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 5. Establishment and annual operational costs associated with vines spaced 7 feet apart in rows 10 feet wide and trained to a divided canopy system (Lyre 10 x 7). Costs and returns are shown for seven years.
| Year 1 Preproduction Expenses (Lyre) | 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 | 3 | $ 2.55 | |
| Shoot thinning and shoot tying to stakes-labor (unskilled) | $ 7.00 | 28.44 | $ 199.08 | |
| Flower cluster removal-labor (unskilled) | $ 7.00 | 2.84 | $ 19.88 | |
| 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 (Lyre): 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 | 16.46 | $ 1,119.28 | |
| 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 | 20 | $ 31.60 | |
| Wirevise wire strainers for foliage wires | $ 1.43 | 60 | $ 85.80 | |
| Wire crimping sleeves | $ 0.10 | 80 | $ 8.00 | |
| Bamboo stakes for trunk support | $ 0.18 | 1280 | $ 230.40 | |
| Lyre frame and hardware | $ 10.00 | 150 | $ 1,500.00 | |
| 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 Lyre frames (unskilled) | $ 7.00 | 0.6 | $ 4.20 | |
| Mark end post for wire strainers and wirevises (unskilled) | $ 7.00 | 0.49 | $ 3.43 | |
| Drill end post for wirevises (unskilled) | $ 7.00 | 4.63 | $ 32.41 | |
| Install end post anchor structure (skilled) | $ 9.00 | 8 | $ 72.00 | |
| String and tighten cordon and foliage wire (unskilled) | $ 7.00 | 19.2 | $ 134.40 | |
| Install bamboo stakes (unskilled) | $ 7.00 | 5.32 | $ 37.24 | |
| Install Lyre frames (unskilled) | $ 7.00 | 25 | $ 175.00 | |
| Safety Equipment | ||||
| Personal Protective Equipment (PPE) 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% | $ 8,953.41 | $ 402.90 | |
| Annual Cash Expense - Year 1 | $ 9,356.32 | |||
| Year 2 Preproduction Expenses (Lyre) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Dormant Pruning | ||||
| Pruning and tying of canes prior to budbreak- labor (unskilled) | $ 7.00 | 20.48 | $ 143.36 | |
| Tying material (tape) | $ 0.85 | 4 | $ 3.40 | |
| 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 for 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 | 4 | $ 3.40 | |
| Shoot thinning and tying-labor (unskilled) | $ 7.00 | 61.86 | $ 433.02 | |
| Flower cluster removal-labor (unskilled) | $ 7.00 | 16.4 | $ 114.80 | |
| 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% | $ 1,367.03 | $ 61.52 | |
| Interest on Year 1 Accrued Cash Expense | 9.00% | $ 9,356.32 | $ 842.07 | |
| Annual Cash Expense -Year 2 | $ 2,270.61 | |||
| Total Accumulated Cash Expense | $ 11,626.93 | |||
| Year 3 Production Expenses (Lyre) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Dormant Pruning | ||||
| Spur pruning and cane removal-labor (unskilled) | $ 7.00 | 64 | $ 448.00 | |
| Cordon training and tying-labor (unskilled) | $ 7.00 | 21.32 | ||
| Tying material (tape) | $ 0.85 | 4 | $ 3.40 | |
| 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 | 8 | $ 6.80 | |
| Shoot thinning-labor (unskilled) | $ 7.00 | 10 | $ 70.00 | |
| Shoot positioning and tying (twice)-labor (unskilled) | $ 7.00 | 40 | $ 280.00 | |
| Leaf removal-labor (unskilled) | $ 7.00 | 20 | $ 140.00 | |
| Vine trimming/hedging-labor (unskilled) | $ 7.00 | 20 | $ 140.00 | |
| 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 | 100 | $ 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 | |
| Year 3 Production Expenses (Lyre): (continued) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Machinery | ||||
| Cash operating expenses only | $ 221.15 | |||
| Operating Interest | ||||
| Interest charged on yearly cash expenses for 1/2 yr. | 9.00% | $ 2,783.73 | $ 125.27 | |
