Authors: Eric R. Capps, Viticulture Extension Assistant, Alson H. Smith Agricultural Research and Extension Center, Virginia Tech. Currently Graduate Research Assistant, Virginia Tech; Tony K. Wolf, Viticulture Extension Specialist, Alson H. Smith Agricultural Research and Extension Center, Virginia Tech, Winchester, VA; B. Jerry Walker, Financing Specialist, Agricultural Development Services, Virginia Department of Agriculture and Consumer Services, Richmond, VA.
Publication Number 463-008, posted June, 1998
Table 2. Establishment and annual operational costs associated with vines spaced 7 feet apart in rows 10 feet wide. Vines are bi-lateral cordon-trained and spur-pruned. Canopies are vertically shoot-positioned in an upward direction (VSP 10 x 7). Costs and returns are shown for seven years.
| Year 1 Preproduction Expenses (VSP 10 x 7) | Unit cost | Units/acre | Cost/acre | Your estimate |
|---|---|---|---|---|
| Site Preparation | ||||
| Soil sampling-labor (unskilled) | $ 7.00 | 1.5 | $ 10.50 | |
| Soil testing (1 test per 10 acres) | $ 9.00 | 0.1 | $ 0.90 | |
| Lime (3 tons per acre) | $ 18.00 | 3 | $ 54.00 | |
| Liming-labor (skilled) | $ 9.00 | 2 | $ 18.00 | |
| Plow and disc-labor (skilled) | $ 9.00 | 3 | $ 27.00 | |
| Cover crop seed (50 lbs. per acre of turf type fescue) | $ 1.60 | 50 | $ 80.00 | |
| Sow cover crop-labor (skilled) | $ 9.00 | 1 | $ 9.00 | |
| Vineyard Layout | ||||
| Markers (post and vines) | $ 0.07 | 810 | $ 56.70 | |
| Mark vine and post locations-labor (skilled) | $ 9.00 | 4.8 | $ 43.20 | |
| Planting | ||||
| Vines | $ 2.90 | 640 | $ 1,856.00 | |
| Auger vine holes-labor (skilled at 3 minutes per hole) | $ 9.00 | 32 | $ 288.00 | |
| Planting vines-labor (unskilled at 2 minutes per vine) | $ 7.00 | 21.33 | $ 149.31 | |
| Weed Control | ||||
| Herbicide cost (oryzalin and glyphosate) | $ 28.18 | 1 | $ 28.18 | |
| Herbicide application to vineyard rows-labor (skilled) | $ 9.00 | 0.33 | $ 2.97 | |
| Mowing of vineyard aisles-labor for 6 mowings (skilled) | $ 9.00 | 1.5 | $ 13.50 | |
| Fertilization | ||||
| Fertilizer | $ 0.11 | 160 | $ 17.60 | |
| Fertilizer application to vineyard rows-labor (unskilled) | $ 7.00 | 2.13 | $ 14.91 | |
| Canopy Management | ||||
| Tying materials (tape) | $ 0.85 | 2 | $ 1.70 | |
| Shoot thinning and shoot tying to stakes-labor(unskilled) | $ 7.00 | 21.33 | $ 149.31 | |
| Flower cluster removal-labor (unskilled) | $ 7.00 | 2.13 | $ 14.91 | |
| Disease and Insect control | ||||
| Spray materials cost | $ 86.70 | 1 | $ 86.70 | |
| Spray application-labor for 6 sprays (skilled) | $ 9.00 | 2 | $ 18.00 | |
| Year 1 Preproduction Expenses (VSP 10 x 7): (continued) | Unit Cost | Units/acre | Cost/acre | Your Estimate |
| Trellising Materials | ||||
| 3"x 8' CCA-treated line posts | $ 3.47 | 150 | $ 520.50 | |
| 6"x 8' CCA-treated end posts | $ 5.88 | 20 | $ 117.60 | |
| 12.5 ga.HT cordon and foliage wire | $ 68.00 | 8.23 | $ 559.64 | |
