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Idaho grape and wine industry asks lawmakers for research support, flags land, labor and water pressures

2491031 · February 20, 2025
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Summary

Representatives of the Idaho Grape Growers and Wine Producers Commission briefed the House Agriculture Affairs Committee on industry growth, economic value and challenges; they urged support for a University of Idaho viticulturist position and described dependence on grants and marketing work to expand markets.

Roger Batt, legislative adviser for the Idaho Grape Growers and Wine Producers Commission, told the House Agriculture Affairs Committee the state’s grape and wine industry has expanded in recent years but faces land loss, water and labor challenges and lacks a dedicated viticulturist at the University of Idaho.

"We have over 1,350 acres of vineyard statewide and 70 vineyard sites that exist," Batt said, and he told the committee the industry’s total economic value for 2022 was about $314,000,000, citing the commission’s most recent data. Batt said American Viticultural Areas have been established in Idaho (Snake River Valley, Eagle Foothills and Lewis and Clark AVAs) and that AVA designations are regulated by the federal Alcohol and Tobacco Tax and Trade Bureau.

Batt said the commission supports adding a University of Idaho full‑time viticulturist for research and extension at the Parma Research and Extension Center to provide local, rapid response on pests, varietal trials and production questions. "We really support having a viticulturist because we don't have one right now to help the industry out," Batt said.

Moya Dolsby, director of the commission, described the commission’s funding model and reliance on wine excise tax receipts, optional industry assessments, event revenue and specialty crop grants to fund marketing and education. "We have a small staff, we do a lot with a little... we are highly reliant on specialty crop grant funds," Dolsby said, noting the commission typically receives significant grant funds but that grant freezes or fluctuations pose a risk to planned activities.

Melanie Krause, owner and winemaker of Cinder Winery, described the practical effects of the three‑tier distribution system and licensing burdens on small wineries. "I can send my wine to customers directly to their home with ID check, to make sure they're 21 in Wyoming. I can't do that in Utah because Utah restricts direct to consumer shipping," Krause said, and she explained small wineries also maintain dozens of out‑of‑state licenses to ship direct to consumers in compliant states.

Jay Hawkins, owner of Linnae Ridge Vineyard, outlined the capital intensity of planting vineyards and the long timeline for return on investment. He estimated planting and infrastructure costs at $20,000–$25,000 per acre and said a first‑vineyard return on investment could take 10–12 years. Hawkins and other witnesses emphasized water‑supply reliability, escalating land prices for suitable sloped sites, and rising labor and input costs as constraints on expansion.

Committee members asked how a University of Idaho position would be used; witnesses said a viticulturist would perform research trials, provide rapid field diagnosis and support seminars and technical extension that currently require flying in out‑of‑state experts. Committee members and industry witnesses also discussed market and distribution barriers that limit the ability of small Idaho wineries to expand sales outside the state.

The committee did not take a vote on policy during the commission’s briefing; the session recorded testimony and questions for committee members to consider as budget and policy decisions move through JFAC and other processes.