Cost of Establishment and Production of Concord Grapes in the Lake Erie Region of New York - 2020

S eptember 2020 EB 2020-11

Trent J. Davis, Miguel I. Gómez, & Kevin Martin

Charles H. Dyson School of Applied Economics Cornell University, Ithaca, New York 14853-7801 College of Agricultural Sciences Extension Services The Pennsylvania State University, University Park, PA

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Cost of Establishment and Production of Concord Grapes in the Erie Region of New York, 2020

Trent J. Davis, Miguel I. Gómez, & Kevin Martin

Introduction

NewNew York York State Stat eis i shome hom eto t othe the largest large sConcordt Concord grape grap industrye indust inry thein t Easternhe Easte Unitedrn Uni tStatesed Sta tandes a isnd the is second largestthe sec producerond large ofst Concordproducer grapes of Conc inord the grcountry.apes in The the Lakecount Eriery. T Grapehe La kBelte E isri ehome Grape to Bemorelt i sthan hom e 800to m vineyardsore than 800covering vineya 32,000rds cov acresering of 32,000 grape producingacres of gra landpe producstretchinging from land Buffalo,stretchi ngNY fromto Erie, Buff Pennsylvaniaalo,

(Governor,NY to Erie 2018)., Penns Theseylvani farmsa (G produceovernor, roughly 2018) .150,000 These fatonsrm sof producConcorde grapesroughly each 150,000 year tons of withConc theord majority grapes beingeach yusedear w forith grape the m juiceajori (Montalbano,ty being us e d2018). for gra Thepe jConcorduice (M grapeontalb industryano, 2018). provides The Concord grape industry provides approximately 2,000 jobs and accounts for around $340 million approximately 2,000 jobs and accounts for around $340 million in economic impact each year in economic impact each year (Montalbano, 2018). (Montalbano, 2018).

The LakeT heErie L aConcordke Erie ConcGrapeord Belt G rais pthee Be oldestlt is tinhe the olde world.st in tThehe w Concordorld. The grape Con cisord native gra peto Northis nat iAmericave andto N firstorth propagated America a ndin westernfirst propa Newga tYorked in in w theest e1870'srn Ne w(Concord). York in t Propagatorshe 's (Conc foundord) the. P climate,ropagat ors geography,found the c andlima soilste, ge aroundography, Lake and Erie soi tols aberound very Lsuitableake Eri fore t ogrowing be very high suit yielding,able for growas welling as hi gh highyiel diquality,ng, as Concordwell as hi grapes.gh qua lInit y,recent Conc yearsord gra Concordpes. I nproducers recent ye havears Conc seenord larger produc thane averagers have s yields.een Thelarge typicalr than Concordaverage vineyardyields. T canhe t ypibe cexpectedal Concord to havevine yyieldsard c aofn roughlybe expe csixte dtons to ha perve acre. yields In of2015 roughl y andsix t2016,ons pe duer ac tore .both In 2015 the cyclical and 2016, growing due tpatterno both tofhe Concord cyclical grapesgrowing and pa suitablettern of weatherConcord conditions, grapes and suitable weather conditions, many growers saw yields upwards of 8 to 10 tons per acre many growers saw yields upwards of 8 to 10 tons per acre (Montalbano, 2018). (Montalbano, 2018).

The economicsThe econom surroundingics surroundi Concordng Concgrapeord production grape produc have tvariedion ha widelyve vari overed w theide lpasty ove fewr the years. past Between 2015few ye andars 2016. Be tgrapeween 2015prices a fellnd 2016to a modern grape low pri cofes around fell to $130a mode perrn ton low (Martin, of aro 2019).und $130However, per t on since(Mart thenin, 2019) the price. How haseve beenr, sinc steadilye then increasing.the price ha Ins bethee nfall st eofa di2019ly in thecre salesasing. price In the for fa onell of ton 2019 the ofsa Concordles price grapesfor one was ton roughlyof Conc $240-$250,ord grapes walmostas roughl doublingy $240 in -a$250, five year alm ostimet doubl span.ing For in the a fi 2020ve ye harvestar yeartime the spa pricen. For range the 2020for Concord harves tis ye $250ar th -e $320pr ic pere ra ton.nge Thefor Conc averageord isis expected$250 - $320to be pe$280r ton. per T he average is expected to be $280 per ton. One of the main reasons for the price increase is the same ton. One of the main reasons for the price increase is the same reason for the low prices found in 2015/2016, reason for the low prices found in 2015/2016, grape supply (Martin, 2019). Since 2015/2016 grape supply (Martin, 2019). Since 2015/2016 Concord grape acreage has fallen roughly 10% Concord grape acreage has fallen roughly 10% in the Lake Erie region, and as much as 20% in inot theher Lakeplace Eries suc region,h as W andashi asngt muchon and as M 20%ichi gina nother (Ma placesrtin, 2019) such. Tashe Washington decrease is andove raMichiganll suppl y(Martin, has 2019).allowe Thed pri decreaseces to inc isre overallase ove supplyr the pa hasst f allowedew years prices to le vetol increases where eoverffici ethent growpast fewe rsyears may to re alize levelssignifi wherecant e cefficientonomic growers profits. mayHow realizeever, e significantven with t heconomice cost of profits.Concord However, grapes ievenncrea withse a lthemos costt tw ofo- Concordfold in a grapes5-6 tim increasee span m almostany grow two-ers fold m ainy ast 5-6ill j ustimet be span brea manyking -growerseven, w himayle mstillany just ot hebers breaking-even, may be whileopera manyting a otherst a loss may. be operating at a loss.

Growers who are considering planting Concord grapes need to carefully weigh the cost of planting and establishing a vineyard, as well as the annual cost of production of a mature vineyard against the expected yields and sales price to determine whether their investment to bring a Concord grape vineyard to maturity will result in economically profitable returns.T his requires an assessment of the initial establishment costs, yearly operation costs, and multi -year projections estimating when the vineyard may become economically profit able. Higher prices that often motivate plantings are often gone before vineyards reach full production.

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This question is complicated by the long-run nature of the investment (payback periods are in excess of ten years and can be much longer), as well as the risk of an oversupply of Concord grapes found both in the Lake Erie Concord Grape Belt and around the world. Secondly, there are other risks involved in the market of Concord grapes. The majority of growers in the Lake Erie region rely on one or two main buyers, both cooperative business structures, specializing in grape juice production. If grape juice demand were to substantially decline prices growers receive for Concord grapes may decline as well . These are just two of the potential threats to investing in a Concord vineyard. Other threats may include pest infestation, climate change, unexpected sever weather instances, etc. While it is impossible to plan for all potential threats it is important for those considering investing in a new Concord vineyard to understand these risks exist.

The objective of this study was to determine the cost of establishing and producing Concord grapes in the Lake Erie region with a commercial size operation. The models were based off of the 2020 publication Cost of Establishment and Production of V. Vinifera Grapes in the Finger Lakes Region of New York_ 2019, analyzing the costs of establishing aV . Vinifera vineyard in the Finger Lakes. New estimates mirroring the market conditions of the total investment in land, machinery, vineyard establishment and development costs, and annual operating costs were developed specifically for Concord grapes. These estimates can guide growers and potential investors to compute and analyze the costs and profit potential for t heir own situations. The estimates are not necessarily representative of average costs for grape production in the Lake Erie area, but rather are typical costs for well-managed vineyards using recommended practices.

The yield estimates used for estimation of typical returns assume better sites (wel-ldrained, productive soils with appropriate slopes for air drainage). We also assumed that vineyard practices were used which would resultc onsistently high yields. Poorer sites and/or failure to follow optimal management practices can have a significant negative impact on the earnings estimates presented in this publication.

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Methods

The methods used to construct cost estimates were a combination of 1) interviews with a panel comprised of grower representatives, 2) economic engineering using recommended practices, and 3) interviewing local stakeholders of the Erie region Concord industry. In October of 2019, we spoke with multiple Concord vineyard manage rs, as well as extension agents, who reviewed the data prepared for the first estimates of the costs of establishing and growing Concord grapes. Consensus estimates were developed for land prices, labor requirements and wage rates for the various operations of a Concord vineyard and for a typical machinery complement ary for a full time commercial vineyard.

The stakeholders also provided estimates, based on their own experience in their vineyards, of the time required to perform various vineyard operations, such as tillage, spraying, mowing, etc., and hand operations such as pruning, tying & removal, suckering, and cluster & shoot thinning.

Land Footnote 1 Land1

The study assumes land was purchased at $3,100 per acre. In 2015 study was published analyzing the cost and establishment of Cold Hardy grapes in the Chautauqua County, the neighboring county to Erie county, where a large number of grape producers are located as well. Agricultural land prices are relatively similar in both counties. It is important to n ote the price of $3,100 is an increase of 55% since the Cold Hardy grapy study in 2015 was published. This value takes into account the possibility of having to prepare land that is not ready to be used for agricultural purposes. $3,100 was decided as a ba se price per acre after consulting with Farm Credit East and discussing average sales price of agricultural land suited for grape production.

The specifiedThe s pesizecif wasied s 154ize wacres,as 154 with ac re150s, wacresith 150 planted acres to pl Concordanted to grapes.Concord The gra sizepes. ofT hethe s imodelledze of vineyardthe mode reflectslled vine theya largerd re fvineyardslects the l aspecializingrge vineya rdsin Concord speciali zgrapeing in production Concord gra in thepe producErie region.tion i n the Erie region. The large size of the vineyard allows for growers to use large scale machinery Theeffic largeiently, size all owof theing vineyard for the produc allowse forrs tgrowerso potent toia lusely m largeinim iscaleze labor machinery hours by efficiently, using m oreallowing forme thecha nproducersized produc to potentiallytion and h aminimizervesting labormethods hours. T hbyat using being more said, mechanized some produc productiontion methods and will harvestingneed to be methods.done my Thathand beingand m said,ay be some carri productioned out by t methodshe growe willrs t heneedms etolv bees ordone by myhire handd ful land/part - maytime belabore carriedr's. out by the growers themselves or by hired full/part-time laborer’s.

