CAWG eNews: The Winegrape Update, Red Cards for Ag Employees, and More...

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February 6, 2025

YOUR SOURCE FOR CAWG AND INDUSTRY NEWS

FOR CAWG MEMBERS ONLY

IN THIS eNEWS

This Week's eNews Includes:

CAWG News:

The Winegrape Update - February 12
Red Cards for Ag Employees & CAWG Webinar: Preparing for Potential Immigration Audits and Raids
Spray Days in California
Trump Agrees to Pause Tariffs on Canada and Mexico After Pledge to Boost Border Enforcement
Composting Legislation
COVID-19 Regulations End

Industry News:

How the Deck Got Stacked Against American Winegrowers
Democrats Turn Special Session Into Partisan Show
Specialty Crop Employers—Your Input is Needed!
Be a Part of Down to Earth Month in April
Emily Hodson Honored with the 2025 Rich Smith Award

Upcoming Events:

Exploring Different Aspects of Vine Health Seminar
Regenerative Viticulture Immersion Event - Early registration ends tomorrow.

CAWG News

The Winegrape Update - February 12

Designed exclusively for CAWG members, this virtual forum offers a unique space for members to interact with CAWG staff, industry experts, and fellow members in more of a town hall kind of format. The Winegrape Update guarantees insightful conversations on relevant subjects.

This month, CAWG staff will provide updates on federal and state legislative items and Stuart Spencer with the Lodi Winegrape Commission will join to talk through the deck getting stacked against American winegrape growers. Read more in his most recent blog post focused on tax regulatory loopholes impacting winegrape growers.

Red Cards for Ag Employees & CAWG Webinar: Preparing for Potential Immigration Audits and Raids

As things heat up with ICE visiting rural communities to deport undocumented ag workers, ag employers are making their employees aware of their rights. To assist with this, the Immigrant Legal Resource Center has prepared a 3.5” x 2” card that employers can give to their employees.

Download instructions to order the cards or print them up yourself here.

CAWG and Fisher Phillips LLP will host a webinar focused on navigating ICE raids and audits on February 13 at 1 pm. This timely presentation will provide critical insights and actionable strategies for managing labor compliance and safeguarding your business during audits. This is a unique opportunity to hear directly from legal experts with extensive experience in employment law and immigration compliance.

Key Topics will include:

Best Practices for I-9 Compliance: Learn effective strategies to ensure your business is meeting federal requirements and avoiding costly penalties.
Conducting Periodic Internal Audits: Understand the importance of regular I-9 audits and how to identify and address potential vulnerabilities in your workforce documentation.
Labor & Employment Issues During Audits: Gain insights into employment discrimination and wage/hour issues that could arise during ICE audits or investigations.

Spray Days in California

The Department of Pesticide Regulation (DPR) will likely launch its Statewide Pesticide Application Notification System in the next few weeks. This system will require growers to provide the public with a Notice of Intent to spray 24 hours in advance through DPR’s website. This notice requirement will apply to all restricted material pesticides.

Please visit DPR’s website for more information. CAWG will provide additional information to our growers as it is made available by DPR.

Trump Agrees to Pause Tariffs on Canada and Mexico After Pledge to Boost Border Enforcement

On Monday, President Donald Trump announced a 30-day pause on implementing tariffs against Mexico and Canada after both countries agreed to strengthen their border security measures. Canada made swift actions in discussing pulling American alcohol products, including wine from their shelves. With the pause in tariffs, CAWG will continue to monitor Canada's actions in the interim.

CAWG's federal lobbyist, Cornerstone Public Affairs provided the following update: Canadian Prime Minister Justin Trudeau said Canada will name a "fentanyl czar," list Mexican cartels as foreign terrorist groups, and launch a joint task force with the U.S. to combat organized crime, fentanyl, and money laundering. On Mexico, President Claudia Sheinbaum said she was reinforcing the Mexican-side of the border with 10,000 members of the Mexican National Guard. Further, President Trump announced the U.S. and Mexico would continue to engage in upcoming talks about the country’s efforts to combat drug trafficking and irregular migration. Specifically, President Trump said Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and nominee to be Secretary of Commerce Howard Lutnick will be the U.S. representatives engaging in talks alongside the high-level Mexican representatives.

Composting Legislation

This week, CAWG-sponsored legislation was introduced to make it easier for growers to compost ag waste on-site. SB 279 (McNerney, D-Pleasanton) would allow growers to compost onsite (without having to get a permit from CalRecycle) when they have large amounts of agricultural waste, such as when they remove a vineyard, and combine their compost with agriculture waste from offsite.

This is especially important in the Central Valley, where open ag burn is no longer an option for disposing of ag waste. CAWG is also pursuing $75 million in annual funding over the next three years to fund alternatives to open ag burn.

SB 279 is sponsored by Californians Against Waste, California Association of Winegrape Growers, Western Tree Nut Association, California Alliance for Community Composting, The Climate Center, and People Food & Land Foundation.

