NEWS RELEASE

United States Department of Agriculture • Rural Development

1221 College Park Drive, Suite 200, Dover, DE  19904

Phone: (302) 857-3580 • Fax: (302) 857-3640 • TDD: (302) 857-3585 • Web: http://www.rurdev.usda.gov

TWO GRANTS SUPPORT ELKTON WINERY

          Elkton, MD (October 29, 2008) – Since 2006, the folks at Terrapin Station Winery have been making high quality wine with grapes that are grown on about 7.5 acres.  With the support of more than $66,000 in grant funds they plan to double the size of their operation and increase their sales.  Morris and Janet Zwick are co-owners of Diamondback Wine, trading as Terrapin Station Winery, and 1 of 144 grant recipients in 37 states to receive funding this year through a nationally competitive USDA Rural Development Value-Added Producer Grant (VAPG) Program.

Federal, state, and local officials joined together this afternoon at Terrapin Station Winery for the announcement of a $49,872 grant from USDA Rural Development that includes a partial matching grant from Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO) in the amount of $16,624.

In a prepared statement, USDA Rural Development State Director Marlene Elliott Brown said, “Your taxpayer dollars that we are returning today support job creation and retention for agricultural producers, businesses and families here in Maryland.  Through this grant program we have the opportunity to preserve our rural landscape and to help keep agriculture as the backbone of our rural economy.”

            Originally authorized in the 2002 Farm Bill, the VAPG Program is designed to support farm families in rural America by helping them to market their commodities and increase their financial returns through planning and capital investments.  This year, five Maryland agricultural producers were recipients of the program.  Out of the five, three were wineries; the other two were for cheese and beef projects representing a total of $532,228.  MARBIDCO provided a companion grant of up to one-third of the USDA award for each project.

MARBIDCO is a quasi-public corporation established by the State of Maryland in 2004 to provide specialized economic development assistance to Maryland’s struggling farm, forestry, and seafood industries.  Its mission is to help agricultural and other rural businesses achieve profitability, and in the process help preserve farm and forest land as well as bolster the production of quality locally-grown food and fiber products.

“MARBIDCO is truly delighted to be able to assist Terrapin Station Winery with their agricultural enterprise expansion activities, and we heartily commend the Zwicks for their entrepreneurial spirit and long hours of work to get their business to this stage ,” said Stephen McHenry, MARBIDCO Executive Director. “Value-added processing, if done in an appropriate fashion, is a viable way for farmers to find new markets for their products, increase farm-gate revenues, and help sustain farm operations for future generations.”                                    

            The winery is located just off of MD-213, near Elkton, on a 44 acre farm that has been in Janet Zwick’s family for over 50 years.  The farm consists of approximately 30 tillable acres that has supported various field crops including wheat, corn and soybeans.  With plans to keep future generations farming, and to make the farm more sustainable, the Zwicks developed a winery.  Wineries are a value-added business – they convert the raw agricultural product, grapes, into wine – a value-added product.  Wineries are typically known for being environmentally friendly; using less acreage that results in reduced runoff that could impact the Chesapeake Bay.  The owners of Terrapin Station Winery have added another boost to the environment by contributing a portion of their sales to help protect the Diamondback Terrapin, a native of the Chesapeake Bay, and Maryland’s state reptile.

Terrapin Station Winery will use the money from USDA and MARBIDCO as working capital to hire a professional winemaker, purchase supplies, and marketing.

"Janet and I are excited about the support we are getting from customers as well as state, local and federal governments as we try to keep a wonderful slice of agricultural land viable amongst ever encroaching development,” said Morris Zwick, President, Terrapin Station Winery. “These grants will go a long way towards establishing a viable agricultural business on land that would otherwise be 'growing houses'. Establishing a vineyard and winery is a long-term, capital-intensive pursuit that can take many years to see finally pay off. In addition to saving agricultural land, we are also using innovative, sustainable packaging to lower our environmental impact and using our sales to help our namesake, the Diamondback Terrapin, survive the development around the Chesapeake Bay. We want to show that winemaking can be good for agriculture and the environment in Maryland."

This is the fifth winery in Maryland to be a recipient of the VAPG program.  Three wineries located on the Frederick Wine Trail -- Black Ankle Vineyards, located in Mount Airy, was a recipient in 2006; Sugarloaf Mountain Vineyard, located in Dickerson, was a recipient in 2007; and Elk Run Vineyards, located in Mount Airy, was a recipient in 2008. Another recipient this year is Mark Cascia Vineyards located in Stevensville.   Over the past 7 years, Maryland agricultural producers have received a total of $2.2 million in VAPG awards.

            USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents.  Last year, the agency returned more than $156 million to rural Maryland.  They have more than 40 programs that support agriculture, business opportunities, home ownership, home repair, rental housing, broadband technology, public safety, health care, education, social and cultural needs, and energy related projects.  Additional information on rural programs is available by calling their Dover, Delaware Area Office at (302) 857-3595 or by visiting their website at www.rurdev.usda.gov.

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