YOUR SOURCE FOR CAWG AND INDUSTRY NEWS. FOR CAWG MEMBERS ONLY.
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USMCA Passed by Senate, Heads to President Trump's Desk
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The U.S. Senate this morning passed the U.S.-Mexico-Canada Agreement (USMCA) by a bipartisan vote of 89-10 (
vote summary
). It now awaits the president’s signature. “With Congressional consideration now complete, our farmers and ranchers are eager to see the president sign this legislation and begin reaping the benefits of this critical agreement,” USDA Secretary Sonny Perdue said in a
press release
.
California Sen. Dianne Feinstein said
in a statement
, “I voted yes on the U.S.-Mexico-Canada trade agreement because I believe it will benefit California and the United States.” She cited that there are several provisions in the agreement that will help California, including greater access to Canadian agricultural markets and labor provisions that go beyond past trade agreements.
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Historic US-China Trade Deal Signed; Ag Industry to Benefit
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President Trump and Chinese Vice Premier Liu He yesterday at the White House
signed a long-awaited phase one trade deal
, which tears down major market barriers for U.S. food and agricultural exports. In his remarks Trump said, “With this signing, we mark more than just an agreement; we mark a sea change in international trade.”
A key outcome of the agreement is that China will purchase and import on average at least $40 billion of U.S. food, agricultural and seafood products annually for a total of at least $80 billion over the next two years. Since 2009, China has been one of the top four largest export markets in the world for these U.S. products.
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Government Relations Report
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IS TAX REFORM ON THE HORIZON?
At his budget press conference last week, Gov. Gavin Newsom was asked what he plans to do about tax reform. The governor said that the state desperately needs to change the tax structure. This is because the budget is closely tied to the economy and Wall Street, creating a recurring situation where in bad economic times, revenues decline substantially while the need for services increases.
Organizations representing schools and labor unions have sought a tax solution that might avoid big battles over tax increase ballot initiatives going forward. Tax reform proponents want Newsom to push a tax package through the California Legislature before the November ballot is finalized.
Opponents believe “tax reform” is just another way of saying “tax increase.” They argue that while the state enjoys a record surplus and rainy day fund, it may be unwise to ask legislators to defend their votes on a tax increase in November.
Tax reform could include the following and much more:
- Changing the vote threshold on local tax increases.
- A new oil tax.
- Redoing the sales and use tax to impose a tax on services provided to business.
- Changing property tax to create a split roll property tax.
- Creating a new phone tax to reform the 911 system.
- Creating a new healthcare tax or “individual mandate” penalty.
Republican legislators estimate the reforms could increase taxes by more than $2.4 billion annually. Some of these efforts have failed passage in 2019, but are likely coming back this year. The Legislature could pass tax reform as late as August and still get it on the November ballot. Stay tuned.
-Michael Miiller / michael@cawg.org / 916-379-8995
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Slides Available from Chlorpyrifos Alternatives Workshops
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Deadline to submit comments to DPR:
Jan. 31. Send email to alternatives@cdpr.ca.gov.
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SVB State of the Wine Industry Report Provides 2020 Outlook
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Silicon Valley Bank this week released its State of the U.S. Wine Industry 2020 report (71 pages). It features 2019 predictions in review, 2020 predictions and observations, grape and wine supply, wine sales, demographics and marketing, and other information. Among the 2020 predictions: Acute oversupply will lead to widespread discounting and present U.S. wine consumers with the best wine retail values in 20 years. The oversupply with diminishing volume growth in demand will lead to vineyard removals - and fallowing in some cases - and reduced returns for growers.
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Wine Consumption: Two Decades of Growth - Until Last Year
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Total wine (by volume) in the U.S. decreased in 2019 after 24 straight years of growth, according to a new report from the IWSR, a leading supplier of data and market intelligence on the global alcoholic drinks markets. IWSR attributes the decline to changing generational habits. Wine represents about 11 percent of the total beverage alcohol market in the U.S. The report found that distilled spirits and ready-to-drink products continued to post gains (+2.3 percent and +49.7 percent, respectively).
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Providing creative, integrated solutions for our beverage and agricultural industry partners with quality packaging products and supply chain services
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CAWG's preferred partner for insurance products for more than 20 years. Group workers' comp, wine industry package, federal crop insurance, employee benefits...and more. For more information: 209-955-2600 or
email
.
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Providing the very best California crop insurance services.
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UNIFIED WINE & GRAPE SYMPOSIUM
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Sponsorships and Advertising Are Still Available! Thank You for Your Support!
