GRAPE PRESS Winter 2015 The Quarterly Newsletter of the VIRGINIA VINEYARDS ASSOCIATION Vol. 31 No. 4

INSIDE President’s Corner Don’t Miss Out! Easing egister for Rthe VVA’s The Grape 2016 Winter Technical Meeting before it’s too Shortage late. Registration information and By Tom Kelly the program Kelly Vineyard Services agenda are available on the reetings from the VVA web site and Northern Piedmont! inside this issue. The weather here has PAGE 10 G been quite hospitable for keeping the work in the vineyard going and getting ahead of the curve Northern Virginia Courtesy of Jim Law on installing trellis posts for new The 2015 harvest came early at Linden Vineyards as a result of the rains of late plantings or for pruning existing Regional Report September and early October. Above, workers picking in the rain. vines. While sugars in some The former is an ideal way varieties were high, for those (most of us) who others plateaued “and hand-plant their vineyards to just kind of sat there.” establish straight lines and even PAGE 5 Why Brix Is a spacing early on. Having line posts set prior to planting vines Stop Adding can make the planting operation Four-Letter Word more efficient and accurate and Potassium! removes the burden of post- A new report on potas- Focusing on skin integrity for reds planting trellis installation so sium uptake in grape- that the grower can focus on the vines shows that it is By Jim Law anxiety hoping for some sugar important aspects of vineyard rarely, if ever, necessary establishment such as watering, to add potassium (K) Linden Vineyards movement late in the season. to vineyard soils. Two Winter conference bragging rights weeding and training during the of the report’s authors, t Linden Vineyards the revolve around whose brix was early summer months. Lucie Morton and Bubba sugar content (brix) of highest. I’ve done it both ways, and I Beasley, summarize the ripening grapes plays When I get asked about brix can tell you that rushing to install findings. a minor role in picking levels I cringe. The French a trellis before the plant gets too PAGE 7 Adecisions. don’t talk about grape or must tall or adding vine stakes while During vintage 2015, just after sugar content. They refer to the trying to execute the work of the the rains of late September/early measurement as potential alcohol. rest of an established vineyard Vineyard Leasing October, I was surprised to hear This is an accurate, succinct during a time that is arguably the growers talk of waiting to pick so expression. busiest of the growing season is Third in a series: If you no fun at all. don’t own the land that’s that the brix would increase. This The alcohol content is an is counter to many progressive important component in a finished One note, though: I generally most amenable to grape recommend to clients that they growing, it will probably winemakers whose past emphasis wine. It influences balance, mouth be cheaper over the on high brix equating to high feel and harmony of any wine. wait to install trellis wire until course of the vineyard’s quality has waned. Low alcohols can make a wine after the planting is complete. expected life to lease In Virginia one would believe feel skinny and thin. High alcohols Working around trellis wire to what you need rather that the higher the alcohol content, can throw the balance, making a dig holes and plant vines can than buy it. the better quality the wine. PAGE 8 Growers wring their hands with See BRIX on page 6 See PRESIDENT on page 2

