Financial & Commercial Structures - Grape Growers
Bill Price bought Durrell Vineyard in Sonoma Valley in 1997 for $60,000 per acre. In 2017, comparable vineyard land there costs up to $160,000 per acre. That’s a 166% return on investment. However, it took twenty years to attract that ROI. And while the land has gone up 2.5 times in value, grape prices sold from the area have only gone up 50%. Profitability of grape production has not risen at the same pace as land prices.
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