Vineyard Layout

The vineyardThe was vin eassumedyard wa sto a sbesum planteded to bone pla a9'nt Xe d7.5' on spacinga ' 7(row.5' s bypa cvine)ing ( resultingrow by v inine a) plantingresulting density in of 645a pl avinesnting perdens acre.ity of There 645 viwerenes 9p erowsr acre to. Tanhe acrere w andere 9 rows row swere to a n440 acre feet and long. row Vines we recost 440 was fe et long. estimatedVine cos tot averagewas esti ma atotalted tofo a$2.85verage per a tplant.otal of This $2.85 includes per pl athent. individualThis include vines tcosthe i ndof i$1.75vidua land vin ae cost GPSof $1.75planting and cost a G ofP roughlyS planti ng$1.10 cos pert of vine.roughl Eachy $1.10 year pite wasr vine assumed. Each yethatar threeit wa spercent assum eofd thetha tvines thre e hadpe torc beent replanted of the vi nedues hato ddamages to be repl causedanted by due diseases to dam orage environmentals caused by di factors.seases Theor e nviinitialronm plantingental wasfa cdonetors. usingThe i ncontracteditial plant iGPSng w aplanting.s done us Theing fee cont forra GPScted GplantingPS pla nttheing vines. The were fee for$1.10 GP perS pl vine,anting the withvi nea totals we ofre 96,800$1.10 pe vinesr vin beinge, wi tplantedh a tota lover of 96,800 150 acres. vines being planted over 150 acres.

11 PricesPrices of landland varyvary dramatically, dramatically, especially especially for for land land used use dfor for Concord Concor dproduction. production. Land Land costs cos tsmay ma bey be as a slow low as a s$500/acre in$500/a somec instances.re in some instances.

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Varieties

The 150-acre vineyard was planted solely with Concord gapes . Concord growers particularly well in the Erie region of New York and is a staple crop for many agricultural producers in the region.

Tile Drainage

It was assumed that tile drainage was installed in the middle of every third row or 27 feet apart. The tile drainage system consisted of 4" lateral pipes running down the middle of every second row, and these lateral pipes were connected to a 6" mainline pipe that ran along the width of the vineyard.

Trellis System

It was assumedIt was a sthatsum theed vinesthat t hewere vine traineds were using train ethed Top-Wire using the Cordon Top-W trainingire Cordon system. tra iThening trellis syste systemm. wasThe madetrellis up sys ofte am top wa wires ma assumedde up of toa tbeop 66-72wire a inchesssume dfrom to be the 66 ground,-72in froma 8 FT th Xe ground,4 INCH woodena ' 4" linewoode postsn l iatne every posts fourth at eve vine,ry fourt twoh catch vine ,wire two clips catc perh w iendre c post,lips pe andr e nda 8 posfoott , Xand 5 incha ' wooden " w ooden endend postpost andand anchoranchor supportsupport post pos tat a tthe the end end of of each each row. row.

Herbicides and Fertilizer/Soil Program

The sample herbicide program was developed in consultation with Penn State Extension Services. For details of the sample herbicide program, see Table A1 in the Appendix. Glyphosate spot sprays should be made using some kind of shielded sprayer to avoid contact with green tissues. The study assumes the use of an Enviromist sprayer for this purpose because of the larger acreage. The sample fertilizer/soil program was developed by Kevin Martin, Extension Specialist, Lake Erie Regional Grape Program. See Table A2 for details.

Wage Rates

Wage rates used represented the consensus of the grower panel. The rates assumed were $23.00 per hour for skilled labor (i.e. $17.69 per hour, plus fringe benefits). Fringe benefits consist of workers compensation, social security, medical insurance, and other benefits. For unskilled labor, the rate was $17.50 per hour (including fringe benefits). Piece rate wage rates were used for pruning the vines in years 3-22 using the rate of $0. 45 per vine. The piece rates for tying were specified at $0.23 per vine. The pruning and tying piece rates have a base rate of $0.36 and $0.18 respectively. An additional 13% contracting fee and 10% unemployment benefits cost were added resulting in $0.45 and $0.23 for the piece rate wages.

Harvesting & Hauling

Grapes were custom machine harvested in the fourth year and beyond . The machine harvesting rate is assumed at $150 per ton, with an additional $8 per ton expenses for transporting the grapes.

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Machinery and Building Costs

The investment costs and annual costs for equipment and buildings are summarized in Table A3 located in the Appendix. All machinery is assumed to be purchased as new. One may be able to cut total costs by buying certain equipment used. The machinery investment required totals $906,720 which represents an average investment of $ 517 per acre of planted vineyard. The investment for a shop is estimated at $ 82,500, or $ 550 per acre. The shop is 1,500 ft 2, and the construction cost ia estimated at $55.00 per ft2 which includes basic amenities such as water and electricity, cement floors, and insulated walls.

Machinery depreciation and interest were charged on the basis of prices for new equipment with the minor exceptions for a used pickup truck. Diesel fuel at $ 3.09 per gallon was budgeted for machine operations. Gasoline was charged at $ 2.89 per gallon (for unleaded). These were representative of prices in Central New York as of August 2019. Hourly machinery variable costs (repairs, fuel, and lube) are shown in Table A4. Hourly machinery variable costs were estimated according to American Society of Agricultural Engineers 2000 Standards.

The total annual costs for depreciation and interest amount to $ 79,616 for machinery and $4,209 for buildings, or $517 and $27.33 annual costs per acre, respectively.

Overhead

Annual insurance expense was estimated at 1 percent of the initial investment in buildings and machinery. Office supplies, phone, etc. were estimated at $3,000 per year. School and property taxes were $25 per $1,000 of assessed value of the initial land investment.

Management Charge

A management fee of five percent of gross receipts was assessed for the vineyard . This represents the opportunity cost for the vineyard owner to manage the operation. All labor requirements were assessed as cash costs. Therefore, in situations where the owner or manage r is performing vineyard tasks and managing the operation, actual cash outlays would be lower than are represented in these cost estimates.

Cost of Capital

A three percent interest charged on capital investment and operating capital was used. This rate represents a real rate based on a five percent nominal rate of interest and an expected rate of inflation of roughly two percent.

Yields

Yields were specified as the long -term average attainable on suitable sites (near the lake, sloping, good air drainage, somewhat well-drained with soil depth at least medium). These yields assume better than average management practices that are consistent with the attainment of premium quality Concord grapes. For years one and two we assume there are now suitable grapes

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for harvest, in year three we assume yields of 40% of a mature vineyard equaling 3 tons per acre, and from year 4 on we assume the vineyard is a healthy, mature vineyard producing 7.5 tons of Concord grapes per acre.

Results

Grape Prices

After speakingAfter s withpeaki someng w ofith the som largeste of t hebuyers large andst buye producersrs and profoduc Concorders of grapes Concord in the gra Eriepes iregionn theE riofe New York,region and of analyzingNew York, previous and ana year’slying sales previ data,ous ye wea r'ssettle sal eons da a tpricea, we of s e$280ttle on per a ton.pric eThis of price pereflectsr ton. higherThis pri qualityce re flConcordects high grapeer qua production.lity Concord This gra ispe a significantproduct i on.increase This ifroms a s iroughlygnifica nt5-6 in yearscreas eago fro m whenroughl moderny 5-6 ye Concordars ago priceswhen mbottomedodern Conc out atord roughly prices $130bottom pered ton. ou tThe at rough estimatedly $130 $280 pe rper ton. ton T hemay allowestim producersated $280 tope coverr ton mtheiray acostllow of produc productioners to as cove wellr tashe potentiallyir cost of produ investc tinion new as wequipment.ell as potentially invest in new equipment.

Pesticide Program Spray Costs

Table 1.1 indicates the recommended spray program and costs for years one (zero sprays), two and three (establishment years). Table 1.2 indicates the recommended spray program and costs for years 4+ (mature vineyard operation). The total spray costs for Year 2 is $39.96, and the total spray cost for Year 3 is $ 93.17. Beginning in year four, the spray programs are assumed to be approximately the same from year to year, with the necessity on average for six sprays during the growing season. Spray material costs were estimated on average at $160.69 per acre from year 4 on. Of course, spray programs will have to be adjusted slightly from year to year to accommodate variable weather and/or pest pressure. Pesticide application costs for labor and machinery, as well as herbicides, are presented in Tables 6 and Table 8.

Table 1.3 shows the cost break down of the chemical s used, as well as oth er potential substitutes or additions, in the example spray programs and lists the market price for the chemicals as well as the per unit price of each chemical.

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TableTab 1.1:le 1.1: Sample Samp Sprayle Sp Programray Progr foram Concord for Con Grapes,cord G Yearsrapes 2, Y& e3,ar Lakes 2 & Erie 3, Lak Region,e Er NY,ie R e2020gion , NY, 2020 YearYear SpraySpr ay ChemicalChemical TargetTar Organismsget Organ isms Measurement Unit/Acre Measurement Unit/Acre Cost Cost SpraySpr Costay C ost 2 1 MancozebMancoz e75DFb Phomopsis 3 lbs $ 11.87 $ 39.96 Phomopsis 3 lbs $ 11.87 1 75DF $ 39.96 2 TebustarTebustar PowderyPowde Mildewry Mildew 0.8 gal 0.8 gal $ $28.16 28.16 TotalTot aYearl 2 Year 2 $ 53.16 $ 53.16 3 1 Mancozeb 75DFPhomopsis 3 lbs $11.87 $ 11.87 Mancozeb 1 Phomopsis 3 lbs $ 11.87 $ 11.87 75DF ZiramZiram BlackBla rot,ck downyrot, dow mildewny mildew 3.5 lbs 3.5 lbs $ $19.58 19.58 $ 52.16 2 LeverageLevera g360e Grape berry moth, Japanese beetle 3 oz $ 5.86 2 Grape berry moth, Japanese beetle 3 oz $ 5.86 $ 52.16 3 360 VivandoVivando PowderyPowde mildewry mildew 15 oz 15 oz $ $26.72 26.72 3 QuintecQuintec PowderyPowde mildewry mildew 3 oz 3 oz $ $9.63 9.63 $ 29.21 3 $ 29.21 ZiramZiram DownyDow mildew,ny mi lblackdew ,rot black rot 3.5 lbs 3.5 lbs $ $19.58 19.58 Total Year 3 $ 93.17 Total Year 3 $ 93.17

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TableTab 1.2:le 1.2: Sample Samp Sprayle Sp Programray Progr foram Concord for Con Grapes,cord G Maturerapes, VineyardMature VYearine yar4+, dLake Year Erie 4+ Region,, Lake ErNY,ie 2020Regi on, NY, 2020 SpraySp ray ChemicalChemi cal TargetTar georganismst organ isms MeasureMe asUnit/Acreure Unit/Acre Cost Cost SpraySp Costray Cost 1 1 MancozebMancoz 75DFeb 75D F PhomopsisPhomops is 2 lbs. 2 lbs. $ 7.87$ 7.87 $ 7.87 $ 7.87 2 2 MancozebMancoz 75DFeb 75D F Phomopsis,Phomops Blackis, Bl Rotac k Rot 3 lbs. 3 lbs. $ 11.80$ 11.80 $ 11.80 $ 11.80 3 MancozebMancoz 75DFeb 75D F Phomopsis,Phomops Blackis, Bl Rot,ack Downy Rot, D mildew,owny mildew, 4 lbs. 4 lbs. $ 15.73$ 15.73 $ 35.73

Endura Powdery mildew 4.5 oz. $ 20.00 3 $ 20.00 $ 35.73 Endura Powdery mildew 4.5 oz.

