36. Oregon Winegrowers Association
36. Oregon Winegrowers Association
Dear Members of the Prosperity Council, Thank you for the opportunity to provide input on the Governor’s Prosperity Roadmap and the development of a long-term economic strategy for Oregon. The wine industry appreciates the Council’s work to identify actionable steps that will strengthen Oregon’s competitiveness, support workforce development, and improve the overall business climate. As a cornerstone of Oregon’s food and beverage economy, the wine industry plays a critical role in supporting rural communities, driving tourism, and contributing to the state’s overall economic success with an estimated $8.5 billion annual economic impact. The Oregon Winegrowers Association (OWA) is a member-driven advocacy organization advancing the interests of one of the state’s most significant agricultural economic sectors. Our hundreds of winery and vineyard members represent over two-thirds of Oregon’s wine production. For more than 40 years, OWA has advocated for policies that support the health, growth, and long-term sustainability of Oregon’s wine industry. Feedback gathered from wineries and vineyards across the state reflects a consistent message: while Oregon remains a desirable place to live and operate a wine business, the cumulative impact of rising costs, regulatory complexity, anti-alcohol messaging from state leaders and agencies, workforce challenges, and infrastructure constraints is placing increasing pressure on the industry’s ability to grow and compete. Business Climate There is a general sentiment that Oregon is becoming a more difficult place to run a wine business and there is strong concern throughout the industry regarding anti-alcohol messaging and a lack of visible state support. Recommended Actions: ● Governor Kotek and state agencies should actively promote and champion Oregon’s world-class wine industry as a leading driver of tourism, employment, agriculture, and regional economic development. Oregon wine industry leaders should be consistently represented in state-led economic development, trade, and tourism efforts, including domestic and international trade missions, business recruitment activities, and official state events. ● The Oregon Health Authority’s efforts should focus on addressing problem drinking and alcohol abuse, rather than discouraging moderate consumption broadly. Elements of the Rethink the Drink campaign have unfairly targeted the wine industry and should be revised to better reflect the distinction between abuse prevention and responsible, moderate consumption. ● Increase the use and promotion of Oregon wine at official state events, including at the Governor’s residence Mahonia Hall.
● Designate dedicated wine industry liaisons within key state agencies and the Governor’s office, including OLCC and OHA, to improve communication, coordination, and industry engagement, while ensuring Oregon wine is consistently integrated into statewide tourism and marketing efforts through Travel Oregon. Cost of Doing Business The overall cost structure in Oregon continues to be a concern. Members point to taxes, labor costs, regulatory requirements, and rising utility expenses as key drivers. Oregon has a high business tax burden, ranking among the top states for corporate taxes. Policies such as Extended Producer Responsibility (EPR) are adding significant costs, in some cases rivaling or exceeding Corporate Activities Tax (CAT) obligations. At the same time, the rising cost of living is reducing discretionary spending, directly impacting tourism and hospitality sectors. Recommended Actions: ● Review cumulative tax burden on Oregon businesses and individuals to ensure competitiveness. If Oregon considers a new tax structure, the wine industry would like to be part of the conversation. ● Reinstate bonus depreciation for machinery and equipment. ● Reduce unnecessarily high glass-related fees within the EPR Program, which are creating significant cost pressures for wine producers despite strong existing glass recycling rates prior to enactment of the Recycling Modernization Act. Regulatory Environment and Permitting The wine industry is highly regulated, and our members consistently identify regulatory complexity and permitting as a primary challenge. Small wineries especially face difficulty maintaining compliance across multiple state agencies with small staff. Recommended Actions: ● Preserve the current alcohol regulatory model where the state controls liquor sales, including for Ready-to-Drink spirit-based cocktails. ● Support for county land use planning efforts to integrate state law and rule changes into local code. ● Enable flexibility for water users and expedite permit processing at OWRD. ● Support ongoing state investment in invasive species management in partnership with industry.
Workforce Challenges Workforce shortages remain a persistent issue, particularly for seasonal vineyard and winery labor and hospitality roles. Immigration uncertainty, limited training pipelines, and evolving compliance requirements all contribute to these challenges. Recommended Actions: ● Advocate for federal immigration reforms and visa program improvements that support agricultural labor stability. ● Expand and extend the agricultural overtime tax credit to help offset increased costs. ● Expand workforce housing and childcare access in rural areas. Infrastructure Needs Transportation infrastructure continues to impact both business operations and visitor access, particularly in more rural wine regions. Road conditions and connectivity directly affect the movement of our product, employee access, and the overall visitor experience. Broadband access is also critical for modern business operations, including reservations, sales, compliance and marketing. Recommended Actions: ● Increase funding for rural road maintenance and improvement, prioritizing key agricultural and tourism corridors. ● Expand state investment in rural broadband infrastructure to ensure reliable, high- speed internet access. ● Create targeted grant or matching programs for infrastructure improvements that support tourism and agriculture. The Council has a meaningful opportunity to advance policies that not only support emerging industries but also strengthen long-standing economic drivers like Oregon’s wine sector. Many of these challenges are not unique to the wine industry, but they are particularly pronounced in a sector that sits at the intersection of agriculture, manufacturing, alcohol production and sales, and hospitality. Thoughtful, targeted action in these areas will improve the state’s competitiveness, support rural economies, and ensure the continued success of one of Oregon’s signature industries. We appreciate the Council’s consideration of this input and look forward to continued engagement as the strategy moves toward implementation.
Sincerely, Alex Sokol Blosser Jana McKamey OWA President OWA Executive Director CC: Business Oregon, Oregon Wine Board, Travel Oregon, Oregon Liquor Control Commission
Parent: Appendix E: Submissions & Feedback · PDF: pp. 332-335