California's wine slump is fueling a risky bet on agave

California vintners hit by a sharp drop in wine consumption are experimenting with producing an American version of tequila using agave, even as they face strict water rules and grape oversupply. Second-generation farmer Stuart Woolf has planted about 550 acres of agave over four years in Huron and plans to add another 150, citing lower planting and cultivation costs and less water demand than grapes. With 30,000 acres under his family’s operation, he says the shift helps protect jobs and keep the land in the family. Still, the move is risky: California has limited local distilling capacity and knowledge of agave processing, and agave is typically harvested five years or more after planting. Also, U.S. rules limit the use of “tequila” or “mezcal” for agave not grown and processed under origin rules.