California has been blessed with a tremendous amount of snow and rainfall this spring. Coming after many dry years that have reduced our groundwater supply, farmers want to do all they can in this brief time of plenty to not only irrigate their drought-stressed trees and vines, but also recharge the groundwater supply beneath their fields. But how quickly can a farmer prepare his/her land to take on some of this snowmelt for groundwater recharge purposes and what will it require? Watch this video featuring Madera grape and nut grower Jennifer Peters, who in a very short time was able to install an on-farm groundwater recharge basin and capture much of this stormwater.
Please thank this video’s sponsor Ranch Systems for their industry support.
Save the date, Friday, November 11th for the annual Grape, Nut & Tree Fruit Expo at the Big Fresno Fairgrounds. Held by Malcolm Media Ag Publishing in cooperation with California Ag Network, Pacific Nut Producer, American Vineyard, and California Fresh Fruit Magazines, it is the ultimate postharvest industry gathering place for regional grape, nut & tree fruit growers and crop advisors. Fresno is the number one Ag County in the state and the center of the Central Valley’s rich and diverse agricultural production. Nearly a thousand growers, PCAs and industry stakeholders attend this expo to enjoy State of the Almond, Pistachio, Walnut, Pecan, Tree Fruit, Raisin, Table & Wine Grape Industry presentations, Continuing Education Credited IPM seminars, great food & company, and an industry trade show featuring over a hundred Ag businesses.
This event is FREE to attend and wouldn’t be possible without the generous support of local industry associations, universities and our sponsors this year: Ag Access, Advancing Eco Agriculture, Almond Alliance of California, American Pistachio Growers, Blue White Robotics, Burchell Nursery, California Fresh Fruit Association, Dave Wilson Nursery, Duarte Nursery, Enterprise, Firman Pollen, Fresno State Viticulture & Enology, Jack Rabbit, JSC Agricultural Supply, Live Earth Products, Orchard Machinery Corporation, Phoenix Renewable Services, Phytech US, Preferred Employers Insurance, Saturas, Sun-Maid Growers, Sunridge Nurseries, Synagro, Wonderful Laboratories, and Wonderful Nurseries.
Online pre-registration for the event is now available HERE and includes the ability to preregister for any CE credits attendees would like to receive. 3 hours of PCA/PA/QAL/QAC credits have been approved for this event, with 5 hours of CCA credits pending.
Also new to this year’s program will be three special panel discussions: one featuring options & incentives for groundwater recharge with Chase Hurley from Triangle T Water District, Dave Krietemeyer from USDA-NRCS and growers Lucas Avila & Karun Samran. In a special presentation for raisin growers this year, Matthew Fidelibus from the UC Cooperative Extension will be discussing prospects of the newest DOV varieties with growers Austin Hubbell and Steven Cardoza. Aubrey Bettencourt from the Almond Alliance of California will also be leading a panel discussion on almond supply chain solutions and the upcoming Farm Bill impact on specialty crop agriculture. The USDA Farm Service Agency will also be conducting a brief workshop to assist growers in signing up for a new round of disaster aid, the tree & vine replant programs and other eligible programs. See the full program below for more details.
This event along with other Malcolm Media Ag Expos has generated nearly $150,000 in scholarship endowments for the agricultural programs at Cal Poly-San Luis Obispo, Fresno State, Santa Rosa Junior College and UC Davis. Interested in exhibiting/sponsoring? Visit agexpo.biz/exhibit and give us a call at 559-298-6020 to see what options are still available.
As wildfires rage across the western U.S., incinerating hundreds of thousands of acres, destroying entire communities, and polluting the air, Bill Pekny has a message: We need to get more educated on what causes these disasters. It’s the only way we’ll be able to reduce the devastation.
“There are a lot of misconceptions around wildfires,” says Pekny, author of A Tale of Two Climates: One Real, One Imaginary(Two Climates LLC, 2021, ISBN: 978-1-73493-960-6, $34.59). “One of the biggest is that they are 100 percent preventable. They aren’t, and in fact, prescribed burns are beneficial. Still, we can and should do certain things to lessen their frequency and severity.”
For example, says Pekny, we can take the following steps:
Use smart, strategic logging. Trees leave the forest in two ways: smoke or lumber. With judicious logging practices, we will also create much needed firebreaks and access roads in the process.
Build more dams and reservoirs, especially in drought and fire prone areas. Find ways to trap seasonal floodwater for drought, fire mitigation, and hydropower, rather than simply wasting the water by allowing it to flow unchecked into the oceans.
