Ontario Vineyard

Improvement Program (OVIP) Program Guidelines

Intake 4

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Program Overview

The Ontario Vineyard Improvement Program (OVIP) The Ontario Vineyard Improvement Program (OVIP) was launched April 2011 and is a 4 year program to assist the wine grape industry to make vineyard improvements. This initiative is in line with the industry varietal plan of December 2010 entitled, Aligning the Ontario Grape Supply and Demand: A Varietal Plan for the Grape and Wine Industry Final Report. These guidelines pertain to the Producer Support Component (PSC) of OVIP. The PSC focuses on wine grape growers by providing direct financial support for eligible vineyard improvements to eligible wine grape growers. OVIP also has an Industry Support Component (ISC) to support projects of benefit to the grape growing sector as a whole. The PSC will be delivered by the Ontario Ministry of Agriculture and Food / Ministry of Rural Affairs (OMAF/MRA) with assistance and support from Agricorp and the Grape Growers of Ontario (GGO).

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Applicant Eligibility

To be eligible to apply for funding, applicants are required to meet ALL of the following eligibility criteria:

Be a sole proprietor, corporation, partnership or unincorporated association. Articles of Incorporation need to be available upon request;

Be an active grower and have marketed wine processing grapes or late harvest juice within the past two years, or is a wine grape grower with established vines who can demonstrate a clear plan to market wine grapes within two years of applying to the PSC;

Hold a Farm Business Registration number or an OMAF/MRA accepted equivalent such as:

Farm Business Registration (FBR) Exemption Certificate

Indian Agriculture Program of Ontario (IAPO) letter.

T1 General 2011 pages 1 & 2 of your Income Tax and Benefit Return with gross farm income declared on line 168 and a

copy of your Statement of Farming Activities – Farm Income & Expenses (T2042E).

Hold a GGO Number;

Have a Premises Identification number for the vineyards included in the application;

Must own or lease wine grape acreage. Applicants leasing wine grape acreage are eligible to apply on the condition that the landowner provides written consent to OMAF/MRA by signing Part E: Landowner’s Consent Form on page 9 of the application form.

Program Timelines A project year aligns with the provincial government’s fiscal year from April 1 to March 31 and is referred to as “Year”. An “Intake” is the period of time during which OMAF/MRA is accepting applications. Please see below for details about the program final year and intake dates. Year 4 (Final) - April 1, 2014 to March 31, 2015 Intake 4 (Final) – December 16, 2013 - March 31, 2014 The program is first-come, first-served where funds are approved to the government’s maximum annual allocation. Once annual funds are allocated, the remaining applications in this final intake will be included in a priority queue for consideration at a later date under this intake if savings are realized in the program. Intake 4 is the final intake for the OVIP and there is no guarantee that any of the in-queue applications will be approved. The program will be accepting applications for Year 4 starting on December 16, 2013. The scheduled close of Intake 4 is March 31, 2014. If the demand for funding exceeds the amount available, OMAF/MRA may decide to close Intake 4 early.

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Determination of Funding Cap

Under the PSC, the Government of Ontario will reimburse up to 35% of eligible vineyard improvement costs up to a maximum funding cap per applicant. The cap for each applicant is determined at the time of application and equals $1,000 for each acre under production of hybrid or vinifera wine grapes (classes 5 to 10f). The maximum funding that each eligible grower can receive, calculated at the rate of $1,000 per acre of established wine grapes farmed by the applicant at the time of application, is capped at a maximum of 100 acres or $100,000 per applicant. Growers can apply to more than one intake to use up their funding cap, but the maximum funding for any one recipient over four years is $100,000. Chart of Funding Calculation Examples

For the purposes of the calculation, each acre of wine grapes will be assigned to only one applicant. If two or more applicants co-farm wine grape acreage, and there is a dispute as to which applicant should be assigned the wine grape acreage for the purpose of calculating the funding cap, the land will be considered part of the landowner’s wine grape acreage. Each acre of wine grapes (classes 5 to 10f) used to calculate an applicant’s funding cap can only be counted once in any given program Year. Assessing Wine Grape Acreage to Determine the Funding Cap

