YOUR SOURCE FOR CAWG AND INDUSTRY NEWS. FOR CAWG MEMBERS ONLY.

• Gas Windfall Profit Tax
• Political Shake Up in LA (And California?)
• UW&GS - Registration & Housing Opens this Coming Tuesday, October 18
• The Crush - October Issue Released
• CDFA and USDA to Host Joint Spotted Lanternfly Briefing
• No Spotted Lanternfly Infestations Found in CA in Fall
• Nicolas Miller Named Wine Executive of the Year
• White House Discussing Immigration Push after Midterms
• DPR Statewide Pesticide App Notification System Workshops
• AMOS Power to Showcase Autonomous Equipment
• Justin Tanner Hired as New UC Vit Advisor in San Joaquin Valley
• SVB Annual State of the Wine Industry Survey - Early Results
• Nominations are Open for the 2023 Rich Smith Award

Gas Windfall Profit Tax

Whenever California gas prices soar, it is almost guaranteed that elected officials in Sacramento will spring into action in an ultimately failed effort to demand lower gas prices by edict. Our current situation is turning out to be no different.

For example, last week, Governor Newsom announced he will call a special session of the Legislature on December 5th to consider creating a windfall profit tax on oil companies. He says this is in response to the “outrageous and unconscionable” price of gas in California. Newsom, who has an ongoing and escalating political beef with the oil industry, argues oil companies are gouging consumers and are taking advantage of the situation in Ukraine and reduced supply from the Middle East.

However, the oil industry and Republicans in the legislature see Newsom’s announcement as a stunt. They argue that if Newsom really believed what he says, he would not wait nearly two months to act. However, by waiting until December, he can avoid Assembly and Senate candidates having to cast a difficult tax increase vote in the heat of campaign season.

Oil industry officials blame high prices on the market, regulatory costs in California and maintenance costs of refineries. Industry observers are skeptical of how an increase in taxes, of any kind, could possibly result in lower prices at the pump. 

Assembly Republicans have asked Newsom to take the following immediate action:

1. Suspend the state’s gas tax, which is adding 54 cents a gallon to the cost of fuel. 
2. Call off the proposed Special Legislative Session to increase taxes. 
3. Conduct a full and immediate audit of gas tax expenditures.

What’s a special session of the legislature? 

A special legislative session can be called by the governor whenever there is an emergency situation needing immediate legislative action. The most important difference between a regular and special session is the effective dates for approved bills. Special session bills take effect on the 91st day after adjournment of the special session where a regular session bill typically takes effect January 1 of the following year. This means Newsom’s tax increase would take effect as early as April 1, 2023, if the legislature acts quickly (in December) on Newson’s proposal.

Political Shake Up in LA (And California?)

Last Friday, a political A-bomb went off at the Los Angeles City Council. The release of a secretly recorded conversation appears to just be the beginning of a public reveal of intolerance amongst political leadership in city hall and in the Los Angeles labor movement. The potential statewide effect of this won’t be known for several weeks or months, as additional secret recordings of troubling conversations will likely be released soon.

In short, in a recorded conversation involving Council President Nury Martinez, Councilmembers Kevin de León and Gil Cedillo, and LA Labor Federation President Ron Herrera, they are heard making racist, homophobic, anti-Semitic, and abusive comments. Their comments primarily targeted black, Jewish, and Oaxacan Angelinos, and an LGBTQ council member and his child. 

There was an almost immediate reaction from many political leaders on both sides of the aisle (including the White House) denouncing the odious comments and calling for the resignations of all involved. While Lorena Gonzalez, head of the CA Labor Federation, denounced the comments, she did not immediately call for resignations.

Herrera and Martinez have since resigned, but it is not clear whether de León and Cedillo will also resign. Cedillo has only two months left in his term on the city council. It’s also unclear whether other city council members and labor leaders have made offensive comments that were recorded and may be released soon. 

What this means for California will be played out in the next few months. At a minimum there will be a bit of a shake up in the legislature as Senators and Assemblymembers from Los Angeles decide whether to run for election to fill the vacant Martinez seat and potentially the de León seat should he resign or be recalled. This could have an impact on leadership in the legislature. Assembly Speaker Anthony Rendon (D-Los Angeles) is in his final term and is sure to face a challenger(s) when the legislature reconvenes in December.

Registration and housing for the 2023 show will open this coming Tuesday, October 18 at 9:00 am.

The Unified Symposium is the ideal location to promote your company to thousands of industry professionals who attend. Our varied sponsorship and advertising program offers several different options for all size budgets. Banners and signs in the newly renovated SAFE Credit Union convention center proclaim your presence, print and online ads showcase your product, and exclusive sponsorship opportunities increase your brand visibility.

This is THE wine & grape industry show to attend where you invest in your future and discover new ideas and technologies—a can’t miss!

For questions regarding the opportunities available, please contact Jenny Devine or visit unifiedsymposium.org. 

VIEW OPPORTUNITIES

October Issue of The Crush Released

The October issue of The Crush is ready!

ISSUE HIGHLIGHTS

• Feature Story: Cover Crops Offer Soil, Climate, Management Benefits
• State Update: Labor Union Power in Sacramento
• Wildfires and Hurricanes, Oh My.
• Pesticide Notification System Workshops
• CDFA / USDA Spotted Lanternfly Briefing
• All Things 2023 Unified Wine and Grape Symposium
• Wine Enthusiast Wine Star Awardees

Ads from Pan American Insurance Services and Unified Wine and Grape Symposium! 

OCTOBER CRUSH

CDFA and USDA to Host Joint Spotted Lanternfly Briefing

The California Department of Food and Agriculture (CDFA) has been coordinating with the United States Dept of Agriculture (USDA), including the USDA Spotted Lanternfly (SLF) National Policy Manager as well as others, and will be holding a joint CDFA/USDA SLF briefing for the California grape industry. 

All are invited to participate in the briefing, which is being held virtually.

Date: Wednesday, October 26, 2022

Time: 10:00am - 11:00am (PST)

REGISTER

No Spotted Lanternfly Infestations Found in CA During Fall 2022

While no infestations of the invasive spotted lanternfly have been found in the state during the California Department of Food and Agriculture’s recent annual survey of over 500 sites, the pest has been found during several routine agricultural inspections of incoming shipments from out of state. These finds emphasize the importance of the state’s proactive approach to keeping the pest out of California and preparing for its possible arrival.

State and county surveyors have searched over 1,000 sites across the state since 2020. During this year’s survey, a total of 513 target sites across 50 counties were searched in the months of August and September. Fairgrounds and highway rest areas were new survey sites this year.

The public can play a critical role in keeping an eye out for the distinctive-looking insect. Click to learn more about the pest and to see pictures of what it looks like in its various life stages.

Nicholas Miller, Miller Family Wines Named Wine Executive of the Year | Wine Enthusiast’s 2022 Wine Star Awards

Congratulations to past CAWG board of Director, Nicholas Miller on being named the 2022 Wine Executive of the Year through Wine Enthusiast's Wine Star Awards. 

The Millers, who got into the grape business in the early 1970s after a century of growing lemons and avocados in Ventura County, already owned more than 2,000 acres of vineyards and large production facilities by the time they ventured into winemaking about 15 years ago. But their business model was selling grapes—from Bien Nacido and Solomon Hills in the Santa Maria Valley and French Camp in Paso Robles—and leasing out processing space, where dozens of now-famous wineries launched their brands.

READ MORE

White House Discussing a Push Around Immigration After Midterms

According to White House officials, the Biden Administration is considering making major immigration policy changes after the midterm elections. Details of the plan, including its scale and scope, will largely depend on the makeup of Congress and the political climate post-midterms. Sources close to the Administration stated that the latest policy push is part of Biden’s bid to prepare for a re-election campaign based on the slogan “Promises Kept."

READ MORE

The California Department of Pesticide Regulation (DPR) will hold three public workshops to collect feedback and provide an update on the development of the upcoming statewide pesticide application notification system. DPR has stated that the purpose of the system will be to notify neighbors when pesticides will be sprayed in nearby fields, orchards or vineyards.   

However, if the system is not properly designed, it could result in widespread, frequent and meaningless notification. This means the primary users of the information would be nonprofit environmental organizations that would mischaracterize the data and use it to attack growers.   