www.virginiavineyardsassociation.com PRESIDENT’S CORNER (cont.) VVA BOARD PRESIDENT from page 1 miss. 2015 Another event you won’t want to miss be cumbersome and time consuming at will be the wine tasting portion of the President best. And it can sometimes be dangerous, event on Saturday afternoon. This will be Tom Kelly especially if one wants to auger the planting an interesting and exciting presentation hole. If irrigation is a concern, tubing can [email protected] entitled “Adapting Varieties to a Challenging be laid on the ground at first Climate” and will span such and hung from a wire at a later topics as picking decisions Vice President time. and fruit parameters for Jim Benefiel As for the latter mentioned sparkling wine production, [email protected] work of pruning, the warm fruit drying and dehydration weather can be a mixed and Petite Manseng. blessing. A recent blog post As always the conference Treasurer from VCE Grape Pathologist will also feature the Thursday Kay Thompson Dr. Mizuho Nita references half-day tracks where you [email protected] comments from Dr. Sara can choose between the Spayd, Extension Viticulture New Grower Workshop, Secretary Specialist at North Carolina the Governors Case Wine Aimee Henkle State University, that highlight Tasting or an IPM workshop the risks of early pruning. presented by Dr. Nita. Friday [email protected] For some with large will feature the 2016 Grower vineyards or no access to of the Year presentation and Advisor pruning crews, there is little choice TOM KELLY the Annual Wine Social and don’t Dr. Tony K. Wolf but to start early. It simply takes all forget the trade show! vitis@vt.edu winter to get through the vineyard. That said, As you can see, it will be another fun- however, it is my general recommendation to and fact-filled event this year, but seating clients that they wait as long as possible to is limited and there will be no walk-in Business Manager begin pruning, primarily for the purpose of registration this year, so please register early Tracy Kirkman reducing the potential for fungal infection of to secure your seats. [email protected] the pruning wound. Click here to register. My logic here is fairly rudimentary: less Grape Press Editors/Production time for a wound to sit exposed equals less A Shortage of Grapes opportunity for infection. During my time at This year’s growing season was a Bob Garsson Rappahannock Cellars, I would often wait remarkable one, featuring both high yields [email protected] until mid-February to begin cordon and and very good quality. Chris Garsson trunk replacement. Rough pruning would Many growers experienced yields well [email protected] commence in March, and I would often wait beyond their projections and historical until just after bud break to do final pruning. averages. This may have caused problems for Waiting so late for final pruning not only some in the form of un-sold crop at the end of helps to reduce the potential for fungal the season and left those in this unfortunate VVA Mailing Address infection, but more importantly helps delay position speculating about whether a grape P.O. Box 168 bud break in the “count buds.” shortage truly exists in the Commonwealth. Waterford, Va. 20197 That said, I did have the “luxury” of having In 2012, the Virginia Wine Board Wine [email protected] a large, experienced crew at the ready as Marketing Office held an industry-wide well a mechanical pre- (rough) pruner. Add strategic planning session to revise its delayed pruning to the list of advantages to Vision 2015 Strategic Plan. Over 100 mechanizing your vineyard. industry representatives were in attendance, Special thanks to: including winery owners, vineyard owners, Ernest “Bubba” Beasley, Jim Benefiel, Winter Technical the Virginia Wine Council, the Virginia Jim Law, Lucie Morton Meanwhile, back at VVA headquarters, Wineries Association, the VVA, and Virginia the board has been busy putting the final Secretary of Agriculture and Forestry Todd Dean Triplett touches on the program for the upcoming Haymore. 2016 Winter Technical Meeting. This year’s The overwhelming consensus of the program features an exciting and eclectic group, after reviewing past, current and mix of topics. projected wine sales and production metrics, Subject matter for this year’s meeting will was that the number-one risk facing our range from managing and avoiding crown industry today is a shortage in the Virginia- gall to vineyard nutrition. Also, this is an grown grape supply. “on year” for pesticide recertification credit, And while there may be disagreement so we will have sessions covering pesticide about how many acres of vines are needed to safety and Worker Protection Standard correct the shortage, certainly all these great (WPS). There are apparently some important minds could not be wrong. A grape deficit changes to WPS regulations coming soon, so this is an opportunity you won’t want to See PRESIDENT on page 3

2 PRESIDENT’S CORNER (cont.)

PRESIDENT from page 2 winter. That latter event, in February 2015, for shipments of 500 tons of fruit and bulk damaged or killed hundreds of acres of the juice in 2014. does exist. tender Vinifera grape varieties we prefer to Recognizing Virginia as a burgeoning Conversely, care must be taken not to grow in Virginia. wine region with a challenging climate, plant ourselves into a surplus. Understanding this broker saw no end in sight to the export how many acres of grapes are needed A Challenging Climate potentials here. And that firm is certainly not and accurately tracking our progress in Clearly, the ever-changing environmental the only one sending fruit to Virginia. supporting this need is an issue of great factors that influence yield potential for My opinions regarding out-of-state fruit importance to the VVA and one we continue vineyards in the Eastern U.S. and particularly are not a secret. However, I temper my to work on. the Mid-Atlantic are here to stay. opinion with an understanding that wineries Care must also be taken not to use a single This is a challenge that some New World need to fulfill their production needs in vintage as a benchmark for the overall state growing regions don’t have to contend with. support of the sales they need to stay in of our industry. With respect to yields, good In many of these regions, yields and quality operation. or even great vintages will come and go in are quite consistent — consistent enough that Additionally, there is a need for a reliable the fickle climate of the Mid-Atlantic. For they have become major exporters of fruit to supply of grapes of consistent quality in evidence of this, one need only look a few the more viticulturally challenged areas of order to make wines of consistent quality. years back to the unprecedented wildlife the world, including Virginia. State and federal laws provide thresholds of damage that occurred in 2013. By some This is evidenced in a post earlier this the amount of out-of-state fruit wineries can estimates, hundreds of tons of fruit were year from one of Virginia’s more prominent incorporate into their wine programs. destroyed that year. wine writers that included statements from One could argue on both sides as to whether The wildlife damage came on the heels of the owner of a large grape brokerage firm in the current thresholds are appropriate, but a statewide freeze event in early spring and the western United States. This individual certainly there is a legitimate need for a was rounded out by the coldest temperatures stated quite confidently that Virginia is one recorded in over a decade the following of that firm’s biggest customers, accounting See PRESIDENT on page 4

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3 PRESIDENT’S CORNER (cont.)

