1200 G Street, NW, Suite 360 • Washington, D.C. 20005
Phone: (800) 879-4637
Fax: (202) 347-6341
POSITION PAPER
Increased Funding For Winegrape Research
To prosper in the face of strong international competition—roughly 25% of wine consumed in the United States is imported—the
American wine and grape growing industry must lead in the production of wines with superior quality, excellence and value. Such a
formidable task is extremely research intensive. To remain competitive with foreign producers, to improve the
environmental quality of grape growing practices, and to combat and prevent grape diseases, significant additional research
investment must be made.
WineAmerica and WGA support increased appropriations for viticultural research.
Background
Grapes are an expanding high value crop which requires a high intensity of research effort in order to meet the
challenges of global competition. The U.S. grape crop, now grown in over 40 states, has more than tripled in fifteen years
from $955 million in 1985 to almost $3.1 billion in 1997 and 2000, although reduced production in the last three years
has eroded about 20% of the value. The crop increased ten fold in the last 30 years. Winegrapes have increased far faster
than the overall grape crop and now represent almost two-thirds of the total crop. The United States ranks 4th in world
wine production, producing about 7% of all wine. France, Italy and Spain produce more wine than the U.S.
Grape Crop Value
Billions
3.5
3.0
2.5
2.0
1.5
1.0
0.5
20
03
20
01
19
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
19
77
19
75
19
73
19
71
19
69
0.0
Year
Grapes are the highest value fruit crop in the nation and the seventh largest crop overall. Grapes account for about
30% of the value of all fruits grown in the United States. Grapes processed in agricultural areas for wine and juice now
make up 67% of the entire national crop compared with about 30% in 1969. The federal government does not subsidize
grape growing. Wineries are typically owned by grapegrowers and located on farms where grapes are grown. This
processing adds tremendous farm based value to the crop, varying from three to more than ten fold the value of the fruit.
Exports of American table grapes, grape juice products, raisins, and particularly wine have grown at a high rate in the
last few years. From 1998 to 2003, American wine exports increased by 19%. Wine and table grapes rank second and
third respectively among the top horticultural exports. About a third of the raisin crop is exported.
Grapes are a high-value crop which requires an intensive, stable and virtually year-round work force. Most grapes are
processed in family owned, rural based wineries and juice plants where significant value is added. Grapes are often
farmed on marginal soils and hillsides and use minimal water and chemical inputs. Even though California produces
almost 90% of the nation’s grapes, grapes are now successfully grown in more than 40 states. Grape production in those
states can be increased dramatically as local and international markets are expanding. Imports make up about 25% of the
current market. Exports of wine and grapes are increasing dramatically and now exceed $600 million per year.
The CSREES Viticulture Consortium
WineAmerica and WGA support increased funding for the very successful Viticulture Consortium. Initiated in FY
1996, it currently receives a Cooperative State Research Education Extension Service (CSREES) special grant of
$1,600,000 and is administered by Cornell University, Pennsylvania State University and the University of California
(Davis). An increase to $2.5 million is proposed for FY 2005. The consortium funds grants for state researchers in about
twenty states through a competitive process. It is a keystone of grape related research in the United States.
The consortium addresses unmet national research needs important to our industry. As an active partnership of
federal, state, and industry resources, the consortium enhances research coordination, collaboration, improves efficiency
and eliminates duplication of effort. Explicit matching funds from both industry and state sources have increased
dramatically in response to growing federal support. Research proposals have been received from nearly 20 states,
including California, Pennsylvania, Michigan, Missouri, Virginia, New York, Ohio, Michigan, Oregon, and Washington
and are funded on a competitive basis. Research priorities are developed by a national network of key industry, research
and extension representatives known as AVERN (American Viticulture and Enology Research Network). Because the
consortium integrates and coordinates grape research throughout the nation it is recognized as the most important
mechanism for advancing knowledge and providing the capability for American grape growers to remain competitive in a
world marketplace.
Agricultural Research Service (ARS) Research
ARS sponsored grape research must keep pace with the needs of a research intensive, high value crop facing global
competition based on product quality. Congress has been building important grape research capabilities for sustainable
vineyard practices (Davis, California) and grape genetics (Geneva, New York). For FY 2005, we are requesting that
Congress increase funding by $325,000 to provide for an ARS grape genetics research leader at Geneva, New York, and
$300,000 for an ARS scientist entomologist to be part of the sustainable viticulture group at (Davis, California).
ARS Center for Grape Genetics
ARS grape genetics research at Geneva, New York has expanded in the last few years and there is now a serious need
to add laboratory and office space. We are therefore requesting that Congress provide $10 million in FY 2005 to begin
construction of the ARS Center for Grape Genetics (Geneva), for which engineering and architectural funds were
provided in FY 2004. Total cost of construction is estimated to be about $20 million. This will represent a critical
investment to enable ARS to assume a proper role of national and world leadership in grape research.
ARS Sustainable Viticulture Center
Sustainable viticulture at Davis, California has been a major new initiative for the ARS with several new positions
that have been added over the last decade. In order to provide laboratory and green house space for these personnel and to
properly develop an appropriate interdisciplinary team approach to sustainability a new building is required. Engineering
and architectural funds were provided in the FY 2004 appropriation. We are requesting $10 million to begin the first
phase of this building.
The American Viticulture and Enology Research Network (AVERN)
The U.S.D.A. and the U.S. grape and wine producing industries have developed a national partnership, the American
Viticulture and Enology Research Network (AVERN).
AVERN brings together state, university, federal, and industry resources to set national research priorities, maximize
research resources, and provide for dissemination of results and information. The AVERN network is a national forum of
successful partnerships developed between industry, research, and extension personnel. It helps provide better
communication, links partners and develops priorities for national and regional research, in turn facilitating the
augmentation of matching funds.
WineAmerica is the national trade association of American
Winegrape Growers of America is a federation of state
wine producers representing more than 750 American
winegrape grower organizations representing
wineries in 48 states. Questions should be directed to Bill
America’s production of grapes for wine. For more
Nelson, WineAmerica Vice President, at (202) 783-2756
information contact Fowler West at The Washington
Extension 123.
Group, (202) 789-2111.