Relax regulations that stymie dam and reservoir construction, forest thinning, and removal of brush that fuel wildfires.
Insist that forest policy decisions be based on life-cycle cost-benefit analyses, in order to make the best use of our nation’s money.
Last but not least, keep learning. Teach ourselves and our children about forest safety and security.
Pekny says that in order to make these changes happen, we need to brush up on our understanding of wildfires. For example…
Two Facts About Wildfires
Humans cause most wildfires. Yes, lightning and high winds that down power lines sometimes play a role. But, humans—not weather or climate—actually ignite the majority of wildfires, whether they are set intentionally (e.g., arson or prescribed carefully controlled burns), or accidentally (e.g., bad camping habits, vehicle fires, and the like).
There are several major contributing causes that ramp up the intensity of wildfires…
Drought conditions that happen naturally and cyclically, in spite of 71 percent of the Earth’s surface being covered by water, as well as 67 percent cloud cover, on average.
Periodic, natural, downslope winds, such as the Santa Ana winds of Southern California and the Diablo winds in Northern California.
Maintenance issues that result in downed power lines and the fires they ignite.
Environmental and/or forest management policies that prevent or discourage the thinning or clearing of underbrush that fuel wildfires.
The bottom line?
“Let’s focus on what we can reasonably and affordably do to mitigate the devastation and pollution caused by any wildfire,” says Pekny. “And let’s do a better job of educating people on the causes of wildfires. The more we learn, the more likely we’ll be able to make needed changes.”
About the Author:
Bill Pekny is the author of A Tale of Two Climates: One Real, One Imaginary. He holds physics M.S. and B.S. degrees from Georgia Tech and DePaul University, plus graduate study in physical meteorology and numerical analysis at Florida State University and the University of Utah, and a visiting scholar appointment at the Ginzton Laboratory of Applied Physics at Stanford University.
Bill’s career in science spans over 50 years in the U.S. Armed Forces and the aerospace industry.
His career highlights include: Project Stormfury with the U.S. Navy Hurricane Hunters; applied atmospheric physics and meteorology research; LASER RADAR development; new product testing in various atmospheric environments; aviation optics and electronics; global climate research; and more.
Celebrating 35 years with the Viticulture & Enology Research Center at California State University Fresno, American Vineyard Magazine is once again pleased to sponsor Fresno State Grape Day, hosted virtually for the first time ever by the Department of Viticulture & Enology team at Fresno State. Grape Day will be held virtually on August 4th, featuring a new staff of bright minds at the Viticulture & Enology Research Center. Grape growers, vineyard managers, wine makers, and grape industry stakeholders around the nation are all invited to attend this year’s Grape Day.
Held from 9 a.m. to 11:30 a.m and moderated by Dr. Stephan Sommer (the new Director of the Viticulture & Enology Research Center), Grape Day will kick off with a presentation by by graduate student Khushwinder Singh and Dr. Luca Brillante, Bronco Wine Co. Viticulture Chair & Assistant Professor of Viticulture at Fresno State. They will be presenting on Vineyard Soil Reclamation by Different Forms & Doses of CaSO4 Amendments in the San Joaquin Valley of California. Dr. Rachel Naegele, Research Horticulturist at USDA, will provide a USDA-ARS update on Breeding Novelty & Resistant Table Grapes. Dr. Kristy Sun, Assistant Professory of Enology at Fresno State will deliver her presentation on the Impact of Deficit Irrigation & Mechanical Leafing on Yield & Berry/Wine Composition of San Joaquin Valley Cabernet Sauvignon. Dr. Stephan Sommer will lead a presentation on the Use of Polysaccharides in Wine Production.
In addition to a brief video presentation to showcase the Fresno State Viticulture & Enology Research Center’s unique research and academic programs/facilities, Grape Day will conclude with a Demonstration of Biopotentials as a New Tool to Evaluate Sensory Stimulation Evoked by Wine Aroma. This presentation will feature Assistant Professor of Enology at Fresno State Dr. Miguel Pedroza, as well as graduate students Robert Herrell and Kori Munk.
With an exciting lineup of great speakers and informative presentations, this is a Grape Day not to be missed, and can be viewed anywhere in the world this year! Register for the Zoom Virtual Grape Day for FREE HERE.
Are you not seeing the results you expected in your latest fungicide/insecticide application? Watch this brief interview with Peter Ako Larbi from the UC Cooperative Extension who shares several considerations on how growers can improve their pesticide spray coverage in their orchard or vineyard.
