Midwest Wine Press

Illinois Reduces Funding for Wine Industry

by · June 2, 2012

The beleaguered State of Illinois recently cut $142,500 in funding for the state’s wine industry, according to Illinois Grape Growers and Vintners Association (IGGVA) president Bruce Morgenstern.  The lost State Department of Agriculture funding was used for two important wine industry programs.   The first cutback is the Illinois State Enologist, Brad Beam, whose status is now uncertain.  The lost funds were also used to support viticulture extension programs and research at the University of Illinois and Southern Illinois University.

Beam said that he’s disappointed with the decision because it’s a setback to Illinois wine.   “Illinois wine quality has come so far in recent years,” he said.  “The state’s wine specialists help minimize a lot of the growing pains as the number of Illinois wineries continues to increase.”  (Illinois now has 126 wineries, a 50% increase since 2009.)

Despite the setback, Morgenstern and the IGGVA will continue to push for state funding for Illinois wineries and grape growers.  “We have a substantial following in the state legislature and our number one priority is promoting the value of  Illinois wine in Springfield,” he said.   “However, everyone knows these are difficult times in Illinois so we must redouble our efforts to show how much the wine industry does to help the Illinois economy state-wide.”

The Illinois Grape Growers and Vintners Association continues to receive funds through the Illinois Department of Commerce and Economic Opportunity.   Also, a portion of the IGGVA’s income comes from sponsored events and membership fees according to Morgenstern.

Illinois assesses an excise tax of $1.39 per gallon on wine production, one of highest wine excise taxes in the nation.  None of this excise tax revenue supports Illinois wine according to Morgenstern.   Many midwestern states like Michigan, Missouri and Indiana have successfully used a portion of state wine and liquor taxes or fee revenue to support their state’s wine industries.  Morgenstern said that the political climate in Illinois is currently not conducive to asking for any existing state tax revenue.

Publisher’s note:   The wine industry in Illinois is one of the few bright spots in a state with the worst credit rating in the United States.   Working against Illinois wineries are high wine excise taxes that drive Illinois residents to purchase wine in other states.  Even worse,  none of that wine tax revenue is reinvested in an industry that is actually creating jobs in Illinois.  Hopefully,  the Illinois legislature will someday come to understand that wine tourism attracts out-of-state revenue and brings economic development to rural areas that desperately need jobs.  (Midwest Wine Press is an Illinois based LLC.)

 

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Mark Ganchiff

Mark Ganchiff is the publisher of Midwest Wine Press, the leading source of news on the growing wine industry in the central United States. Mark has been a wine judge at the 2012 and 2014 INDY International Wine Competition, the 2014 Cold Climate Wine Competition, the 2013 Mid-American Wine Competition, the 2012 Illinois State Fair Wine Competition and the 2013 Michigan Wine Competition. He also enjoys speaking at wine events including the Cold Climate Wine Conference, the Illinois Grape Growers and Vintners Association Annual Meeting, the Midwest Grape and Wine Conference and the Wisconsin Fruit and Vegetable Conference. Mark's articles about regional wine have appeared in Vineyard & Winery Management, WineMaker and several regional magazines. Mark is a Level One Sommelier in the Court of Master Sommeliers. He lives in Louisville, but also has a residence in Chicago.

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1 Response

  1. Lee M. Rife says:
    June 6, 2012 at 9:14 am

    I am saddened to hear that the monies to support a State Enologist were cut. The industry needs to find another source of funding (and a special tax on wine is not the answer, since the General Assembly can and does sweep special funds regularly), as having someone who has credentials in winemaking and who can offer advice to any of the 129 wineries is essential for the growth of the industry. It is time to think and look for alternative ways of funding; perhaps developing a foundation of some sort to prepetually fund education and research to make sure the industry thrives. Let’s just keep government out of it.

    I speak as someone who had a small part of getting the Illinois Wine Industry up and running. I retired from the Illinois Department of Agriculture over 13 years ago. At that time there were 13 wineries in the state, and to see the growth that has taken place is most gratifying. Please don’t kill the industry so we can plant more corn and soybeans!

    Lee M. Rife
    Springfield