Cost of Compliance Hits Napa Growers
A new study is raising concerns about the cost of doing business for one of California’s most important crops.
Ag Alert from the California Farm Bureau reports Napa County winegrape growers are paying a steep price to comply with government regulations. The study, commissioned by the Napa County Farm Bureau and conducted by Cal Poly researchers, found compliance costs now make up 8 to 12 percent of total production expenses.
That translates to more than $1,700 per acre for large growers and over $1,100 per acre for smaller operations. Researcher Lynn Hamilton says paying that much “makes a big difference in profitability.”
Industry leaders warn the impact could be long term. Napa County Farm Bureau CEO Peter Rumble says, “Without change, we might not have viable agriculture as we know it now in Napa.”
With Napa producing 35 percent of California’s high value winegrapes, the stakes are high.
For more on this story, visit AgAlert.com.