Wine grape acreage for the PSC will be calculated on the basis of growing acreage registered by the applicant in VITIS, the electronic vine management database. Applicants who do not have some, or any, of their wine grape acreage (owned and/or leased) registered in VITIS may make a request to Agricorp and/or to GGO to have their vineyard information added to the database. In signing the application form, applicants will authorize OMAF/MRA staff to have view only access to VITIS data. If an eligible applicant acquires additional wine grape acreage during the course of the program that would qualify for an increased funding cap (not exceeding the $100,000 maximum), the applicant will be eligible to apply for additional funding in a future intake. If, after applying for funding under the program, an eligible applicant ceases wine grape production on acreage that was used in the calculation of the applicant’s funding cap, or sells/leases out that wine grape acreage, this will not affect the amount of funding the applicant is able to access in the program Year in which they were approved to receive funding.

Classes 5-10f Wine Grapes

Currently Under Production

Calculation for Maximum Funding

Maximum Funding

(net of HST)

Maximum Eligible Costs

at 35% Funding

Applicant Contribution

Required

50 acres 50 x $1000/acre $50,000 Approx. $142,850

Approx. $92,850

100 acres 100 x $1000/acre $100,000 Approx. $285,700

Approx. $185,700

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Any new owner/lessee of wine grape acreage will not be able to use that same acreage for the purposes of accessing funding for the remainder of the OVIP. You may apply for an exemption to this stipulation by contacting OMAF/MRA. A sample calculation is provided in the table below:

Eligible and Ineligible Vineyard Improvements A detailed list of eligible vineyard improvements and ineligible costs is provided in Schedule A. It is important to note OMAF/MRA will review Schedule A on an annual basis and may revise it to better assist growers in meeting the goals and objectives of the program. Eligible improvements for the PSC include the following:

Wine Grape Vine Removal

Vineyard Preparation

Vine Trellis Systems

Consultation with a Viticulture Expert

Improved Viticulture Practices

Reducing Cold Injury

Improved Irrigation

Pest Management

Improved Weather Sensing Eligible Costs Vineyard improvement costs may be eligible for reimbursement in one of two ways:

Actual cash outlays documented through invoices, receipts and proofs of payment (net of HST) (see Schedule A for more details)

Flat rate cost activities subject to verification by an Agricorp Adjuster. This may include work performed in the vineyard by a third party or the applicant. (See Schedule A for more details)

In order to be eligible, costs must be incurred in the Year in which the application is approved. Work must be completed on the vineyard indicated in the application. All vineyard improvements may be subject to verification by an Agricorp Adjuster or other auditors. OMAF/MRA will have the sole discretion to determine eligibility for program funding.

Year Maximum Funding Cap (based on eligible acres at time of application)

Funding Received Remaining Funding Cap

2 50 acres x $1000/acre= $50,000

$20,000

$30,000

3 Applicant sells 25 acres; 25 acres x $1000/acre= $25,000

New cap minus funding received $25,000 - $20,000 = $5,000

$5,000

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Ineligible Costs The following costs are considered NOT ELIGIBLE for reimbursement under the PSC. A more detailed list is included in Schedule A.

Costs associated with completing the Application Form, Claim Form or any other program-related forms;

Costs associated with project planning, supervision, or administration;

Purchase of general farm equipment (e.g., manure spreader, tractor);

Materials in a farm’s inventory;

Purchase of jointly-owned equipment; and

Lease or rental costs of machinery and equipment (unless included in cost per acre limits). Equipment Policy Eligible equipment costs are those purchases of equipment solely-owned by the recipient and considered essential to undertaking the improvements that have been approved. Recipients must retain ownership of all machinery and equipment purchased at a cost of $5,000 or more, funded under OVIP for a period of four years after purchase. Used equipment purchases may be eligible for funding under the following conditions:

Equipment is purchased at fair market value;

Equipment is purchased from an authorized dealer; and

No previous owner has received cost share funding for the purchase of the equipment under any program funded in part or in whole by the Government of Ontario.

Recipients will be required to provide invoices for all machinery and equipment purchases, new and used.

Considerations for Applicants Eligible costs must be incurred by the recipient in the same Year in which the application approval is assigned. Ap-plicants should only apply for improvements that can be realistically completed and expensed in the same Year of approval. The complete list of eligible Vineyard Improvements is outlined in Schedule A of this guideline. The following list of considerations is intended to assist applicants in making decisions about which vineyard im-provements to include in a single application:

All vineyard improvements (goods and services) must be undertaken and completed by March 31, 2015.

