Virginia Looks To Boost Wine Business Through Grants
May 13, 2016 More than $800,000 is up for grabs for those interested in expanding or adding new vineyards in Virginia.
The Virginia Tobacco Region Revitalization Commission is offering the money to help diversify the state’s agribusiness economy, which is heavily reliant on growing and processing tobacco. Tim Pfohl, grants program director for the commission, says wine production in the state is growing rapidly, with more than 200 wineries open today.
“We have a growing number of wineries, and they want to be sold as a Virginia product, but they have to have a certain percentage of Virginia-grown grapes to do that,” Pfohl says. “We’re trying to help some people get started and some to expand.”
Virginia wine production grew nearly 7% earlier in the decade, according to information on the grant program application, but that slowed to about 2% last year, due in large part to a lack of Virginia grapes.
“The Virginia Wineries Association (VWA), in its strategic plan Beyond 2015 has identified the shortage of Virginia-grown grapes as the number one issue for the industry and an increase in future plantings of vines in the state as a key objective moving forward,” the grant statement says.
The commission’s vision statement says that the southern portions of Virginia have experienced economic stress as a consequence of dependence on tobacco, textile and furniture manufacturing, and coal production.
“In today’s environment, where markets are largely global and employment is increasingly knowledge-based, the Commission seeks to accelerate regional transformation so that all residents enjoy expansive opportunities for education and employment, while communities benefit from economic diversification and enhanced prosperity,” the vision statement reads.
The three-year program includes education through the Virginia Cooperative Extension; grants to new producers that want to establish a vineyard of at least 5 acres; grants to vineyard owners with at least 3 acres currently and willing to expand by 2 acres or more; and on-farm research and development through the Institute for Advanced Learning and Research to evaluate new varietals and genetics to improve disease resistance and yield.
Grant funds can be used for reimbursement for materials, including grape vine trellises, grape vines, deer fencing, and irrigation.
New producers can receive up to $3,000 per acre, for a total of $15,000. Expanding producers can receive up to $20,000.
The program runs through March 1, 2019.
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