4 VivandoVivando PowderyPowde Mildewry Mi ldew 11 Oz 11 Oz $ 19.59$ 19.59 $ 39.18 4 $ 39.18 Ziram Zira m DownyDow mildew,ny mil deblackw, rotbl ack rot 3.5 lbs 3.5 lbs 19.58 19.58 5 QuintecQuint ec PowderyPowde mildewry mi ldew 5.5 oz 5.5 oz $ 16.05$ 16.05 $ 44.14 5 IntrepidIntrepi d GrapeGra peberry be mothrry m oth 8 Oz 8 Oz $ 17.81$ 17.81 $ 44.14 ReasonReason DownyDow Mildewny Mi ldew 4 Oz 4 Oz 8.68 8.68 6 LeverageLevera g360e 360 GrapeGra peberry be moth,rry m Japaneseoth, Japa beetlenese beetle 3 oz. 3 oz. $ 5.86$ 5.86 $ 21.97

Champ Powdery Mildew, Black rot, downy mildew 3.5 lbs. $ 16.11 6 $ 16.11 $ 21.97 Champ Powdery Mildew, Black rot, downy mildew 3.5 lbs.

Total Cost Total $ 160.69 $ 160.69 Cost

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Table 1.3: Cost Key of Sample Sprays for Concord Grapes, Lake Erie Region, NY, 2020 Table 1.3: Cost Key of Sample Sprays for Concord Grapes, Lake Erie Region, NY, 2020 ChemicalChemi cal AmountAmou Unitnt Unit MarketM Costark et Cost Cost perC 1os t per 1 UnitUni t Cueva 2.5 gal $ 88.00 $ 35.20 gal Cueva 2.5 gal $ 88.00 $ 35.20 gal Champ 20 Lbs $ 92.07 $ 4.60 lb Champ 20 Lbs $ 92.07 $ 4.60 lb Intrepid 1 gal $ 284.89 $ 2.23 oz Intrepid 1 gal $ 284.89 $ 2.23 oz LeverageLevera 360ge 360 1 gal 1 gal $ 249.95$ 249.95 $ 1.95 $ 1.95 ozoz LunaLuna Experience Experi ence 1 qt 1 qt $ 188.95$ 188.95 $ 5.90 $ 5.90 ozoz MancozebMancoz 75DFeb 75D F 12 lb 12 lb $ 99.99$ 99.99 $ 8.33 $ 8.33 lb lb MettleMe ttle 30 oz 30 oz $ 115.95$ 115.95 $ 3.87 $ 3.87 ozoz QuintecQuint ec 30 oz 30 oz $ 96.30$ 96.30 $ 3.21 $ 3.21 ozoz ReasonReas on 1 gal 1 gal $ 277.76$ 277.76 $ 2.17 $ 2.17 ozoz SurfactantSurfact ant 1 gal 1 gal $ 41.92$ 41.92 $ 0.33 $ 0.33 liquidliqui ozd oz TebustarTebus tar 2 lb 2 lb $ 34.95$ 34.95 $ 1.09 $ 1.09 ozoz VivandoVivando 1 gal 1 gal $ 228.00$ 228.00 $ 1.78 $ 1.78 liquidliqui ozd oz ZiramZira m 10 lb 10 lb $ 55.95$ 55.95 $ 5.60 $ 5.60 lb lb

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Drainage Construction Costs

Table 2 containsTable 2 canont estimateains an eofst drainageimate of drconstructionainage cons costs.truct iTheseon cos tcostss. The arese transferredcosts are tra tons theferre sited tpreparationo sectionthe site of pre thepa establishmentration section andof t hedevelopment establishm ecostsnt and (see de veTablelopm 6).ent Costs cost swill ( sevarye T greatlyable 6) from. Cos ts will sitevary to gre siteat dependingly from sit eon to the sit esoil de pconditionsending on and the preferences soil conditi onsof the and vineyard prefe manager.rences of Growers the vine shouldyard consultmanage withr. G theirrowe county’srs shoul dSoil cons & ulWatert wit hDistrict their cstaffoun ttoy' sdetermine Soil theate properr istri amountct staff tofo drainagedetermine the aprope particularr amount site requires.of draina Thisge a studypartic ulassumedar site re thatqui rtilees .drainage This s wastudy placed assum eind thetha tmiddle tile dra ofi naeveryge w as placed in the middle of every third row or 27 feet apart. Costs were estimated to total $ 5,146 per third row or 27 feet apart. Costs were estimated to total $5,146 per acre. acre.

Table 2: Tile Drainage Costs per acre for Concord Grapes, Lake Erie Region, NY, 2020 Item QuantityQuant i(ft)ty PricePri $/ftce TotalT Costotal perCos acret pe r Item (ft) $/ft acre MainM aline:in l i6"ne pipe " pipe 29.0029.00 $2.25$2.25 $65.25 $65.25 Laterals:Latera 4"ls pipe " pipe 2,7232,723 $0.35$0. 35 $953 $953 InstallationInstalla tion 2,7522,752 $1.50$1. 50 $4,128 $4,128 TotalTotal Drainage Drai Constructionnage Cons pertru acrection per acre $5,146 $5,146 * assumptions: tile drainage in the middle of every third row (27 feet apart)

Trellis Construction Costs

Table 3 contains an estimate of trellis constructions costs. The total cost for materials is estimated at $2,646 per acre. These costs are transferred to Table 6 in the first year of establishment and development. Labor and machinery costs for trellis establi shment are also shown in Table 6 . The total cost of trellis construction for materials, labor, and machinery is $4,373 per acre.

Table 3: Sample Trellis Construction Costs per acre for Concord Grapes, Lake Erie Region, NY, 2020 Top-Wire Cordon Construction Materials Total per Quantity Unit Price Unit per Acre acre Wood end posts (8 ft X 4-5" diameter) 18 posts $ 9.25 post $ 167 Anchor Kit 18 posts $ 9.00 post $ 162 Line Post (8 ft, 3-4" diameter, every 4th 234 posts $ 6.75 stake $ 1,580 plant) 12.5 gauge HT foilage & cordon wire ($143 19,555 ft $ 0.03 ft $ 727 roll of 3846 ft) Crimps 36 clips $ 0.16 clip $ 6 Staples, lbs. 2.4 lbs. $ 1.99 lb. $ 5 Total Trellis Construction materials $ 2,646

Establishment and Development Costs

The costs for labor, machinery, and materials for site preparation and in years one through three constitute the establishment and development (E&D) variable costs in Table 4. First year costs, including site preparation, trellis construction, and planting, are substantial, amount to $12,794 per

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acre.acre. AA planting planting density densit yof of 645 645 vines vine (9°s (' x 7.5”) .' (row) (row by vine)by vi newas) w assumed.as assum eThed. T largesthe larg costest c osin tthe in firstthe yearfirst isye forar itrelliss for tconstruction,rellis construc forti on,a total for of a t$4,373.otal of $In4,3 year73 .two, In ye variablear two, costsvaria blaree caos relativelyts are a remodestlative ly atm ode$651st perat $acre651 withper alesscre laborwith lrequiredess labor than requi forre matured than forvines, ma tandure fixedvines costs, and equaling fixed c os$801ts e quaper ling acre.$801 In pe ther a cthirdre. In year the total third variable year tot costsal va areriabl estimatede costs are at e$1,627stimat eperd a tacre. $1,627 Note pe thatr ac there. Nusageote t hofat pickup the truckusage is of estimated pickup t rucat 40,000k is es milestimated for ata 200-acre40,000 m farmiles fperor ayear, 200 -whichacre fa isrm roughly per ye $50ar, wperhi cacreh is (includingroughly gas$50 and per maintenancesacre (including costs). gas and maintenances costs).

The totalT costshe tot (variableal costs (vaandr ifixed)able a fornd fithexe entired) for E&D the e periodntire E (years&D pe 1-3)riod are (ye summarizedars 1-3) are insum Tablemar 5.ize Thed totalsin Ta blfrome 5 Table. The t6o tforals each from of T theabl ethree 6 for years eac hare of broughtthe thre intoe ye thears arowre broughtlabeled ‘annualinto the variable row labe costs’.led Handannua harvestingl variable costs costs are'. H aaddednd ha rvefor stheting third cos yearts are only. adde Fixedd for coststhe thi (capitalrd year recovery only. Fix fored cmachineryosts (capi tal andrecove equipmentry for m andach ibuildings,nery and epropertyquipme ntaxes,t and officebuild isupplies,ngs, prope landrty charge,taxes, offi insurance,ce suppl iandes, lmanagement)and charge, areins uraadded.nce, Interest,and mana atg ae mrealen trate) are of a ddetwod. percent, Intere sist, addedat a re toal the rat ecumulative of two costs.perce ntCredit, is a dded to the cumulative costs. Credit is given for the revenue from the estimated one ton of grapes per acre is given for the revenue from the estimated one ton of grapes per acre harvested in year three. The harvested in year three. The price of grapes in year three is the average price of the four varieties price of grapes in year three is the average price of the four varieties produced. The total cumulative produced. The total cumulative cost for the E&D period is $ 18,099 per acre. Cash costs for costesta blforis thehm eE&Dnt, i nperiodcluding is $18,099labor, m ipernus acre. the e Cashstima tcostsed re vefornue establishment,s for the rel aincludingtively sm labor,all yi eminuslds in year thethre estimatede, are $14,622 revenues per aforcr ethe for relatively site prepa smallration yields and inth eyear firs three,t three are ye a$14,622rs. per acre for site preparation and the first three years.

