BC winemakers seek government support to recover from cold snap

BC winemakers seek government support to recover from cold snap | Insurance Business Canada

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BC winemakers seek government support to recover from cold snap

They say provincial insurance is not enough

Insurance News

By
Mika Pangilinan

Winemakers in British Columbia are appealing to the federal and provincial governments for additional assistance to alleviate the financial losses incurred from a severe cold snap that struck the province last winter, causing significant damage to grape vines.

Industry representatives gathered at Spearhead Winery in Kelowna to address the aftermath of December’s freeze, which resulted in plummeting temperatures as low as -30°C in the Okanagan region.

Miles Prodan, president and CEO of Wine Growers British Columbia (WGBC), projected a substantial reduction of grape and wine production for this year by 39% to 56%.

“We need help — what we really need is Victoria to bring Ottawa to the table,” Prodan said via CBC News.

While the federal government has the AgriRecovery program in place to assist farmers affected by natural disasters, WGBC argued that the program predominantly assists grape growers and offers limited support to wineries.

WGBC also expressed concerns about the Perennial Crop Renewal Program, which was launched by the province’s Ministry of Agriculture to assist farmers in replanting vineyards with more resilient and climate-friendly crops.

The program has been oversubscribed, the association claimed, and many winemakers have been unable to benefit from it.

Dapinder Gill, general manager of Kismet Estate Winery in Oliver, BC, said that insurance coverage has been insufficient in mitigating the damages caused by last winter’s extreme weather.

“The insurance program … hasn’t been updated over the years of how it’s supposed to cover growers,” he told CBC News. “We are being paid about $7.5 per plant, and this has been the same for the last 10 to 15 years, and the cost of planting a single plant has increased to about $15 a plant.”

“We’re being told [we’re] not getting covered through the Perennial program because [we] have insurance, and the insurance is not covering enough, so we’re being short-handed on both sides.”

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