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Love the small wineries?
Love the small wineries?
George Caloyannidis | Jul 18, 2017 on: The Winery Glut
If a municipality wanted to preserve the ambiance of a single-family neighborhood, it wouldn't rezone it to residential high-rise. Over a short period of time, homeowners would sell to developers at a profit and the area would experience a fundamental transformation.
In Napa County, whenever a small winery pleads hardship, officials accommodate it with higher use permit limits of production and visitations. They say: "We all love small wineries. We must do everything to support them." Who can possibly argue with that?
But there is a problem. Even when wineries have been operating in gross violation of their use permits, their plea for survival becomes their passport to riches. Just like that, even without proof of hardship, the value of the winery is often doubled and tripled and sold within weeks.
Further proof of how this policy incentivizes small wineries to disappear from the supposedly intended idyllic landscape into big investor portfolios, is the current rampant winery consolidation activity, all fueled by the county's policies marketed by its disingenuous rhetoric as compared to its actions.
I often visit the northern foothills of the German Alps, dotted with small towns, forests and meadows where a dozen or so cows of small dairy farmers graze. These farmers make a living with milk, cheese, honey and schnapps. They are prohibited from increasing their grazing lands by clear-cutting their forests, a long view policy that provides them with a decent living but keeps the value of their holdings to levels not attractive enough to corporate takeovers.
Small farms are preserved in harmony with forests and crystal-clear streams. When visiting the region one is captivated by the agricultural serenity so beautifully preserved since 198 years ago, when it was memorialized in Beethoven's 6th symphony, so appropriately named:
If a municipality wanted to preserve the ambiance of a single-family neighborhood, it wouldn't rezone it to residential high-rise. Over a short period of time, homeowners would sell to developers at a profit and the area would experience a fundamental transformation.
In Napa County, whenever a small winery pleads hardship, officials accommodate it with higher use permit limits of production and visitations. They say: "We all love small wineries. We must do everything to support them." Who can possibly argue with that?
But there is a problem. Even when wineries have been operating in gross violation of their use permits, their plea for survival becomes their passport to riches. Just like that, even without proof of hardship, the value of the winery is often doubled and tripled and sold within weeks.
Further proof of how this policy incentivizes small wineries to disappear from the supposedly intended idyllic landscape into big investor portfolios, is the current rampant winery consolidation activity, all fueled by the county's policies marketed by its disingenuous rhetoric as compared to its actions.
I often visit the northern foothills of the German Alps, dotted with small towns, forests and meadows where a dozen or so cows of small dairy farmers graze. These farmers make a living with milk, cheese, honey and schnapps. They are prohibited from increasing their grazing lands by clear-cutting their forests, a long view policy that provides them with a decent living but keeps the value of their holdings to levels not attractive enough to corporate takeovers.
Small farms are preserved in harmony with forests and crystal-clear streams. When visiting the region one is captivated by the agricultural serenity so beautifully preserved since 198 years ago, when it was memorialized in Beethoven's 6th symphony, so appropriately named: