Agricultural Guest Worker Program

Localized shortages of legal workers are a problem for growers in many states. Many aspects of the winegrowing process are labor intensive at various times throughout the year, including winter pruning, spring and summer cultural practices to protect the crop from pests and diseases and enhance wine quality and the fall harvest. WGA supports agricultural guestworker legislation that:

• Reforms the H-2A visa program for temporary non-immigrant farmworkers to make the paperwork process more user-friendly and timely;
  
• Provides a realistic wage rate as part of a reformed H-2A program; and
  
• Provides an adjustment of status for workers who have been employed in the U.S. agricultural occupations and who make a commitment to continue in agriculture for a period of time.

Help Grape Growers hit by Pierce’s Disease

Growers have asked members of Congress to cosponsor H.R. 2354, which allow partial deduction of capital costs when a grower is trying to restore his vineyard after a disaster. The bill allows farmers to deduct 80% of “special replanting” costs for tangible assets, such as plants and their supporting structures, and irrigation and drainage systems as well as land preparation and fumigation which would be considered “special replanting” costs when replanting destroyed crops. Only producers of edible crops are eligible but farmers may replant either on the original acreage or any where else in the United States.

Funding the Battle Against the Glassy Winged Sharpshooter and Pierce’s Disease

WGA supports the request of the State of California for $17.5 million to the Animal and Plant Health Inspection Service (APHIS) for the containment and control program; $2 million to the Cooperative State Research, Education and Extension Services (CSREES) special grant for research; and $3.5 million for the Agricultural Research Service for Pierce’s Disease research.

Increased Funding for Winegrape Research

WGA supports increased funding for viticulture research and CSREES $2 million special grant for the Viticulture Consortium and an ARS funding increase of $300,000 each for sustainable vineyard practices (Davis, CA) and grape genetics/rootstock research (Geneva, NY).

International Developments

Wine Trade Group

The U.S. government and industry continue their partnership with the Wine Trade Group countries. This group, which includes Argentina, Australia, Canada, Chile, New Zealand, South Africa, and the U.S., has met several times. Industry representatives from Mexico have participated as observers. The governments of Australia, Canada, Chile, New Zealand and the U.S. signed the Mutual Acceptance Agreement (MAA) on oeonological practices, which they had all initiated during the meeting in Adelaide, except for Chile. This agreement will provide recognition of winemaking practices within the country-of-origin for all wines traded amongst members of the agreement. For more information visit www.ita.doc.gov/td/ocg/nwwp.htm.

U.S. – Chile Free Trade Agreement (FTA)

The U.S. government hopes to finish the Free Trade Agreement with Chile by June 2002. Members of the U.S. government have said that wine has been included in the list of “sensitive” products. USTR had indicated there are four categories of products within the tariff discussions: immediate phase-out, four year phase-out, eight year phase-out, and unspecified. We are continuing to push our position with the U.S. government that the U.S. tariff on wine and grape juice concentrate should not be reduced any further as there is no market for our products in Chile and Chilean wine and concentrate directly competes with U.S. products in the U.S. Market.

Farm Bill Priorities and Progress

On May 2, 2002 the House of Representatives approved the Farm Security and Rural Investment Act of 2002 by a vote of 280-141. The Senate is also expected to pass the bill in May and send to President George Bush for his signature. Within the six-year legislation, WGA identified several priorities including increases for research, the Market Access Program, conservation programs, and exotic pest exclusion programs, plus the value-added provisions of the rural development title. Once the Farm Bill is in place, growers will continue to have opportunities to participate in the implementation process and WGA will continue to track issues pertaining to specialty ag crops. For a complete summary of the Farm Bill go to the following Committee websites: http://agriculture.senate.gov/. or http://agriculture.house.gov/.

Following is a recap of how the final bill impacts these provisions of interest to winegrape growers:

• Market Access Program (MAP)—Increases program spending to $200 million.
• Research – Reauthorizes and establishes new agricultural research and extension programs. Increases funding for the Initiative for Future Agriculture and Food Systems and increases program level from $120 million a year to $200 million annually in FY2006.
• Foreign Market Development Cooperator Program (FMD) – Increases program spending from $27.5 to $34.5 million per year, with a continued significant emphasis on the importance of the export of value added agricultural commodities into emerging markets.
• Specialty Crop Purchases—Increases carryover-spending authority for Section 32 commodity purchases. Directs additional commodity purchases by requiring not less than $200 million of Section 32 funds per year to be used to purchase fruits and vegetables and other specialty food crops.
• Value-Added Agriculture—Provides $40 million a year for grants to assist producer owned value-added businesses.
• Water Conservation Program—Provides cost-share incentives and assistance for efforts to conserve ground and surface water. $50 million is reserved specifically to assist producers in the Klamath Basin.
• Technical Assistance for Specialty Crops (TASC) – Provides exporter assistance to address barriers that restrict U.S. specialty crop exports.