HD85 - The Relationship Between Counties and Farm Wineries (Part I)


Executive Summary:
After imposing prohibitions on enactment of new local regulations on farm wineries, HB1435 requires, that the Secretary of Agriculture and Forestry conduct a profitability study on the farm wine industry in Virginia, and further that he continue efforts to address the relationship between the farm wineries and the communities in which they operate. The results of the study of farm winery profitability will be reported in a separate document. The principle focus of this document is on the findings and recommendations related to the relationships between the farm wineries and local government.

Summary of Findings

The primary findings in the study are that:

1. conflict between counties and farm wineries is not yet a statewide problem; at present, such problems appear to be limited to four or five counties.

2. for the most part, such conflict arises from a desire and need for some farm wineries to conduct frequent and sizeable events for the marketing of wine in agricultural districts and the obligation of counties to protect the health, welfare, and safety of those in the community within which the farm winery is located.

3. in most cases, it appears responsibility for this conflict is shared between counties and the wineries. (Please see Findings below for a more complete explanation of this item.)

4. the most intense conflict appears to occur where suburbanization is encroaching on rural areas.

Summary of Recommendations

The Office of the Secretary recommends:

1. that the Assembly take no action which might have the unintended consequence of increasing tensions between counties and wineries or causing such tensions where they do not currently exist. (Please see Recommendations below for a more complete explanation of this item).

2. that the Assembly enacts legislation patterned after that shown in Appendix B to replace HB1435.

3. that the Assembly work with localities to create a type of information clearinghouse accessible to farm wineries and localities for guidance and resources to resolve disputes as they arise. Such resources may include mediation services.

4. that the Assembly support further efforts by the Office of the Secretary of Agriculture and Forestry to build positive relationship between counties and wineries through educational outreach and improved communication. An emphasis should be put on creating relationships between farm wineries and their neighbors at the earliest possible time in the winery development/growth cycle.

[Part II of the study to be submitted by June 30, 2007.)