| 10.5 ga. anchor support wire | $ 55.00 | 0.26 | $ 14.30 | |
| End post anchors | $ 5.95 | 20 | $ 119.00 | |
| In-line ratchet wire strainers for cordon wires | $ 1.58 | 10 | $ 15.80 | |
| Wirevise wire strainers for foliage wires | $ 1.43 | 60 | $ 85.80 | |
| Fencing staples for cordon and foliage wires | $ 1.90 | 25 | $ 47.50 | |
| Wire crimping sleeves | $ 0.10 | 60 | $ 6.00 | |
| Bamboo stakes for trunk support | 0.18 | 640 | 115.20 | |
| Trellis Construction Labor | ||||
| Distribute and drive posts (1 skilled, 1 unskilled at 6 minutes per post) | $ 16.00 | 15 | $ 240.00 | |
| Auger and set end post (1 skilled, 1 unskilled at 4 minutes per post) | $ 16.00 | 2.66 | $ 42.56 | |
| Mark line post for cordon and foliage wires (unskilled) | $ 7.00 | 1.8 | $ 12.60 | |
| Mark end post for wire strainers and wirevises (unskilled) | $ 7.00 | 0.24 | $ 1.68 | |
| Drill end post for wirevises (unskilled) | $ 7.00 | 2 | $ 14.00 | |
| Install line post staples for cordon and foliage wire (unskilled) | $ 7.00 | 4 | $ 28.00 | |
| Install end post anchor structure (skilled) | $ 9.00 | 8 | $ 72.00 | |
| String and tighten cordon and foliage wire (unskilled) | $ 7.00 | 9.6 | $ 67.20 | |
| Install bamboo stakes (unskilled) | $ 7.00 | 2.66 | $ 18.62 | |
| Safety Equipment | ||||
| Personal Protective Equipment and warning signs | $191.35 | |||
| First aid, chemical spill, and decontamination kits | $195.00 | |||
| Hand Tools | ||||
| Total cost | $ 617.95 | |||
| Machinery | ||||
| Cash operating expenses only | $ 465.42 | |||
| Operating Interest | ||||
| Interest charged on yearly cash expenses for 1/2 yr. | 9.00%; | $ 6,508.10 | $ 292.86 | |
| Annual Cash Expenses - Year 1 | $ 6,800.97 | |||
| Year 2 Preproduction Expenses (VSP 10 x 7) | Unit Cost | Units/acre | Cost/acre | Your Estimate |
| Dormant Pruning | ||||
| Pruning and tying of canes prior to budbreak-labor (unskilled) | $ 7.00 | 10.24 | $ 71.68 | |
| Tying material (tape) | $ 0.85 | 2 | $ 1.70 | |
| Weed Control | ||||
| Herbicide cost (oryzalin and paraquat) | $ 23.99 | 1 | $ 23.99 | |
| Herbicide application to vineyard rows-labor (skilled) | $ 9.00 | 0.33 | $ 2.97 | |
| Mowing of vineyard aisles-labor 6 mowings (skilled) | $ 9.00 | 1.5 | $ 13.50 | |
| Replanting | ||||
| Vines (2% of initial planting) | $ 2.90 | 13 | $ 37.70 | |
| Replanting-labor (unskilled at 4 minutes per vine) | $ 7.00 | 0.87 | $ 6.09 | |
| Canopy Management | ||||
| Tying materials (tape) | $ 0.85 | 2 | $ 1.70 | |
| Shoot thinning and tying-labor (unskilled) | $ 7.00 | 30.93 | $ 216.51 | |
| Flower cluster removal-labor (unskilled) | $ 7.00 | 8.2 | $ 57.40 | |
| Disease and Insect Control | ||||
| Spray materials cost | $ 214.26 | 1 | $ 214.26 | |
| Spray application-labor for 12 sprays (skilled) | $ 9.00 | 4 | $ 36.00 | |
| Safety Equipment | ||||
| Personal Protective Equipment | $ 162.35 | |||
| Machinery | ||||