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TableTable 4: 4Concord: Concord Grape Gra Establishmentpe Establishm & eDevelopmentnt & Develo Costs,pment Lake Cos Eriets, La Region,ke Eri eNY, Re 2020gion, NY, 2020 (Unit: Acre) LaborLab Usedor LaborLab Hoursor EquipmentEquipme Hoursnt Labor Cost EquipmentEquipme Costn t MaterialsMater Costials Total Cost (Unit: Acre) Labor Cost Total Cost Used Hours Hours Cost Cost SiteSi Preparationte Prepar ation DrainageDraina (seege (s tableee t a5bl fore details)5 for d etails) CustomCustom $5,146$5, 146 LimeLim (2e tons/acre) (2 tons/ acre) CustomCustom $100.00$100.00 $100$100 HerbicideHerbic applicationide applic ation CustomCustom $10.50$10.50 $22.46$22.46 $33 $33 StoneStone removal remova & landl & maint. land maint. SkilledSkil led 10 10 10 10 $230.00$230.00 $183.96$183.96 $414$414 SoilSoi Samplingl Sampl ing SkilledSkil led 0.2 0.2 $4.60 $4.60 $4.00$4.00 $9 $9 FallF afertilizationll fertiliz ation SkilledSkil led 0.6 0.6 0.5 0.5 $13.80$13.80 $14.60$14.60 $100.00$100.00 $128$128 PlowingPlow ing CustomCustom $50 $50 DiscingDisc i(2X)ng (2X ) CustomCustom $46 $46 PickupPickup truck truc (40,000k (40 miles,000 for m 200iles ac/year)for 200 n/a n/a n/a $49.84 $50 ac/year) n/a n/a n/a $49.84 $50 TotalTotal Site SPreparationite Prepar ation 10.810.8 10.5 10.5 $248.40$248.40 $258.89$258.89 $226.46$226.46 $5,976$5,976 FirstFi rYearst Y ear Floating/draggingFloating/draggi ng SkilledSkil led 1 1 1 1 $23.00$23.00 $17.20$17.20 $40 $40 LaserLas Plantinger Plant ($1.10/vine)ing ($1.10/ vine) CustomCustom $852.00$852.00 $1,129.33$1,129.33 $1,981$1,981 FertilizationFertiliza tion SkilledSkil led 0.6 0.6 0.5 0.5 $13.80$13.80 $14.60$14.60 $0.00$0.00 $28 $28 Chem.Che mweed. w econtroled con -trellistrol -trellis SkilledSkil led 1.251.25 1.25 1.25 $28.75$28.75 $27.12$27.12 $27.03$27.03 $83 $83 HillingHill iUpng Up SkilledSkil led 3 3 1.5 1.5 $69.00$69.00 $33.89$33.89 $103$103 TrellisTre lconstructionlis construc (seetion table (se e6 tforab details)le 6 for Skilled 60 16 $1,380.00 $347.85 $2,646 $4,373 details) Skilled 60 16 $1,380.00 $347.85 $2,646 $4,373 SpotSpot herbicide-hand herbicide- haapplicationnd appl ication SkilledSkil led 1 1 $23.00$23.00 $41.49$41.49 $64 $64 CultivationCultiva t(2X)ion (2X) SkilledSkil led 1.2 1.2 1.2 1.2 $27.60$27.60 $27.11$27.11 $55 $55 SeedSee coverd cove cropr c rop SkilledSkil led 0.6 0.6 0.5 0.5 $13.80$13.80 $14.60$14.60 $11.25$11.25 $40 $40 PickupPickup truck truc (40,000k (40,000 miles for m 200iles ac/year)for 200 n/a n/a n/a $49.84 $50 ac/year) n/a n/a n/a $49.84 $50 TotalTotal Year Y 1e ar 1 79.4579.45 21.6521.65 $2,430.795$2,430.7 95 $532.21$532 .21 $3,854.72$3,854.72 $6,818$6, 818 TotalTotal for firstfor year firs andt ye sitear preparationand site $12,794 preparation $12,794

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(Unit: Acre) LaborLab Usedor LaborLab orHours Equipment Equipme Hoursnt Labor Cost EquipmentEquipme Costnt MaterialsMater iCostals Total Cost (Unit: Acre) Labor Cost Total Cost Used Hours Hours Cost Cost SecondSecon Yeard Y ear PruningPruni &ng brush & brus removalh re moval SkilledSki lled 3 3 $69.00$69.00 $69 $69 TyingTyi &ng renewal & ren ewal UnskilledUnski lled 2 2 $35.00$35.00 $4.50$ 4.50 $41 $41 SpringSpri Fertilizationng Fertiliz ation SkilledSki lled 0.6 0.6 0.5 0.5 $13.80$13.80 $14.60$14.60 $28 $28 Chem.Che weedm. w control-trelliseed control -trellis SkilledSki lled 1.251.25 1.25 1.25 $28.75$28.75 $24.12$24.12 $71.97$71.97 $125 $125 ClusterClus removalter rem oval UnskilledUnski lled 2.5 2.5 $43.75$43.75 $44 $44 SpotSpot herbicide herbi ctreatmentide trea tment SkilledSki lled 0.4 0.4 0.3 0.3 $9.20$9.20 $6.51 $6.51 $14.46$14.46 $30 $30 SpotSpot herbicide herbi ctreatmentide trea tment SkilledSki lled 0.4 0.4 0.3 0.3 $9.20$9.20 $6.51 $6.51 $14.46$14.46 $30 $30 SpraySpra 1 y 1 SkilledSki lled 0.4 0.4 0.3 0.3 $9.20$9.20 $13.67$13.67 $39.96$39.96 $63 $63 MowingMow (4X)ing (4X) SkilledSki lled 2.6 2.6 2 2 $59.80$59.80 $42.67$42.67 $102 $102 rogueingrogue ing UnskilledUnski lled 1 1 $17.50$17.50 $18 $18 PickupPickup truck t ruc(40,000k (40,000 miles for m 200iles ac/year) for 200 n/a n/a n/a $49.84 $50 ac/year) n/a n/a n/a $49.84 $50 TotalTotal Year Y 2e ar 2 24.1524.15 8.65 8.65 $347.70$347 .70 $108.08$10 8.08 $145.35$145 .35 $651 $651 ThirdTh Yearird Year PruningPruni andng abrushnd brus pullingh pul ($0.45/vine)ling ($0.45/ vine) CustomCus tom piecepiec erate ra te $290.40$290.40 $290 $290 TyingTyi &ng renewal & ren ($0.23/vine)ewal ($0.23/ vine) CustomCus tom piecepiec erate ra te $148.43$148.43 $3.60$ 3.60 $152 $152 BrushBrus choppingh choppi (1X)ng (1X) SkilledSki lled 1.2 1.2 1 1 $27.60$27.60 $23.89$23.89 $51 $51 Chem.Che weedm. w control-eed con trellistrol - trellis SkilledSki lled 2.6 2.6 2 2 $59.80$59.80 $43.39$43.39 $71.97$71.97 $175 $175 SuckeringSuckeri ng UnskilledUnskil led 4 4 $70.00$70.00 $70 $70 ClusterClus removalter rem oval UnskilledUnskil led 4 4 $70.00$70.00 $70 $70 SpraySpra 1 y 1 SkilledSki lled 0.6 0.6 0.5 0.5 $13.80$13.80 $22.78$22.78 $13.11$13.11 $54 $54 SpraySpra 2 y 2 SkilledSki lled 0.6 0.6 0.5 0.5 $13.80$13.80 $22.78$22.78 $25.65$25.65 $62 $62 SpraySpra 3 y 3 SkilledSki lled 0.6 0.6 0.5 0.5 $13.80$13.80 $22.78$22.78 $28.96$28.96 $66 $66 MowingMow (4X)ing (4X) SkilledSki lled 2.6 2.6 2 2 $59.80$59.80 $48.79$48.79 $109 $109 PickupPickup truck t ruc(40,000k (40,000 miles for m 200iles ac/year) for 200 n/a n/a n/a $49.84 $50 ac/year) n/a n/a n/a $49.84 $50 TotalTotal Year Y 3e ar 3 13.613.6 4.5 4.5 $810.88$810.88 $185.45$185.45 $77.57$77.57 $1,177$1, 177

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TableTab 5: Summaryle 5: S uofmmar Establishmenty of &Es Developmenttablishme Costsnt by& Year, De veConcordlopme Grapes,nt C Lakeosts Erie b Region,y Year NY,, C2020on cord Grapes, Lake Erie Region, NY, 2020 Item Year 1 Year 2 Year 3

Revenue Yield per acre (tons) 0 0 3 Market price na na $280 Total revenue $0 $0 $840

Costs Site preparation $5,976 $0 $0 Annual variable costs -Preharvest $6,818 $651 $1,177 -Harvest - Machine $0 $0 $450 Total Variable Costs & Site preparation $12,794 $651 $1,627

Annual fixed costs -Machines & equipment amortization $517 $517 $517 -Buildings amortization $27 $27 $27 -Property taxes $78 $78 $78 -Land opportunity cost $93 $93 $93 -Office Supplies, phone, etc. $20 $20 $20 -Insurance (fire, liability) $66 $66 $66 -Management $0 $0 $42 Total Fixed Costs $801 $801 $801

Interest on cumulative costs $408 $464 $552 Total costs $14,003 1,915 $3,021 Net returns ($14,003) ($1,915) ($2,181) Total cumulative costs $14,003 $15,918 $18,099

Amortization of vineyard: $1,136 Cash costs of vineyard establishment (3 Yrs.) $14,622

Page 15 15

Costs and Returns for a Mature Vineyard

Table 6 summarizes the growing, establishment, and development costs for a Concord vineyard. Growing costs are largest in the first year when a significant amount must be spent preparing the site, planting the vines, and constructing the trellis. Total growing costs are $1, 471 per acre in years four through 22, and this number is transported to Table 10 to use in the computation of the costs and returns for the mature vineyard. The cost of crop insurance is added at an average cost of $109 per acre, which generally starts at the fifth year of positive production (i.e. year 8). Costs for crop insurance may vary from vineyard to vineyard.

