California Farmers Turn to Agave as Drought-Resistant Crop Amid Groundwater Limits

Surge in premium spirit consumption coupled with push for water-efficient crops inspire Californian farmers and entrepreneurs to start agave plantations, despite the plant taking up to seven years to mature and facing competition from Mexico's established tequila industry.

California farmers and entrepreneurs are increasingly planting agave as a water-efficient crop owing to stricter controls on groundwater extraction, while the plant's utility in spirit production meets growing consumer demand for premium beverages.
Agave requires minimal water to thrive, and in many cases, plants that received less water grew better, making it an attractive crop amidst California's severe drought conditions and future water restrictions.
The boom in agave farming is fuelled partially by a surge in premium spirit consumption since the COVID-19 pandemic, with tequila and mezcal being the second-fastest growing spirit category in the U.S. in 2022.
California's budding agave farming industry is not yet at a large scale and faces competition from Mexico's traditional tequila industry, which mandates that tequila must contain at least 51% blue Weber agave and be distilled in certain Mexican states.
Despite challenges such as the plant taking up to seven years to mature and being bulky to harvest, many California farmers see it as a viable alternative. Stuart Woolf, a Central Valley farmer, for instance, has planted around 200,000 agave on land that would have been fallowed otherwise, using only a fraction of water compared to row crops or almond trees.