The Pierce’s Disease and Glassy-Winged Sharpshooter (PD/GWSS) Board officially added the spotted laternfly (SLF) to its list of designated pests and diseases, making it eligible for research and outreach funding.
“The best quarantine efforts happen at the points of origin. By showing that this is a pest we don’t want in California, we have a better chance of getting cooperation and action to control its spread,” said Roger Spencer, Pierce’s Disease Control Program acting statewide coordinator.
The SLF, a native to Asia, was first detected in Pennsylvania in 2014. It is spreading rapidly and the PD/GWSS Board has been closely following the situation. The pest is primarily known to feed on the tree-of-heaven, but has a wide host range including grapes. It is considered a high risk pest due to its mobility, with eggs and adults easily transported long distances by normal trade and transportation activities, making it a concern for grape growers nationwide. Learn more about thespotted laternfly.
In today’s fast paced urban society, there is a serious disconnect between consumers and the source of their food. There is so much public misinformation and misconceptions about agriculture, that it has become more critical for farmers to reach out side of their comfort zone and communities to share the truth about what they do out in the field. International Ag chemical Corporation, BASF has joined farmers with efforts of their own in educating the public about agriculture, as shared in this brief video with BASF representative Paul Rea.
Five years ago, the Sonoma County Winegrowers (SCW) made a bold declaration to the wine world that its more than 1,800 winegrowers were committed to becoming the nation’s first 100% certified sustainable wine region in 2019.
Today, Karissa Kruse, president of the Sonoma County Winegrowers, addressed the local winegrowing community to announce that Sonoma County now has a record-breaking 99% of its local vineyards certified sustainable. Kruse also announced that SCW will continue to build on its sustainability leadership as an exclusive participant in the California Land Stewardship Institute’s Climate Adaptation Certification Program which is the first program of its kind available in the world for agriculture.
While carbon farm plans have been utilized by some farmers and ranchers in the past, this new climate adaptation certification marks the first time farmers will have a certification and a comprehensive greenhouse gas (GHG) reduction and carbon sequestration program that includes all three main GHG – carbon dioxide, nitrous oxide and methane. This voluntary climate adaptation program will be customized to site and operations with growers documenting their reductions, monitoring their greenhouse gas emissions and undergoing an annual audit. After launching and piloting the effort in Sonoma County vineyards, the program will be available to other wine regions around the world.
“When our leadership realized that 99% of the vineyards in Sonoma County were going to be certified sustainable, they began looking ahead and identified climate adaptation certification as the next natural step for Sonoma County Winegrowers,” stated Kruse. She added, “Climate change is a critical threat, yet there is little information available on the role agriculture can play. This program addresses that by focusing on the importance of local solutions to combat a global concern. We are excited that this new certification program highlights the unique role and opportunity agriculture and local communities have in climate adaptation and mitigation.”
The Climate Adaptation Certification program is a customized farm plan that will track the impact of climate friendly farming practices and develop recommendations that reduce greenhouse gas emissions. The certification program will focus on proven scientific concepts that growers can implement without compromising their farming practices. It will limit nitrous oxide emissions and focus on carbon sequestration to improve the health of the soil and the farm. The program meets both the State of California’s climate goals and the United States Department of Agriculture’s Healthy Soil goals.
Each participating vineyard in Sonoma County will have its own land management program developed specifically to address the sequestration of nitrous oxide and carbon emissions. The greenhouse gas reductions will be monitored and documented with the information shared with farmers and the general public.
“Through the Climate Adaptation Certification program, both the grower and the public will be able to better understand the role of vineyards in climate change and the immediate benefits of agricultural practices that reduce greenhouse gas emissions and sequester carbon,” said Laurel Marcus, executive director of the California Land Stewardship Institute. She added, “We are excited to collaborate on this pilot project with the Sonoma County Winegrowers who have demonstrated great leadership in land stewardship and environmental responsibility.”
Sonoma County’s wine industry is primarily comprised of multi-generational family businesses. There are 59,218 acres planted to vineyards, which accounts for only 6% of Sonoma County’s total acreage. In fact, more than 40% of Sonoma County’s vineyard parcels are less than 20 acres, with 80% of the county’s vineyards less than 100 acres.
Duff Bevill, Bevill Vineyard Management and past chair of the SCW board of directors, is often referred to as the godfather of sustainability by the locals and is credited with playing a key role in bringing the idea of committing to 100% sustainability to the SCW board and local growers. He is excited about participating in the first Climate Adaptation Certification program for vineyards.
