An investment by Harvard University that began as a way to capitalize on the grape market, has grown with the added value of wells on the properties lifting the value of the land in the Paso Robles wine region of California. Harvard University has become one of the biggest grape growers in the region, and in the process has secured water well drilling permits to supply its vineyards days before new pumping is to be banned. Brodiaea Inc., which is wholly owned by the $36 million Harvard endowment fund, has spent more than $60 million purchasing 10,000 acres in Santa Barbara and San Luis Obispo, California since 2012 when the drought began. In that time, Brodiaea has acquired rights to drill 16 wells between 700 and 900 feet deep, giving them access to water after more shallow wells run dry. As the drought enters its third year, some wonder if the purchases by Harvard were more of a water play than an investment in agriculture. Either way, it is undeniable that access to water is an added value as prices of irrigable land in Paso Robles continue to increase on interest from investors from Napa Valley and Sonoma where one acre can costs between $75,000 and $100,000.
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