THE NATIONAL WINE POLICY BULLETIN NOVEMBER 2013 There are a number of issues we are following on our member’s behalf, with talking points, as well as a round-up of state issues from around the country. Please feel free to contact us with your questions and concerns. WineAmerica members should make their voices heard. Whether it’s the Market Access Program, Specialty Crop Block Grants, the Specialty Crop Research Initiative, Value-Added Producer Grants, the National Clean Plant Network, or National Agricultural Statistical Service reports, wineries and state associations have made good use of the farm bill. Many of the conferees are in states with large and growing industries. FEDERAL Immigration Reform: A new version of the Border Security, Economic Opportunity and Immigration Modernization Act was introduced by U.S. Rep. Judy Chu (D-27th District) on October 8th into the House of Representatives. The bill includes the bipartisan bill passed by the Senate as well as a House measure known as the Boarder Results Act which gained support from both parties. The proposal would introduce visa reform and shorten the citizenship path for agricultural workers as well as providing extended protections for both immigrant and U.S. agricultural laborers. TTB: With the end of the government shutdown, the TTB is now, once again, accepting COLA applications as well as new permit applications. With the severe back log of COLA submittals, please allow at least up to eight weeks for review and plan accordingly. Farm Bill: In a meeting on October 9 with the state’s Interim Joint Committee on Agriculture, Kentucky Farm Bureau’s National Affairs and Political Education Director Joe Cain that a Farm Bill agreement is expected by the end of the year. He stated that the House and Senate are working closely to name conferees to negotiate a compromise. Though there is bipartisan agreement on the majority of the proposal, debate on federal nutrition benefits and assistance (the SNAP program) has held up action on the bill as a whole. A congressional conference committee is now in the process of talking over the possible terms of a compromise five year farm bill. Both House and Senate committee members are publicly optimistic about finding common ground, but with food stamps likely the hinge around which everything turns, it’s hard to predict if a compromise bill passable by the full Congress is possible. Reportedly, there’s been some advance work to get easy language differences off the table. The President has made passage of the farm bill one of his top three priorities by year end. Whether this has a positive or negative impact remains to be seen. Assuming a compromise is possible, there’s talk that the farm bill might get wrapped into a larger tax or budget bill. That could be a pretty good outcome since both Democrats and Republicans see the farm bill legislation as a way to trim the deficit and many in both parties looking for opportunities to show voters they can make work together. Taxes: The big news coming out of the shutdown is a congressional budget conference committee. It’s been clear that Democrats want increased revenue as part of any final budget deal. 1 It’s also likely that breweries, distilleries and cideries will be pushing tax priorities focusing on the small producer tax credit and alcohol by volume rate standards. Immigration Reform: The third of the President’s top three priorities, immigration is also being pushed to the front burner by members of Congress. The stark reality is it’s hard to see a full compromise bill getting through the House and Senate. While there have been some hints at a standalone agricultural labor bill in the House, the Senate isn’t likely to pass anything other than comprehensive immigration reform. Despite the intensifying focus, unless there’s a serious shift in political dynamics, we’re unlikely to see immigration reform become law anytime soon. Food Safety: WineAmerica has reported on the numerous Food & Drug Administration delays on rulemaking that would implement the Food Safety Modernization Act (FSMA). It appears a major FDA consideration is funding, i.e. , what’s the point of rules if FDA can’t carry them out? Now, FDA is asking for significant budget increases, arguing they need the funding to make FSMA work. Since they’re unlikely to get the funding, it remains unclear when or how FDA will finally implement the new food safety rules. THE STATES NEW YORK Industry Stats: The New York Wine & Grape (The New York Wine & Grape Foundation) Foundation is sponsoring an updated and expanded Economic Impact Study conducted by Trade Practice: The large wholesalers Barbara Insel of Stonebridge Research in Napa (Southern, and Empire North) are gearing up for Valley, CA. The last study, based on 2008 data, “at rest” legislation in the next session starting showed that the grape and wine industry in January, and the State Government has generates more than $3.76 billion in economic commissioned a study of the issue by Ernst & activity annually for the State of New York. In Young. The vast majority of the wine industry, the 5 years since then, more than 100 new especially small and mid-sized wineries, are wineries have opened (New York now has 342), strongly opposed to this initiative. so the number should certainly exceed $4 billion. International Trade: With funding from USDA’s In addition, this time the study will include the Market Access Program (MAP), the New York craft beer, spirits, and cider industries. Wine & Grape Foundation continues its export Marketing & Promotions: “Taste NY” stores will programs in Canada, the United Kingdom, open in LaGuardia and Kennedy airports, as well Belgium, Germany, and Hong Kong. The wines as Grand Central Terminal selling New York are very well received in all markets, but wines, beers, spirits, ciders, and food. New York distribution remains a major obstacle. law allows any farm winery to have up to five Industry Infrastructure: Several wineries, “branch offices” which can operate like the breweries, distillers and cideries are already winery tasting room. collaborating on marketing and sales, and NORTHEAST offering consumers a wider choice of products. Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jim Trezise has assembled an informal but Hampshire, New Jersey, Pennsylvania, Rhode Island, Vermont active “Farm-based Craft Beverage Coalition” of leaders from the different categories to work on CONNECTICUT joint promotions and policy initiatives. Retailer Licensing: First Selectman William Stuart from Connecticut’s last remaining dry town, Bridgewater, announced his plans against 2 seeking reelection and his support of rescinding MIDWEST the alcohol ban after the next municipal Arkansas, Iowa, Kansas, Missouri, Nebraska, North Dakota, elections. Local business owners oppose the Oklahoma, South Dakota, Texas current dry policy and raised the issue in hopes MISSOURI that they may soon be able to serve alcohol in (Missouri Wine and Grape Board) restaurants. Research & Grants: MWGB partnered with PENNSYLVANIA Missouri State University to expand environmental and economic sustainability by Privatization: Though legislation has stalled on improving fungal disease resistance in the alcohol privatization in the state, Governor Tom Norton grape through the development of the Corbett announced in a speech earlier this first genetic linkage map for the Norton that will month that the issue remains one of his top serve as a foundation for future breeding of new three priorities. Corbett argued that privatization cultivars - $59,976. will not only be convenient for the state, it will also provide a one-time funding of an estimated MWGB partnered with the University of $1 billion to schools throughout the state. He Missouri, Grape and Wine Institute to assist stated that his administration will continue to wine grape growers in making good harvest and push the issue until a negotiation is reached. management decisions to increase fruit quality by expanding basis analytical testing - $33,811. Privatization: As the debate over state privatization continues, new survey results have Marketing & Promotions: Missouri is now shown that the majority of citizens in the state home to nine wine trails and over 120 wineries. favor abolishing the state monopoly on liquor Bearing 1,700 acres of grapes our state sales. Roughly 66% of individuals surveyed claim continues to make strides in grape growing and they favor privatization, and cite increased job winemaking. We debuted a new website this opportunities and the conflict of interests in a year as well as an updated app for Android and state run system as major factors in their decision. IPhone users. We’ve seen great response to Though the proposal has majority support with our new ad campaign as well. citizens, it still faces obstacles with legislators who have yet to set a date for its discussion. NEBRASKA (Nebraska Winery and Grape Growers Association) GREAT LAKES Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin Land Use: LB 636, was introduced last winter at the request of the NWGGA and would place MICHIGAN restrictions the application of 2,4-D.The bill does not advocate for a ban on the spraying of Retailer Licensing: Michigan has become the 2-4-D, but it does require sprayers to give latest state to allow wine to be purchased and notice of when and where they are going to delivered to citizens through the online retailer, spray 2 4-D between April 15 and September Amazon. Though customers must obtain a 15. Applicators in violation of these restrictions special license to receive deliveries, they will would be subject to fines. The bill was moved now be able to order wines from across the into Interim Study status, giving the legislature country in one online marketplace.