The Refined Palette of Investment

Exploring Wine as a Strategic Asset

wine bottle laying on blue silk

By: Shana Orczyk Sissel – Founder, President & Chief Executive Officer of Banríon Capital Management

In a time period marked by the unpredictable swings of traditional markets, many investors are turning their attention to more tangible assets that provide not only financial returns but also offer a personal and luxurious experience. Among these alternatives, fine wine is becoming increasingly appealing. As a long-time observer and participant in the alternative investment space, I have seen a significant uptick in wine investment interest, particularly among investors aiming to diversify their portfolios while adding a uniquely personal touch.

Why Wine?

  The appeal of investing in wine is layered and robust. Historically, fine wine has shown remarkable resilience in the face of economic downturns, often outperforming traditional stocks and bonds during inflation and market instability. This resilience is largely due to wine’s status as a luxury item, with its value driven by limited supply and increasing global demand. The finite production of certain vintage wines means that as bottles are consumed, the remaining ones become rarer and potentially more valuable. This positions wine not just as a hedge against inflation but as a compelling means for capital preservation.

Wine Fundamentals for Investors

  For those new to wine investing, understanding the fundamentals is crucial. Key factors to consider include the reputation of the vineyard, the quality and rarity of the vintage, and proper storage conditions to preserve the wine’s value. Investing in wine requires a strategy for buying, storing, and eventually selling:

●     Selection: Focus on well-known regions like Bordeaux, Burgundy, and Napa Valley, which historically produce wines that appreciate in value.

●     Storage: Proper storage is critical and should be in a climate-controlled environment to protect the wine’s quality and longevity.

●     Insurance: Like any valuable asset, wine collections should be insured, especially as their market value increases.

●     Exit Strategy: Knowing when and how to sell is as important as knowing what to buy. Most fine wines reach a peak market value at a certain point of maturity.

Personalization at Its Best

  Investing in wine is a deeply personal experience. Each bottle has its own story, tied to its origin, vintage, and the subtleties of its taste. This personal dimension allows financial advisors to engage with their clients on a deeper level. Offering wine as dividends, for instance, instead of traditional cash payouts, forges a more meaningful connection between investors and their investments. Imagine the moment of pride an investor feels when uncorking a bottle from “their” vineyard’s wine while entertaining at home.

Strengthening Relationships

  For advisors, the wine industry offers a distinctive way to deepen client relationships. Discussing wines, sharing tastings, and exploring vineyards can be powerful relationship-building experiences. These interactions allow advisors to connect with clients in settings that extend beyond conventional business environments, fostering a sense of camaraderie and shared interest.

  In the same vein, effectively marketing a vineyard or winery to financial advisors can enhance these relationships further. Invite advisors to your property for tours, tastings, and in-depth discussions about your production process and business philosophy. When advisors are familiar with a vineyard’s story, its commitment to quality, and its unique offerings, they are better positioned to recommend these investments confidently to their clients.

Diversification Through Wine

  Wine offers substantial diversification benefits. Its low correlation with conventional financial assets like stocks and bonds means it can help smooth out portfolio volatility, providing steadier returns over time. Incorporating wine into an investment portfolio can act as a buffer against market swings, appealing to those seeking more stability in their investment journey.

Avenues for Investing in Wine

  There are several options when it comes to investing in wine, each offering unique benefits and risks. Direct ownership of bottles or cases is the most traditional method, providing control over selection and requiring knowledge of wine regions and proper storage. Alternatively, wine funds offer ease through professional management, though they lack liquidity and involve fees. Those preferring a more traditional market approach might consider wine stocks, which involve investing in publicly traded companies related to the wine industry. Wine futures, or “en primeur,” allow investors to buy wine before it is bottled, potentially at lower prices, but this comes with its own set of risks related to market and production quality.

  Emerging trends like wine exchange platforms and crowdfunding are modernizing wine investment. Exchange platforms provide transparency and liquidity, enabling the trading of wine much like stocks. Crowdfunding platforms let investors buy shares in vineyards or wine projects, reducing the barrier to entry and allowing participation in potential profits from wine production without substantial upfront investment. We work closely with advisors to help them tailor and better understand the investment options that work best for individual clients.

Seizing Opportunities in the Regulatory Landscape

  Recent shifts in regulatory frameworks have opened new avenues for winemakers and investors. With the ability to raise capital from the public more freely than before, vineyards and wineries can now explore new ways of funding their operations and expansions. However, despite the high demand, there are surprisingly few wine funds available, offering a niche yet potentially lucrative investment opportunity. A thorough understanding of the market and regulatory environment will ensure investors can identify and capitalize on the best offerings.

Targeting a Broader Investor Base

  The demographic of wine investors is expanding, with women in particular drawn to the combination of cultural appreciation, luxury, and investment potential that fine wine offers. Wineries have a significant opportunity to cater to this demographic, especially at tastings, which predominantly attract couples and women. Additionally, social media has introduced new marketing channels that are not only more cost-effective compared to traditional advertising channels like television, but also resonate strongly with the female market. Influencers can provide a personal touch and create authentic connections with products, while “mom memes” underscore wine’s cultural integration.

Global Market Trends

  The global wine market is experiencing significant shifts, influenced by changing consumer behaviors and economic conditions. According to Spherical Insights, the global wine market size is projected to reach $583 billion by 2032 with a compound annual growth rate of 5.7%. Emerging markets, especially in Asia and parts of Africa, are developing a robust appetite for luxury wines driven by increasing wealth and a growing middle class. As a result, demand is likely to keep rising, potentially pushing prices higher in well-established and emerging wine markets alike.

  In Europe and North America, consumption patterns are stabilizing, but the interest in high-quality, sustainable, and boutique wines is growing. This shift towards premium products supports higher price points and can enhance investment returns.

The Future of Wine Investing

  The future looks promising for the wine sector. As awareness of its benefits grows, more investors are likely to explore how wine can complement their portfolios. For newcomers, starting with a reputable wine fund can provide a secure and enlightening entry into the market, combining financial benefits with the pleasure of ownership.

The Last Sip

  Wine investing extends beyond simple asset acquisition; it’s about embracing a lifestyle and crafting a portfolio that mirrors personal tastes and passions. For those eager to incorporate sophistication and personalization into their investment strategy, wine offers an enticing path. Whether you’re a seasoned collector or new to the world of wine, the right investment strategy can transform every sip into not just a taste of exquisite craftsmanship but also a toast to financial prosperity.

As Founder, President & Chief Executive Officer of Banríon Capital Management Shana Orczyk Sissel helps independent advisors navigate the complex world of alternative investing, bridging the gap between public and private alternative investment opportunities. Additionally, she assists clients with investment platform development, alternatives in portfolio construction and developing best practice in alternative investment due diligence. In this role, Ms. Sissel assisted in the launch of Armada ETF Advisors, and served as a key advisor in the firm’s recent launch of its first ETF product, the Home Appreciation U.S. REIT ETF (HAUS).

AgTech Advancements Powering Vineyard Innovations

person holding cell phone up to grape cluster

By: Josh Mickolio – DigiKey

  For a long time, wineries have used technology to produce excellent wine. These technologies include tank sensors that offer real-time data on oxygen levels, temperature and sugar content. As wine regions face challenges like labor shortages, increasing temperatures, wildfires and drought, some winemakers are looking towards smarter technology to secure their future.

  Modern vineyard owners are increasingly turning to agriculture technology (AgTech) solutions to help keep up with the pace of global wine demand. A wide variety of factors have made the grape growing job more complex and challenging, along with climate change and labor shortages, rising costs and a decreased interest in viticulture as a career. Digital tools for monitoring soil health, weather patterns and grapevine vitality are a necessity for modern vineyard operators.

  Advancements in AgTech are responsible for smarter harvesting, the electrification of equipment and better data collection in order to make more informed decisions. Plus, advances in global connectivity have improved data communication speeds, even in extremely rural or hillside locations where vineyards are often located.

  One of the AgTech solutions that is picking up a great deal of steam is precision agriculture, which relies heavily on technology to more accurately and efficiently complete winery tasks. To better understand vineyards through data, wineries are installing weather stations, soil moisture and temperature sensors and flying drones with infrared technology to gauge the health of their vines.

person with drones flying in vineyard

Improved sensor technology ultimately leads to better, more precise results for growers, including better equipment positioning and monitoring.

  Viticulture requires a great deal of energy and resources, and precision agriculture aims to use that energy and those resources more effectively and efficiently for the betterment of all. Modern wineries rely on technology to elevate the art of grape growing with automated and sustainable solutions.

Technology Enables Evolution

  The transition from traditional practices to a more modern approach has become more than necessary for vineyard operators. With the global wine market projected to reach over 450 billion by 2028, staying competitive in this industry requires an equal blend of tradition and technological innovation. While most grape growers and vineyard staff do the cultivation work like pruning or leafing by hand, the data and new technologies help them know which plants need special attention.

  Over the following decades, connectivity solutions have continued to improve, enabling faster data transfer for both cloud and edge computing globally. Additionally, the capabilities of autonomous solutions have accelerated in recent years, such as improvements in optics processing, the growth of artificial intelligence and the introduction of solid-state LiDAR—all of which add up to advancements for precision agriculture.

