**[News Release]{.underline}**

**Winegrowers receive Value-Added grant from Rural Development**

*(March 3, 2004)* The Winegrowers Association of Georgia received a
ceremonial big check today for \$18,973 from Stone Workman, state
director of U.S.D.A. Rural Development. Funds are provided through Rural
Development's "value added" program to assist agricultural producers.

"This program provides funds to help farmers," Workman said.
"Winegrowing in Georgia is an expanding industry within the state and
offers another alternative crop for farmers to try. That is very
exciting."

Grant funds are provided through section 6401 of the Farm Bill, which
helps agricultural producers develop value-added projects to increase
profits and marketability. The Winegrowers Association of Georgia is a
non-profit comprised of 8 producers in North Georgia. These funds are to
partially fund an economic impact study and marketing/public awareness
campaign. As a condition of the grant, the Association will match the
grant with funds from their own resources and with donated services from
the Gainesville-Hall County Convention and Visitors Bureau.

This industry has grown substantially in the last five years, and the
University of Georgia Agriculture Extension Service estimates the
economic impact at close to \$15 million.

In 2002, Georgia had about 200 acres of vineyards and produced more than
100,000 gallons of wine for a value of \$6 million. The wineries have
spurred the development of ancillary businesses, including shops, bed
and breakfasts, restaurants, special events and a resort.

\"North Georgia soil is particularly well-suited for growing grapes,\"
Workman said. \"The red clay soil is similar to the 'terra rosa' soil of
Italy's wine country and provides good oxidation. North Georgia is the
only area in the state in which vinefera and French-American grapes can
be successfully cultivated.\"

The varieties of grapes grown include viognier, chardonnay, merlot,
cabernet savignion, sangiovese, cabernet franc, seyval, vidal,
chambourein and Norton. North Georgia producers are becoming highly
respected, having won hundreds of awards in national and international
competitions.

The Winegrowers Association of Georgia has partnered with a number of
local and state organizations, primarily for publicity purposes. Among
them are: Gainesville-Hall County Convention & Visitors Bureau,
Dahlonega-Lumpkin County Chamber of Commerce, Towns County Chamber of
Commerce, Rabun County Chamber of

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GA Winegrowers

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Commerce, University of Georgia School of Agriculture, Georgia
Department of Community Affairs and the Georgia Department of
Agriculture.

The eight members of the Association are Blackstock Vineyards in
Dahlonega, Chateau Elan Winery in Braselton, Crane Creek Vineyards in
Young Harris, Frogtown Cellers in Dahlonega, Habersham Vineyards and
Winery in Helen, Persimmon Creek Vineyards in Clayton, Tiger Mountain
Vineyards in Tiger, and Wolf Mountain Vineyards in Dahlonega. More
information on the Association is available at
http://www.georgiawines.com

When the Farm Bill became law in 2002, it was expected that USDA
Secretary Ann Veneman would consider applications for projects from a
variety of agricultural sectors such as renewable energy, wineries, high
value products from major crops, agri-marketing ventures, and community
supported agricultural projects. Allocated was \$40 million in fiscal
year 2002, \$28 million in FY 03, and \$15 million this year. The
program is expected to run through 2007.

Georgia had four projects funded in 2002 and two projects funded in
2003. More information on Rural Development programs in Georgia is
available at: http://www.rurdev.usda.gov/ga//vadg.htm.

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