All eligible costs relating to the improvements must be incurred by the recipient by March 31, 2015. Applicants for Year 4 funding who incur expenditures prior to application approval do so at the risk of not being reimbursed if:

the application is not approved;

all terms and conditions are not satisfied;

funding is not available.

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It is important to note the payments received by successful applicants to the Ontario Vineyard Improvement Program will be considered as income for tax purposes.

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Application Process 1. Complete and Submit an Application Form We encourage applicants to visit the OVIP website for program information, forms and other resources at www.ontario.ca/improvingvineyards The Grape Growers of Ontario are happy to assist you with your application. There is also a computer available at GGO for growers to use at their own convenience. For assistance from GGO please call Nick Lemieux at 905-688-0990 OMAF/MRA staff will be available to answer program questions by calling 1-877-424-1300. A complete application submission will include:

Signed Application Form

Vineyard Improvement Plan If the submission is incomplete, OMAF/MRA reserves the right to deem it ineligible for review and approval. There is no guarantee that OMAF/MRA will provide applicants with a grace period to remedy deficiencies. The Program is first-come, first-served and applications for Intake 4 will be time and date stamped simultaneously from all sources commencing on Monday, December 16, 2013 at 10:00 a.m. Completed applications may be submitted in one of four ways: 1. By email: ovip@ontario.ca

2. By fax: (519) 826-3398

3. Regular mail or in person at:

Ontario Ministry of Agriculture and Food / Ministry of Rural Affairs (OMAF/MRA) Ontario Vineyard Improvement Program Rural Programs Branch 1 Stone Rd. West, 4th Floor Guelph, ON N1G 4Y2

Payment Stacking Policy OVIP applicants may not receive grant funding under any program financed in part or in whole by the Government of Ontario for the same vineyard improvement(s). In particular, applicants should take care not to receive or apply for funding for the same vineyard improvement(s) under OVIP as under the VQA Support Program administered by the Ministry of Economic Development, and Employment. Applicants are required to declare all sources of federal, provincial and/or municipal funding, including the program(s) under which the funding is being provided, in relation to their vineyards.

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4. In Person at the following OMAF/MRA Regional Office locations:

Advisory Services Building Box 8000, 4890 Victoria Avenue North Vineland, ON L0R 2E0 Phone: (905) 562-4147 Fax: (905) 562-5933

Box 587, Blueline Road & Highway # 3 Simcoe, ON N3Y 4N5 Phone: (519) 426-7120 Fax: (519) 428-1142

Agronomy Building Box 400, 120 Main Street East University of Guelph, Ridgetown Campus Ridgetown, ON N0P 2C0 Phone: (519) 674-1690 Fax: (519) 674-1564

R.R. # 3, 95 Dundas Street East Brighton, ON K0K 1H0 Phone: (613) 475-1630 Fax: (613) 475-3835

For more information about our partners in OVIP, visit the sites below.

Agricorp- www.agricorp.com GGO- www.grapegrowersofontario.com OSCIA - www.ontariosoilcrop.org

2. Application Review and Approval

Submissions are reviewed on a first-come, first-served basis. Intake 4, opening on December 16, 2013 will cover Year 4 of the program. OMAF/MRA staff will review completed Application Forms, verify the applicant’s eligibility, wine grape acreage and calculate the applicant’s funding cap. The program is first-come, first-served where funds are approved to the government’s maximum annual allocation. Please note that all applicants should apply on the relevant application intake date, or as soon as possible thereafter, to maximize their opportunities to be considered for the program.

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3. Offer to Proceed Once an application is approved, OMAF/MRA will send an Offer to Proceed to the successful applicant (Recipient) outlining the terms and conditions of the funding, including the list of vineyard improvements approved for reimbursement. Recipients must pay strict attention to the eligible invoice dates, and adhere to the project claim submission deadlines; otherwise, costs may be considered ineligible for reimbursement. The recipient must sign the Offer to Proceed and return it to OMAF/MRA. 4. Claims Process Upon the completion of one or more approved vineyard improvements, recipients are required to sign and submit a completed Claim Form in order to obtain reimbursement for eligible costs. It is important to note that OVIP does not fund cost over-runs; the approved funding in any Year cannot be exceeded. Recipients must complete, or appoint an appropriate designate to complete, the two day Growing Your Farm Profits Workshop offered by the Ontario Soil and Crop Improvement Association (OSCIA). Growers are strongly encouraged to complete the workshop before applying for OVIP funding, but it is recognized that this may not be practical in all cases.

