Profitability of RV in Sonoma County, California
Study published by Axel Herrera, Ellen M Bruno and Cristina Lazcano at UC Davis.
Headline Findings
- Regenerative viticulture can match conventional profitability over the long term
- Higher upfront costs are largely offset by lower input and machinery expenses
- Profitability depends on maintaining comparable yields
- Added soil and sustainability benefits may support long-term resilience and market appeal
Method
Examination of data from four vineyards to compare the financial performance of regenerative agriculture (RA) practices—such as no-till management, compost application, and livestock integration—with conventional viticulture (CV).
Results
Indicates that RA and CV achieve similar profitability over a 30-year period, with RA showing an average net present value about 5% lower when yields remain unchanged. Although RA systems require greater upfront investment, they can generate long-term advantages, including reduced operating costs, enhanced soil health, and supplemental income from integrated sheep grazing.
Overall profitability under RA depends heavily on site-specific conditions—such as grape variety, vineyard design, vine age, and planting density—as well as on maintaining yields or securing price premiums to offset any potential yield declines.
