Napa Winegrape Growers Face Soaring Regulatory Costs

A new study has put a dollar figure on what Napa County winegrape growers spend to comply with state and federal regulations, finding that those costs accounted for 8% to 12% of production expenses last year and, for some farms, reached levels that growers say threaten the future of agriculture in the region.

The study, “Regulatory Cost of Production in Napa County Vineyards,” was commissioned by the Napa County Farm Bureau and prepared by two Cal Poly, San Luis Obispo, professors, Lynn Hamilton and Michael McCullough. It found that a large grower spent more than $1,700 an acre on regulatory compliance, or nearly $2 million overall, while a small grower spent more than $1,100 an acre, or about $226,000 overall.

Hamilton said the findings show how much regulations can affect farm finances. “Both growers and policy makers need to understand the impact of regulatory costs on the viability of farming,” she said.

The report was released last month and is the first study to measure the financial impact of regulatory compliance on Napa County’s winegrape growers. The researchers said they did not compare costs over time in Napa because there was no earlier local study to use as a baseline. But they said their findings showed that compliance costs in Napa were especially high compared with other California crops and were about twice those faced by Oregon winegrape growers.

The study comes as California’s wine sector is under pressure from falling global wine consumption. Over the past few years, growers have removed tens of thousands of acres of vineyards, and hundreds of thousands of tons of grapes have gone unpicked during recent harvests. The researchers said the added burden of regulation could push some growers beyond the point where farming remains financially viable.

Peter Rumble, chief executive of the Napa County Farm Bureau, said members have long warned that regulation is squeezing them out. “Without change, we might not have viable agriculture as we know it now in Napa,” he said.

Napa County’s winegrape industry carries unusual weight in California agriculture. In 2024, winegrapes ranked among the state’s top 10 crops by value. Grapes grown in Napa County accounted for 35% of California’s nearly $3 billion crop value, more than any other county.

Natalie Collins, president of the California Association of Winegrape Growers, said California has built its reputation on strict labor and environmental standards but often leaves farmers to absorb the cost. “California can lead on environmental protection and worker safety while supporting viable family farms, but achieving that balance requires policymakers who understand the real-world impact on growers and their operations,” she said.

According to the study, Napa growers spent the most on compliance tied to minimum wage rules, health insurance coverage, education and training, and worker health and safety. They also paid for requirements related to air quality, water quality, pesticides and food safety.

The researchers noted that earlier studies had found regulatory costs were higher for small employers than for large ones. But they said federal medical coverage and food safety laws that apply only to larger employers have changed that pattern in some cases, making large operations bear higher total compliance costs.

The study examined one large winegrape operation and one small operation in Napa County. It was conducted during a period when many growers are already struggling with weak demand and rising costs. Johnnie White, a Napa County winegrape grower whose family has farmed there for six generations, said the pressure is becoming harder to absorb.

“The sustainability of farming is in serious question because of these regulatory costs,” White said. “If we continue down the current regulatory path, we will find grape growing and farming in Napa County will no longer be sustainable.”