Grant Program To Increase Wine Grape Production in Ohio

Introduction

A Vine Grant program has been established through the Ohio Grape Industries Committee (OGIC) in cooperation with the Ohio State University Extension viticulturist to encourage the establishment of new wine grape vineyards in Ohio. At present, most Ohio wineries are forced to purchase grapes/grape juice of different wine varieties from other states because of a short fall in in-state production. OGIC has set aside funds in its budget for reimbursement of established vines as an incentive to promote the production of wine grapes in Ohio and reduce the dependency on external wine grape sources.

In the long term, the Vine Grant program will provide a more stable source of grapes for Ohio wineries. Additionally, wines produced from grapes grown within Ohio can be labeled with the state name (such as, Ohio Cabernet Franc) that will provide considerable name recognition to the Ohio wine industry. This program is strictly designed to encourage expansion of acreage that is not owned or operated by an Ohio winery. All Ohio wineries are precluded from applying for Vine Grants.

Each applicant selected to receive a Vine Grant shall be reimbursed for the purchase price of established wine grapevines. This incentive program covers from 1-to-5 acres per grower each year. The OGIC has a target of 15 new acres to be established each year. Growers will have to apply annually to be eligible for funding under this program.

Since this is a pilot project with a limited amount of funding, special consideration is given to all grape and other fruit growers. Additional funding may become available if qualified growers who meet all program requirements and show potential of becoming successful wine grape growers are available. The OGIC will make the final decisions regarding growers receiving funding under the incentive program.

Successful applicants will not be reimbursed under the Vine Grants program until the second year at which time all vines and trellises must be in place. Failure to complete each of the requirements set forth in the guidelines will disqualify an applicant from receiving any funding.

The Extension viticulturist will be in charge of vineyard site inspections and evaluation of each applicant. Questions regarding applications are directed to the OGIC or Extension viticulturist. The viticulturist advises applicants on specific aspects of the application process.

To maximize the success of the program, all juice grape growers and other fruit growers will receive top consideration for Vine Grants, although other potentially qualified persons are not precluded from applying. The program is intended to provide support for those individuals serious about making a long-term commitment to wine grape production. Those individuals who are merely testing their skills as viticulturists and/or are not sure of their long-term commitment to grape production were discouraged from applying.

Each grower will have to meet important vineyard management guidelines to qualify for any grant funding. Management guidelines assure that the grapevines established under the incentive program have the best possible opportunity to reach and maintain full production. To be eligible for funding through the OGIP Vine Grants incentive program growers must meet the following guidelines:

Only Ohio growers are eligible for the OGIC Vine Grant program. Ohio wineries are excluded from applying for these grants.

An applicant must have a minimum five-year harvest contract with a licensed and bonded Ohio winery.

Vineyard sites are evaluated by the Extension viticulturist to assure that each site is conducive for growing grapes.

Growers must plant wine grape varieties desired by licensed and bonded Ohio wineries.

Vineyard sites must be appropriately cleared and prepared for planting, with special attention given to field drainage (tiling and waterways).

Structurally sound trellises must be established by the second year, and a standard grapevine training system must be used to maximize yield potential and reduce unwanted grape diseases and pests.

A maintenance program for the vines must include balanced pruning, cluster thinning (when appropriate), soil and leaf petiole analysis, and pest control to reduce vine competition.

Applications must be filed by October 1st of each year.

The Vine Grant program was developed to encourage growers to plant additional acres of highly desirable varieties to improve the overall supply of in-state wine grapes. In the first year of the program, four growers applied for and received reimbursement for the cost of vines planted. Applications were reviewed by the OGIC and questions were directed to the Extension viticulturist regarding grower qualifications, vineyard establishment and maintenance, and overall potential of vines planted under the program to remain productive for several years. OGIC wanted to provide an incentive for commercial grape and fruit growers to plant new vineyards without having to underwrite the entire cost of establishment, which can cost from $5,000 to $10,000 per acre in the eastern United States. The average cost per acre of grapevines can be from $1080 to $2540 depending on whether vines are own rooted or grafted. Purchase of plant material for a vineyard can be quite expensive and may be a determining factor in whether growers increase production acreage.

Grower interest has been strong with several new growers inquiring about the guidelines and the ramifications of committing to a harvest agreement(s) for five years. In some cases growers were not sure whether they could remain committed to a contractual agreement of their grapes to one winery and they chose not to participate in the program. A five-year contract would lock in sales, and the seller/buyer were encouraged to develop a contractual agreement that provides an opportunity to raise the amount paid per ton depending on fair market value and quality of grapes.

This program was developed to encouraged experienced grape and fruit growers to plant more wine grapes. Individuals with no grape or fruit growing experience have been encouraged to develop some expertise before applying. OGIC was explicit that no funding be given to individuals lacking experience or viewing viticulture as a hobby. This restriction may help to assure that growers with the greatest potential receive grants.

The number of grape growers receiving funding will depend on the overall amount of money budgeted by OGIC. With a limit of five acres per grower, the committee can distribute grant money to a larger number of qualified growers. With any new program, critical evaluations and adjustments will be required to assure that the grant program remains viable to help foster the expansion of wine grape acres in the state. Several other states in the midwest and eastern US are interested in expanding their wine grape production to meet the demand from the ever increasing number of new and established wineries. This type of grant program that directly reimburses the grower for vines planted may be a useful approach to solving the high demand for wine grapes.