“I have long felt that sustainability is the best approach to ensure we protect our land for future generations, improve the quality of life for our employees, and enhance the community where we live and work,” said Bevill. He added, “That foundation is critical as we now look to reduce and document greenhouse gas emissions and further our carbon sequestration efforts. Though the issue is big, there is little understanding as to what solutions can make a difference. This program excites me because it has a lot of depth to it and it will enable us to actually monitor and determine how best to lower our impact through a combination of best management practices.”
Sonoma County has some of the world’s most recognized grape growing areas in the world with the first vineyards dating back to 1812. The region’s unique combination of rich geological history, fog patterns generated by its more than 50-miles of Pacific Ocean coastline and topography has given rise to 18 unique American Viticultural Areas (AVA), with plans to designate more. Each AVA offers distinct climate, soils, temperature areas, elevations and historical significance perfect for growing world-class Pinot Noir, Chardonnay, Cabernet Sauvignon, Zinfandel and more.
Sonoma County is also home to almost 500 wineries whose wines are renowned throughout the world. In 2018, SCW launched its “Sustainably Farmed Grapes” logo for wineries to use on their wines beginning with the 2017 vintage. To use the label, wines must be using at least 85% certified sustainable Sonoma County winegrapes following an audit by SCW.
“What is most exciting is that given that we are a certified sustainable wine region and participating in the first Climate Adaptation Certification for vineyards, consumers can always purchase Sonoma County wines with confidence knowing that we are the global leader in growing and making great wine while minimizing the impact on the environment,” said SCW’s Kruse.
About Sonoma County Winegrowers:
The Sonoma County Winegrape Commission, also known as Sonoma County Winegrowers (SCW), was established in 2006 as a marketing and educational organization dedicated to the promotion and preservation of Sonoma County as one of the world’s premier grape growing regions. SCW has oversight by California Department of Food and Agriculture which supports producer regions. With more than 1,800 growers, SCW’s goal is to increase awareness and recognition of the quality and diversity of Sonoma County’s grapes and wines through dynamic marketing and educational programs targeted to wine consumers around the world.
In January 2014, SCW committed to becoming the nation’s first 100% sustainable winegrowing region in 2019. As of September 12, 2019, 99% of the vineyard acreage in Sonoma County has completed certification by a third-party auditor making Sonoma County the most sustainable wine region in the world. SCW’s sustainability efforts have been recognized with California’s highest environmental honor, the 2016 Governor’s Environmental and Economic Leadership Award (GEELA). Learn more at www.sonomawinegrape.org
What tax relief is available for wineries affected by fires in 2017?
The IRS has announced that individuals and businesses affected by the fires in California now have until January 31, 2018 to file certain tax returns and make certain payments. There are currently seven counties eligible for relief: Butte, Lake, Mendocino, Napa, Nevada, Sonoma and Yuba. This list may continue to grow if the disaster continues to spread. Individuals, businesses, as well as visiting firefighters and relief workers, qualify for the extension.
Individual and business tax filings and payment deadlines that occurred starting on October 8, 2017 have been extended, giving those affected until January 31, 2018 to file returns and pay any taxes originally due during this period. The affected deadlines include:
Extension for October 31 deadline for quarterly payroll and excise tax returns
Extension for calendar year tax-exempt organizations with 2016 extensions running out on November 15, 2017
Waiving of late deposit penalties for federal payroll and excise tax deposits normally due between October 8 and October 23 (if deposits are made by October 23, 2017). Find additional information on the disaster relief page on IRS.gov.
What is the difference between casualty loss and disaster loss?
These two types of losses overlap. Every disaster loss is also a casualty loss, but not every casualty loss is a disaster loss.
Disaster Area Losses: a loss that occurred in an area declared by the President to be eligible for federal assistance— usually during a major disaster or emergency. The following website maintains an updated list of the disaster declarations by year and area: https://www.fema.gov/disasters/grid/year
Casualty Losses: the result of damage, destruction, or loss of property from any sudden, unexpected, or unusual event. This includes flood, hurricane, tornado, fire, earthquake, or volcanic eruption. Some losses due to vandalism, theft and human cause may also qualify. A casualty doesn’t include normal wear and tear or progressive deterioration.
My home is located on my winery and both have been damaged by fire, how will this affect my taxes?
The amount of loss not covered by insurance should be deductible as casualty losses for both your home and business — the difference is compliance or tax forms. For your home, you can claim casualty losses for any personal property on your individual tax return, Form 1040. Losses from the winery are business related and should therefore be claimed on the business return.