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For more information about remaining opportunities to promote your business or brand, please contact Jenny Devine at
jenny@cawg.org
or 916-379-8995.
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Keynote Speaker: Jeff O'Neill, CEO and Founder of O'Neill Vintners & Distillers
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“At this year’s Unified, industry members will undoubtedly be talking about the unprecedented challenges and many complexities facing the wine business,” Jeff O’Neill said. “I’m honored to have the opportunity to contribute to that discussion and to share our perspective at O’Neill Vintners & Distillers.”
WHEN:
Feb. 4
>
REGISTER
: Separate registration ($75 for CAWG members)
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WGA Leadership Luncheon and Rich Smith Award Presentation
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Dr. Jean-Marie Cardebat, full professor of economics at the University of Bordeaux, is the keynote speaker at the WGA Leadership Luncheon (held during Unified). The event will also include a presentation honoring the recipient of the Rich Smith Distinguished Service Award. The event is open to CAWG members and their guests.
WHEN:
Wednesday, Feb. 5 / 11:45 a.m. to 1:45 p.m.
WHERE:
Cal Expo, Club House, 1600 Exposition Blvd., Sacramento
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Podcast: Regulations That Will Affect Your Wine Business This Year
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Update on new policies that affect the wine industry, including the water resiliency plan and how it affects the Sustainable Groundwater Management Act, regulating power shutoffs to prevent wildfires, anticipated regulations on pesticides, and impending labor law changes.
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Sonoma State, SRJC Announce Wine Production Degree Transition Program
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Sonoma State University’s (SSU) Wine Business Institute and Santa Rosa Junior College (SRJC) have launched a new bachelor’s degree transition program for students interested in careers in wine production and management. The joint program – starting in fall 2020 – provides a four-year degree transition pathway for SRJC viticulture and enology students and expand SSU’s wine business program to include a wine production track.
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CAWG + LDGGA Breakfast Meeting
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Winegrape Contracts: Language and Enforcement
WHEN:
Jan. 21 / 8:30 a.m. (registration, pastries, coffee), 9-11 a.m. (meeting)
WHERE:
Burgundy Hall, Lodi Grape Festival Grounds
PRESENTED BY:
Dale Stern (Downey Brand) and CDFA Market Enforcement Branch
Sonoma Grower Meeting: Tax Laws
HOSTS:
CAWG, Sonoma County Winegrowers and the Sonoma County Farm Bureau
WHEN:
Jan. 24
WHERE:
Sonoma County Farm Bureau, 3589 Westwind Blvd., Santa Rosa
PRESENTED BY:
Robert Murphy and Henrietta Bodi, Frank Rimerman + Co LLP
TOPICS:
Important tax factors that directly impact ag businesses and families, as well as tax-related deductions for those impacted by recent wildfires. Several other topics will be discussed, and CAWG will also give a state and federal update.
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VINEYARDS & WINE
January
Oversupply, labor shortage and mechanization stigma hamper the state’s winegrape industry.
Foothills Sun-Gazette, Jan. 15
AGRICULTURE
Sen. Feinstein has promised to push the Farm Workforce Modernization Act forward.
Western Farm Press, Jan. 15
WATER & WEATHER
California Weather Blog, Jan. 15
National Oceanic and Atmospheric Administration, Jan. 15
National Oceanic and Atmospheric Administration, Jan. 8
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Meeting to Gather Industry Input on Smoke Exposure on Winegrapes, Wine
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Drs. Anita Oberholster (UC Davis), Elizabeth Tomasino (Oregon State University) and Tom Collins (Washington State University) will conduct a meeting in Sacramento – the day before Unified starts – to get feedback on wildfire smoke-related issues and problems.
WHEN:
Feb. 3, 10:30 a.m. to 3:30 p.m. (lunch provided)
WHERE
: Hyatt Regency, 1209 L Street, Sacramento
In-person attendance (free) is encouraged. If this is not possible, Zoom video conferencing will be available. All attendees must register to participate, including through Zoom. No walk-ins allowed.
REGISTER
to reserve your spot (space is limited).
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CSWA Sustainable Winegrowing and Certification Webinar
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WHEN:
Feb. 12 & 25, March 10 & 18 / 10-11:30 a.m.
Free webinar to learn about the California Sustainable Winegrowing Program (SWP), how to complete a self-assessment using the online portal, and the steps required to become Certified California Sustainable Winegrowing.
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