  In order to realize its full potential, precision agriculture requires a robust foundation, which often means a deep well of data points. That data is collected and measured by a wide variety of hardware and software solutions.

  Today, sensors are one of the most heavily used hardware solutions in agriculture – they are essential to gathering data to inform decision-making. These sensors are incredibly rugged and able to withstand many environmental factors such as high and low temperatures, extreme weather, chemical exposure, dirt, vibration, animals and much more.

  Also, the sensors used in most agriculture equipment are not only designed for wear and tear but in terms of equipment design, they are typically well-protected and hidden in hard-to-disturb places.

  Improved sensor technology ultimately leads to better, more precise results for vineyard owners, such as better equipment positioning and monitoring, better moisture and sunlight detection and much more.

Reaping the Benefits

  The search for vineyard efficiency has produced a wide range of systems and techniques in recent years. Sensor technology can help wineries function effectively and efficiently by providing real-time data on vineyard conditions.

sensor at use in vineyard

  Sensors are among the most heavily used hardware solutions in ag settings – they are essential to gathering data to inform decision-making.

Some of the most commonly used applications of sensor technology in vineyards include:

•   Soil moisture: Measures water levels to prevent overwatering/underwatering.

•   Temperature and humidity: Providing climate information to optimize growing conditions.

•   Sunlight exposure: Measuring sunlight vines receive to optimize grape maturation.

•   Spectral imaging: Captures and analyzes reflected light from plants to provide information about their health.

•   Early warning systems: Monitor wind speed, leaf wetness and rainfall to sense and communicate disease risk.

  As technology continues to scale and evolve toward precision and adaptability, vineyard owners will reap the rewards, which range from increased land productivity to less reliance on manual labor and staffing, as well as positive environmental impacts from using fewer inputs.

The Future of AgTech

  The modern viticulture industry is tasked with creating more wine while reducing environmental impacts and navigating labor shortages. Advanced technology solutions can help vineyard owners and staff automate the critical processes crucial to reaching the scalability needed to satisfy demand.

  Of course, implementing new technology can come with its own set of challenges. To enable mass adoption of precision agriculture, technology providers must be prepared to scale solutions easily and cost-effectively across the globe, and connectivity solutions must continue to improve in order to enable real-time processing and analysis. 

  Many different precision agriculture and viticulture technologies have applications in the vineyard, such as global positioning systems (GPS), robotics, airborne remote sensing, geographic information systems (GIS), digital elevation models (DEM), high-resolution soil surveys, wireless sensor networks and more.

  In an industry already facing financial pressures for an inconsistent and costly labor supply, the good news is many entry-level sensors and networking equipment costs are relatively low compared to what was available only a few years ago. The financial barrier to entry is also helped by eliminating or reducing costs in many areas, such as purchasing fewer chemicals and avoiding waste, hiring less human labor and identifying specific plants or sections that need the most attention, saving time and effort.

  As more viticulture operations embrace technology and automation, companies like DigiKey are making solutions more accessible to engineers who are building the next generation of AgTech.

From generation to generation, technology will continue to evolve rapidly and adapt to current and future needs, improving the adoption rate of precision agriculture. Vineyard owners and grape growers alike need to adopt technology to remain competitive, especially when the technology can help solve and streamline a myriad of elements of the process.

  By focusing on farming insights and automation at the plant level, the world can not only farm better, but farm different.

  Josh Mickolio is the supplier business development manager of wireless and IoT at DigiKey. DigiKey is both the leader and continuous innovator in the high service distribution of electronic components and automation products worldwide, providing more than 15.3 million components from over 2,900 quality name-brand manufacturers. Check out Season 3 of DigiKey’s “Farm Different” video series, which highlights the future of farming and the innovations that power the next generation of global food production.

The Importance of Detecting Disease Before Planting

rows and rows of grapevines

By:  Judit Monis, Ph.D. – Vineyard and Plant Health Consultant

The summer and fall are the seasons for vineyard managers and winemakers to start to plan for new vineyard development.  Since late summer to fall is the busiest with harvest, why not get a head start?  Furthermore, the best time to scout the vineyard and observe symptoms associated with diseases is in the summer and fall seasons.

  My philosophy is if you wish to develop a healthy vineyard you need to plan ahead.  When planting a new vineyard, unless you are willing to take whatever is left at the nursery (not recommended), you will need to place your order with a nursery at least one year ahead of the planting season.    With so many different diseases that are not regulated by certification programs, I recommend you hire a knowledgeable plant pathologist (consult with me!) to help you determine the best time to perform vineyard block and vine inspections as well and how and when to collect plant and soil samples for pathogen detection.

Diseases Originate in the Vineyard

  Growers must be aware that many grapevine diseases can generate in the vineyard.  If a grower is replacing a vineyard, leaving the land fallow (with no vines) for a long period (2-3 years) may have advantages.  If the vines removed were infected with leafroll (GLRaVs) or red blotch (GRBV), it will be important to take some precautions. Some species of leafroll associated viruses (GLRaVs) are transmitted by mealybugs and GRBV is transmitted by the three-cornered alfalfa hopper. It is important to be careful when removing vines, as portions of infected roots can remain in the ground and be a source of reinfection.  When mealybugs are present in the vineyard block, these will be able to transmit the viruses to the new vineyard.   In this situation, it would be impossible to determine if the symptoms in the vineyard are due to a newly vineyard planted with infected material or if it became infected by mealybugs that remained in the vineyard unless there is a priori testing data.   I am always asked to “play detective” but without prior knowledge (i.e., testing prior block or the incoming plantings), it is a difficult proposal.

  Agrobacterium vitis (the crown gall causal agent) and some fungi are soil borne pathogens and can be propagated in nursery material as well as field selections or be present in the soil prior to planting.   Agrobacterium vitis and a diverse group of fungal pathogens are present and sometimes latent (no symptoms are visible) in vineyards.  For example, the crown gall disease agent can be present in certified planting material without showing symptoms until a stress factor (physical or freeze  damage) occurs. The stress caused by the grafting process is enough to induce typical galling if pathogenic strains of Agrobacterium vitis  are harboring withing the sourced vines.  Grafted vines commonly display excess callus formation, enlarged graft unions, and galls.  Some symptoms are typical of crown gall disease while others could be difficult to diagnose visually.   To be safe this type of planting material should be analyzed at a laboratory as it may not be easy to distinguish between bacterial galling and callusing during the grafting process (the nursery will probably claim that what you are seeing is callus but this is not always the case). 

Traditional Diagnostic Methods May Fail to Detect Certain Pathogens

  Testing the vines and soil before planting will give an indication of the type of fungal and bacterial organisms present.  Depending on the method used for testing, information of beneficial microorganisms and nematodes present in the vineyard soil can be obtained.

  Traditional methods such as microbiological culture for the detection of Agrobacterium and fungal pathogens may fail to detect these pathogens in the laboratory.   While microbiological culture in plates with identification using microscope and/or further biochemical and molecular characterization are still being used, there are some important drawbacks to these methods. The plating of microbes is prone to competition between different fungal and bacterial species.   Generally, the microorganism that grows faster will be identified but may not necessarily be the cause of symptoms of disease.  Even when a more specific method is used for identification (i.e., polymerase chain reaction), the method may not be specific enough to characterize the fungi and bacteria.  For example, there are many Agrobacterium vitis stains that are non-pathogenic and do not cause crown gall disease. 

Next Generation Sequencing as a Virus Discovery Tool

  The next generation sequencing (NGS) technique also known as high throughput sequencing (HTS) or deep sequencing is able to determine the complete sequence of the genetic material present in a vine.  The data obtained is analyzed with software that is able to compare sequences available in a database and provides a list of the bacteria, fungi, or viruses present in a given sample.  The method can provide relative quantitative data (copy number) of the presence of each organism found.

  Initially, the NGS method was used as a tool to discover new plant viruses.  In 2011, NGS lead to the discovery of the first DNA virus to infect grapevines, Grapevine vein clearing virus a Badnavirus associated with severe vein-clearing and vine decline syndrome in Missouri.  Subsequently, NGS has allowed the discovery of other DNA viruses: such as GRBV, Grapevine Geminivirus A, Wild Vitis virus 1, and many grapevine RNA inhabiting viruses (e.g., Grapevine virus E, F,G, H, I, J, K, L, M, N, etc.).  The application of NGS will continue to allow for the discovery of new viruses.  Clearly, the biological capabilities of the newly discovered viruses must be studied to determine if they pose a threat to vineyard health.

Next Generation Sequencing as a Diagnostic Tool

  Recently at the 20th ICVG (International Council for the Study of Grapevine Viruses and Virus-Like Diseases) held last year in Thessaloniki, experts discussed the application of NGS (aka HTS) technology for diagnostic purposes.  Comparative studies have allowed replacing the woody index technique with NGS in quarantine programs.  For example, the NGS technology is already being applied for the verification of clean planting stock as well as exclusion of infected material in new variety introductions quarantine and certification programs in Italy and USA. 

  Commercial laboratories offer the testing of soil and plant tissue using NGS technology to detect bacterial and fungal pathogens in soil,  planting stock material and established vineyards. 

  The NGS technology has become a powerful diagnostic tool but requires technical knowledge and expertise to interpret the results. Because of the complexity of the results, expertise is needed to determine which of the microorganisms present in the tested material might be damaging to the vineyard health.  I have experienced receiving loads of data (enormous lists of fungi and bacteria) to sort out and determine the relevance of the findings.  The information has allowed me to help clients make informed propagation, planting, and managing decisions.

  Future research will allow us to answer what is a pathogen copy number required to initiate infection and cause disease.  In my opinion, grapevine growers and winemakers will benefit when the NGS technology is widely applied to grapevine testing.  The application of new technologies will increase the health of planting material and subsequently decrease of presence of harmful pathogens in planted vineyards and ultimately increase wine quality.  I envision that in the near future the NGS technology will allow certification programs world-wide to exclude pathogenic bacterial, fungal, and viral species from their foundation blocks. 

  Judit Monis, Ph.D. provides specialized services to help growers, vineyard managers, and nursery personnel avoid the propagation and transmission of diseases caused by bacteria, fungi, and viruses in their vineyard blocks.   Judit (based in California) is also fluent in Spanish and understands some Italian is available to consult in all wine grape growing regions of the world.  For more information or to request a consulting session at your vineyard please contact juditmonis@yahoo.com or visit www.juditmonis.com

In Season Nutrient Management

photo of soil beneath grapevines

By: Kirk Williams, Lecturer-Texas Tech University

Nutrient management is a critical practice to have a healthy and productive vineyard.  Nutrition management in grapevines is a long-term process where nutrients can be added over time and the effects of these additions monitored over time as well.   Grapevines do not require large amounts of nutrients and the nutrients can be added in response to needs identified by soil and tissue samples

  While soil samples can give us great insight into the soil at a vineyard site they do have limitations in established vineyards.  Grapevines have a deep and extensive root system that can exist at deeper depths than common soil testing equipment can collect from.  Also, soil tests indicate relative availability and this level is not always reflected in nutrient status of the grapevine.  Soil testing in vineyards should still be done in established vineyards but a sample every three to five years is adequate to understand what is happening in your vineyard soil. 

  In season nutrient management begins with assessing the nutritional status of the grapevine.  The most common way of evaluating the current nutritional status of grapevines is through tissue analysis.  Tissue samples can be taken at bloom time or at veraision.  Sampling could also occur at both bloom time and veraision which can help you assess your in season nutrient management program.   Areas where observable problems exist should be sampled separately from areas where growth is normal.

  Tissue samples have historically been petioles but recently whole leaf samples have been utilized.   Collecting a good representative sample is critical to getting accurate results.  If you are collecting petioles, you will need 50 to 100 petioles from each block. If you are collecting leaves you will need 25 leaves per acre up to a maximum of 300 leaves per block.  Many laboratories will wash tissue samples but that will require quick shipping. 

  So, it may make sense to wash your own samples.  A few drops of phosphate free liquid detergent can be added to a basin with distilled water.  Samples should then be rinsed with distilled water for no more than 10 seconds.  Rinsing longer than 10 seconds may wash out some of the nutrients.   Samples can be dried and then shipped to the lab for processing and testing. 

  Oftentimes soil and tissue tests are deemed precise because they are actual numbers determined by a lab.   While they were determined by a lab, there are many factors that go into a fertility program for a vineyard.  There are not many black or white, right or wrong answers in vineyard fertility management. There is only a continuum of possibilities all of which are impacted by the environmental conditions of the year, the soil, the microbial population in the soil, fertilizers applied, cover crop interactions as well rootstock and scion responses to all of the above.   

  For example, in an extremely dry year, even with adequate boron in the soil and foliar applied boron, your plant tissue samples may show you are short on boron.  Low soil water status reduces boron release from organic matter and boron uptake through reduced boron transport that occurs by diffusion and mass flow to absorbing root surfaces.  The next year, under normal soil moisture conditions, your tissue samples may show adequate boron even though you did not fertilize with boron.   

  Use the soil tests and tissue tests as guides over time for your fertility program but don’t focus too much on the actual numbers, focus on the trends.  Also, don’t forget to use your eyes to see the impact of your fertility program.  

  Generally, nutrients needed in large quantities, such as Nitrogen and Potassium, are applied to the soil.  Nutrients needed in small quantities such as zinc and boron can be effectively applied to the foliage of grapevines.  We will focus on foliar fertilization for the rest of this article.  Boron and zinc can impact fruit set if they are low and are recommended to applied prior to bloom.  This timing is usually critical for prevention of many fungal diseases and these nutrients, if needed, can easily be added to a pre-bloom fungicide spray. 

  Each individual nutrient capabilities for mobility within the plant can impact how effective a foliar nutrient application is.    Mobile nutrients such as nitrogen, magnesium, phosphorus and potassium are moved in the phloem from the older leaves towards the growing tip.   Deficiency symptoms will therefore occur on the older leaves.  Immobile nutrients, such as boron, calcium and iron, are not moved around in the phloem.  Deficiency symptoms will occur in younger leaves near the shoot tip. 

  In addition to nutrient mobility within the plant, nutrients can differ in their absorption through the leaves.  Rapidly absorbed nutrients include the urea form of nitrogen, potassium and zinc.  Moderately absorbed nutrients include calcium, the sulfate form of sulfur, phosphorus, manganese and boron.  Slowly absorbed nutrients include magnesium, copper, iron and molybdenum. 

  Zinc is a nutrient that is partially mobile and is rapidly absorbed through the leaves so it is a good candidate for foliar fertilization.  In contrast, iron is immobile in the plant and is slowly absorbed through the leaves so Iron is a not a good candidate for foliar fertilization. 

  Best practices for foliar fertilization include application during the cooler parts of the day, including a high-quality surfactant, good coverage of the grapevine especially the undersides of leaves and applications to young actively growing tissue. 

  Nutrient management in grapevines is an important management tool in having a productive vineyard that produces high quality fruit.  Regular tissue sampling is required year after year to get feedback on your nutrient management program to fine tune nutrient applications to each vineyard site.  Foliar nutrient applications can be an effective management tool especially for micronutrients.

  Kirk Williams is a lecturer in Viticulture at Texas Tech University and teaches the Texas Tech Viticulture Certificate program.  He is also a commercial grape grower on the Texas High Plains.  He can be contacted at kirk.w.williams@ttu.edu

Resources

  Singer, S.D., Davenport, J.R., Hoheisel, G., & Moyer, M.M. 2018. Vineyard nutrient management in Washington State.

  Western Plant Health Association.  Western Fertilizer Handbook.  10th Edition.  2023. Waveland Press, Long Grove, IL

Blu Dot Farm & Vineyard

Small Batch Wines With Big Personalities

Blu Dot Farm & Vineyard's patio with chairs, umbrellas, a small travel trailer and their rows of vineyards

By: Gerald Dlubala

Blu Dot Farm & Vineyard is a boutique farm, winery and vineyard with a notable history and a bright future. Nestled between the shores of Lake Charlevoix’s and Lake Michigan with terroir directly influenced by the Great Lakes and historical glacial drift, it happens to also be the ideal place to grow great grape varietals. The estate vineyard stretches over approximately eight acres and is owned by Jennie and Paul Silva. Its 5,000 vines are personally attended to by the Silvas and General Manager Samantha (Sam) Smiertka. Blu Dot’s balanced, hand-crafted collection of wines features primarily dry selections and provides an excellent showcase for northern cold-hearty varietals.

  Blu Dot Farm’s history and main barn structure go back to the late 1800s. Originally an asparagus farm, it’s not uncommon for visitors to still see asparagus growing alongside a nearby bike path. Legend states that the farm is named after the original farmer’s son, whose first word was blue. The mid-1960s brought horses into the mix when the farm was used, and very well known for, breeding and training horses for harness racing. As a result, a primary residence, stables, barns, and half-mile racetrack were added to the property.

A Trip to Napa Sets Off a Chain of Events

  Jennie and Paul Silva fell in love with the idea of growing grapes after a trip to Napa in 2006. After returning home and researching vineyards and grape growing, they found that the Northern Michigan terroir was ideal for grape growing. If they needed another sign that they should start a vineyard, the property across from their cottage, already named Blu Dot Farms, became available. It was an unused horse farm in some disrepair but possessing a great history. The Silvas were interested not only because it was a great place to grow a few grapes but also because it was a great property on its own, a place where people once gathered, entertained, and made lifelong memories. It longed for attention and someone to bring it back to life and preserve it in a way to be once again enjoyed and appreciated by others.

  “We decided to initially plant just a few vines, see what happens, and maybe sell some grapes,” said Jennie. “After meeting with other area vineyards, we found that there was actually a shortage of Michigan grapes, so our plan was to make about 10 cases of wine for our own personal use and sell the rest of the grapes. It would be a great family hobby.”