To find out when and where the workshops are being held, visit http://registration.wildapricot.org/Workshops

Vineyard improvements are subject to verification by an Agricorp field adjuster at OMAF/MRA’s discretion. Vineyard improvement work may need to be verified while the work is being completed and prior to payment. The claim submission will include the following where applicable:

Copies of invoices and receipts for the work undertaken or equipment purchased;

Equipment serial numbers and a detailed description of equipment purchased;

Proof of completion of the Growing Your Farm Profits Workshop by the Recipient or Recipient’s designate. 5. Performance Measures In order to serve you better, a completed Performance Measures Questionnaire needs to be submitted before final payment is released. This will enable us to continuously improve the OVIP program and the industry as a whole.

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Additional Requirements for Applicants Accepted Under OVIP

Compliance As a condition of OVIP funding, recipients are responsible for complying with all applicable federal, provincial and municipal laws and regulations. Failure to comply in any material respect with applicable laws and regulations may result in disqualification from receiving OVIP payments and may require the repayment of any funds received under OVIP to Ontario. The Government of Ontario, including its ministries and public bodies, are not legally responsible for the consequences if OVIP recipients fail to comply with any applicable laws and regulations. Information Sharing, Compliance, Audits and Site Inspections As a condition of OVIP funding, recipients must agree to authorize ministry use of data collected under the Grape Growers of Ontario’s electronic vine management system (VITIS) to enable individual funding caps to be calculated, to provide data for use in verifying applications and to measure performance. As a condition of OVIP funding, recipients must agree to provide project financial information and permit access for audits, which may include site inspections, to be conducted by OMAF/MRA and/or its agent(s). As a condition of OVIP funding, recipients must agree to share information on file with the Government of Ontario, or any of its agencies, in relation to any program which the Government of Ontario has funded, in whole or in part, for the purpose of ensuring against funding duplication and identifying funds that may be owing to the Province under any other provincial funding program. Once applicants are approved for funding, recipients must comply with the terms and conditions as outlined in these guidelines, the Application Form and the Offer to Proceed. All signatories to an Application Form are responsible for ensuring the truth and accuracy of all information provided to OMAF/MRA and/or its agent(s). Any signatory to an Application Form who provides false or misleading information to OMAF/MRA and/or its agent(s) may be disqualified and required to repay any payments received under OVIP. OMAF/MRA will seek to recover any payments from recipients who received a payment under OVIP that they were not eligible to receive in accordance with OMAF/MRA’s recovery policy and all applicable Acts and Government of Ontario directives regarding the collection of debt. Should a recipient have any pre-existing debts owing to Her Majesty the Queen in Right of Ontario, OMAF/MRA may recover against that pre-existing debt through a set-off against any payments a recipient may be eligible to receive under OVIP. Note that OMAF/MRA reserves the right to revise these guidelines from time to time. It is recommended applicants confirm they have the most recent version of the program guidelines prior to making an application.

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Schedule A

Eligible Vineyard Improvements

Code Improvement Category

Eligible Vineyard Improvements

Claim Method and Cost Allowance (receipt based claims may be subject to

Agricorp verification)

0101 Wine Grape Vine Removal

Removing wine grape vines/stumps/roots from trellis and disposal; trellis, posts, and wire may also be removed and disposed of or left in place, where practical

Flat eligible cost rate of $3067 per acre; must be verified by Agricorp at time of removal

0201 Vineyard Preparation

Tile drainage materials and installation

Receipt-based claim for materials and installation from licensed contractor only

0202

Land grading

Flat eligible cost rate of $850 per acre or receipt based claim; must be verified by Agricorp at time of grading

0203 Land preparation for planting - ploughing, discing, cultivating, cover crop seeding

Flat eligible cost rate of $300 per acre or receipt based claim; must be verified by Agricorp at time of preparation

