In 2023, California was the largest agriculture producing state in the US. The state produces approximately one-third of the US’s vegetables and three-quarters of the nation’s fruits and nuts. However, in recent years climate change has led to more periods of extreme heat and droughts. As this is expected to continue and intensify in the future, farmers are seeking out crops that consume less water than crops like almonds and can thrive in warmer temperatures. For some farmers, that crop is agave.
Agave is a succulent plant that normally grows in arid regions of Mexico and Arizona. The plant’s nectar is a key ingredient in the alcoholic spirits Tequila and Mezcal. Californian distillers are hoping to use California-grown agave to produce their own agave spirit. (They cannot legally call it Tequila or Mezcal due to “Designation of Origin” protection, like how Champagne can only be made in the Champagne region of France.) Whether the partnership between farmers and distillers is successful remains to be seen. Agave plants take several years to grow into maturity, most farms are new, and California’s climate is much different from northern Mexico’s. If the agave doesn’t grow as large or as fast as Mexican agave, it may not be a profitable crop.
However, farmers are not waiting idly waiting to see what happens. They have partnered with the University of California-Davis to identify, or develop, a strain of agave that grows best in California’s climate. If they are able to adapt the plant to the climate, in a few years, California’s agave farmers and distillers may be giving Napa Valley a run for its money.
Discussion Questions:
- Discuss how partnerships between universities and industry affect economic growth, supply of goods and services, and prices.
- What are some other products that have designation of origin protections? What are the benefits and costs on consumers and producers created by designations of origin?
Sources| NPR: https://www.npr.org/2024/09/06/nx-s1-5002056/california-farmers-agave-drought-conditions-climate-change; CDFA: https://www.cdfa.ca.gov/Statistics/; ERS: https://www.ers.usda.gov/faqs; Unsplash: Photo by Dylan Freedom on Unsplash