Annual growing costs for years four thr ough 22 are presented in Table 7. Total growing costs for a typical year in the mature v ineyard are estimated to be $ 1,471 per acre. The costliest operations are dormant vine pruning and removal ($361 per acre), canopy management ($255 per acre), and disease and insect control ($ 236 per acre),. By year four, the well -managed vineyard will nearly have reached its full yield potential and will require approximately the same management each year for the duration of its life.

TableTab 6:le Summary 6: Summar of Growingy of G Costsrow forin gConcord Costs Grapes,for Con TCWcor Trellis,d Grap Lakees, ErieTC Region,W Tre NY,llis ,2020 Lak e Erie Region, NY, 2020 Item Year 1 Year 2 Year 3 Year 4+ Site preparation $6,112 Vines & replanting $2,022 Trellis materials & construction $4,373 $140 Dormant pruning & removal $69 $361 $361 Weed control $242 $185 $175 $161 Fertilization $28 $28 $126 Canopy management $83 $326 $255 Disease & insect control $63 $182 $236 Take away & hilling up $103 Mowing $102 $160 $103 Pick-upPick- up(fuel, (fue maintenances...etc)l, maintenancesetc $50 $50 $50 $50 Crop Insurance* $109 Total Growing Costs $12,691 $581 $1,177 $1,471 *Crop Insurance generally starts at the fifth year of positive production (i.e., year 8)

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TableTab 7: Growingle 7: G Costsrow ofi na gMature Cos Vineyard,ts of a YearMatu 4+, rConcorde Vin Grapes,eyard Lake, Y eEriear Region,4+, C NY,on 2020cor d Grapes, Lake Erie Region, NY, 2020 Operation LaborLab Usedor LaborLab Hoursor EquipmentEquipme Hoursnt Labor Lab Costor EquipmentEquipme Costnt MaterialsMater Costials TotalTotal Cost Operation Used Hours Hours Cost Cost Cost Cost Pruning+brushPruning+brus pullingh pul ling CustomCust om piecepiec ratee ra te $361.39$361.39 $361$361 BrushBrus choppingh choppi ng SkilledSki lled 1.2 1.2 1 1 $27.60$27.60 $23.89$23.89 $51 $51 TrellisTre lmaintenancelis maintena nce SkilledSki lled 4 4 1 1 $92.00$92.00 $18.40$18.40 $30.00$30.00 $140$140 TyingTyi &ng renewal & ren ewal CustomCust om piecepiec ratee ra te $180.69$180.69 $3.92$3.92 $185$185 Chem.weedChem.w econtrol-trellised control -trellis SkilledSki lled 2.6 2.6 2 2 $59.80$59.80 $43.39$43.39 $27.23$27.23 $130$130 SoilS oiapplicl appl of iSoluborc of Sol (w.ubor herb. (w Spray). herb. Spray) n/a n/a $6.60$6.60 $7 $7 SpotSpot herbicide herbi ctreatmentide trea tment SkilledSki lled 0.4 0.4 0.3 0.3 $9.20$9.20 $6.51$6.51 $14.46$14.46 $30 $30 SpraySpra 1y 1 SkilledSki lled 0.25 0.25 0.15 0.15 $5.75$5. 75 $6.83$6. 83 $7.87$7. 87 $20 $20 SpraySpra 2y 2 SkilledSki lled 0.25 0.25 0.15 0.15 $5.75$5. 75 $6.83$6. 83 $11.80$11. 80 $24 $24 SpraySpra 3y 3 SkilledSki lled 0.25 0.25 0.15 0.15 $5.75$5. 75 $6.83$6. 83 $35.73$35. 73 $48 $48 SpraySpra 4y 4 SkilledSki lled 0.25 0.25 0.15 0.15 $5.75$5. 75 $6.83$6. 83 $39.18$39. 18 $52 $52 SpraySpra 5y 5 SkilledSki lled 0.25 0.25 0.15 0.15 $5.75$5. 75 $6.83$6. 83 $44.14$44. 14 $57 $57 SpraySpra 6y 6 SkilledSki lled 0.25 0.25 0.15 0.15 $5.75$5. 75 $6.83$6. 83 $21.97$21. 97 $35 $35 MowingMow (2X)ing (2X) SkilledSki lled 1.3 1.3 1 1 $29.90$29.90 $21.33$21.33 $51 $51 LimeLim (1e in (1 3 years)in 3 ye ars) SkilledSki lled 0.1 0.1 0.1 0.1 $2.30$2.30 $5.02$5.02 $10.00$10.00 $17 $17 PetiolePetiol samplinge sampl ($88ing for($88 every for 2 eyears)very 2 years) SkilledSki lled 0.1 0.1 $2.30$2.30 $3.84$3.84 $6 $6 SoilS oisamplingl sampl (everying ( e5ve years)ry 5 years) SkilledSki lled 0.1 0.1 $2.30$2.30 $0.40$0.40 $3 $3 FertilizationFertiliza t(3x)ion (3x) SkilledSki lled 0.42 0.42 0.3 0.3 $8.76$8.76 $74.72$74 .72 $83 $83 CropCrop insurance insura nce $109.00$109.00 $109$109 PickupPickup truck truc (30,000k (30,000 miles for m 150iles ac/year)for 150 n/a n/a n/a $49.84 $50 n/a n/a n/a $49.84 $50 ac/year) TotalTotal Yearly Ye Growingarly G rCostsowin ofg MatureCosts Vineyard of Matu re $1,471 $1,471 Vineyard

Page 17 17

Table 10 summarizes the costs and returns expected from a mature vineyard. The estimated receipts per acre are $2,100 given the assumed sales price of $280 per ton and target yields of 7.5 tons per acre. Total variable costs equal $2,678 and total fixed costs equal $2,041 for a total cost per acre of $4,719. The break-even prices and yields are shown in Table 1 0. A breakeven target yield, assuming the sales price of $280 per ton stays constant, is30.1 tons per acre. The breakeven target price per ton, assuming the target yield of 7.5 tons per acre stays constant, is $629 per ton.

If the modelIf assumptions the model holdass umConcordptions grapes hold are Conc shownord to gr operateapes a atre anshow economicn to ope lossra ofte $2,619 at an perecono acrem peric lyear.oss For anof acre $2, of619 Concord per a grapescre pe rto ye simplyar. F breakevenor an acre the of target Conc yieldsord graneedpe tos increaseto simpl astronomically(footnotey breakeven the targ 2)e tThis yie islds specifically duene etod the to increasedincrease costsastrono of machinemicall yharvesting2 or the sonal eas per pri tonce basis.per ton We of estimate Concord $150/ton grape fors machineryneeds t o harvesting more tha n whichdoubl significantlye (2.25x) increases. To put variablethis in pecostsrspe atc highertive, iyields.)t shoul (Endd be of re footnote)ormembere thed t saleshat w pricee as sperum toned of re Concordcomme nded grapes needs to more than double (2.25x). To put this in perspective, it should be remembered that we assumed recommendedpractices throughout practices throughout the mode thel. model.Some Some grow growersers wi lwilll be be aableble toto reduce reduc somee som ofe these of the costsse cconsiderably.osts Allc onslabor,ide includingrably. A thell owner’slabor, ilabor,ncludi isng charged the ow a cashner's wage. labor, There is c isha anrge imputedd a ca chargesh wa gone .all T hecapitalre i sused. an imputed charge on all capital used.

The vineyard capital expense (establishment costs from Table 7) is written off after 22 years, which increase the fixed costs by $1, 136. In Table 13, we will discuss the scenario that vineyard holds a positive value which may be as much, or even more, than it was worth in the early years of the planting.

footnote2 This is specifically2 This is specifically due to the increaseddue to the costs increased of machine costs harvesting of machine on a harvestingper ton basis. on We a perestimate ton basis. $150/ton We for estimate machinery $150/ton for machinery harvesting which significantly increases variable costs at higher yields. harvesting which significantly increases variable costs at higher yields.

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TableTab 8:le Costs 8: C &os Returnsts & R foretu a rMaturens for Concord a Matu Vineyard,re Con Lakecord Erie Vi nRegion,eyard NY,, 2020 Lake Erie Region, NY, 2020 Item $ Amount Receipts: Yield target, tons per acre 7.5 Price, $ per ton $280 Total receipts $2,100

Costs: Variable Costs: Growing (incl. crop insurance @$109/Ac) $1,471 Interest on operating capital $24 Machine Harvesting ($150/ton) $1,125 Trucking ($8/ton) $60 Total variable costs $2,678

Fixed Costs: Vineyard capital recovery $1,136 Machinery and equipment capital recovery $517 Buildings capital recovery $27 Property taxes $78 Land opportunity cost $93 Office supplies, phone, etc. $20 Insurance $66 Management $105 Total fixed costs $2,041

Total costs $4,719 Profit or loss -$2,619

Breakeven price ($ /ton) $629 Breakeven yield (tons) 29

Capital Requirements

Table 9 indicates the capital investment per planted acre necessary to get into grape production in the Erie region, assuming a vineyard of 150 planted acres with an additional four acres for roads, headlands, and a building; and reliance on either custom hand or machine harvesting of grapes. The table uses the value of new machinery and equipment and buildings. If a harvester is purchased, investment per acre for machinery would be considerably higher . Land costs assume a prime site close to the lake. Tab le 11 indicates that it would require $ 27,084 per 19

planted acre, for a total of $4,062,557.99 for the entire 150 acres of planted Concord vineyard, to get the vineyard into maturity in the Erie region under the assumptions indicated above . Established growers, with depreciated vineyards, machinery and equipment, and buildings, would have lower capital investment (book value) depending upon the age of their depreciable assets. Growers with smaller acreage will typically have higher investment costs per acre. This is due to less efficient use of the machinery. It is possible these smaller growers hire some vineyard operations to be done by custom operators and/or vineyard management companies, thus giving them the possibility of buying fewer items of machinery and equipment.