  Work began, with holes being dug for the trellises. When the hole auger broke due to all of the limestone underground, the Silvas felt like they were sitting on a small goldmine. The rocky, loam soil would provide many nutrients for their vines and impart a subtle and welcome mineral presence on the palate. The initial intentions of grape growing and winemaking as a family hobby blossomed into perhaps making the vineyard into a business. Jennie was inspired by a California vineyard that used an airstream on their property for guests and as a tasting room, thinking it would also be perfect for their vineyard.

  “We didn’t want to overinvest,” said Jennie. We just thought that we’d see if this thing gets legs, and if it does, then maybe we can keep going with it.”

  Blu Dot Farm & Vineyard was born. That’s when Smiertka answered an ad and entered the picture.

  “Sam has really met and exceeded all expectations regarding what we were hoping for and wanting in a GM,” said Silva. “She got us to where we are today and has put us in a great position for future growth and success.”

Party Girls Partnership Leads To Success

  Blu Dot Farm & Vineyard’s General Manager, Samantha (Sam) Smiertka, is originally from Delaware. She left a career in graphic design to follow her love and passion for grape growing and winemaking. While on an apprenticeship with a local winemaker and vineyard owner/manager, Smiertka ran their tasting room and handled their marketing functions. After this apprenticeship, she made her way across the United States, building experience and skills in the industry.

  “After that initial experience, I made my way out west and accepted a contract position in Oregon as a winemaker,” said Smiertka. “When I wanted to further explore new wines and styles, I found an employment listing for a startup wine brand and applied. That startup wine brand was Blu Dot, and here we are.”

  Saying that was the start of something big would undersell the relationship. Each individual vine gets specialized care throughout its growing cycle. The vineyard is regularly walked to ensure the vines are healthy and happy. Jennie also spends quality time talking to her vines, which the vines reportedly love.

  Now, Smiertka and Silva are affectionately known as the Blu Dot Farm’s Party Girls, always ready and willing to meet, raise a glass with, and educate their guests on the awesomeness of Northern Michigan grapes and wines.

 These Small Batch, Northern Michigan Wines May Surprise You

  Blu Dot’s wines tend to be more acid-forward, floral, citrus, white wines, and then cooler season, full-bodied reds.

  “We have two sparkling wines and 5-6 dry-style, still wines,” said Smiertka. “The sparkling wines are our fun, party-girl wines, and we offer a Brut Rosé, Rosé, Marquette, Auxerrois, and Itasca, which is new to the area.”

  “Our climate and terroir parallels many of the great winemaking regions in Europe,” said Smiertka. “There are a lot of hybrids and cold hearty varietals that can grow and excel here, including Riesling and Pinot Blanc. We currently have Marquette, Itasca, Traminette, Frontenac Gris, Sauvignon Rytos, and Auxerrois planted.”

   “We’re in our fourth growing year, and currently, our annual production is almost 3 ½ tons on under three acres this past harvest,” said Silva. “We are still young, so any purchases we make are from our valued regional partners within Michigan, and we only purchase the varietals we are actively growing on the farm. We want our guests to get used to our varietals and know what to expect from us when we do start our own production.”

  Silva says that first time visitors may be surprised at the types of wines they will experience at Blu Dot Farm & Vineyard.

  “It really is fun to see the expression on people’s faces when they taste our wines,” said Silva. “It’s not the sweet style of wine that they may be expecting. And our Itasca is a wonderful, new hybrid that came out of the University of Minnesota in 2017. We’re one of the first to plant Itasca here in Northern Michigan. It’s such an amazing wine with an almost clear color. It actually looks like water in the glass, but it is so good and popular that we sell out regularly.”

  Silva tells The Grapevine Magazine that Blu Dot Farm & Vineyard is easily accessible by bike from downtown Charlevoix or Bay Harbor. They offer music, wine by the tasting, glass or bottle, and snacks to accompany their wines. A pizza oven is also being installed and should be ready to go for those wanting a specialty pizza to complement and extend their winery experience.

You’ve Found Your Peaceful, Relaxing, Happy Place

  Blu Dot Farm & Vineyard want you to be happy and relaxed in their peaceful, farm-style atmosphere. On your way into the property, you’ll weave your way through vineyards on both sides of the road until you reach the iconic vintage airstream.

  “We didn’t want to take ourselves too seriously in this whole process,” said Silva. “That’s the vibe our guests have come to know, love, and look for when they visit. The airstream serves as our main tasting room from May through October and reflects our lightheartedness and desire for a fun and memorable time. It’s specifically customized to serve and function as a bar area and tasting room, complete with popup windows, unique spaces, and interior seating for a fun and memorable experience. If guests prefer to sit outside, they’ll find comfort around our firepits with picnic tables, umbrellas, and Adirondack chairs. It’s a very welcoming and fun space to be. For colder months, a small indoor tasting room is also available.”

A Future of Self-Sufficiency

  “Well, it’s safe to say that our little hobby trip to Napa 15 years ago has become very expensive,” said Silva, laughing. “And now, our vision for Blu Dot Farm & Vineyards is all about self-sufficiency. We want to bring everything in-house and be as self-sufficient as we can. We do not do any production on-premise for now, although that is definitely part of our future plans. We also plan to expand our indoor tasting room, and within a few years, we’ll hire an in-house winemaker.”

  “And thanks to a Sunday afternoon combination of a couple of glasses of wine and picking way too many apples here on the property, we played around, experimented, and produced our first cider,” said Smiertka.

  “We made one batch that came out awesome,” said Silva. “These apple trees have been here long before us, and since cider is an increasing in popularity in our region, we hope to move forward with cider production as well.”

  “We are looking forward to a fun future,” said Silva and Smiertka. “The property is amazing, and we have the opportunity to preserve and highlight its history while adding to it. We have someone who still keeps horses here, reminding everyone of the significance of this place in Standardbred Harness-Racing. At one point, this property was home to over 300 horses. It was very well known in the equestrian world. We’d love to expand on that and add additional livestock and different animals in the future to enhance the farm experience.”

  “We continue to learn as we go,” said Silva. “Our local vineyards are very collaborative-minded. It’s amazing and rewarding that our neighboring vineyards are willing to share so much information to help us. I enjoy that type of collaborative mindset because we all want everyone to be successful and help Michigan rise to the top as a wine destination. When visitors come to our region, I see the surprise on their faces regarding the quality of wines we can put out. That quality also helps attract top talent to our area.”

  Blu Dot Farm & Vineyard offers a relaxed setting to enjoy premium Northern Michigan wine with surrounding farm and vineyard views. The vintage customized airstream can comfortably accommodate up to 12 guests and is available to reserve. Outdoor seating is always available on a first-come basis, and leashed dogs are welcome.

For more information, please get in touch with Blu Dot Farm & Vineyard:

11399 Boyne City Rd.

Charlevoix, MI 49720

231.622.3753

info@bludotwine.com

Overview of Grape Crop Insurance

broken fencing and damaged grapevines

By: Trevor Troyer, 
Vice-President of Operations 
for Agricultural Risk Management

What is Federally subsidized crop insurance? What is Grape Crop Insurance and how does it work? 

The Federal Crop Insurance Corporation (FCIC) was created in 1938. Originally coverage was limited to major crops. It was basically an experiment at that time, until the passage of the Federal Crop Insurance Act in 1980. The 1980 Act expanded the number of crops insured and areas in the US. In 1996 the USDA Risk Management Agency (RMA) was created. RMA’s purpose was to administer the Federal Crop insurance programs and other risk management related programs.

  Perennials are very different from traditional row crops or vegetable crops.  But a lot of the risks are very much the same.  Drought, freeze, wildlife damage, fire/smoke and the list goes on. From what can be seen the risks can actually be more with perennials.  It doesn’t matter if it’s an apple orchard, avocado grove or vineyard, your investment is subject to the elements all year round. Things may happen after you harvest that might affect the following year’s crop production. 

  Grape Crop Insurance goes back to 1998, the current policy was written in 2010. Crop insurance is a partnership with authorized Insurance companies and the FCIC. Crop insurance is partially subsidized through the USDA. Currently there are 13 Approved Insurance Providers (AIPs) authorized to administer crop insurance policies with the USDA. Prices and premiums are set by the USDA per crop, state and county. There is no price/premium competition from one company to the next because of this. Independent insurance agents sell for these 13 different insurance providers.

  Grape crop insurance is available in the following states; Arkansas, California, Colorado, Connecticut, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Virginia and Washington. Crop insurance is not available for grapes in all counties though. Insurable varieties are also different between states and counties. As mentioned, before prices are different between states and counties as well. The USDA price for a ton of Pinot Noir in Oregon is different than a ton of Pinot Noir in New York.

Grapes are insured under an Actual Production History (APH) plan of insurance. An average of the vineyard’s production per variety is used. Grapes need to be in their 4th growing season to be insurable. A minimum of 4 years is needed to do the average, if the grapes have just become insurable then a Transitional Yield (based on the county and variety) is used in place of any missing years. A maximum of 10 years can be used to determine the average if a vineyard has been in production for that amount time. Basically, you are insuring an average of your tons per acre per variety.