PRESIDENT from page 3 be done. Additionally, if this Association is the motions will be taken during the 2016 to survive in the ever-changing climate of a Annual Business Meeting on Jan. 29 during mechanism to allow wineries to fill holes in growing industry, it not only needs strong, our Winter Technical Meeting at the Omni their grape supply by importing fruit. The fresh leadership, but a way to protect and Hotel in Charlottesville, Va. danger is that if we, as an industry, become pass on the knowledge and culture that has There is an exciting future for Virginia dependent on out-of-state fruit, we risk been developed by the many leaders that wine and serving on the VVA Board of compromising the regional character of our came before us. Directors is an opportunity not only to be wines. Currently, the Board is considering part of that future but to help shape it. I urge Additionally, we run the risk that questions several ways to counter this issue of losing you to consider serving your industry by will be raised, by the larger global industry a majority of its legacy leaders while at the serving your Association. and wine consumers, about the legitimacy of same time bringing fresh new talent into the There are always seats available on our our claim as a quality wine growing region. fold as the new leaders of our industry. Many many Standing Committees, as well as This is already a real perception among some of these ideas would require a change to the regular opportunities to become part of the wine consumers and critics. Association By-Laws which in turn requires leadership team that guides the Association. At the local level, we also run the risk that a positive vote from the majority of the If you think you or someone you know has wine consumers will question our legitimacy membership at-large. what it takes to be an industry leader, I hope as a true agriculturally-based industry. You will be hearing more from me in the you will throw your hat (or theirs) in the ring The bottom line is that we need to ensure coming weeks about these ideas which will for nomination. a consistent supply of high-quality grapes be presented as Motions for Consideration Thanks and I look forward to seeing you within our own borders. by the membership. all at the Winter Meeting! Will there be years that we get caught with Proxy ballots will accompany the yields that are either above or below market aforementioned motions and a vote on Tom Kelly demand? Almost certainly. However, if the prudent grower has done the proper planning and put in place certain safeguards, such as long-term contracts, improved pricing models and sustainable best management practices, those years can also almost certainly be weathered. It is never necessary to enter an VVA Officers Needed ALBRIGI tank to clean it! As a final note; I’d like to take a moment to beat the recruitment drum again. As you may know, 2016 will be the final term for most of the current officers on the VVA Board of Directors. I will have reached my two-term limit as President but will be staying on in the Past President seat. However, every other seat on the board will be coming up for re-election in 2016. Our Treasurer and Vice President have reached the two-term limit and will not be eligible for re-election. And sadly, our beloved Kay Thompson, who might otherwise take a new seat on the Board, will be retiring this year. What will • The leading manufacturer of stainless steel tanks we ever do without her! for the wine industry for the past 30 years. This raises an important issue regarding the future of our Association. With so much • Made from the finest, mirror-polished stainless of the legacy leadership stepping down, we steel, specifically designed for wine making run the risk of a knowledge vacuum amongst those in charge of guiding the Association’s GUARANTEED FOR 25 YEARS! activities. In addition to the twice-a-year technical ASKAsk ABOUT about PicturePICTURETANKS Tanks! meetings the VVA hosts in conjunction with For Forinformation information on on sizes all availableand styles models: available Virginia Cooperative Extension and the Visit www.spectrellising.com • Call 800-237-4594 publishing of our quarterly newsletter, the VVA has taken on important work that will When benefit the entire Virginia wine industry. Execution of our ambitious strategic plan Quality is ongoing and while the current board has Counts checked off a great many of the goals and objectives of the plan, there is still much to

4 REGIONAL REPORT

NO. VIRGINIA: “A strange balance of sugars, acids and pH in some whites.”