TableTab 9:le Investment9: Investme Pernt PlantedPer Plan Acreted ofA cConcordre of Con Grapes,cord G Lakerape Eries, Lak Region,e Eri eNY, Re g2020ion, NY, 2020 Assets $/acre Percentage Land* $3,183 11.8% Machinery & equipment** $6,045 22.3% Buildings (shop & tool shed) $550 2.0% Vineyard establishment and development $17,306 63.9% Total Investment per acre $27,084 $4,062,557.99 *Assume 154 acres purchased (including support land) for 150 planted acres ** Investment for E&D period is calculated by E&D costs in Table 5, excluding revenue, machinery, equipment and building depreciation

Chart 1: Investment per Planted Acre of Concord Grapes, Lake Eerie Region of New York, 2020

12% Land*

Machinery & equipment** 22% Buildings (shop & tool shed) 64% Vineyard establishment and 2% development

Sensitivity Analysis

Costs per ton of grapes and profits fo r Erie Concord vineyards will vary widely due to factors such as price of land, site -specific factors, farm size, managerial ability, and labor efficiency. The cost and return estimates developed in this publication represent typical costs for well-managed vineyards producing premium quality grapes on prime sites.

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Table 10 shows the sensitivity of the costs for producing different yields of Concord grapes. The cost per ton of Concord production varies drastically depending on potential yields. In a uniquely bad production year, for example is significant hail damage wipes out the majority of a crop, of only 1.5 tons per acre the cost per one ton of Concord production is $2,602. However, for years when the producer meets the target yield in this model of 7.5 tons per ac re the cost per one ton of Concord production equals $ 647. This cost is still significantly higher than that of the modelled sales price per ton of Concord grapes, but it does represent an increasing returns to scale and demonstrates the importance of responsibly maximizing yields to decrease overall costs.

TableTab 10:le 10:Sensitivity Sens iofti viCostty Perof C Tonos tof P Productioner Ton of of P Concordroduc tiGrapes,on of CLakeon cErieord Region, Grap NY,es, Lak2020e Erie Region, NY, 2020 Yield (tons/acre) Cost/ton* Blank Blank 1.5 $2,514 2 $1,925 2.5 $1,572 3 $1,336 3.5 $1,168 4 $1,042 4.5 $943 5 $865 5.5 $801 6 $747 6.5 $702 7 $663 7.5 $629 8 $600 8.5 $574 9 $551 9.5 $530 10 $511

*Cost at different yield levels adjusted for harvesting and hauling at $95/ton, trucking It may notat $30/ton be feasible for producers toi ncrease their Concord production significantly from year to year. It also may not be realistic to assume sales prices producers receive will either increase or decrease at the substantial levels needed to breakeven that were discussed above. Below is a sensitivity analysis table looking at what a potential increase or decrease of both prices and/or yields of +/- 10% and +/- 20% would do for the economic profit/loss of Concord production on a per acre basis. The table shows even if both the target yield and sales price per ton increase by 20% (bottom right cell) a producer should expect an economic loss of roughly $2,064 per acre.

Page 21 21

TableTab 11:le 11: Profit/Loss Profit/Los Sensitivitys Sensi tiAnalysisvity An ofal ysConcordis of C onGrapes,cord GLakerap eEries, Lak Region,e Eri eNY, Re 2020gion , NY, 2020 6.75 7.5 8.25 Sales $/Ton 6 tons/acre 9 tons/acre tons/acre tons/acre tons/acre $ 224 $ (3,138) $ (3,089) $ (3,039) $ (2,990) $ (2,940) $ 252 $ (2,970) $ (2,900) $ (2,829) $ (2,759) $ (2,688) $ 280 $ (2,802) $ (2,711) $ (2,619) $ (2,528) $ (2,436) $ 308 $ (2,634) $ (2,522) $ (2,409) $ (2,297) $ (2,184) $ 336 $ (2,466) $ (2,333) $ (2,199) $ (2,066) $ (1,932) *Cost at different yield levels adjusted for harvesting and hauling at $95/ton, trucking at $30/ton

Discussion: Costs and Returns for a Mature Vineyard - An established vineyard holds positive value

Table 12 indicates the estimated annual cash flow for a mature vineyard (similar to table 10), but assuming that an established vineyard is able to partially recover selected capital investments after 22 years of operation.

In this study,In twehis dostudy, not discusswe do not the di returnsscuss tofhe land returns investment, of land i nvase its tism emostlynt, as case-sensitiveit is mostly ca sande-se nsthisiti veis not includingand thi sin i sthe not vineyard’s including establishment in the vineya capitalrd's es recoverytablishm ecostsnt ca piin ttableal rec 10.ove Implicitly,ry costs i nthe ta bstudyle . thus assumes thatIm landplic ivaluestly, the increase study thus by as ratesum equales tha tto l athend realvalue interests incre ratease byover a rathete 22equa yearsl to tofhe operation. real inter est rate Instead,over t hewe 22 assume years ofthat ope thera trellistion. Insmaintenancetead, we a siss umdonee t haannually,t the tre sollis the ma trellisintena systemnce is donehas half annua lly , of stheo t hevalue tre lafterlis sys 22te years.m has Inha addition,lf of the vcertainalue a ftpractices,er 22 ye asuchrs .as In drainage, addition, limecert aapplication,in practice sland, suc maintenance,h as herbicidedrainage application, lime app systemlication ,do la ndnot mneedaint etona benc donee, herb whenicide starting applica ati onnew sys productiontem do not cycle, need to be done andw headdn svaluetarting to athe ne wvineyard. produc tTheion costscycle ,of a ndthese add activities value to arethe thereforevineyard. dropped The cos fromts of thethe sannuale activi vineyardties capitalare t herecoveryrefore droppeestimates.d fro Asm athe result, annua thel v capitalineyard recovery capital recostscov eperry esacretimat decreaseses. As a refromsul t$1,136, the ca pital (Tablerecove 10)ry to c os$630ts pe (Tabler acre 13). de cEvenreas ewiths from this $1,decrease136 (T inabl estimatede 10) to $capital630 (Trecoveryable 13). costs Eve wen wseeith this ande economiccrease in loss esti mof a$2,020ted capi pertal acre.recovery costs we see an economic loss of $2,020 per acre.

Page22 22

TableTab 12:l eCosts 12: C &os returnsts & r foretu ar nMatures for a Concord Mature Vineyard, Concord Assuming Vineyard Less, Vineyard CapitalAssumi Recover,ng Les sLake Vin eErieyar dRegion, Capital NY, R e2020cove r, Lake Erie Region, NY, 2020 Item $ Amount

Receipts: Yield target, tons per acre 7.5 Price, $ per ton $280 Total receipts $2,100

Costs: Variable Costs: Growing (incl. crop insurance @$109/Ac) $1,471 Interest on operating capital $24 Machine Harvesting ($150/ton) $1,125 Trucking ($8/ton) $60 Total variable costs $2,678

Fixed Costs: Vineyard capital recovery (MINUS VALUABLE $630 LAND INPUTS) Machinery and equipment capital recovery $517 Buildings capital recovery $27 Property taxes $78 Land opportunity cost $0 Office supplies, phone, etc. $20 Insurance $66 Management $105 Total fixed costs $1,442

Total costs $4,120 Profit or loss -$2,020

Breakeven price ($ /ton) $549 Breakeven yield (tons) 24.1

Page23 23

Discussion: Projected 20 Year Cash Flows

Chart 2 showsChart 2the show projecteds the proj cashec flowsted ca forsh 20flow yearss for of 20 operations. years of ope Thisra tincludesions. Th iboths inc variableludes bot andh fixed costs.varia blIne year and 20fix eitd is c assumedosts. In ye thear 20vineyard, it is as sandum ealld tequipmenthe vineyard, associated and all e withquipm it, earent asoldssoc off.iate Thed w ith landit, a reis estimatedsold off. T tohe be la ndworth is e $695,482stimated taftero be 20wort years,h $69 and5,482 the aequipmentfter 20 yea isrs estimated, and the e toqu haveipme nat salvage is valueestim ofat e$22,086.d to have Estimated a salvage cash value flow of shows$22,086 a .total Esti mlossate afterd ca s20h fl yearsow s howof operations a total oflos ($5,888,354).s after 20 Withyears current of ope marketration ofconditions ($5,888 ,354the vineyard’s. ith curre revenuesnt mar kedot notcondi maketions up t hethe v initialineya rd'sestablishment revenues do costsnot m evenake upafter the selling initia lall e slandtabl iandshm machineryent costs e veuponn a ft20er years selling of aoperations.ll land and machinery upon 20 years of operations.

CHART 2: 20 YEAR CASH FLOW PROJECTIONS W/ CAPITAL RECOVERY OF CONCORD GRAPES, LAKE EERIE REGION, NY, 2020 $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 -$1,000,000

-$2,000,000

-$3,000,000

-$4,000,000

-$5,000,000

-$6,000,000

-$7,000,000

Chart 3 shows the projected cash flows for 20 years of operations in regards to variable costs. After 20 years of operations cash flows have yet to fully cover total variable costs of the establishment of the vineyard. This is mainly due to the significant upfront costs to establish the vineyard. At the end of 20 years cash flows shows a loss of ($5,604,302). CHART 3: 20 YEAR CASH FLOW PROJECTIONS FOR VARIABLE COSTS OF CONCORD GRAPES, LAKE ERIE REGION OF NEW YORK, 2020

YEAR OF OPERATION $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 -$1,000,000

-$2,000,000

-$3,000,000

-$4,000,000

-$5,000,000 VA RI A BLE CA SH F LOW -$6,000,000

Page24 24

Concluding Comments

The cost and returns estimates derived in this publication indicate results for Concord grapes in the Lake Erie region under the assumption of prime sites, the use of recommended practices, good management, 2019 prices for inputs, and prices for grapes that reflect several quality enhancing practices such as leaf pulling, cluster removal for two varieties, and limited yields.