Quote of the Week

"AI technologies in winery operations reduced labor costs, and 26% reported it had improved quality of grapes as a result of data AI provided to help manage vineyards."

As reported in a recent survey by Liz Thach, MW, Christian Miller, and Cyril Penn shedding light on AI use in the Wine industry. Read the full recap here.

COVID-19 Regulations End

This week the workplace safety standards for preventing the spread of COVID-19 in the workplace finally came to an end. Cal/OSHA will likely be developing a permanent regulation to protect against colds and flu being spread in the workplace, but that regulation seems to be at least a full year or more away.

In the meantime, Cal/OSHA is advising employers to do the following to protect their employees:

Maintain a safe and healthful place of employment.
Establish, implement, and maintain an effective Injury and Illness Prevention Program. 
Identify, evaluate, and correct any unsafe or unhealthy conditions, work practices, or work procedures associated with COVID-19 if they identify COVID-19 as a workplace hazard at their place of employment.

Even though the workplace standard for COVID-19 has expired, records required to be kept under that regulation for a period of time should still be maintained by the employer.

Until Monday, California was the last state in the nation to have such a COVID-19 law still in place.

Regulatory Loopholes impacting Winegrape Growers:

"American" Appellation Loophole – Wines labeled “American” can contain up to 25% foreign wine, misleading consumers and undercutting U.S. growers.
Watering Back Wine – Federal rules allow wineries to dilute high-sugar must with water, reducing demand for grapes and lowering yields.
Vintage Dating Changes – Looser rules allow greater flexibility in mixing vintages, yet growers still face rejection for grapes deemed too high or too low in sugar.
Duty Drawback Loophole – A tax loophole has refunded millions to large corporations importing cheap foreign wine while domestic producers pay full excise taxes.
5010 Tax Credit Abuse – Canadian "wine" imports—often a fermented sugar solution—are being used to exploit tax credits, further displacing California-grown grapes.
Despite ongoing efforts from CAWG and other grower organizations, these policies continue to harm domestic producers.

Growers, vintners, and consumers can take action now. CAWG is putting together talking points to support growers in pushing for meaningful reforms. The future of American wine depends on fair policies that protect growers and rural communities.

Stuart Spencer with the Lodi Winegrape Commission published an article with more information on the regulatory loopholes impacting winegrape growers. Read the full article here.

Democrats Turn Special Session Into Partisan Show

A recent column by Emily Hoeven published in the San Francisco Chronicle highlights how Governor Gavin Newsom’s special legislative session, intended to “Trump-Proof” California, turned into a political sideshow.

At the center of the debate was a $50 million legal aid fund, which Republicans flagged as potentially providing taxpayer-funded defense for undocumented immigrants with felony convictions. When Republicans proposed an amendment to prevent funds from aiding felons, Democrats rejected it, arguing their intent was already outlined in a letter—though legal experts note such letters are not legally binding.

Hoeven pointed out that the bill could still allow funds for criminal defense, contradicting voter sentiment from the November election calling for tougher crime policies. Critics argue the session has become more about Newsom’s political ambitions than real solutions for Californians.

Emily Hodson Honored with the 2025 Rich Smith Award

Emily Hodson, head winemaker at Veritas Vineyards and Winery and co-owner of Flying Fox Vineyards, has been awarded the ninth annual Rich Smith Award of Excellence for her outstanding contributions to the U.S. grape and wine industry.

Presented by NGRA, WineAmerica, and Winegrape Growers of America, the award honors individuals who embody the passion, commitment, and collaborative spirit of the late Rich Smith, a key industry leader.

Hodson’s leadership has helped elevate Virginia wine on the national stage. She played a key role in creating the Virginia Winemakers Research Exchange, providing winemakers with access to production-scale research facilities.

Upcoming Events and Trainings

Exploring Different Aspects of Vine Health Seminar

The Department of Viticulture and Enology at UC Davis is hosting the Exploring Different Aspects of Vine Health seminar at the UC Davis Conference Center.

Topics include:

Advancing the development of powdery mildew and Pierce’s Disease-resistant cultivars
Studying wild grapes to envision the next generation of grapevine cultivars
Interactive effects of trunk disease and water stress on grapevine physiology
Spotted Lanternfly: The need to remain vigilant
Achieving sustainability and quality in a warming world
How to protect pruning wounds from grapevine trunk diseases

When and Where:

February 19, 9 AM - 3:30 PM, UC Davis Conference Center, 550 Alumni Lane, Davis, CA 95616

Learn more and register here.

Regenerative Viticulture Immersion Event

Join industry experts for a two-day deep dive into regenerative winegrowing at Paicines Ranch hosted by the Paicines Ranch Learning Center. This workshop will explore how holistic management can drive profitable, ecosystem-aligned farming.

When and Where: