Issue link: http://winesandvines.uberflip.com/i/602988
December 2015 WINES&VINES 71 GRAPEGROWING operations that have been certified are visible on a master list on the USDA NOP website. Hidden costs? For some wineries, especially those that are new to certification, the greatest costs are not the certification fees but the paperwork. "I don't know of a single farmer who went into farming to do paperwork," says Wade at the CCOF. "It is government regulation, but we try to make it as painless as possible." Napa Valley's largest organic grower, Andy Hoxsey of Napa Wine Co., who oversees more than 550 acres of organic vines, recalls that he got into organic farming and certification in the 1980s because he thought it would require less paperwork than pesticide use reporting, which was just getting under way at the time. Times have changed. Today, certifiers require records covering inputs, harvest and sales. While some find it time consuming, others say the recordkeeping has made them better farmers. "The process of doing the paperwork is sim- ply good farming practice," says Williams of Frog's Leap. "And paperwork is not going away. A more regulatory environment is coming soon for all farmers, not just organic ones." CCOF has led the charge to reduce and simplify paperwork for organic growers. The agency worked with all the certifying groups in the country to get the USDA's NOP to modify its rules to accommodate more flexibility and fairness for farmers. The coalition succeeded in getting the NOP to launch "Sound and Sen- sible," which streamlined the reporting process. Johnson of Tres Sabores and her neighbor Enrique Herrero, the vineyard manager for Inglenook's 235 acres of organic vineyards, say the paperwork is bearable. Herrero files the reports himself, saying the winery has online records that help him do the job. Gates says the biggest cost is not the certi- fication fees (which run about $4,500 per year on Ridge's 300 acres, including both state and Organic Certifiers Inc. fees) but the time he spends on reporting. Since he is still in the process of certifying all of the acreage, his records change each year, CALCULATING CERTIFICATION COST PER BOTTLE Napa Valley Cabernet Sauvignon for "Ingredients: Organic Grapes" Wine Acres planted: 10; Value of grapes: $6,000/ton; Yield per acre: 4 tons; Grape value/acre: $24,000; 10-acre vineyard yield: $240,000 Year One Subsequent Years CCOF application fee: first year only $325 Inspection fee (mid-range) $375 $375 Crop fees $775 (based on crops valued at $200,000-$300,000) $775 (based on crops valued at $200,000-$300,000) Total $1,475 $1,150 Organic subsidy $750 $750 Total $725 $400 Costs per acre $72.50 (Year one) $40 (Annually) Costs per bottle (600 bottles per ton) $725/24,000 bottles = 3 cents per bottle $400/24,000 bottles = 2 cents per bottle DAILY WINE INDUSTRY NEWS winesandvines.com