By Dean Triplett brix, 3.64 pH and .52 TA. Chardonnay, reported that they harvested 26 tons of Greenstone Vineyards 22.5 degrees brix, 3.55 pH and .61 TA. fruit which was a 30% reduction from their On the high sugar side was Albarino at expectation of 36 tons. intage 2015 was over by the second 25 degrees brix, 3.69 pH and .675 TA. Our Mitch and Betsy Russ of Russ Mountain week of October. Except for a one- Vidal came in at 25.3 degrees brix, 3.26 Vineyards on the other hand had a bumper V week period of showers, most pH and .84 TA. crop of Merlot. They harvested 4 tons per of the harvest was pleasant as far as the Normally we’ll have blending acre, an increase from their normal yield weather went. opportunities amongst the whites to of 3.5 TPA. This was after dropping fruit Early season whites were, for the most balance out our final wines. This year we’ll twice! Harvest was early with good quality part, fairly large, quantity wise, and quality still have options but it may be a bit more fruit, with harvest pushed up due to the was good. Disease pressure was low and challenging when it comes to blending. anticipated arrival of Hurricane Joaquin. fruit came in pretty clean. Brix was 22.5 degrees, while their normal Lower-Yielding Reds target is 24-25. A Strange Balance The yields on our reds were lower than They also reported losing about 2-3% of One thing that was kind of different what we had predicted. Quality however their vines this year due to winter kill or from what we’re used to seeing was a was very nice with good flavors and better crown gall. strange balance of sugars, acids and pH in balance between brix, pH and TA’s. Nate Walsh of Sunset Hills Vineyards some whites. Some numbers in our reds were: Cab said they were very pleased with the 2015 While sugars in some varieties were Franc, at 23.9 degrees brix, 3.38 pH and vintage. Again, ripening and harvest were high, others reached a plateau and just .87 TA. Petit Verdot, which we harvested earlier than standard, but fruit was clean kind of sat there. right after the week of rain, came in at 22.6 with good quality. One suggestion by Tony Wolf was degrees brix, 3.34 pH and .89 TA. And again the early October rains forced that while temperatures and sunlight were I’m not completely sure what caused our some picking decisions, but all in all they fairly abundant at the beginning of harvest, lower yields in the reds. Animal damage, made out well. rain was lacking early on, and the vines while present, was not nearly as bad in just shut down. This caused the vines to most of our vineyards as in years past. Trellis Conversions slow down or stop their sugar production. In my vineyard, the yields on the Merlot I was happy with the conversion of All the while acids were dropping and and Cab Sauv were just slightly lower my Muscat Ottonel from GDC to VSP. pH’s rising. than average, while the Petit Verdot was It still looks a little crazy but the results, We don’t normally see a problem in our significantly lower. The Petit Verdot had especially the ease of netting, were good vineyards with high pH’s and low acids, the most animal damage, but even if there enough that I will finish the conversion in (depending on the variety), but we did this hadn’t been any damage, the yield still the rest of my MO. year. Some of the numbers by variety that would have been below average. The switch from VSP to Chris Hill’s/ we saw were Muscat Ottonel, 18.8 degrees Bora Baki of Hillsborough Vineyards Jeanette Smith’s Suncatcher, (one- legged ballerina), in my Albarino was also successful and I will probably try to convert at least a couple more rows over this year. Winemaking Consultant Winemaking Consultant I’m also planning on converting my one row of Valvin Muscat from GDC to www.winemakingconsultant.com www.winemakingconsultant.com a quadrilateral cordon system due to the Thomas J. Payette tremendous vigor that this variety has on 4 Thomas J. Payette my site. This row is going into its 19th leaf Over twenty-five years of winemaking in with no signs of slowing down. Virginia, Napa and East Coast This has been a warmer than normal Over twenty-five years winemaking fall so far with only about a dozen below freezing nights as of mid-December. Many Multiple Governor’sexperience Cup Winner vineyards in our region got frosted out 2011 Wine Productivity Trophy with a cold snap on October 18-19.

"1999 Winemaker of the Year" We only got down to 34 degrees on that event and kept our leaves here at my site

Phone : 540.672.0387 [email protected] until another cold event on the 14-15th of Winemaking solutions focusing on: November. El Nino is playing with us again and, as Winery and vineyard start-ups always, there’s not much we can really do Still and sparkling wines about it. General winery issues But as always we’ll roll with the punches Food Science Degree – Virginia Tech and deal with whatever comes our way. The joys of grape growing in the Mid Atlantic!

