Pinot Law

Any winery owner today should be concerned about the current state of the economy: businesses large and small are failing; credit is drying up and consumers are closing their wallets.  As if that were not enough, there may be more storm clouds brewing on the horizon — and recent events in the Empire State of New York suggest winery owners may need more than just an umbrella.

It was just 8 months ago that new York’s Governor David Paterson stressed the importance of agriculture in the state’s economy.  According to the Governor’s press release, his 2008-2009 budget “sent a message to New York farmers that their needs are a priority for lawmakers in Albany.”

My how times have changed — and here come the storm clouds.

With New York State now facing a $15 billion budget deficit, the Governor is reportedly looking to cut funding for wine related programs and increase excise taxes.  While sympathetic to the plight of the Governor and the state of their budget deficit, I’m baffled as to any logic in cutting New York state wine industry funding.  New York is the third largest state in terms of wine production, and agriculture and tourism are the first and second largest industries for the state.

So why should developments in the Empire State be of concern to winery owner in other states?  Because almost every state is facing problems identical to those in New York: deficits, tight budgets and tremendous pressure to do something.  One recent report noted that Virginia is facing a $2.9 billion deficit and Maryland is $1.9 billion in the hole.

So even as winery owners accomplish the day to day tasks to keep their businesses going, they need to keep their eyes on the horizon for developments in their local legislatures.  Staying aware of these developments will be critical to the well being of their business.  And from the looks of it, they better have an umbrella close at hand.

Storm Cloud used under a Creative Commons license, courtesy of chascar.