Winery and Vineyard Feasibility Workbooks
Reviewed November 2021.
Starting a vineyard or building a winery requires a great deal of money. Just how much money will depend on the wants and needs of the business and the timing of future income. Iowa State University Extension has developed two cash flow tools to help plan the new business. The tools are populated with realistic data. All input data can be changed to fit the needs of the business.
These Excel workbooks have been created to aid in the development of a cash flow for a vineyard or a winery. The workbooks assume that the user has a good understanding of grape or wine production, marketing, management and accounting principles. Any results developed with these workbooks should be reviewed by a certified public accountant.
The Ten Year Winery Financial Planning Workbook can be used for any size of a winery. The program is very flexible when it comes to options for sources of capital, equipment, marketing, staffing, fixed and variable expenses and sales projections. The program allows up to three term loans. Income sources are the average price per bottle of wine sold, but there are three options to sell wine: in the winery, retail or wholesale. Gift Shop income is also included. Reports include Asset and Depreciation Schedule, a two-year monthly cash flow, a ten-year cash flow, Income Statements and Balance Sheets with a percentage analysis.
The Cost to Establish a Vineyard workbook is designed to report all the income and expense of a one-acre vineyard for up to 13 years. There are three different vineyard workbooks, each for a different trellis style.
- High Trellis
- Geneva Double Curtain
- Vertical Shoot Position
All do the same thing but costs are different for each. Labor costs can include overhead costs like insurance, taxes and vacation costs for up to six different job skills. Machine costs are based on horse power, fuel cost and rental value. Interest Expense is calculated for each new year's expenses as well as all carryover debt to the point in time when income pays off all past expenses. Each year's expenses print as well as a Summary Report of all Income and Expense to date.
Funding for this project was provided by the Leopold Center for Sustainable Agriculture, the Agricultural Marketing Resource Center and Iowa State University Extension Value-Added Agriculture Program.
- Total Wine Package Video, Iowa State University Extension Value-Added Agriculture Program and the Agricultural Marketing Resource Center, 2006 - These four videos address aspects of researching the feasibility of constructing a winery or establishing a vineyard on your operation. The videos are designed to give producers insight into the research needed before construction takes place.
The complete Total Wine Package video is available in DVD format by emailing firstname.lastname@example.org or sending a written request to:
Agricultural Marketing Resource Center
2625 N. Loop Drive, Suite 2430
Ames, Iowa 50010