5 IN THE VINEYARD

BRIX from page 1 Courtesy of Jim Law The Botrytis fuse was lit as late wine clumsy and tiring. fall rain began to soak grapes that Potential alcohol (brix) is not a good were still hanging. indicator of ripeness or quality. Those who still delay in picking waiting to hit a early can often make a meager certain number are more likely to harvest wine without a core or ripeness compromised grapes and rely on additions to of flavor or density. fix the resulting wine. Reliance on a single I feel that Virginia can numerical indicator can lead to different do better than California in problems. achieving this style. We have clouds and haze, which reduce White Wines sun intensity, and we have rain It is often said that a white wine’s first job is that can stall brix accumulation. to refresh the palate during a meal. Relatively Perhaps this is a good thing. low alcohol and high acidity do this job. For decades these climatic Virginia is climatically well placed to fill features were considered wine the “refresh” void that California can’t do. quality disadvantages. A “post- But I’ve tasted too many clumsy, blowsy modern” paradigm shift of Virginia white wines that don’t wear their evolving wine style preference high alcohols and low (or added) acids well. is changing how we define Our warm, cloudy climate usually allows ripeness and approach picking us to get white grapes physiologically ripe at decisions. a well-balanced potential alcohol. But I often Virginia is in a good position observe attempts to push the grapes to higher It seems that in sunny California, very to produce a wine style that is brix with the goal of producing a full-blown, high brix (potential alcohol) is hard to avoid. distinct and what wine consumers want. flabby, ersatz California-styled wine. What wine balance they achieve by picking Let’s not let brix get in the way. If winemakers are regularly adding acid, then the grapes are being picked too late or the wrong variety is planted on the site. Red Wines The late rains of vintage 2015 inspired this article. Ten years ago I would have also let our Cabernet Sauvignon and Petit Verdot attempt to recover from the late September deluge. I recently tasted Linden’s red wines from 1999, 2000, and 2002. In these vintages I hung the grapes well after significant harvest rains. The brix eventually increased (probably through dehydration), but rot had compromised cluster integrity and skins had lost most of their tannins. These wines no longer have any structure and have a certain sweet/sour profile that can be common in Virginia reds. I now focus on skin integrity for reds. If the skins start to slough off or degradate we pick regardless of brix, TA or pH. I have to admit that when I started doing this, the young wines seemed green and tart, but time in the cellar and the bottle transformed them to fresh, vibrant and structured. Lower-Alcohol Wines There is a trend now in California towards lower alcohol wines. An organization of winegrowers in California, called “In Pursuit of Balance,” conducts tastings and seminars on lower alcohol, higher acid wines. My impression of the wines is very favorable, but I wonder if they are disrespecting their terroir.

6 IN THE VINEYARD 2 different soils within same Cab Franc Soil Doesn’tblock Need produce Added 2 unique Potassium wines By Lucie Morton and Ernest “Bubba” Beasley Clay Gravelly Sandy Clay Loam

Editor’s Note: Potassium (K) in fruit plays a critical role in the pH of must and wine, and pH is known to be a major influence on a number of wine quality factors, including color, acid balance and microbiological Color Intensity: 5.9 Color Intensity: 4.8 420, 520, 620 nm stability. In Virginia, however, excess K 420, 520, 620 nm absorption by wine grapes is much more common than deficiencies. In fact, Lucie • Topsoil K: 160ppm • Topsoil K: 151ppm Morton, in her many decades of working in Virginia vineyards, says she has almost never • Subsoil K: 75ppm • Subsoil K: 33ppm seen K deficiency in mature vineyards. • Petiole K: 4% • Petiole K: 3% In March 2014, Lucie and geologist • Wine pH: 3.79 Ernest “Bubba” Beasley asked the Virginia • Wine pH: 3.95 Wine Board to fund a study of K-uptake in • Wine K: 1505 mg/L grapevines. (Lucie’s oral presentation was • Wine K: 2250 mg/L published in the Summer 2014 issue of Grape Press.) The study, which was funded by the Wine Board, was conducted by Lucie, Bubba Courtesy of Lucie Morton and clay mineralogist Clifford Ambers with lab analyses by Dr. Lance Kearns of the JMU Above, two Geology Department. different soils The report on the study is well worth a within the same read, and it can be found on the Virginia Wine Cabernet Franc Council’s website or by clicking here. block produce two Lucie and Bubba summarized some of the different wines. study’s key findings below. Lower K in the sample on the right resulted in wine 1 The most important finding of our work with higher color is that even at sites with the lowest soil K intensity and lower levels (15ppm!), the vines showed sufficient pH. Left, “Bubba” K levels in the petioles. (See note below on Beasley studies a petiole analysis.) Our major conclusion is soil sample. that the addition of potassium fertilizers to our vineyard soils is not necessary. 2 Our data suggest that no universal relationship between soil K and petiole K exists across our region because different rootstocks, scions, soil types, etc. are known to have different nutrient uptake dynamics. 6 Adding excess K to our soils is not only 1 They are based on 6-inch rooting depth. 3 We have seen significant correlations unnecessary and detrimental to wine quality, This does not apply to grapes. between soil K and petiole K (and petiole K/ but because of the complex cation-exchange 2 You cannot ignore the presence of K in Mg ratio) on individual sites where many of dynamic of some very common clay subsoils and must take into account the actual these environmental and viticultural variables minerals, the damage is extremely difficult to rooting depth of vines. “undo.” are controlled. 3 Results of K content (expressed in PPM) 4 We have seen correlations between bedrock 7 Although our study did not focus on are based on one of two tests: 5-minute mineralogy and soil chemistries. Magnesium (or Mg, a much more commonly Mehlich 1 (Va Tech) or Mehlich 3 (A&L/ seen deficiency), we note here that in the 5 Too much K can be detrimental to wine Waypoint Analytical) extraction. These tests acidic soils of our region, K has a competitive do not accurately reflect the actual extractable quality, and the scary thing is that in most advantage over Mg for uptake by the vines. cases K added to our soils as fertilizers amount of K over longer periods of time by remains in the root zone indefinitely (because (Note on tissue (petiole) analysis: vines. of the clay mineralogy). Although much of international standards call for 1.0 to 1.5% of 4 Constantly fertilizing the top soils to the K in our vineyards may not show up on dry matter, while in VA for some reason the excessive levels in the 100 to 200 ppm range soil tests, it is actually there (locked up in standard is 1.5% to 2.5% or more!) will assure a lifetime of excess K in our the feldspars, clays and micas) and is slowly Soil analyses were developed for row vineyard soils that did not need it in the first made available to vines over time. crops, not vineyards place.

