Harvard University’s endowment fund has sold its 7,600-acre North Fork Ranch in the Cuyama Valley, California, after facing significant challenges with water usage. The ranch, which was purchased in 2014 for $10 million, was sold to Rancho Cuyama No. 2, a limited liability company, for $5 million.

Water Usage Concerns

The Cuyama Valley is a dry agricultural region with a depleted underground water basin, and Harvard’s investment firm, Brodiaea Inc., was one of the largest water users in the area. The company drilled 16 wells and planted an 840-acre vineyard, which was the largest in the valley.

However, the valley’s groundwater basin is in critical overdraft, with about twice as much water being pumped out every year as can be replenished. The state law requires the basin to be brought back into balance by 2040, which would necessitate a significant reduction in agricultural pumping.

Economic Challenges

The wine industry is also facing economic challenges, with wine sales in a historic downturn. The overproduction of grapes in California has led to a surplus, and about 50,000 acres of grapes would need to be pulled from production to bring the supply into balance with demand.

Local residents and farmers have expressed concerns about the water usage and the impact of large-scale farming on the community. Robbie Jaffe, a small vineyard owner, hopes that the new owners will consider the needs of the community and the devastating situation of Cuyama’s groundwater.

Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.