| Cash operating expenses only | $ 172.19 | |||
| Operating Interest | ||||
| Interest charged on yearly cash expenses for 1/2 yr. | 9.00% | $ 1,018.04 | $ 45.81 | |
| Interest on Year 1 Accrued Cash Expense | 9.00% | $ 6,800.97 | $ 612.09 | |
| Anual Cash Expense -Year 2 | $ 1,675.94 | |||
| Total Accumulated Cash Expense | $ 8,476.90 | |||
| Year 3 Production Expenses (VSP 10 x 7) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Dormant Pruning | ||||
| Spur pruning and cane removal-labor (unskilled) | $ 7.00 | 32 | $ 224.00 | |
| Cordon training and tying-labor (unskilled) | $ 7.00 | 10.66 | $ 74.62 | |
| Tying material (tape) | $ 0.85 | 2 | $ 1.70 | |
| Weed Control | ||||
| Herbicide cost (simazine and glyphosate) | $ 28.18 | 1 | $ 28.18 | |
| Herbicide application to vineyard rows-labor (skilled) | $ 9.00 | 0.33 | $ 2.97 | |
| Mowing vineyard aisles-labor for 6 mowings (skilled) | $ 9.00 | 1.5 | $ 13.50 | |
| Fertilization | ||||
| Leaf petiole sampling-labor (unskilled) | $ 7.00 | 0.3 | $ 2.10 | |
| Processing of tissue sample (1 test per 10 acres) | $ 21.00 | 0.1 | $ 2.10 | |
| Fertilizer (materials and rates will vary) | $ 0.11 | 160 | $ 17.60 | |
| Fertilizer application to vineyard rows-labor (unskilled) | $ 7.00 | 0.75 | $ 5.25 | |
| Canopy Management | ||||
| Tying material (tape) | $ 0.85 | 3 | $ 2.55 | |
| Shoot thinning-labor (unskilled) | $ 7.00 | 5 | $ 35.00 | |
| Shoot positioning and tying-labor (unskilled) | $ 7.00 | 10 | $ 70.00 | |
| Leaf removal-labor (unskilled) | $ 7.00 | 10 | $ 70.00 | |
| Vine trimming/hedging-labor (unskilled) | $ 7.00 | 10 | $ 70.00 | |
| Disease and Insect Control | ||||
| Spray materials cost | $ 347.78 | 1 | $ 347.78 | |
| Spray application-labor for 12 sprays (skilled) | $ 9.00 | 4 | $ 36.00 | |
| Safety Equipment | ||||
| Similar to year 2 | $ 162.35 | |||
| Harvest Cost | ||||
| Harvest lugs (half required for 2.5 tons) | $ 5.85 | l00 | $ 585.00 | |
| Picking-labor (25 pound lug) | $ 1.25 | 200 | $ 250.00 | |
| Distribute and remove lugs-labor (2 unskilled at 130 lugs per hour) | $ 14.00 | 1.54 | $ 21.56 | |
| Machinery | ||||
| Cash operating expense only | $ 221.15 | |||
| Operating Interest | ||||
| Interest charged on yearly cash expenses for 1/2 yr. | 9.00% | $ 2,243.40 | $ 100.95 | |
| Interest on Year 2 Accrued Cash Expense | 9.00% | $ 8,476.90 | $ 762.92 | |
| Annual Cash Expense -Year 3 | $ 3,107.28 | |||
| Total Accumulated Cash Expense | $11,584.18 | |||
| Harvest Income | ||||
| 2.5-tons/acre | $1,300.00 | 2.5 | $ 3,250.00 | |
| Net Investment at End of Year 3 | $ 8,334.18 | |||
| Year 4 Production Expenses (VSP 10 x 7) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Dormant Pruning | ||||
| Spur pruning and cane removal-labor (unskilled) | $ 7.00 | 32 | $ 224.00 | |
| Cordon training and tying-labor (unskilled) | $ 7.00 | 4 | $ 28.00 | |
| Tying material (tape) | $ 0.85 | 1 | $ 0.85 | |
| Weed Control | ||||