7 INDUSTRY NEWS Long-Term Leasing for Planting

By Jim Benefiel capital expenditure, and risk associated with Rights and Obligations Benevino Vineyards vineyard development and operation, but Of the Lessee Vice President, VVA wants to “keep the land in the family.” The lease document will typically: Leasing land for a vineyard will usually • Allow the lessee the exclusive right to plant his is the third of three articles on increase the landowner’s income relative to and maintain a commercial vineyard on the vineyard leasing and grape supply current use (else why would he or she agree leased premises. Make sure that anything else contracting that arose from last to lease?) because grapes are among the you want to do with the property is spelled year’s winter technical meeting of highest-value agricultural crops in Virginia. out in the lease. What about other/tangential Tthe VVA. The prior two articles on vineyard The lease will lay out the responsibilities of agricultural crops? Will any non-agricultural leasing are available via online Grape Press each party during the term of the agreement, activities, such as hunting be permitted? issues, and covered: and provide for continuity during the lifetime • Require the lessee to obtain any required • Short-term leases that comply with the of the vineyard, even if that duration exceeds permits, pursue good agricultural practices, Farm Winery Act; the lifetime of the principals. and use honest efforts to keep the vineyard • Medium-term leases in which the lessor There are “triple net leases” in commerce in good condition, thereby maintaining the takes over full responsibility for a planted that require the lessee to pay all taxes and residual value of the land for the landowner. vineyard. maintenance expenses. Additionally, there Enforcement of this provision may be are also retail leases in which the lessee pays difficult, so consider benchmarks by which Reasons to Lease the lessor a percentage of revenue derived you will/could be measured. If you are a current grower, you probably from the sale of goods from the leased • Allow the lessor to enter the leased premises have learned that growing quality wine facility. So these could be in your lease on a not-to-interfere basis for inspection and grapes is a difficult proposition in Virginia, terms. maintenance, and give the lessor the right with our humid summers that bring disease What is to be leased? For these long-term to terminate the agreement if the lessee fails and our cold winters (relatively to vitis leases of raw land, this is usually a block of to live up to his obligations. In conjunction vinifera’s historical growing regions) that land, often drawn up from a map of the legal with the bullet directly above, you can bring cordon, trunk, and vine death. You description of the underlying property. see that you need to think through such probably have also learned that quality grapes Because of the special requirements of contingencies to ensure you are adequately require special soil conditions, else you are wine grapevines, it is highly unlikely that you protected. starting from a disadvantaged position. will be able to plant vines “from fenceline to • Require the lessor to provide egress for the As I consult around the State, I advise fenceline.” In fact, it’s my experience that, lessee, and perhaps use of well water or an prospective growers to “maximize their even in grape growing regions of Virginia, existing storage facility, and to refrain from scores” on the Virginia Tech vineyard any given piece of property will not support leasing the premises for other activities (e.g., evaluator website, rather than maximize their grapevines on more than one-third of the mining) that would interfere with this lease. acreage. If you don’t own the plots or blocks property acreage. The landowner is likely to make no that are most amenable to grape growing, you If you’re not going to add value to the representation as to the suitability of the will probably find it cheaper, over the course entire property, then lease only that portion land for the intended purpose, and to require of the vineyard’s expected life, to rent (lease) on which you intend to plant, and save the that Lessee acknowledge having evaluated the land, rather than purchase it. rest for the landowner. Your map of the the premises independently. Each party Of course, there are non-financial reasons lease land should be clear about the block is likely to want assurances that minimum to purchase and own land outright, but this boundaries — use landmarks or survey marks article will outline typical specifications you to base your description. See LEASING on page 9 will want in your lease and grape supply documents, from the point of view of the grower (the “lessee”). Reasons that your winery clients may want (sub)leases were given in the first article of this series. Some potential concerns of landowners leasing their land (the “lessors”) will be highlighted, but the grower’s concerns are the subject here. VINEYARD TRACTORS AND SPRAYERS New Holland - Kubota - Durand Wayland Definition of a Lease Recall that a lease is a legal agreement that Tim Gano conveys the right of a party (the lessee) to Cell: (540) 533-5667 use the property of another (the lessor). For growers who identify premium properties, 121 Indian Hollow Road Winchester, VA 22603 and for their landowner neighbors owning 540-667-2244 and occupying such property, leasing often www.winchesterequipment.com makes sense, especially if the landowner isn’t interested in undertaking the effort,

