University of Nebraska
Viticulture Program
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Taken from Paul Read - Power Point Slide Presentation Economic Considerations in Starting a Vineyard In recent years I have often been asked the question, "Can I make money growing grapes?" My answer paraphrases a comment of one of my former teachers, "There's no money to be made in growing grapes...Just in selling them." There are many variables to be confronted in establishing a profitable vineyard. It is critical to do your homework! Market * Is there a market for your grapes? * Will they be sold to a winery or other processor? * Can you get a contract with the processor? * What cultivars ("varieties") will you grow (what one(s) does the processor want?) * What price will be paid? If not stated up front, how will the price be determined? Site * Do you have a suitable site? (See "Site Selection Checklist"). Investment * How Long can you wait to recover your investment costs? 7 years? 10 years? 15 years? * How can costs be reduced without sacrificing QUALITY? Do Your Homework * Read books, trade and scientific journals. * Visit successful vineyards and wineries. * Attend workshops, seminars, classes. * Talk to and learn from other growers. * Develop a business plan. Assumptions * A suitable site is already in place (owned or long-term lease). No land costs are included. * Necessary equipment is available. * Adapted cultivars will be planted. * All labor is paid at skilled laborer rates. * Trellis will be a standard 2-wire for bilateral cordon (added costs will be incurred for GDC or other systems). * Machinery costs are operating costs only * Plant spacing will be 8 feet apart in row, rows 10 feet apart (= 545 vines/A) * Standard treated wood posts and 12.5 gauge high tensile strength wire with appropriate hardware will be employed. * Grass cover crop between rows and herbicide treatment in the row. * No interest is included ** Adapted from "Costs of
Establishing a WineGrape Vineyard" by Bruce Bordelon,
COSTS Year One Cost/Acre Site preparation
$
166 Total Year One $ 5,717 ____________________________________________________
Year Two Cost/Acre Pruning, replanting and canopy mgt
$
447 Total Year Two $ 1,808 ____________________________________________________
Year Three Cost/Acre Pruning and canopy management
$
542 Total Year Three $ 1,678 ____________________________________________________ THREE YEAR TOTAL $ 8,475 |
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The InThe Institute of Agriculture and Natural Resources, University of Nebraska-Lincoln. It is the policy of the University of Nebraska-Lincoln not to discriminate on the basis of gender, age, disability, race, color, religion and marital status, veterans status, national or ethnic origin or sexual orientation.l Resources, University of Nebraska-Lincoln. It is the policy of the University of Nebraska-Lincoln not to discriminate on the basis of gender, age, disability, race, color, religion and marital status, veterans status, national or ethnic origin or sexual orientation. Send mail to
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