The significant losses anticipated to vineyards from the extreme cold in late December has triggered further support for wineries.
While grape growers will benefit from recently announced provincial replant funding, federal farm lender Farm Credit Canada has announced openness to considering short-term support options for clients whose cash flow will be disrupted by this year’s short crop.
According to estimates prepared for Wine Growers BC, crop losses are anticipated to average from 39% to 56% industry-wide, with select varieties and locations seeing almost total losses.
“The Crown corporation will consider additional short-term credit options, deferral of principal payments and/or other loan payment schedule amendments to reduce financial pressures on producers affected by last winter’s cold temperatures,” a statement released May 17 says. “FCC will also offer flexibility, and even a combination of options based on the individual needs of its customers, since each farm financial situation is unique.”
FCC encourages clients to contact their relationship manager to discuss their individual requirements.
“This year’s cold weather in B.C. has certainly been challenging for many wine business owners. As a leader in financing to Canadian farmers, we have a unique responsibility to step up and help.”
FCC adds that it offers flexibility on financing terms to all customers on a case-by case basis.
“We stand by our customers over the long term, helping them pursue opportunities and overcome challenges,” it says.
Weather considerations are a growing risk for FCC, which also announced support this week for maple syrup producers in eastern Canada where a sudden temperature shift curtailed syrup production this spring.