Issue link: https://read.dmtmag.com/i/724494
5 4 V I N E YA R D & W I N E RY M A N A G E M E N T | S e p t - O c t 2 016 w w w. v w m m e d i a . c o m a perspective based on hard facts about how your business is doing and where it's going, as well as a level-headed look at the num- bers on your balance sheet. That's b e c a u s e , s a y t h e p e o p l e w h o vet winery and vineyard funding, there's lots of good news, includ- ing higher grape and wine prices. In many respects, there's never been a better time to borrow money. ot sure how the presidential election will affect the econo- my? Baffled by what the Fed- eral Reserve will do with interest rates? Skyrocketing vineyard prices making you more than a little leery about buying land? Confused by mostly flat wine sales, but more expensive wine being sold? You're not alone. The experts — the bankers and lenders who sup- ply the cash that funds winery and vineyard growth and expansion — aren't sure, either. Adam Beak, who oversees all winery, vineyard and wine industry- related business for Bank of the West, says, "We're seeing a num- ber of independent data points impacting the market in different ways. In addition to the domestic agenda and industry-specific fac- tors, we're also considering the outside influences — in particular, the global economy and interna- tional interest in our industry." B o r r o w i n g m o n e y a s w e approach the end of 2016 requires AT A GLANCE AT A GLANCE AT A GLANCE AT A GLANCE AT A GLANCE AT A GLANCE AT A GLANCE AT A GLANCE AT A GLANCE AT A GLANCE On the other hand, all of this could vanish in an instant, overwhelmed by any one of a variety of events that have nothing to do with the wine business, be it this fall's U.S. presi- dential election, a terrorist attack or a recession brought on by economic downturns in China or Europe. Parsing Interest Rates What wineries and grapegrowers need to know about financing expansion. BY JEFF SIEGEL + Lenders expect record-low interest rates to continue. + The U.S. economy should help producers of higher-end products. + Low-end producers may have more trouble borrowing. + This year's election, as well as the world economy, may influence rates.