Financing aid offered to winter-hit Okanagan vintners

Okanagan wineries and grapegrowers worried about possible cash flow troubles due to lack of grapes have been thrown another lifeline

Farm Credit Canada, a Crown corporation, is offering support to wineries and grape growers in who may be losing a significant tonnage of grapes in 2023 and beyond.

The crop shortage is due to extreme and prolonged cold temperatures over the winter that caused significant damage to wine vines in the Okanagan.

Fewer grapes and less wine means less cash for wineries and grape growers, and Farm Credit Canada says it can help.

Initial projections by Wine Growers B.C. forecasts a 39 to 56 per cent drop in wine and grape production in 2023.

Last month, the B.C. ministry of agriculture and food announced that wineries and grape growers looking to replant grapes damaged by extreme weather can apply for funding under the $15-million Perennial Crop Renewal program.

But even if they replant this year, the FCC said wine producers that lost some or all of their vines in last December’s cold snap may be facing a cash shortfall because vines take years to mature.

The FCC said it will consider additional short-term credit options, deferral of principal payments and other loan payment schedule amendments to reduce the financial load on producers.

Producers in B.C. should contact their FCC relationship manager.

“Agriculture and food is the only industry we serve, so we have a deep understanding of the challenges that come with the business,” said Jeff Affleck, FCC senior vice-president.