The Economics of Wine Production in Virginia

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 4. Machinery inventory, cost of operation per hours, and annual cost per acre for the first 10 years for VSP 10 x 7, lyre 10 x 7, or Smart Dyson 10 x 7.

MachineCost/HourYear 1Year 2Year 3Year 4-10
50-horsepower tractor (standard)$ 4.15$281.02 $25.40 $66.06$77.69
4WD, 3/4-ton, pickup (cost/mile and mile/acre)$ 0.28 $140.00$140.00$140.00$140.00
50 gallon herbicide sprayer$ 0.89$0.29$0.29$0.29$0.29
300 gallon air blast sprayer$ 1.20$2.40$4.80$4.80$4.80
17-foot rotary mower$ 1.13$1.70 $1.70$1.70$1.70
Fertilizer/seed spreader$ 0.59$1.77$0.00$0.00$0.00
Post driver$ 0.89$8.90$0.00$0.00$0.00
PTO driven auger 12"$ 0.59$20.45$0.00$0.00$0.00
8-foot flatbed trailer$ 0.89$8.90 $0.00$8.30$10.68
Total machinery cash expense: $465.42 $172.19$221.15$235.16


Machinery capital recovery
Machinery investment financed at 9% for ten years: $57,825.00 x 0.1559* = $9,014.92
Annual cost per acre (10-acre vineyard): $9,014.92/10 acres = $901.49

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