  With crop insurance you cannot cover 100% of your average production. You can choose coverage levels from 50% to 85%. There is a built-in production deductible. Coverage levels are in 5% increments. Coverage levels are relative to premium, the lower the coverage the lower the premium, the more coverage you buy the higher the premium. It comes back to how much risk you feel safe with. For example, if you have Cabernet Sauvignon and your average is 5 tons per acre. At the 75% coverage level you would be covered for 3.75 tons per acre. You would have a 25% deductible (1.25 tons per acre). To have a payable loss you would have to lose more than 25% of your average production in a year.

  Crop insurance is designed to help a grower have enough money to be able to produce a crop the following year.  It is not set up to replace profits lost from an insurable cause.  I have had winery owners complain to me that it doesn’t cover the cost of how much their wine is worth.  While I can totally understand this, it is the growing costs that are being insured against loss. Crop insurance does not cover the production costs of making wine or juice etc.  Only the Causes of Loss that are listed in the policy are being insured against.  It doesn’t cover the inability of a grower to sell his grapes or broken contracts with wineries or processors. 

  Here are the Causes of Loss for Grapes from the National Fact Sheet from the USDA:

Causes of Loss

You are protected against the following:

•    Adverse weather conditions, including natural perils such as hail, frost, freeze, wind, drought, and excess precipitation;

•    Earthquake;

•    Failure of the irrigation water supply, if caused by an insured peril during the insurance period;

•    Fire;

•    Insects and plant disease, except for insufficient or improper application of pest or disease control measures;

•    Wildlife; or

•    Volcanic eruption.

Additionally, we will not insure against:

•    Phylloxera, regardless of cause; or

•    Inability to market the grapes for any reason other than actual physical damage for an insurable cause of loss

  Crop insurance is partially subsidized through the USDA. Premiums are subsidized from 100% at Catastrophic Coverage (there is an administrative fee though) to 38% depending on coverage level chosen.  A lot of growers “buy-up” coverage from 65% to 80% and their premium subsidy is around 50% to 60%. 

  Hopefully you don’t have a lot situations where you would have a loss.  But as a grower you need

to assess your risks.  These have to be taken into consideration for the growing region your vineyard is located in. Here are some other questions to ask yourself.  What are your break-even costs?  Do you know your cost of production with projected inflation? Have you evaluated the risk of a severe crop loss? What varieties are planted in your vineyard?  Some types of Vitis vinifera are more susceptible to weather issues than others. Are you able to repay current operating loans without crop insurance in the event of a loss?

  Our job as a crop insurance agent or crop insurance agency is not to convince you that you need crop insurance.  It is to help you make an educated decision, based on your risks, on whether or not you need crop insurance.  And then, if it is a good fit to mitigate your risks, to determine how much coverage is needed.  No one wants to have a loss but they do unfortunately happen.

Best Practices for Wastewater Management in the Winery

water feature in vineyard

By: Alyssa L. Ochs

It is common knowledge that wineries produce a significant amount of wastewater. Still, it’s imperative to understand your winery’s wastewater characteristics to choose the right solution. Fortunately, many eco-friendly options are available now to help wineries reduce their environmental impact while using water. These options can also help you stay within compliance regulations without much labor, eliminate the need for extensive pond dredging, address water reclamation concerns and recycle water quickly and effectively.

  This article will cover best practices, recycling, monitoring, cleaning, sanitation and technologies for wastewater management to guide wineries in choosing the best options for their operations.

Traditional and Modern Wastewater Solutions

  Technologies used for winery wastewater typically fit into four categories: physiochemical, biological, advanced oxidation and membrane. Physiochemical technologies include precipitation, coagulation, sedimentation and electrocoagulation methods. Aerobic biological technologies include membrane bioreactors and conventional activated sludge process methods, while anaerobic biological processes feature anaerobic sequencing batch reactor methods. Advanced oxidation methods are sulfate radical- TiO2- or ozone-based, while reverse osmosis is used for membrane technologies.

  Types of treatment systems applicable to wineries include lagoons to treat wastewater organic material and artificial wetlands using plants to break down organic matter. There are also bioreactor methods with small footprints to maximize usable vineyard space and conventional activated sludge that features a mix of wastewater and oxygen to ensure that microbial organisms break down organic matter.

  Yoni Szarvas, the founder, president, CEO, and chairman of AquaBella Organic Solutions, told The Grapevine Magazine about several wastewater approaches available to wineries today. Founded in 2008, AquaBella is a socially responsible company headquartered in Sebastopol, California that delivers the power of naturally beneficial bacteria to reduce water pollutants and create higher crop yields. The company aims to reduce the need for chemical fertilizers, boost agricultural lands’ long-term sustainability and fertility and break down organic pollutants to clarify water.

  Szarvas explained that traditional approaches to wastewater management typically involve using a wastewater pond or series of ponds to remove contaminants until the water quality standards are met.

  “A more modern approach is to use a modular treatment system, which potentially is more cost-effective than surface water ponds,” Szarvas said. This approach involves installing prefab above-ground tanks instead of excavating wastewater lagoons. Many wineries use wetland reclamation technology, which has the added benefit of acting as a carbon sink and minimizing CO2 release into the atmosphere.”

Characteristics of Winery Wastewater

  Winery wastewater typically has a low pH of three to four, nitrogen levels of up to 500 milligrams per liter, a high biochemical oxygen demand (BOD) of up to 10,000 milligrams per liter and high turbidity. The characteristics of wastewater will vary by the season but must always be kept in mind by vineyard owners to prevent foul odors and protect water quality. Some wineries turn to companies like Specialty Treatment Solutions (STS), to devise customized wastewater treatment plans based on wastewater characteristics. ClearBlu Environmental and BioMicrobics, Inc. are additional companies that serve the winery market with wastewater treatment solutions.

Effluents and Contaminant Burdens

  Wine industry wastewater is primarily produced from cleaning equipment and machinery, such as tanks, destemmers, pumps, tubes and filters. Wineries also produce wastewater when employees wash fermentation tanks, bottles and barrels. Some wastewater comes from spillages that happen during winemaking transfers, too. Harvesting, cellaring and bottling processes all produce wastewater, and multi-step treatments are typically required regardless of whether you choose traditional or new-technology methods.

  Approximately half of a winery’s annual wastewater comes from harvesting, a time of the year that only lasts a few weeks. Even worse, harvest wastewater has the highest contaminant burdens as employees work long days pressing grapes, cleaning equipment and handling accidental spillages. Cellaring-generated wastewater is produced during the wine’s maturation phase, when fermentation tanks are cleaned and wines are clarified cold before bottling. Effluents from cellaring wastewater tend to have a high pH. The lowest wastewater contaminant burden comes from bottling processes, as employees clean bottles and disinfect equipment during their workdays. The type of wastewater produced will dictate the appropriate treatment method, depending on whether it will be discharged into the public sewer system, released into a natural waterway or used to irrigate the vineyard.

How to Manage Winery Wastewater

  The first step in treating winery wastewater is to address the solids since solids may hinder the rest of the treatment processes. During pretreatment and neutralization, make sure to adjust the pH to ensure effluents can be discharged properly. Once liquids are separated from solids, the primary treatment process should eliminate around 30 to 40 percent of organic matter. Secondary treatment processes dissolve nutrients and organic matter, typically using nitrogen and phosphorus. Advanced treatment options are available for wastewater that will be reused within the winery’s operations.

  Good water and wastewater management can reduce operations costs, time and labor when carried out properly. Along with improved production efficiency and lower disposal fees and surcharge costs, wastewater practices can also help you promote your winery as a sustainable business in the local community. There is a growing demand for environmentally-friendly production, and managing wastewater is a practical and tangible way to stand out in a crowded marketplace while also staying ahead of changing water regulations and risks of natural disasters.

Recycling and Reusing Wastewater

  Vineyards can reuse wastewater for irrigation and other purposes after performing advanced treatments, such as disinfection through ultraviolet radiation and ozone-based oxidation. After the second treatment, employees filter effluent using a granular sand bed and then proceed with ultrafiltration or another membrane-filtration process before reverse osmosis.

  As Szarvas from AquaBella pointed out, vineyards generally reuse wastewater once contaminants have been removed.

  “Land application is a common reuse of this water which helps keep costs down, especially for smaller vineyards,” he said. “There may be additional opportunities to recover energy from wastewater and solid waste, such as pomace in the form of biogas.”

Monitoring, Cleaning and Sanitizing Processes

  Keeping up with wastewater management and monitoring cleanliness and sanitation is always the best approach to any wastewater plan. Try to work ahead as much as possible to keep up with these tasks.

  “This means having good sanitation practices in place prior to treatment and exploring options that minimize the use of cleaners that will either interfere with the wastewater treatment process or add to the waste stream,” said Szarvas from AquaBella. “Regular testing of the wastewater for common vineyard contaminants, such as nitrogen, salinity and organic matter as indicated by biochemical oxygen demand are used prior to land application of the treated wastewater.”

Choosing a Wastewater Management Strategy

  Of course, there are many factors to consider before deciding on a wastewater treatment system, including local and state regulations that define the maximum levels of biochemical oxygen demand, nitrogen and salinity for disposal on land. Cost is a significant consideration, especially labor prices and costs for chemicals and maintenance time. As a winery owner, you’ll also need to think about how much land you have to dedicate to wastewater management, the capacity of your staff to handle wastewater tasks and creative ways to repurpose wastewater to your advantage.

  Szarvas from AquaBella explained to The Grapevine Magazine that there is no one-size-fits-all treatment option for all vineyards.

  “Vineyards are in a unique position due to the seasonal nature of the wastewater generated,” he said. “Only during ‘crush,’ when grapes are harvested and pressed, do they generate a significant amount of wastewater. Wastewater treatment approaches need to be cost-effective for a large amount of waste for this short period of time. A treatment approach that has the capacity necessary to meet this need is essential.”

  For example, AquaBella Organic Solutions makes a low-cost microbe-based water treatment product, AquaBella Bio-Enzyme. This product works without having to build on or improve existing water treatment infrastructure and can significantly shorten the timeline required for nitrogen, BOD and organic matter treatment. This allows a higher volume of wastewater to be processed more rapidly.

  “AquaBella Bio-Enzyme also works in a wide range of pH and salinity conditions,” said Szarvas. “AquaBella Bio-Enzyme can rapidly break down and remove organic matter in process water, resulting in improved dissolved oxygen, reduced BOD and volatile dissolved solids while helping to control odors.”

  Looking ahead to the future, winery owners must pay close attention to energy and material prices when addressing their wastewater concerns. There is a significant need for economical solutions to serve the increasing needs and limited budgets of small and medium-sized wineries. In-demand innovations being researched include technological solutions to ensure winery wastewater is reusable at food-grade quality, compact equipment to minimize the land footprint and anaerobic treatment solutions that produce methane to become at least partially self-sufficient.

  In the meantime, winery staff members can do their part to track and monitor water use, fix leaks and use the right tools for the job when handling water. Simple and no-cost best practices, like following established procedures for cleaning and sanitizing and providing employee training and incentives for proper wastewater management, can go a long way in improving wastewater disposal, usage and quality at a winery.

Celebrating the 40th Anniversary of Oregon’s Willamette Valley AVA

rows and rows of vineyards in Oregon

By: Becky Garrison

This year marks the 40th anniversary of Oregon’s Willamette Valley AVA, which runs from Portland in the North to Eugene in the South. According to the Willamette Valley Wineries Association’s website this AVA consists of 931 vineyards and 736 wineries that represent a total 3,438,000 acres. Currently this AVA has 11 nested AVAs that contain two-thirds of the 1,110+ wineries in Oregon.

  While wine has been made in the Willamette Valley since the 1880s, initially this land was considered too cold and wet to grow great grapes even though it is close to the same latitude as Burgundy, France. In 1965, David and Diana Lett picked up on this distinction and planted 3,000 Pinot noir vines in 1965 at The Eyrie Vineyard near Dundee. Other early wine pioneers included Dick Erath, the Knudsens, and the Sokol Blossers.

  A key factor in the early development of the Willamette Valley was the passage in Oregon of the Land Conservation and Development Act (Senate Bill 100). Signed into law on May 29, 1973, this bill set aside land for future agricultural use.

  This AVA’s last recorded harvest resulted in 84,328 tons, which represents 73.5% of the state’s total crop. The majority of grapes planted are Pinot noir (70%) followed by Pinot gris (16%) and Chardonnay (7.5%). In recent years, some growers have been experimenting with other varietals like Pinot blanc, Riesling, Melon, Gewürztraminer, sparkling wine, Sauvignon blanc, Syrah, and Gamay..

  The region’s general attributes that make this valley ideal for growing cool climate grapes include the protection provided by the Coast Range mountains to the west, the Cascade Mountains to the East, and a series of lower hills at the extreme north of the valley. Drew Voit, Owner/Winemaker, Harper Voit Winery (McMinnville, OR) has been making wine for over twenty-five years, as well as consulting with other wineries situated throughout the Willamette Valley. In his estimation, the Willamette Valley represents the Goldilocks zone in terms of climate and latitude. “We have a particularly long growing season with a cool climate, mild winters, warm and dry summers.”

  Furthermore, the unique characteristics of each of the 11 nested AVAs allow for a surprising wide range of wine expressions. As Voit observes, “There’s diversity even within neighboring vineyards. You really have to listen to each vineyard and embrace the terroir of that particular site.”

  From 2005 to 2006, six sub-AVAs were formed: Dundee Hills, Yamhill-Carlton, McMinnville, Ribbon Ridge, Chehalem Mountains and Eola-Amity Hills.

Dundee Hills AVA: The Dundee Hills AVA has the distinction of being where the first grapes in the Willamette Valley were planted, and it remains the most densely planted locale in Oregon. The region’s Jory soils are formed in colluvium derived from basic igneous rock resulting in well-drained very deep soils. This soil was named after Jory Hill, a town in Marion Country named after the Jory family who settled this area in 1852. Voit states how this AVA’s soil produces powerful red fruit with strong floral notes and a classic balance.

Ribbon Ridge AVA: With only 500 planted acres, this AVA nestled within the Chehalem Mountains AVA represents the smallest AVA in Oregon, as well as one of the most prestigious wine growing regions in the world. Most vineyards in this AVA are protected climatically by the larger landmasses surrounding it, and are dry farmed due to the lack of aquifers. The area is comprised primarily of the Willakenzie series of well-drained and moderately deep sedimentary soils that are ideal for growing complex Pinot noirs with earth notes of dark cherry and rose petal.

Yamhill-Carlton AVA: Situated at the foothills of the Coastal range, the Yamhill-Carlton AVA, contains around 60,000 acres centered around the hamlets of Carlton and Yamhill. This region was known for logging, nurseries, fruit tree orchards, wheat fields, and logging until 1974 when Pat and Joe Campbell and Roy and Betty Wahle planted Elk Cove Vineyard and Wahle Vineyard respectively. In Voit’s estimation, this region produces intense, dark and rich grapes similar to Ribbon Ridge, though he adds that the wines from Yamhill and Carlton may have similar marine sediments, but they possess different and distinctive aromatic tones.

McMinnville AVA: This AVA begins a few miles to the west of McMinnville and then extends approximately 20 miles south-southwest toward the mouth of the Van Duzer Corridor. This AVA’s most prominent geological feature is the Nestuca Formation, a 2,000-foot bedrock formation consisting of weathered volcanic and sedimentary soil that sits on top of marine bedrock. Pinot noir grapes harvested from this AVA tend to exhibit darker fruit flavors and a strong backbone of tannin rounded out by earth, spice, and mineral notes due to the AVA’s drier and cooler temperatures.

Chehalem Mountains AVA: This AVA’s history dates back to 1968 when Dick Erath purchased 49 acres on Dopp Road in Yamhill County that he named Chehalem Mountain Vineyard. He was joined by other pioneers in the 1970s, including the Adelsheim and Ponzi families. The Chehalem Mountains AVA was formally approved in 2006. The Chehalem Mountains are made up of several spurs, ridges, and hilltops with the tallest point Bald Peak, at 1,633-feet above sea level. These features shelter the vineyards from the high winds that blow south through the Columbia Gorge. The soils found throughout this AVA consist of marine sedimentary soils, volcanic soils, and a series of loess called Laurelwood, which is a a geologically younger windblown silty soil of glacial origin.

Eola-Amity Hills AVA: While this agricultural history of this area near Salem dates back to the mid-1850s, winemakers like Don Byard of Hidden Springs didn’t discover this region as an ideal place for growing high-quality wine grapes until the 1970s. The soils of the Eola-Amity Hills consist predominantly of volcanic basalt from ancient lava flows. This feature when combined with alluvial deposits and marine sedimentary rocks results in a rockier and shallower well-drained soils that result in small grapes that are highly concentrated. As Voit observes, this AVA, is impacted by the Pacific Ocean influence where the winds rapidly cool the valley at night, thus helping the grapes retain their acidity as they ripen. “This produces wines with lots of spicy, savory and other non-fruit characteristics that are very compelling and distinctive.”

  From 2019 to 2022, five additional nested AVAs were formed: Van Duzer Corridor, Tualatin Hills, Laurelwood District, Lower Tom AVA and Mount Pisgah, Polk County, Oregon.

The Van Duzer Corridor AVA: This AVA, which went into effect in 2019, consists primarily of marine sediments is a natural break in the Coast Range results in afternoon winds that are 40 to 50 percent stronger when compared to other Willamette Valley AVAs. Voit works extensively with this AVA that he describes as the most Pacific Ocean influenced place in the Valley. “If a vineyard is in the windward blast zone of those strong breezes, there’s rapid cooling in the evening and howling winds. The winds are a little more delicate on leeward side of the hills.” This wind variability leads diverse wines that are both compelling and distinctive with an overall a cooling afternoon effect that dries out the vine canopy and degrees the presence of fungus, along with thickening the grape skins, which produces and abundance of tannin and anthocyanins (color).

The Tualatin Hills AVA: 2020 marked the approval of the Tualatin Hills AVA, a 15-mile stretch of land situated in the far Northwestern corner of the Willamette Valley that is is defined by the watershed of the Tualatin River with an elevation range between 200 and 1,000 feet. This AVA has a lower rainfall, cooler springtime temperatures and more temperate and drier weather during fall harvest as it’s sheltered by the Coast Range and Chehalem mountains. In addition, this AVA features the largest concentration in Oregon of Laurelwood soil, which is a windblown volcanic soil mixed with basalt (loess) deposited by the Missoula Floods at the end of the last ice age.

Laurelwood District AVA: In this same year the Laurelwood District AVA, which comprises more than 25 wineries and 70 vineyards, got approved as a result of petitioning by Ponzi Vineyards and Dion Vineyards. This AVA nested within the Chehalem Mountains AVA comprises more than 25 wineries and 70 vineyards with Laurelwood soil as the predominant soil found on the north- and east-facing slope of the Chehalem Mountains. The Laurelwood District AVA encompasses over 33,000 acres and includes the highest elevation in the Willamette Valley, at 1,633 feet. Laurelwood soil is composed of a 15-million-year-old basalt base with a loess (windblown freshwater silt) top layer accumulated over the past 200,000 years and at depths of 4’ to 0” depending on the elevation.

Lower Long Tom AVA: The next AVA to be approved was the Lower Long Tom AVA, which was established in November 2021 and is situated at the southern Willamette Valley. The AVA’s 24 vineyards are located on stream-cut ridge lines running east to west This AVA is situated within the west side of the Lower Long Tom Watershed and dominated by Bellpine soil. This term is used to describe moderately deep, well drained soils that are formed in the colluvium and residuum derived from sedimentary rocks. This region tends to have hotter days and cooler nights with more planting at higher evaluations. Voit observes how this combination tends to produce intense exotic wines that are unlike anything in the valley.

Mount Pisgah, Polk County, Oregon:  The latest AVA is Mount Pisgah, Polk County, Oregon AVA established in June 2022. Located 15 miles west of Salem, Oregon, this AVA is defined by the rain shadow of Laurel Mountain to the west, a mild influence from the Van Duzer winds, and the warmth of the Willamette River. While this is the Valley’s second smallest AVA at 5,530 acres, it’s also one of the most densely planted AVAs was 584 acres planted with Willakenzie, Bellpine, and Jory, along with some Nekia soils.

The Future of Willamette Valley Wine

  Even though the number of wineries in the Willamette Valley has doubled since 2005, most wineries fall into the boutique category producing under 5,00 cases a year with many of the vineyards and wineries remaining family owned and operated. Prior to 1990 only two major Pinot noir clones represented the vast majority of Pinot noir grapes produced in the Willamette Valley Since then, these vineyards now plant over a dozen varieties of Pinot nor clones.

  As a testament to this region’s commitment to sustainability and regenerative agriculture, Oregon produces 1% of wine made in US but is home to 52% of Demtmer Certified Biodynamic wineries. Other similar initiatives include Salmon Safe, which promotes products made without pesticides or causing runoff that would harm salmon and LIVE (LoW Impact Viticulture and Enology) certification of sustainable practices.

  In Voit’s estimation, the quality of vineyard farming and winemaking has exponentially grown and expanded resulting in wines with fewer technical flaws. “This is partly because the industry is older. But also, climate change put us into a position where we need to understand how to deal with very difficult seasons,” Voit says.

  In celebration of this region’s bounty, the International Pinot Noir Celebration was launched in 1987 as an annual summer celebration held in July that brings together international Pinot Noir producers, Northwest chefs, and wine aficionados for a celebratory educational weekend. Also in 2000, a group of Oregon wineries launched Oregon Pinot Camp, a weekend of presentations, seminars, and tastings dedicated to Pinot Noir. While this event was designed as a one-time event but has since become an annual summer event.

  As a sign of the region’s push towards diversity, the Willamette Valley is host to the Asian American Pacific Islanders Food and Wine Fest in May, the Queer Wine Fest in June, and the Women in Wine: Fermenting Change in Oregon Conference in July. Other Willamette Valley wine events reported in earlier issues of The Grapevine Magazine include Women in Wine (May/June 2023) and Alt Wine Festival (March/April 2023) with upcoming events posted at the Willamette Valley Wine’s website at https://www.willamettewines.com/things-to-do/events

Effective Tools to Combat Vinyard Pests

mealybugs on grapevine

By: Cheryl Gray

No vineyard wants to watch its profits disappear. Yet, left undetected, pests can feed and multiply on the fruit, vine, leaf, root and even the soil of vineyard plants. While many of these threats are undetectable to the naked eye, the end result is all too visible. Pests multiply, spread disease and ultimately cost vineyards money through lost crops and vineyard plants.  

  Scientists have long considered what methods work best for grape growers who want to protect their crops without harming the environment. Multiple studies have been published, including those from the National Center for Biotechnical Information, which is under the umbrella of the National Institutes of Health. Those studies point to multiple defense strategies, specifically, ways to increase the populations of natural predators as well as the controlled use of biochemicals. These methods aim to destroy microorganisms and pests by targeting their ability to reproduce. The first and most important rule of engagement is knowing the enemy. 

  Among the most destructive pests for vineyards are mealybugs. Experts say these culprits can travel from vineyard to vineyard, sometimes on equipment, vineyard workers or by whatever means they can hitch a ride. The first stop for these pests is usually the vine trunk wood, where they set up during the winter. As early as spring, the mealybugs make their way onto the canopy. Before long, they wind up on the grapes, where they infect the fruit with egg sacs and larvae. Left uncontrolled, mealybug infestations can not only reduce crop yield but can also lead to plant stress and, ultimately, plant death.

  Scientists say that natural enemies of these vineyard wreckers include a predator beetle known as the “mealybug destroyer.” Its scientific moniker is Cryptolaemus Montrouzieri. Another natural predator is a parasite known as the Anagyrus wasp. Both are produced by the millions each year by a California cooperative, Associates Insectary, which specializes in integrated pest management systems.

  Associates Insectary, founded in 1928, brands itself as the only producer of the mealybug destroyer beetle in the United States. The co-op, headquartered in Santa Paula, California, says it has the capability to ship these and other beneficial insects not only to its regional customers but also to global markets throughout North America, Central America and Asia.

  How does IPM work in the vineyard using natural predators? For mealybug control, the battle is all about appetite. The mealybug destroyer beetle basically eats through an infestation of mealybugs, feasting on every stage, from egg sacs to larvae to fully grown pests. The female beetles lay more than 400 eggs, making for a ready army to combat mealybugs.

  Unlike the Anagyrus wasp, in which only the female wasps attack mealybugs (by laying eggs inside them), an entire “family” of mealybug destroyer beetles – male, female, juvenile and adult beetles—literally feed on these pests. Many IPM programs use a combination of the destroyer mealybug beetle and the parasitic wasp to fight mealybugs.

  Another benefit to deploying mealybug destroyer beetles in the vineyard is that they go undetected by ants, which have a symbiotic relationship with the mealybug. Again, it is about one insect feeding off another. Ants consume the honeydew that the mealybug secretes, the same honeydew that can destroy grapevines. In exchange for an unending food source, the ants defend mealybugs from other predators – all except the mealybug destroyer beetles. 

  Controlling the ant population that defends its mealybug “meal ticket” is a separate challenge for vineyards. Among the most destructive ant species to vineyards is the Argentine ant, which became more prevalent in California vineyards during the late 1980s. Containing an ant population in the vineyard usually requires a controlled chemical application, including bait systems and spray options.

  The Entomological Society of America (ESA) has published studies about the Argentine ant and its impact on vineyards, particularly in California. As the largest organization of its kind in the world, the ESA is focused on serving the professional and scientific needs of entomologists and individuals in related disciplines. This, of course, includes grape growers who need to know how to rid their vineyards of pests without harming the environment.

  In the case of Argentine ants, experts say it is important to recognize that ant colonies operate with a hierarchy all their own. While chemical sprays can kill or repel forager ants, the ones that go out for food, those ants are easily replaced with other foragers. Moreover, entomologists note that foraging ants comprise only a small number of ant colonies. This means that spray applications may be somewhat limited in that they are not likely to affect either the queen ants or larvae protected within the ant colonies. The other downside of sprays is that some chemicals can break down within 30 days and harm beneficial insects and the environment.

  Experts say that baits offer an alternative to sprays. Many contain a slow-acting insecticide with the idea that once an ant comes in contact with the bait, it will bring that bait back to the nest, expose it to other ants and, as a result, more ants die. The added plus is that the small amount of insecticide in baits is unlikely to impact either the environment or the natural predators that attack mealybugs and other pests. 

  Suterra is an Oregon-based company that specializes in providing a comprehensive IPM program that includes controlling ants in the vineyard with bait deployment. The type of bait and overall treatment is contingent upon the species of ant being treated and the location of the vineyard.

