![]() Having covered vines, let’s move on to another category of permanent crop plant: Shrubs and brambles. ![]() Better still, some of the overall loss of suitable areas for wine grape production could be mitigated if growers are prepared to experiment with the incredible genetic diversity of wine grapes by breeding and planting more resilient varieties. The inevitable reallocation of production that follows will be uneven, with already-warm regions such as Napa Valley at the greatest risk of losses, and cooler and wetter regions such as New York or the Pacific Northwest potentially in a position to benefit as they become more suitable for varieties displaced in other regions. Scientists estimate that if mean global temperatures rise by 2 degrees Celsius, the total area of global farmland suitable for wine grape production could drop by up to 56 percent. Yet, there is evidence to suggest that, thanks to climate change, the grape-growing landscape in the US and around the world could be due for serious disruption, especially in the case of the particularly climate-sensitive grape varieties used for winemaking. As of 2017, over 1 million acres of vineyards were planted across the country, and California alone accounted for 88% of the total national grape harvest. Today, California is still the runaway leader in grape production among all US states, but other notable producers include Oregon, Washington, and New York. Ultimately, it was Spanish settlers of missions in the American Southwest that brought grapes to the new world in the 18th century, and their production took hold in the particularly suitable climates of Northern California and slowly expanded from there. in the Near East and was spread rapidly by the ancient Egyptian, Greek and Roman civilizations. Grape cultivation dates back to about 8,000 B.C.E. The main wild ancestor of most grape varieties, Vitis sylvestris, is native to central Asia and now has more than 10,000 varietals descended from it. That said, while winemaking represents the most lucrative use of grapes, it is far from the only one, as grapes have been eaten fresh as well as consumed in dried and preserved forms and as juices for thousands of years. Grape vines have productive life spans often lasting decades, and for winemaking, it is often the “old vine” harvests - as old as 50 to 100 years or more - that are the most celebrated and valuable. In the US, California’s Napa and Sonoma counties comprise the best-known grape growing region in the entire country, as the wines produced in their mediterranean-like climate are rated among the finest in the world. Beyond producing grapes, vineyards themselves - in Europe, the US, South America, and Australia - are often high-end tourist destinations. Thanks to numerous cultures’ undying reverence for wine, vineyards are perhaps the most high-profile type of permanent cropland that exists. So, much like we did with row crops, we’d like to dive into permanent crops’ diversity, historical significance and modern-day economic importance, and the characteristics that make them attractive investments. ![]() There is a huge range of options out there and each one carries its own unique return potential and risk profile, and understanding the nature of each crop and its management requirements is critical to making good investment decisions. We’ve invested in everything from apples to citrus to tree nuts, and yet our current portfolio just scratches the surface of the diversity of the permanent crop category. So far, roughly 85% of FarmTogether’s investment offerings have been in the permanent crop space. Currently, the “total investable universe” of permanent cropland in the US is estimated to be worth at least $71 billion. As of September 2020, US permanent cropland assets comprised nearly 40% of the NCREIF Farmland Index, and with these assets holding steady at roughly 15% annualized yield over the last decade, their share of the index will likely continue to grow. All of these and more trends in modern-day US agriculture are big drivers of institutional and private investors’ interest in permanent cropland.Ĭomprising tree, vine, and shrub crops with productive life spans often spanning decades between replantings, permanent crops are one of the major categories of farmland investments in focus for FarmTogether and many other investors looking to diversify with farmland. Innovations in harvesting technology and technique. Accelerating consumer taste for healthy snack foods around the world.
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