The workshops are scheduled at the following times and locations: 

• In-person: Monday, Nov. 7 from 5 p.m. to 7 p.m. at the Oxnard Performing Arts Center in Ventura County: 800 Hobson Way, Oxnard, CA 93030 
• In-person: Wednesday, Nov. 9 from 5 p.m. to 7 p.m. at the Orosi Memorial Hall in Tulare County: 41645 Rd 128, Orosi, CA 93647 
• Virtual: Thursday, Nov. 10 from 5 p.m. to 7 p.m. on Zoom via Link (us02web.zoom.us/j/85867200295?pwd=ZGNIMlJOVnFCTEp4VVVsRzBnbmpGQT09; Meeting ID: 858 6720 0295; Passcode: 750189; Call In Number: +1-669-900-9128) 

Growers are encouraged to participate in the workshops. While there is no stopping this new system, we need to be sure that it serves a public purpose (regional notification of neighbors) and not a political purpose (banning all pesticides statewide).   

CAWG Member AMOS Power, an American made electric tractor manufacturer based in Cedar Falls, Iowa will be showcasing the two newest builds of their autonomous tractors throughout the state of California on their first ever “AMOS Showcase & Social Tour 2022.”

Each stop will showcase AMOS’s compact modular tractor frame design that provides tractor-quality power and capabilities.

Each event will culminate with a Q&A and social hour serving complimentary local wines paired with light hors d'oeuvres made from home grown California fields.

The social tour will hit 15 locations from Fresno, Lodi, Napa, Sonoma, and Paso Robles. 

VIEW PRESS RELEASE (with dates and locations)

The University of California Agriculture and Natural Resources Cooperative Extension (UCCE) has named Dr. Justin D. Tanner as the new Northern San Joaquin Valley Viticulture Farm Advisor beginning January 3, 2023.

Tanner's regional service area will include all of San Joaquin County and Southern Sacramento County that encompass the Lodi American Viticultural Area (AVA), in addition to vineyards and growers in Stanislaus County. San Joaquin County has been without a UCCE viticulture advisor since the retirement of Paul Verdegaal in January 2018. Tanner will be based at the UCCE office in Stockton at the Robert J. Cabral Agriculture Center.

READ MORE

Last chance to take part in the Silicon Valley Bank annual survey. 

Early high-level indications of results in a variety of areas:

• Financially wineries describe the 2022 year as "good year." (Not bad and not great)
• Better than average grape quality
• Lower than average harvest yields
• The impact of the economy is described as having the largest negative impact 
• The Winery Confidence Index produced through the survey is running negative overall.
• There is moderate interest in acquiring new vineyards
• Four percent could not get insurance, while close to 50% saw rate increases, with a third of total respondents saying their rates increased and their coverage decreased
• Sixteen percent say the drought has reduced yields and they need to find new supply,
• Eighteen percent say they have the potential for a serious supply shortage without rain in the winter of 2022/23

The survey is now open through October 15.

SURVEY

Richard (Rich) Smith, founder of Valley Farm Management, Paraiso Vineyards and Smith Family Wines in California’s Santa Lucia Highlands wine region, was first and foremost a family man, and also a successful grape grower, winery owner and respected colleague. He was a highly effective, collegial and tireless leader whose significant and selfless contributions of time, energy and funds helped to shape public policy and scientific research to advance the American grape and wine industry. He passed away in December 2015.

Three of the organizations Rich helped to establish—National Grape Research Alliance, WineAmerica and Winegrape Growers of America —annually join with the Smith Family to bestow the Rich Smith Distinguished Service Award. It recognizes an industry representative who exemplifies the passion, commitment and collaboration Rich was known for and who has had a similarly positive impact on the industry. For each organization, it is our highest and most coveted award.

Do you know a colleague who emulates Rich’s exceptional leadership? Nominate him or her by November 16, 2022.

OCTOBER

18 – Registrations and Housing Open for the 2023 Unified Symposium

28 - CAWG Election Ballots Due

JANUARY 

24-26 – Save the Date! 2023 Unified Wine & Grape Symposium 

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