Growers and economists testify that California faces widespread vineyard removals and deep price pressure
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Summary
Growers, economists and association representatives told a Senate select committee that falling demand, cheaper imports and rising production and compliance costs have led to large vineyard removals and unharvested fruit; witnesses urged regulatory review and transitional support.
At a Sacramento Select Committee hearing in Napa, growers and economists described a severe market collapse for table wine and grape fruit that has prompted widespread vineyard removal.
Chris Bitter, a wine economist who said he works for American AgCredit, told the committee that California wine sales have fallen about 25% since 2019 and that imports and falling exports magnify the problem. He said LA Grape Growers estimated 20% of the 2025 crop was left unpicked because buyers were not available, and that more than 50,000 acres were retired between 2023 and 2025.
Michael Miller, director of government relations for the California Association of Wine Grape Growers, offered similar figures and emphasized the human and operational costs: removing a vineyard can cost thousands of dollars per acre, markets for disposal are limited because of air quality rules and composting costs, and fallowed land can lose agricultural designation making replanting expensive and uncertain.
Growers and panelists urged several near‑term responses: review of regulatory implementation to reduce unnecessary compliance costs, examination of trade remedies and market supports, transitional assistance for defraying vineyard removal costs, and evaluation of permitting barriers to replanting fallowed land.
Panelists cautioned that solutions must respect labor and environmental protections; multiple speakers urged that any state action be paired with workforce supports so farmworkers are not left behind.
The committee asked staff to compile comparative data on regulatory cost differentials between California and other states to better target potential reforms; no votes were taken.