California vineyard growers abandon their harvests as prices and costs turn them unprofitable

California’s wine grape industry is facing widespread vineyard abandonment as low grape prices and high production costs continue to erode grower margins, industry representatives say.

According to Jeff Bitter, president of Allied Grape Growers in Fresno, “tens of thousands of acres” of vineyards across the state have been left unmaintained since the 2024 harvest. This comes on top of approximately 40,000 acres that were removed last year, even as about 20,000 new acres were planted.

“Between the removals and the literally tens of thousands of acres that are not producing that were producing … the biggest wild card is going to be how many grapes go unharvested,” Bitter said.

Oversupply pressures prices

The wave of vineyard abandonment follows several years of global oversupply in wine grapes, which has depressed returns to growers and led many wineries to reduce grape purchases. In some cases, producers left grapes on the vine because they could not sell them at a profit.

The situation mirrors challenges seen in California’s almond sector, where unprofitable prices have led to widespread orchard abandonment. Analysts estimate that about 30,000 acres of almond trees from Arvin to Chico have been left unmanaged, according to data from Land IQ, a firm specializing in satellite imaging of crop acreage.

Pest and disease risks grow

Abandoned vineyards and orchards pose a significant problem for nearby farms, as unmanaged crops can harbor insects and diseases that spread to actively managed fields. Pests such as leafhoppers and grape powdery mildew are of particular concern to wine grape growers.

“You’ve got guys with abandoned vineyards who are upwind from farmers who are still actively farming,” Bitter said. “They attract pests and diseases that can easily move to neighboring vineyards.”

The issue has prompted legislative action. Assembly Bill 732, authored by Assemblymember Alexandra Macedo (R–Tulare) and signed into law by Governor Gavin Newsom, authorizes county agricultural commissioners to impose civil penalties on landowners whose neglected farmland creates a public nuisance. Fines start at $500 per acre for a first offense and can rise to $1,000 per acre if landowners fail to make a “good faith effort” to address the problem.

Concentrated areas most affected

While vineyard abandonment is occurring statewide, Bitter noted that pest problems are especially pronounced in regions where vineyards are densely planted, such as Lodi. “We don’t have that as much because of the diversity of farming in the Central Valley,” he said. “But in Lodi you do have that.”

California’s vineyard contraction underscores broader structural issues in the state’s specialty crop sector, as producers face sustained price pressure, increasing input costs, and tightening environmental and water-use regulations.