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Technical Report

Economics of Winegrape Adaptation: Technology Adoption, Cultivar Selection, or Migration

View ORCID ProfileBradley J. Rickard, View ORCID ProfileYu Ping Chang, View ORCID ProfileAlex M. Susskind, View ORCID ProfileJustine E. Vanden Heuvel
Am J Enol Vitic.  2026  77: 0770012  ; DOI: 10.5344/ajev.2026.25043
Bradley J. Rickard
1Dyson School of Applied Economics and Management, Cornell University, Ithaca, NY 14853;
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  • ORCID record for Bradley J. Rickard
  • For correspondence: b.rickard{at}cornell.edu
Yu Ping Chang
2Department of Agricultural Economics, Sociology, and Education, Pennsylvania State University, University Park, PA 16802;
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Alex M. Susskind
3Nolan School of Hotel Administration, Cornell University, Ithaca, NY 14853;
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Justine E. Vanden Heuvel
4Horticulture Section – School of Integrative Plant Science, Cornell University, Ithaca, NY 14853.
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  • A bar graph compares net present value by strategy, with Cabernet Sauvignon Napa County as the highest value. The bar graph shows net present value results for 6 strategies. The vertical axis is labeled U S D per area and ranges from 0 to 250,000, with tick labels 0, 50,000, 100,000, 150,000, 200,000, and 250,000. The horizontal axis lists Cabernet Sauvignon Napa County C1, Technology treatment T1, Carignane Napa County C2, New variety treatment T2, Cabernet Sauvignon Lake County C3, and New land treatment T3. The first bar, Cabernet Sauvignon Napa County C1, is the tallest and reaches slightly above 200,000. The second bar, Technology treatment T1, reaches about 167,000. The third bar, Carignane Napa County C2, reaches about 110,000. The fourth bar, New variety treatment T2, reaches about 146,000. The fifth bar, Cabernet Sauvignon Lake County C3, reaches about 90,000. The sixth bar, New land treatment T3, reaches about 102,000. All values are approximated.
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    Figure 1

    Net present value results across the six strategies examined, with no weather events affecting yields.

  • A bar graph compares net present value across 6 strategies under extreme weather, with New variety treatment highest. The bar graph shows net present value results for 6 strategies. The first bar, Cabernet Sauvignon Napa County C1, reaches about 94,000. The second bar, Technology treatment T1, reaches about 108,000. The third bar, Carignane Napa County C2, reaches about 84,000. The fourth bar, New variety treatment T2, is the tallest and reaches about 120,000. The fifth bar, Cabernet Sauvignon Lake County C3, is the shortest and reaches about 81,000. The sixth bar, New land treatment T3, reaches about 94,000. All values are approximated.
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    Figure 2

    Net present value results across the six strategies examined, with extreme weather events affecting yields.

  • A bar graph compares net present value across 6 strategies under moderate weather, with Technology treatment highest. The bar graph shows net present value results for 6 strategies. The first bar, Cabernet Sauvignon Napa County C1, reaches about 135,000. The second bar, Technology treatment T1, is the tallest and reaches about 151,000. The third bar, Carignane Napa County C2, reaches about 84,000. The fourth bar, New variety treatment T2, reaches about 119,000. The fifth bar, Cabernet Sauvignon Lake County C3, is the shortest and reaches about 80,000. The sixth bar, New land treatment T3, reaches about 92,000. All values are approximated.
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    Figure 3

    Net present value results across the six strategies examined, with moderate weather events affecting yields.

  • A bar graph compares net present value across 6 strategies, with Cabernet Sauvignon Napa County highest. The bar graph shows net present value results for 6 strategies. The vertical axis is labeled U S D per area and ranges from 0 to 200,000, with tick labels 0, 20,000, 40,000, 60,000, 80,000, 100,000, 120,000, 140,000, 160,000, 180,000, and 200,000. The horizontal axis lists Cabernet Sauvignon Napa County C1, Technology treatment T1, Carignane Napa County C2, New variety treatment T2, Cabernet Sauvignon Lake County C3, and New land treatment T3. The first bar, Cabernet Sauvignon Napa County C1, is the tallest and reaches about 178,000. The second bar, Technology treatment T1, reaches about 152,000. The third bar, Carignane Napa County C2, reaches about 98,000. The fourth bar, New variety treatment T2, reaches about 133,000. The fifth bar, Cabernet Sauvignon Lake County C3, is the shortest and reaches about 86,000. The sixth bar, New land treatment T3, reaches about 98,000. All values are approximated.
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    Figure 4

    Net present value results across the six strategies examined, with mild weather events affecting yields.

Tables

  • Figures
  • Additional Files
  • Table 1

    Key parameters used to assess the economics of three strategies used for adapting winegrape production to temperature extremes.

    Parameters
    Yield (full yields begin in year 5, reduced yields in years 3 and 4)a1000 kg/ha
    Cabernet Sauvignon-Napa County11.2
    Carignane-Napa County26.9
    Cabernet Sauvignon-Lake County12.3
    Average pricebUSD/1000 kg
    Cabernet Sauvignon-Napa County8600
    Carignane-Napa County3297
    Cabernet Sauvignon-Lake County2536
    RevenueUSD/ha
    Cabernet Sauvignon-Napa County96,320
    Carignane-Napa County88,689
    Cabernet Sauvignon-Lake County31,193
    Total establishment and start-up costs (years 1 to 3)USD/ha
    Cabernet Sauvignon-Napa County226,346
    Carignane-Napa County226,346
    Cabernet Sauvignon-Lake County62,434
    Annual total production costs (years 4 to 30)USD/ha
    Cabernet Sauvignon-Napa County64,729
    Carignane-Napa County64,729
    Cabernet Sauvignon-Lake County20,375
    • ↵aYield data were parameterized using the total crushed quantity from the USDA California Grape Crush Reports (https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Crush/Reports/) and the total land area from the USDA California Grape Acreage Reports (https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Acreage/).

