The projections of income and expenses in this document provide a
general indication of the financial requirements specifically
associated with the establishment and production of vinifera wine
grapes in the Okanagan region. The study is based on a ten-acre
planted vineyard model developed using a consensus approach with
grape producers. A summary of the estimated labour resources is
included along with a sensitivity analysis that discusses the impact
of price and yield on profitability and accumulated cash flows for
the enterprise over a 15-year planning horizon. Financial information
for this enterprise is summarized based on the surplus resulting from
direct income, minus direct expenses specific to the vineyard. This
value provides an indication of the potential contribution of the
vineyard enterprise to the overall profitability of the farm business
and allows a basis on which to compare various enterprise
alternatives.
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