Magnum Opus Estate Vineyards

MOEV

Wine, Spirits and Brews cut from whole cloth at Beyond Organics quality, a unique pleasure.

 

 

Grapes are a labor-intensive specialty crop, best grown by a patient, careful gardener with a feeling for the vine. Properly grown and ripened grapes are always in demand and bring good margins in the market. This is one area where commercial growers cannot compete with the dedicated, small vineyard tiller who can best give the vines the attention they need to produce consistently high yields of quality fruit. Initially 30 acres will be developed & cultivated with premium wine grapes, additional acreage will be developed in accord with customer demand, current plan calls for 100 acres by close of 3rd fiscal year.

Grapes are a multi-year crop, the establishment cost needs to be allocated over several years.  Establishment cost is the sum of the costs for land preparation, planting, vines, and other production expenses for the years preceding the first marketable harvest (assumed to be the third growing season) year. The cost recovery method was utilized (AAEA Task Force) where annual pre-productive costs are accrued to a future value at the end of the pre-productive period. The total of these costs is then amortized over the life of the enterprise based on the vineyard’s useful or productive life.

 

Production

 

The total quantity of production is multiplied by the actual or expected price to determine a value for production. In the illustrated budgets, the expected yield is based on the full production potential of the vineyard, usually achieved by the fifth year of growth. The overall financial performance of a vineyard as a business or within a larger diversified farm operation should be evaluated through measures of liquidity, solvency, repayment capacity as well as the rate of return on assets (or equity).  No single measure is sufficient for evaluating financial position as several measures must be tracked over time to provide a true perspective. Dirt work and soil prep for 100 acres in 3 phases.

 

 

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Satellite image of the selected site for the proposed Magnum Opus Estate vineyards approximately 100-acres developed in 3 stages over a 24-month timeframe.

 

 

Rectangle to the lower left

 

Texas is 5th Largest Wine Producing State – illustration purposes only

 

 

  

 

 

 

 MOEV

 

Magnum Opus Estate Vineyards

Wine, Spirits and Brews cut from whole cloth at Beyond Organics quality, a unique pleasure.