggling hard to get the recognition of certification. The one thing that all of these Napa and Sonoma Appellations have in common is that they are known to produce some of the finest wine grapes in the world.
Before you buy
Let's assume that you have picked a vineyard that you like. What questions should you ask the seller or the agent representing the owner?
Here's a checklist:
- Is there a survey of the property?
- Is there a soils analysis?
- What are the sources of water? i.e., wells, springs, reservoirs?
- Is there a well drillers report? (to establish gpm)
- Is there a water analysis to test for bacteria, chemicals, or minerals?
- If there is a reservoir, how many acre feet is it? What is the source that feeds it? Is it filled year round by a spring or is it seasonal?
- How is the vineyard irrigated, if at all?
- Does the owner have a vineyard layout or a plot plan showing:
- a) the varietals of grapes by block;
- b) the age of the vines;
- c) the root stock that each variety is planted on;
- d) number of vines in each varietal;
- e) production per acre of each varietal;
- f) who buys the grapes and for how much;
- g) is there frost control and what type is it?
- h) are there any known diseases in the vineyard?
- i) what equipment is included in the sale;
- j) is there a contract for the grapes?
There are excellent vineyard managers and viticulturalists in almost every wine growing appellation that will be happy to work with you to thoroughly investigate your potential vineyard acquisition for a minimal fee. I strongly recommend that all potential vineyard acquisitions be investigated by a professional before closing escrow. Our firm works with most of them and will be happy to refer them to you. Feel free to call any time. Happy hunting.
Finding your way
A vineyard is such a specialized investment it is probably in your best interest to use a broker or agent experienced in vineyard transactions to make your purchase.Owning a vineyard can be financially rewarding and personally satisfying. Like any other investment, it takes forethought and patience to realize the most success.If you are interested in buying a vineyard, I invite you to go to my home page at http://www.bergmanvineyards.com and click on the link for my questionnaire. Fill out the questions and click on the submit button. I am looking forward to helping you discover your dream of living in the wine country.
Vineyard Shoppers Questionnaire