0301 Vine Trellis Systems

Posts, wires and anchor materials Receipt-based claim

0302

Installation of trellis posts, wires and anchors

Flat eligible cost rate of $1.50 per meter to a cap of 60% of material costs or receipt based claim. Installation measured end post to end post of new rows; must be verified by Agricorp at time of installation

0401

Consultation with a Viticulture Expert

Consultation with a viticulture expert (please contact the GGO to obtain a list of qualified viticulture experts)

Receipt-based claim – GGO approved list of qualified viticulture experts only

0501 Improved Viticulture Practices

Mechanical pre-pruning machine Receipt based claim

0502 Mechanical leaf remover, vine trimmer, hedger, electric prunner

Receipt-based claim

0503

Soil amendment spreading machine (side dressing-type equipment for compost or mulch, but not manure spreaders)

Receipt-based claim

0504 Weed control equipment other than sprayers

Receipt-based claim

0505 Sub-soiling equipment, Soil Aerator, Roto-tiller

Receipt-based claim

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Code Improvement

Category Eligible Vineyard

Improvements

Claim Method and Cost Allowance (receipt based claims may be subject to

Agricorp verification)

0506

Improved Viticulture Practices (Cont’d)

Purchase of drift reduction sprayers, 4 row sprayer or equipment modification for improved spray application

Receipt-based claim

0507 Prunings shredder (not mowers) Receipt-based claim

508

Specialized Equipment (*tractor, (see page 14), tote bin, dump wagon, grape harvester, 3 point hitch, harvester attachment that removes stems and leaves)

Receipt-based claim

509 Installation of a GPS guidance system on vineyard equipment

Receipt-based claim

0601 Reducing Cold Injury

Purchase and installation of wind machine or like equipment

Receipt-based claim from qualified contractor

0602 Relocating stationary wind machine

Receipt-based claim from qualified contractor; must be verified by Agricorp at time of relocation

0603 Hilling up vine equipment Receipt-based claim

0604 Insulating fabric for winter protection (including motor)

Receipt-based claim

0701 Improved Irrigation

Purchase of trickle irrigation equipment, including flow meter (mandatory)

Receipt based claim

0702

Installation of trickle irrigation system

Flat eligible cost rate of $0.40 per metre of grape row; will be subject to Agricorp verification

0703 Catchments basin Receipt-based claim

0801 Pest Management

Non acoustical pest management systems (bird netting, night guard retrofit , electric fencing)

Receipt-based claim

0901 Improved Weather Sensing

Purchase or modification of sensing/monitoring equipment related to wind machine operation (including transition to natural gas)

Receipt-based claim from a qualified contractor

0902 Purchase of soil moisture sensors and like equipment

Receipt-based claim

0903 Purchase of purpose-designed software to manage weather data

Receipt-based claim

0904 Equipment to measure plant moisture stress (pressure bomb)

Receipt-based claim

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*TRACTOR SPECIFICATIONS:

Crawler tractors or,

Tractors 25 to 125 hp (pto)

Outside tire width adjustable to 78” or less

2wd or 4wd

Should be able to accommodate front three point hitch and pto

Must have rear three point hitch and rear 540 or 1000 pto

Minimum 2 selective control valves Ineligible Costs Ineligible costs include, but are not limited to:

Cost of new vines

Cost of planting new vines

Any winery specific equipment

Purchase or rental of land and buildings

Purchase of jointly-owned equipment

Purchase of used machinery and equipment other than from an authorized dealer

Lease or rental costs of machinery and equipment (unless included in cost per acre limits)

Purchase of general farm equipment (e.g., manure spreader, tractor)

Materials in a farm’s inventory

Costs for on-going testing in the vineyard

Pesticides or other pest control chemicals or substances

Purchase of general purpose computer software

Direct wage subsidies for employees

Debt restructuring, fundraising or financing costs

Meals, entertainment and alcohol

Costs incurred prior to April 1, 2014

Costs incurred at times outside the eligible invoice dates

Costs associated with completing the Application Form, Claim Form or any other program-related forms

Costs associated with project planning, supervision, or administration

Normal or on-going business costs

Legal costs

HST

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Également disponible en français

For more information: Telephone: 1-877-424-1300 or

Email: ovip@ontario.ca

www.ontario.ca/improvingvineyards