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NY lawmakers seek federal buyout for WNY grape growers left stranded by Refresco cancellations

NY lawmakers seek federal buyout for WNY grape growers left stranded by Refresco cancellations
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PORTLAND, N.Y. (WKBW) — Sen. Chuck Schumer stood alongside grape farmers from across Chautauqua, Niagara, and Erie Counties, urging the USDA to step up after Refresco canceled over 100 local contracts in March.

Refresco, one of the region's biggest grape processors, canceled all of its contracts with local farms and would no longer use Concord or Niagara grapes from Western New York farms, blaming the cutbacks on market challenges and supply issues.

"We're not gonna let that heartless and cruel action stop this industry, even though they were the major purchaser of grapes," Schumer told those in attendance on Monday. "They've planted, they've put all their labor and money into the ground to build, to grow these beautiful grapes, and all of a sudden they don't have a purchaser."

Schumer wants the USDA to become a new purchaser and utilize the surplus supply from grape farms in domestic food assistance programs.

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Sen. Chuck Schumer stood alongside grape farmers from across Chautauqua, Niagara, and Erie Counties, urging the USDA to step up after Refresco canceled over 100 local contracts in March.

"USDA could buy American-grown grapes and put them to good use while the farmers are busy looking for a new buyer. There's a need for this product," Schumer said.

In New York, approximately 800 growers produce 150,000 tons of grapes, with Chautauqua County being the largest grape-growing county in the state.

"Right now our growers are facing intense economic pressure from global grape overproduction," Dr. Terry Bates, director of Cornell Lake Research, said. "The Lake Erie Concord Grape Belt isn't just a proud, is just a proud part of our past. It remains a thriving, resilient economic powerhouse for our future."

"Pushing for the USDA for additional purchases of Concord grape juice concentrate using Section 32 funds to accomplish the purchase will provide much-needed relief," David Fisher, president of the New York Farm Bureau, said.

The USDA’s Section 32 allows for the purchase of surplus agricultural products to support domestic markets and address food insecurity.

WATCH: NY lawmakers seek federal buyout for WNY grape growers left stranded by Refresco cancellations

NY lawmakers seek federal buyout for WNY grape growers left stranded by Refresco cancellations

In April 2024, the USDA purchased $45 million worth of surplus to help stabilize industry prices.

"I’m grateful that the USDA has agreed to purchase $45 million in surplus juice to distribute to various nutrition assistance programs, benefitting communities in need across the nation as well as our grape growers," Congressman Nick Langworthy wrote at the time. "I’m always proud to advocate for the hardworking agricultural community in our region and ensure they have a seat at the table in Washington."

Langworthy, a Republican, supports this latest push by Schumer as well.

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Sen. Chuck Schumer stood alongside grape farmers from across Chautauqua, Niagara, and Erie Counties, urging the USDA to step up after Refresco canceled over 100 local contracts in March.

Fred Johnson, owner of Johnson Estate Winery in Westfield, and whose family was a founding member of the Lake Erie Wine Trail, told WKBW, "Whether it's the Concord grape industry or the wine industry here in Chautauqua County and Erie County, Pennsylvania. We can be world beaters. We have the climate. We have the cost structure. We have the people. We just need a level playing field. We really can."

The move by Schumer also comes amid rising costs for farmers across the country. Much of the rising costs stem from the Trump administration's tariff policies and the United States' ongoing war with Iran. A report by the Joint Economic Committee found the average farmer spent as much as $1,500 more to refill on-site fuel tanks compared to last year.

The New York Farm Bureau reported that fertilizer alone has seen a 40% increase from the prior year. The World Trade Organization found that, since the closure of the Strait of Hormuz and the restricting of all fertilizer exports from the Gulf region economies, the share of affected trade rose to an estimated 23.3%.

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Sen. Chuck Schumer stood alongside grape farmers from across Chautauqua, Niagara, and Erie Counties, urging the USDA to step up after Refresco canceled over 100 local contracts in March.

Earlier in the month, the Farm Bill, a package of legislation passed roughly once every five years that has a tremendous impact on farmers' livelihoods, how food is grown, and what kinds of food are grown, once again stalled on Capitol Hill.

The last version of the bill to be signed into law was in 2018, and it expired in 2023. Since then, the federal government has been funding agricultural efforts in staggered methods.

Republicans and Democrats have many disagreements on SNAP benefits. Republicans want a one-year transition period for administrative control to be handed over to the states. Democrats want to extend the transition to two years.

Schumer said the Farm Bill will be a priority once the Senate returns to session on September 15.

"It's close. It's close, and we'll get it done," Schumer said. I've spoken to both Senator Klobuchar, the ranking Democrat on the AG committee, and Senator Boozman from Arkansas, the head of the committee. And they're both resolved to solve. There are one or two problems left. I think we'll be able to solve them when we come back."