If I donate wine, can I claim it on my tax returns as a charitable contribution?
Yes, it is characterized as a non-cash donation. The value of the deduction will depend on whether the wine was an inventory item or wine collection. Typically, you will be limited to your cost basis. However, if you donate an inventory item, the amount of your deductible contribution is the fair market value (FMV) of the item minus any gain you would have realized if you had sold the item at its FMV on the date of the donation.
Note that depending on the value of the donated wine, additional information may be required. If the value of your non-cash donation exceeds $500, but is less than $5,000, you will need to include additional IRS tax forms with your tax return (Form 8283 Noncash Charitable Contributions). If the value of your non-cash donations exceeds $5,000 dollars, you will need to obtain an appraisal report from a qualified wine appraiser, unless it is inventory.
What counts as Research and Development (R&D) for wineries?
Most people think that R&D is only for tech and medical companies, but agriculture can also qualify for the Federal Research and Development Tax Credit. Eligible costs typically include employee wages, cost of supplies, cost of testing, contract research expenses, and costs associated with developing a patent.
The Tax Credit allows a credit of up to 20% of the excess of qualified research expenses, which must meet the following criteria:
New or improved products, processes, or software
Technological in nature
Elimination of uncertainty
Process of experimentation
For wineries, the following processes may qualify for R&D Credit:
Developing wine cave
Land development and irrigation improvement
Analytical software
Harvesting technologies
Gene culturing
Spoilage prevention
Preservation (after the bottle has been opened)
Wine blending
Packaging and bottling innovation
To claim the credit, a third party may be hired to perform a Research and Development study aimed at identifying qualifying processes and activities. If R&D efforts do not warrant a third party study, internal documentation with respect to innovative processes and activities should be maintained to support qualifying expenses for R&D credit calculation.
Do wineries qualify for the Section §199 Tax Deduction?
Any manufacturing, blending, and finishing of wine that is later poured into a bottle with a label for wholesale is considered an eligible production activity. IRC § 199 allows a business with “qualified production activities” to take a deduction equal to 9% of the lesser of (1) the qualified production activities income of the taxpayer for the tax year or (2) taxable income (determined without regard to Section 199) for the tax year. The deduction is also limited to 50% of the W-2 wages of the employer for the tax year. The IRC § 199 deduction is allowed for both the regular tax and the alternative minimum tax.
Bottom line, if you’re making wine and making money, there is 9% deduction in taxes that is available to you. Note that the Trump Administration’s tax reform proposal is seeking to eliminate this deduction, so take advantage of it while you can!
Are there any additional tax breaks for wineries?
There are many special deductions available to agricultural businesses, here are a few that most wineries can benefit from:
Agricultural businesses, including wine producers, can carry losses back five years, while most businesses are only allowed a two-year net operating loss carryback
Many growers who cannot use the cash method can deduct post-harvest/pre-bud break costs.
Agricultural equipment that is primarily used in producing and harvesting is allowed a sales tax exemption. Solar equipment that help power qualifying machinery are exempt from sales tax. If you have already installed a solar system, you may be eligible for a refund on taxes paid up to three years ago
IC-DISC: if your winery exports products, it may benefit from Interest-Charge Domestic International Sales Corporation (IC-DISC) entity structure. IC-DISC only exists on paper and it is not taxed at the federal level. This entity’s sole purpose is to collect sales commission from overseas and then distribute the income back to their shareholders in the form of qualified dividends. Tax savings can be significant at the highest tax bracket due to lower rate at which qualified dividends are taxed compared to ordinary income.
Monic Ramirez
Monic Ramirez is a Tax Partner at Sensiba San Filippo specializing in tax planning and compliance. She is an expert in multi-state taxation and foreign operations and works with a wide range of industries, including closely-held businesses, agriculture and manufacturing and distribution. Monic can be reached at mramirez@ssfllp.com or at 408.776.8900.
As wildfires rage across the western U.S., incinerating hundreds of thousands of acres, destroying entire communities, and polluting the air, Bill Pekny has a message: We need to get more educated on what causes these disasters. It’s the only way we’ll be able to reduce the devastation.
winegrowers were committed to becoming the nation’s first 100% certified sustainable wine region in 2019.
2018 to file certain tax returns and make certain payments. There are currently seven counties eligible for relief: Butte, Lake, Mendocino, Napa, Nevada, Sonoma and Yuba. This list may continue to grow if the disaster continues to spread. Individuals, businesses, as well as visiting firefighters and relief workers, qualify for the extension.
for quarterly payroll and excise tax returns