PotentialP investorsotential i shouldnvestors be s houlforewarnedd be fore thatw thearne currentd that teconomiche current climate econom foric grape clima growingte for gr ina pethe Lake Eriegrow regioning in can the change. Lake E Inrie some region years, can ancha oversupplynge. In som of egrape years juice, an mayovers depressupply of Concord grape j uigrapece m ay salesdepre pricesss Conc significantly,ord grape slikeale sin pri 2015/2016.ces signifi However,cantly, lik sincee in 2015/ then 2016.overall H productionow ever, sofinc Concorde then ove graperall inproduc the regiontion ofhas Conc decreaseord gra roughlype in t he10%. regi Furthermore,on has decre Newase roughl York Statey 10%. government Furtherm oreprograms, New Y haveork beenState established governmen tot prograhelp strengthenms have be theen NYS esta blConcordished to industry. help stre Thengt hLakeen th Eriee N YConcordS Conc ordGrape indus Belttry. isT anhe establishedLake Erie Conc Concordord G producingrape Belt regionis an e withstab lrootsish e ddating Conc backord produc to the i1870’s.ng regi onThis w iregionth root iss datheti ng largestback t oConcord the 's producing. This re regiongion iins tthehe lEasternargest Con Unitedcord States produc anding is re ag ivitalon i ncomponent the Easte rnof theni tregionaled State s and is a vital component of the regional economy. economy.

Given the current estimates used in these models the econo mic viability of a Concord vineyard may seem less than ideal. The models show a Concord vineyard will continuously see economic losses year-over-year. It is important to note these models assume the vineyard owner needs to buy everything upon the start oft he vineyard. In many cases vineyard owners may already own the land they use for grape production, or they may already own most of the equipment needed to establish a new vineyard. The information provided in this report is meant to act as a baseline for producers to compare their information to, and many producers may be able to incorporate management or investment practices which save significant amounts of money, thus, lowering overall production costs.

Labor, especiallyLabor, e sthepec potentialially the ofpot moreenti areliancel of more on “underrelianc thee on table" "unde labor,r the ista ab lconcern.e" labor ,More is a c growersoncern . may needMore to grow considerers m usingay ne H-2Aed to claboronsi deto rprevent using H the-2A possibility labor to preof laborvent shortages.the possibi (Growerslity of labor should short beage s. reminded(Growers that shoul thered be is rea mlonginde leadd tha timet the involvedre is a l ongin securing lead tim thise invol labor).ved Since in se cnearlyuring allthi sgrapes labor) in. S theinc e Lakenearl Eriey al lregion grap eares in harvested the Lake mechanically, Erie region the are industry harves iste dnot m easch vulnerableanically, t heas ithendus treetry fruitis not or vegetableas industries.vulnerabl eImmigration as the tree reformfruit or would vege thelpable easeindus growers’tries. Im mmindsigrat iconsiderably,on reform w oulbutd meaningful help ease growers' reformminds is c onsunsureidera atb lthey, but time m ofea niwritingngfu lthis reform publication. is unsure at the time of writing this publication.

______

Special recognitionSpecial rec isogni extendedtion is etox tMarkende dPisoni to M a(M.S.,rk Pis Departmentoni (M.S., D ofepa Agricultural,rtment of AResource,gricultura andl, Managerial Economics,Resource, aCornellnd Ma naUniversity,gerial Ec 2001).onomi cWhiles, Corne at Cornell,ll Unive workingrsity, 2001) on a. grantWhil efunded at Corne by lthel, w Neworki ng on a Yorkgrant State funde Departmentd by the N eofw Agriculture York Stat eand e Markets’partment “Grow of Agri Newcul tYork"ure and Program, Market sMark' "G rowdeveloped New Y anork" ExcelProgra programm, Mark which deve waslope usedd an Etoxc developel progra them 2001 whic -h 2020 was usCosted tofo Establishmentdevelop the 2001 and - Production 2020 Cost ofof V.E sViniferatablishm Grapesent and in P theroduc Fingertion Lakesof V. V publications,inifera Grape ands i nwhich the F hasinge beenr Lake useds publ asi caa basetions ,model and w forhic thish report.has be Marken us eisd now as a viticulturistbase mode ofl for the t hPisoniis report Vineyards. Mark iands now Winery, viticul Gonzales,turist of t heCalifornia. Pisoni Vineyards and Winery, Gonzales, California.

Page25 25

AppendixAppen Tabledix 1:T abSamplele 1: Herbicide Samp lfore HColder bHardyicid Grapes,e for C Chautauquaold Har dRegiony Gr NY,ape 2019s, C hautauqua Region NY, 2019 Year Year SpraySpr #ay # ReasonReason for f Sprayor Sp ray MaterialMat erial Rate/acreRate/ acre UnitUn it Price Price PerPe 1r Unit 1 U nit $/acre$/ acre YearY 0e Sitear 0 Preparation 1 Custom Herbicide GlyphosateGlyphosa te 4 4 qtqt $4.00 $4.00 qt qt $16.00$16.00 1 Custom Herbicide Site AmmoniaAmm Sulfateonia S ulfate 1.7 1.7 lbs.lbs. $3.80 $3.80 lb.l b. $6.46$6.46 Preparation Total per spray Total per spray $22.46$22.46 Year 1 1 1 Chem.Chem Weed. Wee dcontrol control - Trellis- Trell is SurflanSur flan 1.5 1.5 qtqt $18.02$18.02 qt qt $27.03$27.03

2 Chem. Weed control-spot Glyphosate 2 qt $4.00 lb. $8.00 Year 1 Glyphosate 2 qt $4.00 lb. $8.00 2 Chem. Weed control-spot AmmoniaAmm Sulfateonia S ulfate 1.7 1.7 lbs.lbs. $3.80 $3.80 lb.l b. $6.46$6.46 Total per spray Total per spray $41.49$41.49 Year 2 - 3 1 1 Chem.Chem Weed. Wee dcontrol control - Trellis- Trell is ProwlP H20row l H20 6 6 qtqt $12.00$12.00 qt qt $71.97$71.97

2 Spot herbicide treatment Glyphosate 2 qt $4.00 qt $8.00 Glyphosate 2 qt $4.00 qt $8.00 2 Spot herbicide treatment Year 2 - 3 AmmoniaAmm Sulfateonia S ulfate 1.7 1.7 lbs.lbs. $3.80 $3.80 lb lb $6.46$6.46

3 Spot herbicide treatment Glyphosate 2 qt $4.00 qt $8.00 Glyphosate 2 qt $4.00 qt $8.00 3 Spot herbicide treatment AmmoniaAmm Sulfateonia S ulfate 1.7 1.7 lbs.lbs. $ 3.80$ 3.80 lb.l b. $6.46$6.46 Total for all sprays $100.89$100.89 Year 4+ 1 Chem weed control - trellis ChateauCha teau 12 12 fl.f lOz.. O z. $0.68 $0.68 fl. fOzl. O z $8.11$8.11 1 Chem weed control - trellis Rely 280Rel y 280 24 24 fl.f lOz.. O z. $0.80 $0.80 fl. fOzl. O z $19.12$19.12

Year 4+ 2 Spot herbicide treatment Glyphosate 2 qt. $4.00 qt $8.00 Glyphosate 2 qt. $4.00 qt $8.00 2 Spot herbicide treatment AmmoniaAmm Sulfateonia S ulfate 1.7 1.7 lbs.lbs. $3.80 $3.80 lb lb $6.46$6.46 Total per spray Total per spray $41.69$41.69

