(HoosierAgToday) - Two million acres of Southern Indiana has been designated by the Federal Government as a viticultural area. This federal designation highlights this part of Indiana as a great place to grow grapes and produce wine. Jim Butler, with Butler Winery, says Southern Indiana has the soil, the typography, and the climate that is perfectly suited to producing wine grapes. Nicolas Doty, with French Lick Winery, says this designation will result in the expansion of the wine industry in this part of the state, “This designation will mean a lot to our expansion plans.” He said wine grapes are a great crop for farmers with limited resources and smaller acreage, “Wine grapes are a great thing to grow; it is labor intensive but not equipment intensive.” He said, as wineries expand in Southern Indiana, there will an increasing demand for wine grapes.