8 INDUSTRY NEWS

LEASING from page 8 property, even if production of the grapes contract when payment is usually made at is set to the winery’s specifications. These delivery. interference occurs with its ability to subleases must be allowed in the master lease The lessor may want to spread payments maximize the commercial yields of its agreement. over the season to ensure you are tending the property rights from actions conducted by the grapes to their specifications (covered in a other party on either the leased premises or Price separate vineyard management/grape supply adjacent land. The base rate for a lease should be contract). As noted above, a performance consistent with the property’s current use. payment may be made after the crop is Lease Duration Whether that use is hay, row crops, or cattle, harvested each year. The duration is up to the parties, but in your county extension agent may provide you today’s market typically requires at least 20 with a reasonable rental rate, and this amount Termination years for the grower to recover his capital is usually considered to include any taxes and What actions or events will cause an expenditures. How long the lease extends assessments on the underlying land. early termination of this agreement? Will after that, and whether it’s done in the base, Let’s say the alternate value is $50 per acre the lessee have the option to terminate or with optional extensions is up to the year. You, the grower, will probably need early? If the lessee does not have a right parties. to provide an additional financial incentive of early termination, will he be considered Because of this typically long period, to encourage the landowner to take it out of abandoning the property if certain measures the lessee will often be well served by his own production for the duration of the are not achieved? At normal (and early) contracting as a corporate entity, providing vineyard. Whether that’s a 10 percent, 50 termination, will the tenant vacate the for continuity in case of disability of death of percent or 100 percent premium is based on premises “as is” or return it to its pre-planted the principal. The lessee will want the lease the perception of the parties. state? to survive the landowner’s disposition of the As an aside, the annual lease rate does not underlying real property, and may also want necessarily vary with the remaining life of the Penalties and Remedies a right of first refusal should the land go up vineyard as it ages. It will vary as alternative Lay out the process for resolving disputes, for sale. uses for the property arise. The value of including notifying the breeching party the lease to you, the grower, is a function and allowing a reasonable “cure” period to Renovation and Improvement of the efficiency and productivity of your correct the problem. Is the lessee expected to fund the cost of investment. If you have a superior site (for What should be the penalty for a lessee’s any improvements? For example, what if yields or quality) or are producing varieties in failure to make timely payments? A grower the lessee wants irrigation brought into the high demand (as evidenced, perhaps, by high certainly won’t want to give the landowner vineyard, or an exclusion fence erected to prices), then your investment is worth more any right to block access to or management minimize animal predation? What about to you than another property producing lower of the vineyard, as this may prevent the adequate access and egress (e.g., a gravel yields or lower-valued varieties. lessee from producing a sellable crop. road) for the anticipated equipment? Because you are asking the landowner to A landowner will certainly want Who pays for that is a subject of set aside this property for a lengthy period, assurances that payments will be made on negotiation and the relative standing of the you need to provide him some financial time, or portions of product set aside to cover parties, although if the lessor has no need for incentive that allows him to benefit in your financial obligations. After that, most leases these improvements, it is unlikely that he will success. I recommend that the price include look to arbitration, rather than an expensive agree to fund them. If there is joint benefit a performance provision, separate from the and time-consuming court fight. I have to the parties, then some sort of apportioning base rate, that is tied to your success with the seen leases that designate the Director of appears warranted. property. For example, an override payment the District Office of Virginia Cooperative at season’s end, stated as a percentage of the Extension as the arbitrator. Assignment crop revenue is a possibility. Each party will probably want the right to Summary assign its interest—for example, what if the Payments This article focused on the particulars of assignor retains an interest? What happens if The landowner may be thinking of long-term leases of raw land on which to one party becomes disabled or incapacitated? charging the lessee an up-front fee at the plant and operate vineyards, in compliance Except for these two cases, a typical start of the lease, to ensure that the lessee is with the Virginia Farm Winery Act. assignment provision requires the permission serious (often described as a “good faith” As noted, leasing works well because of the other party, and often states that such payment). wine grapevines require special growing permission cannot be unreasonably withheld. However, if the lessee shares with the conditions, and don’t perform well on all Some leases specify the criteria for denying landowner the general range of capital soils and sites. Since they require significant an assignment. expenditures and operating expenses capital investment and incur major financial Note, however, that the Virginia Farm involved in vineyard operation, the risk, current landowners may be unwilling to Winery Act incentivizes most wineries to landowner will quickly see that the financial pursue commercial vineyards, even if they document their contractual rights to—and commitment the lessee is undertaking is have exceptional sites. obligations for—the crop to be produced many times any “good faith” payment the For these reasons, existing grape growers from the leased premises in the form of a landowner may require. and landowners may prefer to lease land for (sub)lease. Since the lease is a right to use the vineyard development. To meet the spirit as well as the letter of property, base rate payments should be made The long duration of the lease, and the the Virginia law, a handshake agreement annually at the beginning of the growing activities and equipment involved argue is probably not satisfactory. The grower season or spread out over the length of the for detailed documents that clearly lay out will retain the obligation to maintain the growing season — unlike a grape supply responsibilities and remedies.