Page 26 26

TableTab A2:le A Machinery,2: Mach equipment,inery, eq uandip mebuildingnt, an capitald bu recoveryilding candap iinteresttal re ccosts,over Concordy and i nGrapes,terest Lakecosts Erie, C Region,oncord NY, G r2020ape s, Lake Erie Region, NY, 2020 Machinery and Equipment Purchase Price Years of LifeSalvage ValueCapital to be RecoveredCost Recovery FactorAnnual RecoveryInterest on SalvageTotal CapitalTotal Recovery Capital to Cost Interest on Purchase Years Salvage Annual Value & InterestCapital Machinery and Equipment be Recovery Salvage Price of Life Value Recovery Recovery & Recovered Factor Value Interest Tractor,Tracto 80-HPr, 80- H4WD,P 4W LoaderD, Loader $75,000$75,000 10 10 $7,500$7,500 $67,500$67,500 0.11720.1172 $7.913$7,913 $225 $225 $8,138$8,138 Tractor,Tracto 70-HP,r, 70-H 4WDP, 4WD $55,000$55,000 10 10 $5,500$5,500 $49,500$49,500 0.11720.1172 $5,803$5,803 $165 $165 $5,968$5,968 Tractor,Tracto 60-HP,r, 60-H 4WDP, 4WD $45,000$45,000 10 10 $4,500$4,500 $40,500$40,500 0.11720.1172 $4,748$4,748 $135 $135 $4,883$4,883 4 4Row Row Sprayer Sprayer $85,000$85,000 10 10 $8,500$8,500 $76,500$76,500 0.11720.1172 $8,968$8,968 $255 $255 $9,223$9,223 HerbicideHerbici dsprayer-e spray 200er- 200gallon ga twin-tankllon twin- $15,000 10 $1,500 $13,500 0.1172 $1,583 $45 $1,628 $15,000 10 $1,500 $13,500 0.1172 $1,583 $45 $1,628 tank EnvironmistEnvironm sprayerist sprayer $7,000$7,000 10 10 $700$700 $6,300$6,300 0.11720.1172 $739$739 $21 $21 $760 $760 MowerMower $4,000$4,000 7 7 $571$571 $3,429$3,429 0.16050.1605 $550$550 $17 $17 $567 $567 BrushBrush chopper choppe (6ft)r (6ft) $12,000$12,000 7 7 $1,714$1,714 $10,286$10,286 0.16050.1605 $1,651$1,651 $51 $51 $1,702$1,702 FertilizerFertiliz Spreaderer Sprea de(large)r (large) $18,000$18,000 10 10 $1,800$1,800 $16,200$16,200 0.11720.1172 $1,899$1,899 $54 $54 $1,953$1,953 SmallSma discll disc $3,000$3,000 10 10 $300$300 $2,700$2,700 0.11720.1172 $317$317 $9 $9 $326 $326 GrapeGrape hoe hoe $18,000$18,000 10 10 $1,800$1,800 $16,200$16,200 0.11720.1172 $1,899$1,899 $54 $54 $1,953$1,953 PostPost driver driver $9,000$9,000 10 10 $900$900 $8,100$8,100 0.11720.1172 $950$950 $27 $27 $977 $977 VineyardVineya Trailerrd Trailer $4,500$4,500 10 10 $450$450 $4,050$4,050 0.11720.1172 $475$475 $14 $14 $488 $488 PickupPickup truck truc (enw)k (enw) $45,000$45,000 10 10 $4,500$4,500 $40,500$40,500 0.11720.1172 $4,748$4,748 $135 $135 $4,883$4,883 AugerAuger $1,220$1,220 10 10 $122$122 $1,098$1,098 0.11720.1172 $129$129 $4 $4 $132 $132 MechanicalMechani chedgeral hedger $18,000$18,000 10 10 $1,800$1,800 $16,200$16,200 0.11720.1172 $1,899$1,899 $54 $54 $1,953$1,953 MechanicalMechani cLeafal Le removeraf remover $35,000$35,000 10 10 $3,500$3,500 $31,500$31,500 0.11720.1172 $3,693$3,693 $105 $105 $3,798$3,798 ATVATV $12,000$12,000 10 10 $1,200$1,200 $10,800$10,800 0.11720.1172 $1,266$1,266 $36 $36 $1,302$1,302 BirdBi rcontrold cont equipmentrol equipm ($100ent ( $100per acre) per $5,000 10 $500 $4,500 0.1172 $528 $15 $543 $5,000 10 $500 $4,500 0.1172 $528 $15 $543 acre) ShopShop Equipment Equipment $8,000$8,000 10 10 $800$800 $7,200$7,200 0.11720.1172 $844$844 $24 $24 $868 $868 ElectricElect rpruningic pruni sheersng she ($2,500ers ($2,500 x 3) x 3) $7,500$7,500 5 5 $1,500$1,500 $6,000$6,000 0.21840.2184 $1,310$1,310 $45 $45 $1,355$1,355 HarvesterHarvester $420,000$420,000 22 22 $19,091$19,091 $400,909$400,909 0.06270.0627 $25,156$25,156 $573 $573 $25,729$25,729 MacrobinMacrobi (X15)n (X15) $4,500$4,500 10 10 $450$450 $4,050$4,050 0.11720.1172 $475$475 $14 $14 $488 $488 TotalTota Machinel Machi &ne Equipment & Equipm costsent costs $906,72$906,720 $48,158$48,158 $426,562$426,562 $79,616$79,616 CostCost per pe plantedr plant acreed acre $6,045$6,045 $517 $517 BuildingsBuildin gs ShopShop (1,500 (1,500 ft squared ft2 @ $46 @ $46ft2) ft squared) $82,500$82,500 30 30 $0 $0 $82,500$82,500 0.05100.0510 $4,209$4,209 $0 $0 $4,209$4,209 CostCost per pe plantedr plant acreed acre $550 $550 $27.33$27.33

Page27 27

TableTab A3:l eHourly A3 :Machinery Hourl yand M Equipmentachine Variablery an dCosts, Eq uConcordipme Grapes,nt Var Lakeiab Eriele CRegion,osts ,NY, C on2020c ord Grapes, Lake Erie Region, NY, 2020 Lube Total Purchase Hours Total (15% Hourly Item Repairs Fuel Price of life Repairs of Variable fuel) Costs Tractor, 80-HP 4WD, Loader $ 75,000 7000 100% $10.71 $8.12 $1.22 $20.05 Tractor, 70-HP, 4WD $ 55,000 7000 100% $7.86 $8.12 $1.22 $17.20 Tractor, 60-HP, 4WD $ 45,000 7000 100% $6.43 $8.12 $1.22 $15.77 4 Row Sprayer $ 85,000 2000 60% $25.50 $25.50 Herbicide sprayer- 200 gallon $ 15,000 2000 60% $4.50 $4.50 twin-tank Environmist sprayer $ 7,000 2000 60% $2.10 $2.10 Mower (6ft) $ 4,000 2500 80% $1.28 $1.28 Brush Chopper $ 12,000 2500 80% $3.84 $3.84 Fertilizer Spreader (large) $ 18,000 1200 80% $12.00 $12.00 Small disc (used) $ 3,000 2000 60% $0.90 $0.90 Grape hoe $ 18,000 2000 60% $5.40 $5.40 Post driver $ 9,000 2000 80% $3.60 $3.60 Trailer $ 4,500 3000 80% $1.20 $1.20 Pickup truck (new) $ 45,000 2500 83% $14.94 $5.78 $0.87 $21.59 Auger $ 1,220 2000 80% $0.49 $0.49 Mechanical hedger (used) $ 18,000 2000 80% $7.20 $7.20 Mechanical leaf remover $ 35,000 2000 80% $14.00 $14.00 Harvester $ 420,000 7000 80% 48.00 $48.00 ATV $ 12,000 1200 80% $8.00 $8.00

Page 28 28

Works Cited

Davis, Trent., Miguel I. Gómez, Russell Moss, and Hans Walter-Peterson. "Cost of Establishment and production of vinifera grapes in the Finger Lakes region of New York-2019." (2020).

“Governor"Governor Cuo Cuomomo Announc Announceses New IniNewtiati veInitiativess to Strengt tohe Strengthenn New York's NewConcord York’s Grape Concord Industry." Grape Industry.” New New York YorkState OStateffice ofOffice the G oveof rnor,the Governor,18 Dec. 201 8,18 Dec. 2018, https://www.governor.ny.gov/news/governor-cuomo-announces-new-initiatives-strengthen- https://www.governor.ny.gov/news/governor-cuomo-announces-new-initiatives-strengthen- new-yorks-concord-grape-industry new-yorks-concord-grape-industry

Martin,Martin, Jim.Jim. “Grape"Grape SSeasoneason L ooksLooks G oodGood for forEri eErie Co untCountyy Grow Growers.”ers." GoE rGoErie.com,ie.com, USA TUSAoday Today Network, N e30tw ork,Sept. 30 2019, Sept. 2019,www.goerie.com/news/20190930/grape-season-looks-good-for- www.goerie.com/news/20190930/grape-season-looks-good-for- erie-county-growers. erie-county-growers.

Montalbano,Montalbano, Jenny. Jenny. “The "The Lake La keErie E riConcorde Concord Grape Gra Belt.”pe Be Today'slt." Today Harvest:'s Harv Whereest: Whe Agriculturere Agricul Meetsture Business, Me Farmets B Creditusine sEast,s, Fa rm31 CreJulyd 2018,it Eas twww.farmcrediteast.com/knowledge-, 31 July 2018, www.farmcrediteast .cexchange/Blog/todays-harvest/concord-grape-bellt.om/knowledge- exchange/Blog/todays-harvest/concord-grape-belt.

“The"The Concord Concord GGrape.”rape." G Graperape D Discoveryiscovery Ce Center,nter, Co ncConcordord Gra pGrapee Belt HBelterit aHeritagege Assoc iAssociation,ation, www.grapediscoverycenter.com/history. www.grapediscoverycenter.com/history. Cover photo by Unknown Author is licensed under CC BY-SA

Page29 29

OTHER A.E.M. EXTENSION BULLETINS

Fee (ifFee applicable) Author(s) EB No Title (if applicable) Author(s) 2020-11 Cost of Establishment and Development of Davis, T.J., Gómez, M.I., and Martin, K. Concord Grapes in the Lake Erie Region of New York - 2020

2020-10 Six Year Trend Analysis 2018, New York State Karszes, J., and Skellie, J. Dairy Farms, Selected Financial and Production Factors

2020-09 NY FarmNet 2019 Program Evaluation Parseghian, A., and Downes, K.

2020-08 Dairy Replacement Programs: Costs and Karszes, J. and Hill, L. Analysis Summer 2019

2020-07 Dairy Farm Business Summary New York State Karszes, J, Hill, L, Christman, A, and 2018 Knoblauch, W.

2020-06 Sensitivity Analysis of Profits for V. Vinifera Davis, T., and Gomez, M. Grapes in the Finger Lakes Region of New York - 2019

2020-05 Progress of the Dairy Farm Report Karszes, J., Hill, L., and Knoblauch, W. Selected Financial and Production Factors Dairy Farm Business Summary New York State, 2019 153 Farms

2020-04 Business Tools for NYS Berry Growers Williams, K., Kalaitzandonakes, M., Gómez, M.

2020-03 Regional Grass Fed Beef Supply Chain Kalaitzandonakes, M., Gómez, M., and Peters, C.

2020-02 Cost of Establishment and Production of Cold Davis, T., Gómez, M., Moss, R., Martin, Hardy Grapes in the Chautaqua Region of New K., and Walter-Peterson, H. York - 2019

2020-01 Cost of Establishment and Production of V. Davis, T., Gómez, M., Moss, R., Walter- Vinifera Grapes in the Finger Lakes Region of Peterson, H. New York - 2019

2019-06 Adapting Your Labor Strategies to New York's Eiholzer, L., Ifft, J., Karszes, J., and Revised Farm Employment Laws Stup, R.

Paper copies are being replaced by electronic Portable Document Files (PDFs). To request PDFs of AEM publications, write to (be sure to include your e-mail address): Publications, Department of Applied Economics and Management, Warren Hall, Cornell University, Ithaca, NY 14853-7801. If a fee is indicated, please include a check or money order made payable to Cornell University for the amount of your purchase. Visit our Web site ( http://dyson.cornell.edu/outreach/#bulletins) for a more complete list of recent bulletins.