  Suterra produces hundreds of products that are used by its agricultural clients worldwide, including more than 400,000 acres just in the state of California. Part of its lineup includes products manufactured to disrupt the mating pattern of mealybugs by imitating chemicals known as pheromones. Pheromones are naturally occurring chemicals emitted by organisms that allow them to connect within the same species. The chemicals serve multiple functions, including searching for food sources, identifying potential dangers and finding a potential mate.

  Suterra’s Celada™ VMB vapor dispenser works by deploying a continuous synthetic pheromone release that is designed to disrupt the mating pattern among mealybugs. The idea is to confuse the males by keeping them away from the females of the species. The Celada™ VMB vapor dispenser lasts for a full year and is designed to blend into the vineyard with its unique color and shape. Suterra has other products designed to disrupt the mating patterns of mealybugs, such as CheckMate® VMB-F, a sprayable microencapsulated formula and CheckMate® VMB-XL, a membrane dispenser. The active ingredient in both products is a synthetic replica of the sexual reproduction pheromone of the mealybug.

  When vineyards consider what equipment to use to combat pests, multiple factors come into play, such as vineyard size, specific needs and, of course, how much of its budget is devoted to pest control. Spray Innovations has answers. The company,

headquartered in Grand Island, Nebraska, not only services the cattle industry but also other agricultural sectors, including grape growers. It has been

operating for some 40 years. Chris Whiting is the sales manager for the company and shares details about some of its popular products and how they save time and money for clients.

  “Our most popular sprayers for vineyards are our 10-nozzle dual volutes,” Whiting said. “This volute allows the grower to drive down the row and spray both sides with one pass, reducing time in the field. We have several models available in our Little Hercules engine-driven line (rope or electric start versions available) and our PTO-driven line.”

  He went on to share, “Our sprayers are all built in-house at our Grand Island, Nebraska location. We fabricate 90 percent of the parts that go into our sprayers, which cuts down on costs. We sell most of our sprayers directly, so there is no middleman, and we can keep the cost down. Our frames are powder-coated and include a 10-year warranty. Our volutes are all made with galvanized sheet metal, which is more rigid and can take more abuse than volutes made out of plastic.”

  Customers of Spray Innovations include Krista Hartman, co-owner of Red River Wines and Provisions at the Hartman Vineyard in Sadler, Texas. She gives the Spray Innovations P-D15-611 Mist Sprayer a “thumbs up” for performance. 

  “The fine mist and powerful fan system deliver uniform and thorough coverage with all my spray program products,” Hartman said. “I love how I can turn off either volute individually for end rows or a specific target area if needed. This was a big investment for my small vineyard operation, and well worth it. I save time, use less product, feel safer while spraying and keep my canopy as healthy as the elements allow, thanks to this terrific machine.”

  Whether using chemical applications or natural predators, grape growers can deploy an arsenal of weapons to fight vineyard pests from fruit to root. Understanding timing, weather, equipment use and appropriate application of either biochemicals or the release of natural enemies all affect results.

Exploring the Latest Research Into Regenerative Agriculture

sheep grazing in a grape vineyard

By: Becky Garrison

In What Your Food Ate: How to Heal Our Land and Reclaim Our Health (W.W. Norton & Company), authors David R. Montgomery and Anne Biklé expound on their research into regenerative farming practices that can put carbon back into the ground and improve soil health. This research builds on Montgomery’s introduction to carbon farming that he presented at the 2020 Oregon Wine Symposium. (See the June/July 2020 issue of The Grapevine Magazine).

  Biklé and Montgomery set out to examine the regenerative practices on farms that grow food crops by assessing 10 farms from California to Connecticut that engaged in these practices. When they analyzed how the topsoil from these farms compared to their neighboring farms, they found three broad principles that are central to supporting soil life. The first was the need to minimize the disturbance of the soil. This can translate into no-till or minimal tillage. The second principle is to avoid having bare soil by keeping the ground covered with living plants. Third, grow a diversity of living plant matter.

  Also, they suggested a fourth optional principle: reintegrating animal husbandry. While animals are not necessary for building healthy soils, their presence can serve as an accelerant in speeding up the process.

  In Biklé’s estimation, all of these principles are tailorable. He said, “They’re customizable to a given grower’s setting because what’s going to work in in the Pacific Northwest is going to be different than what’s going on in, say, California or upstate New York.” Hence, it’s key to find a mix of species for a particular cover crop that works on a regional basis. For example, a farm in California that’s subject to ongoing heat and drought would benefit from cover crop species that are particularly resistant to heat waves and do not require much water. Also, a cover crop mix can attract beneficial insects specific to a region that are pest predators or provide other benefits.

  Biklé adds, “If you think of the soil as having a diet it will be different depending on each vineyard’s unique conditions. In other words, the basic principles and practices of maintaining soil health need to be tailored to the soil. Growers can leverage soil health into vine health and a generally more resilient crop, along with minimizing pests and pathogens.”

How to Assess Soil Health

  They recommended assessing the health of one’s soil using the Haney soil test, which was named for USDA scientist Rick Haney. This test includes more than a dozen different soil test values, including standard macro- and micro-nutrients for plant consumption. Compared to other soil tests, the Haney test also estimates nutrients for microbial consumption with a focus on how much nitrogen and carbon are present in the soil.

  This analysis enables growers to ascertain not just the nutrients contained within this soil sample but also how the microbes are making these nutrients available to the soil. If these numbers are low, that’s a strong indication of the need to increase the organic levels through practices like cover crops, leaving residue on the ground or planting high exudate producers (a term that refers to carbon-rich materials).

Results of Applying Regenerative Farming Practices

  They found that, on average, in less than a decade, the topsoil on the regenerative farms in their study had about twice the soil organic matter and a three times higher soil health score than their neighboring farms. Also, when they compared the minerals, vitamins and phytochemical density in the crops they grew, they found that regenerative farms have roughly a 20 percent higher level of phytochemicals, such as carotenoids, phytosterols and polyphenols. Furthermore, they could not find an instance where the regenerative farm performed worse than the conventional farms in the same region. 

  In particular, they noted how regenerative farmers constantly observe what’s transpiring in the field.

Putting These Principles Into Practice

  At this point, they don’t have data demonstrating specifically how these practices work in vineyards. However, their research into how these practices impact food crops points to some positive practices that Biklé and Montgomery hypothesize can be applied to the vineyard. For example, it’s highly suggestive that cover crops planted between the vines will influence both the microbial communities that the plants interact with and the levels of phytochemicals and potential minerals the vines can pull out of the soil and incorporate into their fruit. The end goal is to create an environment where the vine can succeed by relying on its inherent biology.

  Here, Biklé stresses the need to find that sweet spot where there’s just enough stress from physical factors like drought and freeze and biological factors, such as nibbling pests. These stresses cause the plant to churn out phytochemicals. “We know these phytochemicals relate to the flavor and quality of wines, as well as nutritional and health benefits found in wine and other kinds of crops.”

  Too often, Biklé and Montgomery find farmers consider no or minimal till an adequate response to carbon farming practices and do not pursue the other principles for maintaining quality soil. As grapevines aren’t plowed over every year, there’s already some minimal disturbance at play. But growers also need to manage the rows between their vines by planting diverse cover crops. While some growers feel cover crops will compete with their vines, As Montgomery reflects, “If you raise cover crops and then knock them down so they become mulch, these cover crops help keep moisture in the soil more than they respire themselves.” 

  When planting new vines, Biklé recommends doing so with an eye to things like cover crops and animals if a grower is considering those practices. For example, she says to think about the height at which to train the lowest branches to allow enough clearance for cover crops and room for animals like sheep to graze.

  On the topic of inputs, Biklé says, “Occasional use of synthetic chemicals like fertilizers or pesticides probably isn’t a big deal in most cases. But their routine use can affect soil health through interfering with the communication and signaling between a vine host and its root microbiome. As a consequence, root microbiota significantly curtail their normal activities, like stimulating vine phytochemical production and delivering water and must-have nutrients to vines.” 

Challenges in Adopting Regenerative Farming Practices

  In their experience, the biggest difficulty with growers making this switch is their mindset. “If something is working well enough, there’s a reluctance to change,” Biklé opines. Once one can get over this reluctance and adopt an experiential mindset, one can begin to move into the world of carbon farming.

  Other concerns include the need to purchase new equipment. In addition, a given practice might be more labor intensive, which can be a challenge, especially if a region is facing a labor shortage. Also, some may not wish to have sheep in their vineyard based on the assumption these animals would disturb their guests or workers.

  According to Montgomery, a key concern is the need to develop a regional understanding of what would work for vineyards in a given region. He recommends establishing a consortium of local growers who could collectively experiment with what would make for good cover crops between the vines. These growers could set aside a block where they can tinker in their quest to assess the best practices that work in their particular vineyard. In particular, look for any connection between the polyphenol levels of the wine and what’s present in the soil.

  Historically, terroir has been viewed from a winemaking perspective as reflective of the climate, soil and environment. Montgomery and Biklé hope their ongoing research into regenerative farming practices will expand this definition to include an understanding of the soil’s microbial components and how these microbes’ impact both soil health and the quality of the fruit harvested from the vine.