---
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source_pdf: oregon-prosperity-council-report-june-2026.pdf
fingerprint: 8ac9aef8ca1b
page_range: [332, 335]
breadcrumb: ["Appendix E: Submissions & Feedback", "36. Oregon Winegrowers Association"]
source_links:
  pdf: "https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=332"
  raw_pages:
    - "../../.extracted/pages/page-0332.txt"
    - "../../.extracted/pages/page-0333.txt"
    - "../../.extracted/pages/page-0334.txt"
    - "../../.extracted/pages/page-0335.txt"
---

# 36. Oregon Winegrowers Association

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## TL;DR  *(generated · confidence: high)*

The Oregon Winegrowers Association urges the Prosperity Council to actively promote the wine industry as an economic driver ($8.5B annual impact) while addressing cumulative cost pressures from taxes, regulations, and workforce challenges. OWA (representing two-thirds of Oregon's wine production) requests revision of anti-alcohol state messaging, reduction of EPR costs, support for agricultural labor, and rural infrastructure investment.

**Key points** *(each cites a PDF page)*:

- OWA claims wine industry generates $8.5 billion annual economic impact and represents over two-thirds of Oregon's wine production. ([p. 332](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=332))
- OWA requests Governor Kotek and state agencies actively promote Oregon wine industry in trade missions, business recruitment, and official state events including Mahonia Hall. ([p. 332](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=332))
- OWA requests Oregon Health Authority revise 'Rethink the Drink' campaign to distinguish abuse prevention from responsible, moderate consumption. ([p. 332](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=332))
- OWA identifies high business tax burden, EPR costs, and regulatory complexity as primary constraints on industry competitiveness. ([p. 333](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=333))
- OWA requests reduction of glass-related EPR fees, which in some cases rival or exceed Corporate Activities Tax (CAT) obligations. ([p. 333](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=333))
- OWA requests reinstatement of bonus depreciation for machinery and equipment to reduce business tax burden. ([p. 333](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=333))
- OWA cites persistent workforce shortages in vineyard and hospitality roles, driven by immigration uncertainty and limited training pipelines. ([p. 334](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=334))
- OWA requests expansion of agricultural overtime tax credit to help offset increased labor costs. ([p. 334](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=334))
- OWA seeks increased funding for rural road maintenance and expanded rural broadband infrastructure to support operations and tourism. ([p. 334](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=334))

Amounts: $8.5 billion annual economic impact · two-thirds of Oregon's wine production · Programs: Rethink the Drink campaign · Extended Producer Responsibility (EPR) · Recycling Modernization Act · Corporate Activities Tax (CAT) · Governor's Prosperity Roadmap · agricultural overtime tax credit · Parties: Oregon Winegrowers Association (OWA) · Governor Kotek · Oregon Health Authority (OHA) · Oregon Liquor Control Commission (OLCC)

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> **Source:** PDF [pp. 332-335](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=332) · raw: [332](../../.extracted/pages/page-0332.txt) · [333](../../.extracted/pages/page-0333.txt) · [334](../../.extracted/pages/page-0334.txt) · [335](../../.extracted/pages/page-0335.txt)

Breadcrumb: Appendix E: Submissions & Feedback > 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](./INDEX.md) · PDF: [pp. 332-335](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=332)