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July 2017 WINES&VINES 21 WINE INDUSTRY NEWS S an Rafael, Calif.—A proposed federal budget released May 23 would cut agri- culture spending by $46.5 billion in the next 10 years, and the California Grape Crush Report and expedited approvals for wine labels could be among the items on the chopping block. As part of a promise to control federal spending, U.S. president Donald Trump's pro- posed budget calls for a 21% decrease in agri- culture funding for fiscal year 2018. The U.S. Department of Agriculture's National Agricul- tural Statistics Service works with the Califor- nia Department of Food and Agriculture to publish the annual report that describes in detail how many tons of grapes were crushed, where in California they were grown and the prices paid in dollars per ton. This information is vital to tracking the industry, identifying trends and is used for countless other purposes, according to experts who gathered May 24 at the Napa Valley Marriott for the 21st annual Vineyard Economics Seminar. Karen Ross, California state secretary of agriculture, used the same description for the current administration's recent budget pro- posal as some members of Congress including Republican lawmakers: "dead on arrival." Though this version of the budget is un- likely to pass as-is, Ross said the proposal sug- gests cuts to agriculture could be looming; she views the document as a troubling indicator of what could be removed or changed in the fed- eral Farm Bill. "It eliminates so many things that matter for California," she said. The advocacy group WineAmerica released a statement noting the president's proposal would eliminate all funding for the Specialty Crop Block Grant and Value Added Producer Grant programs. The two programs had received $68 million and $14 million in funding, respec- tively. Funding also would be eliminated for the Market Access Program that assists U.S. specialty crop producers in creating, expanding and main- taining access to foreign markets. The current funding level is $200 million, and WineAmerica notes wineries throughout the West Coast and New York have used the program to market their wines in foreign markets. The president's proposed budget is in con- trast with the U.S. Department of Agriculture's own 2018 budget, which contains only an 8% decrease in mandatory and discretionary fund- ing. An Emergency Conservation Program is eliminated from the USDA's 2018 budget for a savings of $103 million, and proposed salaries are $78 million below the 2017 estimate. One step forward, TTB steps back The Alcohol and Tobacco Tax and Trade Bureau (TTB) is another agency whose contributions to the wine industry could be slowed if the proposed budget is passed. TTB has been able to clear a backlog of label approvals and train specialists to improve consistency, but the pro- posed federal budget "would definitely impact us," according to Janelle Christian, industry outreach program manager for the TTB, who spoke at ShipCompliant's annual conference June 8 in Rohnert Park, Calif. Christian said TTB's 2017 budget included a $5 million earmark for accelerating the processing of formula and label applications, but the pro- posed 2018 budget would cut funding to the the agency by 7% and not include the earmark. The agency is still under a federal hiring freeze president Trump instituted as an execu- tive order early in his presidency. —Andrew Adams and Kate Lavin Proposed Federal Budget Could Affect Wine Industry © 2016 StaVin Inc. StaVın Inc, P.O.Box 1693, Sausalito,CA 94966 (415) 331-7849 f (415) 331-0516 stavin.com ® Eco-Friendly. Sustainable. Bio-Dynamic. Zero Impact. Every year, the list seems to grow longer of impressive, earth-saving adjectives that dress the most prudent of today's marketing strategies. And just how Green is StaVin? We recently installed a couple of high tech smoke filtration scrubbers atop our oak toasting facility, which was not required by law. And it did not come cheap. More importantly, our products are 80% less wasteful of resources than traditional barrel-aging methods. We save winemakers money and offer them more control over flavors. While keeping forests and wells fuller.