| Herbicide cost (simazine and glyphosate) | $ 11.30 | 1 | $ 11.30 | |
| Herbicide application-labor (skilled) | $ 9.00 | 0.33 | $ 2.97 | |
| Mowing vineyard aisles-labor for 6 mowings (skilled) | $ 9.00 | 1.5 | $ 13.50 | |
| Fertilization | ||||
| Fertilizer (materials and rates will vary) | $ 0.11 | 160 | $ 17.60 | |
| Fertilizer application to vineyard rows-labor (unskilled) | $ 7.00 | 0.75 | $ 5.25 | |
| Canopy Management | ||||
| Similar to year 3 | $ 247.55 | |||
| Disease and Insect Control | ||||
| Similar to year 3 | $ 383.78 | |||
| Safety Equipment | ||||
| Similar to year 2 | $ 162.35 | |||
| Harvest Costs | ||||
| Harvestlugs(half required for 4.0 tons, minus 100) | $ 5.85 | 60 | $ 351.00 | |
| Picking-labor (25 pound lug) | $ 1.25 | 320 | $ 400.00 | |
| Distribute and remove lugs-labor (2 unskilled at 130 lugs/hour) | $ 14.00 | 2.46 | $ 34.44 | |
| Machinery | ||||
| Cash operating expenses only | $ 235.16 | |||
| Operating Interest | ||||
| Interest charged on yearly cash expenses for 1/2 yr. | 9.00% | $ 2,117.74 | $ 95.30 | |
| Interest on Year 3 Accrued Investment | 9.00% | $ 8,334.18 | $ 750.08 | |
| Annual Cash Expense -Year 4 | $ 2,963.12 | |||
| Total Accumulated Cash Expense | $11,297.30 | |||
| Harvest Income | ||||
| 4.0-ton/acre | $1,300.00 | 4 | $ 5,200.00 | |
| Net Investment at End of Year 4 | $ 6.097.30 | |||
| Year 5 Production Expenses (VSP 10 x 7) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Management Expenses Similar to Year 4, minus lug costs | $ 1,766.74 | |||
| Operating Interest | ||||
| Interest charged on yearly cash expenses for 1/2 yr. | 9.00% | $ 1,766.74 | $ 79.50 | |
| Interest on Year 4 Accrued Investment | 9.00% | $ 6,097.30 | $ 548.76 | |
| Annual Cash Expense - Year 5 | $ 2,395.00 | |||
| Total Accumulated Cash Expense | $ 8,492.30 | |||
| Harvest Income | ||||
| 4.0-ton/acre | $1,300.00 | 4 | $ 5,200.00 | |
| Net Investment at End of Year 5 | $ 3,292.30 | |||
| Year 6 Production Expenses (VSP 10 x 7) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Management Expense Similar to Year 5 with 1/2 yr. Interest | $ 1,846.25 | |||
| Interest on Year 5 Accrued Investment | 9.00% | $ 3,292.30 | $ 296.31 | |
| Annual Cash Expense - Year 6 | $ 2,142.56 | |||
| Total Accumulated Cash Expense | $ 5,434.86 | |||
| Harvest Income | ||||
| 4.0-ton/acre | $1,300.00 | 4 | $ 5,200.00 | |
| New Investment at End of Year 6 | $234.86 | |||
| Year 7 Production Expenses (VPS 10 x 7) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Management Expense Similar to Year 6 with 1/2 yr. Interest | $ 1,846.25 | |||
| Interest on Year 6 Accrued Investment | 9.00% | $ 234.86 | $ 10.57 | |
| Annual Cash Expense - Year 6 | $ 1,856.82 | |||
| Total Accumulated Cash Expense | $ 2,091.68 | |||
| Harvest Income | ||||
| 4.0-ton/acre | $1,300.00 | 4 | $ 5,200.00 | |
| Net Return at End of Year 7 | +$ 3,108.32 | |||
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