Issue link: http://read.dmtmag.com/i/111102
MICHELLE LOCKE TAKING (ROOT) STOCK IN THE FUTURE It's a viticultural reboot. Over the next eight years, the majority of vineyards in the Napa Valley will come due for replanting. And that means a bumper crop of decisions for growers, from choosing rootstock to cutting red tape, all of which should be considered sooner rather than later, said speakers at a Napa Valley Grapegrowers replanting seminar, held Dec. 13 in Yountville, Calif. It's been about 20 years since the last big wave of replanting hit California wine. Since then, the global wine glut held down demand, followed by the recession, which further curbed any interest in expanding. But with the glut used up and the economy showing signs of life, growers are suddenly faced with massive overhauls, a rush that has prompted vine shortages as nurseries scramble to meet demand. Popular rootstocks likely will be in short supply for the next two years, said Ernie Ilsley, sales director for Novavine in Santa Rosa, Calif. Also in 2015, the new Protocol 2010 plant materials under development at UC Davis are expected to become available. Ilsley said the new rootstocks seem to have good nematode tolerance and strong resistance to dagger and root rot. Red blotch, the new prob lem rearing its head in vineyards, is "obviously the million-dollar question," Ilsley said. "We're testing everything we have," he said, but added, "I think there's a lot to be learned." Speakers advised a year of prepping before putting vines in the ground, and allowing the land to rest for a winter to see if there are any erosion problems. The seminar also addressed new regulations regarding sediment control. Water is always an issue, and the San Francisco Bay Regional Water Quality Control Board is w w w. v w m media.com currently working on a conditional vineyard waiver, a new regulatory process aimed at controlling sediment discharges. (Grazing lands, rural land and public works, parks and open space are also part of the program.) The waiver, expected to be considered by the board in March, is in development, but its engineering geologist, Sandi Potter, said the key part of the requirement is that vineyards have a farm plan (such as a fish-friendly plan) in place. The waiver covers parcels of 40 acres or more of flatland or 20 acres or more of hillside. There are exclusions for very steep slopes and/or to replanting. They need cash flow to pay for the loan just at the time they're ripping out what may very well be their main source of cash. Clay Popko, vice president of American Ag Credit in St. Helena, said lenders can work with customers, for instance postponing making principal payments while requiring interest-only payments until the new vineyards are producing. Key issues for a lender are the borrower's ability to absorb cost overruns, the experience level of the development team and whether there's a home for the future crop. Beyond that, "Every lender has its own hot buttons," Popko Growers looking to replant vineyards will face some rootstock supply issues. Photo: Thinkstock vineyards on highly erosive soils, which may not be able to get a waiver and instead will need a waste discharge permit, a more complicated and expensive process. Vineyards with stream setbacks will be exempt from the waiver. Definitions of the stream setbacks are still being worked on; they will track with city and county requirements, but for a flatland site that doesn't currently have any such requirements, the definition of setback is 45 feet from the top of the bank, Potter said. Smaller operators can find themselves in a Catch-22 when it comes pointed out. "Some don't mind borrowers without a lot of cash flow if they have a big balance sheet," he noted, "so that's why you need to shop around." When talking to lenders, it's best to know what your weakness is as a borrower. Is there a disease that needs eradicating? Be upfront about that and have a strategy for overcoming the problem. Like other speakers, Popko advised starting the process sooner rather than later. "If you plan on ripping a vineyard out, say, in the next year or two," he said, "you should have already talked to your lender." M a r - A p r 2 0 13 | V I N E YA R D & W I N E RY M A N A G E M E N T 15