    • ↵bPrice data from the USDA California Grape Crush Reports (https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Crush/Reports/); cost of production data were reported in McGourty et al. (2008) for Lake County and in Kurtural et al. (2020) for both Cabernet Sauvignon and Carignane in Napa County.

  • Table 2

    Summary statistics from the consumer survey regarding strategies used for adapting winegrape production to temperature extremes (n = 303).

    VariableShare/Average
    Male45%
    Education
        High school10%
        Some college30%
        College grad46%
        Post graduate14%
    Household Income
        Under $40K22%
        $40K-60K19%
        $60K-80K16%
        $80K-100K9%
        $100K+33%
    Age
        21-2938%
        30-3937%
        40-4915%
        50-597%
        60+4%
    Region
        Northeast21%
        Southeast26%
        Midwest26%
        West25%
    Primary shopper84%
    Primary preparation76%
    Consider environment60%
    Consider labels87%
    Wine purchase frequency
        Weekly10%
        Monthly35%
        Quarterly31%
        Yearly16%
        Never7%
    Quiz: Which cultivar is not used to make a red wine?
        Pinot gris63%
        Malbec11%
        Pinot noir6%
        Syrah20%
    Mean willingness-to-pay by treatment ($/750 mL)
    Cabernet Sauvignon-Napa County (C1)24.53 (24.93)a
    Technology treatment (T1)28.35 (38.42)
    Carignane-Napa County (C2)23.18 (26.10)
    New cultivar treatment (T2)26.25 (38.14)
    Cabernet Sauvignon-Lake County (C3)22.14 (24.97)
    New region treatment (T3)24.71 (29.50)
    • ↵aStandard deviations are shown in parentheses.

Additional Files

  • Figures
  • Tables
  • Supplemental Figure 1  Number of days per year above 35°C in Napa County (Napa State Hospital).

    Supplemental Figure 2   Napa County extreme heat days and Cabernet Sauvignon yields. Grape crush values were calculated using the total crushed quantity from the USDA California Grape Crush Reports (https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Crush/Reports/) and the total land area from the USDA California Grape Acreage Reports (https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Acreage/). The red line in the graph shows the estimated trend across observations.

    Supplemental Figure 3   Napa County extreme heat days and Carignane yields. Grape crush values were calculated using the total crushed quantity from the USDA California Grape Crush Reports (https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Crush/Reports/) and the total land area from the USDA California Grape Acreage Reports (https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Acreage/). The red line in the graph shows the estimated trend across observations.

    Supplemental Figure 4   Lake County extreme heat days and Cabernet Sauvignon yields (Lyons Valley). Grape crush values were calculated using the total crushed quantity from the USDA California Grape Crush Reports (https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Crush/Reports/) and the total land area from the USDA California Grape Acreage Reports (https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Acreage/). The red line in the graph shows the estimated trend across observations.

    Supplemental Figure 5   Front and back labels used for the technology adoption treatment.

    Supplemental Figure 6   Front and back labels used for the cultivar selection treatment.

    Supplemental Figure 7   Front and back labels used for the migration treatment.

    Supplemental Material   Additional details about the methodological approach and data of this study.



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Economics of Winegrape Adaptation: Technology Adoption, Cultivar Selection, or Migration
View ORCID ProfileBradley J. Rickard, View ORCID ProfileYu Ping Chang, View ORCID ProfileAlex M. Susskind, View ORCID ProfileJustine E. Vanden Heuvel
Am J Enol Vitic.  2026  77: 0770012  ; DOI: 10.5344/ajev.2026.25043
Bradley J. Rickard
1Dyson School of Applied Economics and Management, Cornell University, Ithaca, NY 14853;
  • Find this author on Google Scholar
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  • ORCID record for Bradley J. Rickard
  • For correspondence: b.rickard{at}cornell.edu
Yu Ping Chang
2Department of Agricultural Economics, Sociology, and Education, Pennsylvania State University, University Park, PA 16802;
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  • ORCID record for Yu Ping Chang
Alex M. Susskind
3Nolan School of Hotel Administration, Cornell University, Ithaca, NY 14853;
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  • ORCID record for Alex M. Susskind
Justine E. Vanden Heuvel
4Horticulture Section – School of Integrative Plant Science, Cornell University, Ithaca, NY 14853.
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  • ORCID record for Justine E. Vanden Heuvel

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Economics of Winegrape Adaptation: Technology Adoption, Cultivar Selection, or Migration
View ORCID ProfileBradley J. Rickard, View ORCID ProfileYu Ping Chang, View ORCID ProfileAlex M. Susskind, View ORCID ProfileJustine E. Vanden Heuvel
Am J Enol Vitic.  2026  77: 0770012  ; DOI: 10.5344/ajev.2026.25043
Bradley J. Rickard
1Dyson School of Applied Economics and Management, Cornell University, Ithaca, NY 14853;
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • ORCID record for Bradley J. Rickard
  • For correspondence: b.rickard{at}cornell.edu
Yu Ping Chang
2Department of Agricultural Economics, Sociology, and Education, Pennsylvania State University, University Park, PA 16802;
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • ORCID record for Yu Ping Chang
Alex M. Susskind
3Nolan School of Hotel Administration, Cornell University, Ithaca, NY 14853;
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • ORCID record for Alex M. Susskind
Justine E. Vanden Heuvel
4Horticulture Section – School of Integrative Plant Science, Cornell University, Ithaca, NY 14853.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • ORCID record for Justine E. Vanden Heuvel
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