Thursday, March 15, 2018

Vineyards in Central Oregon: Growing the vision



            It’s been over a decade since a vineyard along the Crooked River across from Smith Rock State Park became a pioneer for growing wine grapes in Central Oregon.
            That early beginning has been a stimulus for other vineyards, from small hobbyists to those aiming for commercial quantity production. And they are proving that even with the region’s abbreviated growing season and frost risk any time of year, quality grapes can be produced with proper care and attention to details.
            In 2018 there are seven recognized vineyards with 26.5 acres already producing grapes and anaother 12.5 acres planted within the past year, according to information from the Central Oregon Winegrowers Association.
            That early Central Oregon estate vineyard, Monkey Face, began in 2006-2007 as four acres and seven grape varietals at the 1,700 acre Ranch at the Canyons residential estate homes and working ranch.
             The vision of the ranch’s founding developers was to establish an amenity that would reflect the ambiance and design of Tuscany or Napa in a setting facing the spectacular rock formations of Smith Rock.
Grape cluster at Monkey Face-namesake rock in distance
            What distinguishes the regional vineyards from those in well-known wine regions such as California’s Napa, Oregon’s Willamette Valley and Washington’s Yakima and Walla Walla areas is the focus on planting cold hardy varietals. Weather-sturdy hybrids have long been planted in cold weather areas of the Northeast, Canada and the upper Midwest.
            Rather than more well-known vinifera varietals, such as Cabernet, Syrah, Chardonnay, the Central Oregon growers are mostly focused on French-American hybrids, varietals that were grafted onto France’s vinifera root stock after a deadly aphid-caused phylloxera outbreak in the mid-1850s. The hybrids are generally credited with rescuing vinifera vineyards from  what came to be known as the Great French Wine Blight.
            A  few Central Oregon growers have experimented with planting vinifera varietals but dramatic cold snaps have resulted in substantial vine loss.


            The region’s arid climate and higher elevation, ranging from 2,700-3,450 feet, not only limit growing degree days, a standard agricultural measurement, but also heighten risk of a damaging frost especially in early spring at bud break time or late summer and fall with fruit on the vine.
            The three-county area of Deschutes, Crook and Jefferson has a typical 80-day growing season with approximately 1,825 growing degree days, according to Kerry Damon, president of the Central Oregon Winegrowers Association (COWA). However, certain areas may have a “microclimate,” often only a few acres, with proximity to heat producing rock areas, such as Smith Rock, or other protective factors that can extend growing days.
            By comparison the Walla Walla and Yakima viticultural areas of Washington have more than 3,000 growing degree days and as many as six months for fruit to develop, Damon says.
            Currently under cultiviation in Central Oregon are the red varietals Marquette, Frontenac, Marechal Foch, Leon Millot and St. Croix, with Marquette comprising the largest planted acreage.
LaCrescent from Monkey Face, FHC label
            White varietals include LaCrescent, Vignole, Frontenac Gris, La Crosse, Brianna and Seyval Blanc. La Crescent and Frontenac Gris account for most acreate of whites planted.
            Among the recognized vineyards in production, Cindy and Roger Grossmann’s Faith, Hope & Charity in the Lower Bridge area of Deschutes County is the first combination vineyard and winery permitted on land zoned for excusive farm use, or EFU. The exception  is allowed under an Oregon state law that requires a minimum of 15 planted acres. 
            Just north of the county line in Jefferson County, Doug Maragas has established his winery and vineyard on EFU land with a conditional use permit, a different approach than at FHC.
            Under their permit, the Grossmanns can hold events such as weddings on the property but must sell only the wine produced either from their estate grapes or sourced elsewhere and bottled with the FHC label. A minimum percentage of the business’ income must come from wine sales.
            In 2017 FHC realized its estate bottling from vines planted in 2011, after earlier bottling LaCrescent sourced from Monkey Face at Ranch at the Canyons and Syrah from Zerba Cellars in Milton-Freewater, part of the Walla Walla AVA, or American Viticultural Area.
            Joining FHC, vineyards now in production are Maragas, Monkey Face, Deschutes River Vineyard, Rippling Waters and Johnson Creek. Others in the planting or maturing stage include Deschutes River Vineyard, Grapeyard, Rippling Waters, Iverson and Cascade Canyon.
            Among challenges other than climate, Damon of the winegrowers association says voracious birds are high on the list, although rockchucks have also occasionally posed a problem to vines. Growers can mitigate frost hazards by overhead stream roter irrigation systems that protect the fruit. For the avian invaders, netting and/or recorded sound systems with predator calls can be effective.
            Processing fruit from vine to bottle for larger producers such as FHC involves contracting with a custom crush facility and winemaker, in FHC's situation Pallet in Medford with winemaker Linda Donovan nurturing grapes in the barrel. Smaller growers have rented crush equpment for limited quanity bottlings, which allows production of 250 gallons per person without facing federal regulations.
            At various presentations to promote the local vineyard movement, Damon often raises a question that faced early growers:
            “Can you grow wine grapes in Central Oregon? Can you nurture them to maturity?, and Can you make good wine from them?”
            “The answer,” he quickly responds, “is yes, yes and yes!”

Wednesday, March 7, 2018

Spreading investment risk in housing: A 5-year analysis



            With the stock market trying to make up its mind in March of 2018 whether to correct or keep moving uphill, it’s a time that many investors are weighing a cacophony of opinions and maybe muttering to themselves about how to best allocate assets.
            Along with the boom, or boomlet?, in stocks, housing has also experienced a continued multi-year recovery from the depths of what has been dubbed by many as the “Great Recession.”
            A sampling of investments could help put the current environment in perspective. Start with the local housing market in Bend, then expand to possible indicators on a broader scope over a 5-year period. (Refer to the chart)
            At the end of 2013, the median price of a Bend home was $281,450, as determined by calculating the median of each month's median price sale for 12 months of the year.
            Over the next five years ending with 2017, the price increased each year with the biggest jump of nearly 12% in 2015. Prices then fell off slightly in 2016, and rose
only 5.60% in 2017. Over the 5-year period the median increase was an impressive 40.70%.
            But an investor bullish on housing yet interested in spreading risk could have realized a 91.20% return in five years with the exchange traded fund (ETF) iShares US Home Construction, trading symbol ITB.
            Or an investor could have gone all out with a single housing stock, D. R. Horton, and raked in a 127.14% return. An equally promising return of 117.41% would have been possible with Preferred Apartment Communities Inc., trading as APTS.
            But forget housing and, in the spirit of March Madness, drain a 3-point shot from halfcourt with Amazon, which returned a whopping 275% since the end of 2013.