It's grim times. But don't expect judgements to be clouded.

There is no doubt the the fiscal realities of growing a crop that serves as a 'luxury' foodstuff can be a bit of an issue in times of economic hardship.

So the question has to be asked are those who are hurting those who's poor planning means that they can't withstand a year or two of poor returns?

Anyone from a genuine farming background will know that there are good years and bad years. You reap in the good so that you can survive in the bad. If you have an expectation that all years will be good and plan accordingly, you will get stung. It's called greed. You can smell it on some people.

It therefore comes as a surprise to read the following from the manager of the Cheviot Kirribilly Vineyard Property Group.

Grape growers in Australia have arrived at the Rubicon.

In the latest 2009 vintage, it is now clear that grape prices have collapsed, with numerous district weighted average (“DWA”) prices some 25% below the prior 2008 vintage, despite the marginally lower tonnages of grapes produced. Whilst a reduction of DWAs was envisaged, the quantum is well above most reasonable forecasts and represents the culmination of a concerted campaign by grape buyers – mainly the larger wine producers – to lower their input costs and de facto reduce Australia’s wine surplus. Their behaviour is, of course, being driven by factors such as the higher Australian dollar, retailer consolidation and desires for further efficiencies.

The fact now remains that many grape growers face the choice of four unpalatable alternatives:

• Bankruptcy;
• Government financial assistance to remove vines, turn over the land to alternative use and move on;
• Attempted sales at well below perceived values four or five years ago, into a vineyard market swollen by the desires of at least two major integrated wine producers to reduce their levels of fixed capital; or
• Subsistence living with no return on capital given that grape prices in some varietals and areas appear to reflect little more than the basic cost of production.

So, for one manager at least, it looks a little like one bad year means disaster. While I would normally focus on frost fan issues, it pains me to see practices such as viticulture, which are touted as agriculture, cry "disaster" after years of greed have produced a poor return in one year.

Genuine farmers know better. They have managed their properties sensibly and responsibility, ever mindful that the fickle nature of the climate, be it physical or financial, can throw a curve ball every now and again.

If you're sitting in Remuera bemoaning the poor investment you made in wine, you have got everything you deserve.