40 Lakeshore Road, R.R. #5, Niagara-on-the-Lake, ON L0S 1J0 Phone: (905) 646-8085 or Toll Free: 1-866-677-4717 www.lakeviewvineyardequipment.com Payback for Wind Machines – A Case Study A presentation by Hugh Fraser, Agricultural Engineer, OMAFRA, at the Apple Academy in February, 2011 highlighted “Protection Technology” and the use of wind machines to protect apple crops from extreme cold temperatures in the spring. Of course, this technology has already been in use for several years in grapes and now more recently tender fruits. The information below illustrates the benefits and paybacks of wind machines in vineyards. Capital Cost of Orchard-Rite® Model 2600 = $34,000 Machine, Pad, Install – no HST Fuel = estimate $35/hour x 4 nights x 6 hours per night average = $840 per year Service Life = 35 years # of acres covered = 15 acres Crop protected tonnes per acre (1) Price per tonnes (2) Value of crop per acre Value of 15 acres (protected by one Wind Machine) Revenue generated over 20 years Less Crop Loss from 6 frost events (4) = Revenue after 6 frost events Chardonnay 4.5 $ 1,410 $ 6,345 $ 95,175 Cab. Sauvignon 4.0 $ 1,875 $ 7,500 $ 112,500 $1,903,500 $ 504,428 $1,399, 072 $2,250,000 $ 596,250 $1,653,750 1 = Establishment and Production Costs for Grapes in Ontario, 2009 Economic Report, Ontario 2 = GGO 2010 VQA pricing 3 = 6 frost events over 20 years with an estimated crop losses of 10%, 25%, 40%, 60, 75 and 90% For an Investment of $34,000 for one Orchard-Rite® 2600 wind machine, you can save $504K (Chardonnay) to $596K (Cabernet Sauvignon) over 20 years if you had 6 typical frost events! Vineyards Hit by Winter Freeze and Spring Frost Create Other Issues Reduced Yield Replacement vine costs for 2-3 years Additional vine training costs for two years Additional costs for weed control for green shoot re-growth Additional Benefits with Wind Machines Investment for one machine is only 36% of your gross revenues for ONE YEAR for Chardonnay and only 30% of your gross revenue for ONE YEAR for Cabernet Sauvignon Gives you a piece of mind Protection spring, summer and fall at pre-harvest 10 year financing available to ease investment burden on cash flow Leasing available to assist with cash flow and, in some cases, tax ramifications The Best Investment You Can Make to Protect Your Farm From Extreme Cold Weather & Frost Events! For site visits and surveys or if you have any questions regarding how Orchard Rite® wind machines could be used in your operation, please contact: Ken Slingerland – Wind Machine Specialist Lakeview Vineyard Equipment Inc., 40 Lakeshore Road, RR5, Niagara-on-the-Lake, ON L0S IJ0 Shop: 905-646-8085 Toll Free: 1-866-677-4717 Cell: 905-651-0057 windmachinesales@lvequipment.ca