9 INDUSTRY NEWS

Virginia Vineyards Association 2016 Winter Technical Agenda Jan. 28-30, 2016 Omni Hotel, Charlottesville, Va.

Thursday, Jan. 28 (Westover) 12 p.m. – 1 p.m. Registration Opens 4 p.m. TBD 1 p.m. – 4 p.m. Governor’s Case Presentation, 4:30 p.m. Presentation: Grower of the Year Award Track A (Youmans) 5 p.m. Break, Visit Exhibitors 1 p.m. – 4 p.m. Interactive Grape Disease 6:30 p.m. – 8:30 p.m. Annual Wine Reception Management, Track C (Nita) 1 p.m. – 5 p.m. New Grower Workshop and Social Saturday, Jan. 30 (5 – 7 p.m.), Track B (Wolf) 7:45 a.m. Breakfast Friday, Jan. 29 8:30 a.m. Worker Protection Standards, Legal & 7:30 a.m. Registration Opens, Breakfast Safety (Telemon) 8:15 a.m. Opening Comments (Kelly) 9:15 a.m. Timing & Severity of Leaf Removal Impacts on Cabernet Franc & Petit Verdot (Hickey) 8:30 a.m. Crown Gall Research Update (Nita, Kawaguchi) 9:45 a.m. Break, Visit Exhibitors 9:15 a.m. Insect Management Update (Pfeiffer) 10:15 a.m. Monticello Wine Trail Winemakers Research Showcase 10:15 a.m. Break, Visit Exhibitors 10:45 a.m. VVA Annual Business Meeting 10:30 a.m. Pesticide Management & Safety Re- certification (LaChance) 12 p.m. Lunch, Atrium 11 a.m. Panel Discussion: Solutions, Successes & 1:30 p.m. Adaptive Wine-growing in Virginia’s Failures - Innovations with Labor/Power (Tonkins, Challenging Climate Everson, Wright, Ramsey) 1:40 p.m. Sparkling Review and Tasting (Wheeler, 12 p.m. Lunch, on your own Pelton) 1:15 p.m. Assessing Vineyard Nutritional Status 2:20 p.m. Break (volunteers pour wine) (Westover) 2:40 p.m. Fruit Drying On and Off the Vine with 1:45 p.m. Research Update: Nitrogen from Vineyard Tasting (Kelly) to Winery (Moss) 3:30 p.m. Dessert Wine: Focus on Petit Manseng 2:15 p.m. Is it Time to Reconsider Potassium and Tasting (White, Pelton) Recommendations? (Wolf, Morton, Beasley) 4:30 p.m. Meeting Adjourns 3:15 p.m. Break, Visit Exhibitors *Schedule subject to change. 3:30 p.m. Compost as a Nutrient Supplement

For more details and to register, please visit the VVA website: VirginiaVineyardsAssociation.com

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