| Interest on Year 2 Accrued Cash Expense | 9.00% | $ 11,626.93 | $ 1,046.42 | |
| Annual Cash Expense-Year 3 | $ 3,955.42 | |||
| Total Accumulated Cash Expense | $15,582.35 | |||
| Harvest Income | ||||
| 2.5-tons/acre | $1,300.00 | 2.5 | $ 3,250.00 | |
| Net Investment at End of Year 3 | $ 12,332.35 | |||
| Year 4 Production Expenses (Lyre) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Dormant Pruning | ||||
| Spur pruning and cane removal-labor (unskilled) | $ 7.00 | 64 | $ 448.00 | |
| Cordon training and tying-labor (unskilled) | $ 7.00 | 8 | $ 56.00 | |
| Tying material (tape) | $ 0.85 | 2 | $ 1.70 | |
| Weed Control | ||||
| Herbicide cost (simazine and glyphosate) | $ 11.30 | 1 | $ 11.30 | |
| 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 | ||||
| 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 | $ 636.80 | |||
| Disease and Insect Control | ||||
| Similar to year 3 | $ 383.78 | |||
| Safety Equipment | ||||
| Similar to year 2 | $ 162.35 | |||
| Harvest Costs | ||||
| Harvest lugs (half required for 4.5 tons, minus 100) | $ 5.85 | 80 | $ 468.00 | |
| Picking-labor (25 pound lug) | $ 1.25 | 360 | $ 450.00 | |
| Distribute and remove lugs-labor (2 unskilled at 130 lugs/hour) | $ 14.00 | 2.77 | $ 38.78 | |
| Machinery | ||||
| Cash operating expenses only | $ 235.16 | |||
| Operating Interest | ||||
| Interest charged on yearly cash expenses for 1/2 yr. | 9.00% | $ 2,931.18 | $ 131.90 | |
| Interest on Year 3 Accrued Investment | 9.00% | $ 12,332.35 | $ 1,109.91 | |
| Annual Cash Expense -Year 4 | $ 4,173.00 | |||
| Total Accumulated Cash Expense | $16,505.35 | |||
| Harvest Income | ||||
| 4.5-tons/acre | $1,300.00 | 4.5 | $ 5,850.00 | |
| Net Investment at End of Year 4 | $ 10, 655.35 | |||
| Year 5 Production Expenses (Lyre) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Management Expenses Similar to Year 4, minus harvest costs | $ 1,974.40 | |||
| Harvest Cost | ||||
| Harvest lugs (half required for 6.8 tons, minus 180) | $ 5.85 | 92 | $ 538.20 | |
| Picking-labor (25 pound lug) | $ 1.25 | 544 | $ 680.00 | |
| Distribute and remove lugs-labor (2 unskilled at 130 lugs/hour) | $ 14.00 | 4.18 | $ 58.52 | |
| Operating Interest | ||||
| Interest charged on yearly cash expenses for 1/2 yr. | 9.00% | $ 3,251.12 | $ 146.30 | |
| Interest on Year 4 Accrued Investment | 9.00% | $ 10,655.35 | $ 958.98 | |
| Annual Cash Expense - Year 5 | $ 4,356.41 | |||
| Total Accumulated Cash Expense | $ 15,011.76 | |||
| Harvest Income | ||||
| 6.8-tons/acre | $1,300.00 | 6.8 | $ 8,840.00 | |
| Net Investment at End of Year 5 | $6171.76 | |||
| Year 6 Production Expenses (Lyre) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Management Expense Similar to Year 5, minus lug cost Operating Interest | $ 2,712.92 | |||
| Interest charged on yearly cash expenses for l/2 yr. | 9.00% | $ 2,712.92 | $ 122.08 | |
| Interest on Year 5 Accrued Investment | 9.00% | $ 6,171.76 | $ 555.46 | |
| Annual Cash Expense Year 6 | $ 3,390.46 | |||
| Total Accumulated Cash Expense | $ 9,562.22 | |||
| Harvest Income | ||||
| 6.8-tons/acre | $1,300.00 | 6.8 | $ 8,840.00 | |
| Net Investment at End of Year 6 | $ 722.22 | |||
| Year 7 Production Expenses (Lyre) | Unit cost | Units/acre | Cost/acre | Your estimate |
| Management Expense Similar to Year 6 with 1/2 yr. Interest | $ 2,835.00 | |||
| Interest on Year 6 Accrued Investment | 9.00% | $ 722.22 | $ 65.00 | |
| Annual Cash Expense - Year 7 | $ 2,900.00 | |||
| Total Accumulated Cash Expense | $ 3,622.22 | |||
| Harvest Income | ||||
| 6.8-tons/acre | $1,300.00 | 6.8 | $ 8,840.00 | |
| Net Return at End of Year 7 | + $ 5,217.78 | |||
Return to The Economics of Wine Production in Virginia.