The Crush - October 2020 - 4

[ WILDFIRES & SMOKE EXPOSURE ]

Wine Industry
Affected by
Wildfires Seeks
Extension
of Disaster
Payment
Program
Leaders of 10 wine industry groups
on Sept. 18 sent a letter to Speaker of
the House Nancy Pelosi and Minority
Leader Kevin McCarthy requesting an
extension of the Wildfire and Hurricane
Indemnity Program Plus (WHIP+) to
cover 2020 wildfire-related losses.
Administered by the U.S. Department
of Agriculture, WHIP+ provides
disaster payments to producers to offset
losses from wildfires, hurricanes and
other qualifying natural disasters that
occurred in 2018 and 2019. In 2019,
California growers received WHIP+
payments for 2018 covered crop losses
due to wildfires, as well as quality
losses due to smoke exposure.
"Farmers are resilient and they accept
the many risks inherent to agriculture,
but 2020 has produced more challenges
than any could have ever anticipated.
It's absolutely essential that Congress
extends disaster assistance to California
winegrape growers," CAWG President
John Aguirre said.
farmers.gov/recover/whip-plus

4 / OCTOBER 2020

Dear Speaker Pelosi and Leader
McCarthy:
On behalf of winegrape growers and
winemakers in California, Washington
and Oregon, we respectfully request
your support for immediate disaster
assistance that would provide much
needed relief for growers and winemakers
who are facing multiple challenges as a
result of the devastating wildfires raging
throughout the West. We fear these
wildfires, and potentially more to come,
will result in the greatest economic loss,
due to a natural disaster, ever suffered by
the industry in our states.
California, Washington and Oregon are
the leading wine producing states in
the nation. On average, the 7,300 wine
grape growers in California, Washington
and Oregon together produce a grape
crop valued at $4.5 billion annually.
More than 6,325 wineries operate to
process these grapes, resulting in $71.61
billion of state level economic activity
for our three states. Without assistance
from the federal government through
the immediate extension of the Wildfire
and Hurricane Indemnity Program Plus
(WHIP+), many of our members will
confront unprecedented economic
uncertainty.
Tragically, losses to life and property
due to the fires are readily apparent, but
less obvious is the significant damage
and widespread uncertainty occurring
in wine country due to wildfire smoke.
Smoke exposure in our states' vineyards
can compromise fruit quality and lead to
significant financial losses. The full impact
of smoke exposure on grapes is uncertain
and research is in its infancy.
We have learned when grapes in the
vineyard are heavily exposed to fresh
smoke, they can absorb a matrix of
compounds that can result in smoky, ashlike flavors and aromas in the resulting
wine. Experience has shown these smoke
compounds can release as wine ages.

Thus, a wine that is drinkable soon after
bottling may become progressively less
palatable as smoke compounds release
over time. Consequently, some wineries
are reluctant or refuse to accept smokeexposed wine grapes. Without adequate
research, growers and winemakers have
few tools to prevent or rectify problems
associated with smoke-damaged grapes.
As wildfires continue, increasing numbers
of buyers are rejecting grapes due to
concerns about smoke exposure. Without
a market, these grape growers are forced
to abandon their fruit in the vineyard. In
other instances, buyers have agreed to
purchase grapes at a discount but could
later face unanticipated costs to test and
treat wine made from smoke-exposed
fruit.
In some cases, growers who are unable
to sell their grapes are opting to convert
grapes to wine on their own. These
growers hope to recover the revenue they
would have received from the sale of their
grapes by making bulk wine and selling
that wine at a later date. However, since
so little is known about smoke exposure
in grapes and how it can affect wine, it's
entirely possible these growers will not
only lose the revenue associated with
the sale of their grapes, but will incur
additional losses due to processing and
storage costs associated with making bulk
wine. These growers may not realize the
full extent of their losses for another 12 to
18 months from now.
Likewise, wineries face uncertainties
when accepting smoked-exposed grapes.
Some wineries are accepting grapes for
processing and will later discover that the
wine made from smoke-exposed grapes is
damaged and unsuitable for commercial
sale, resulting in a significant loss.
For the reasons outlined above, growers
and winemakers are seeking an extension
of the Wildfire and Hurricane Indemnity
Program Plus (WHIP+) for the following
losses incurred during wildfires in 2020:
https://www.farmers.gov/recover/whip-plus http://www.farmers.gov/recover/whip-plus
The Crush - October 2020

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