By John Rivenburgh, President of Texas Wine Growers
April 18, 2025
Texas Wine Growers is a 501(c)(6) non-profit organization dedicated to promoting and protecting the integrity of Texas wine. We strongly advocate for the passage of the Farm Winery Permit bills (HB 3385 and SB 2038). This week, we’re thrilled to announce that the bill passed unanimously out of the House Licensing & Administrative Procedures Committee on April 15 with a 12-0 vote.
We’re sharing this blog post explaining the Farm Winery Permit, its potential impact, and why TWG believes it’s a crucial step forward for the Texas wine industry.
The Farm Winery Permit: What It Is
The proposed Farm Winery Permit is designed as a subordinate permit to the existing “G” permit, which allows wineries to produce and sell wine in Texas. This new permit aims to modernize regulations and provide Texas wineries with greater flexibility to grow their businesses.
Key features of the Farm Winery Permit include:
- Expanded Tasting Room Access: The permit would allow farm wineries to operate up to five tasting rooms.
- Increased Production Capacity: The production cap for farm wineries would be raised to 250,000 gallons.
- Marketing Fund: A dedicated marketing fund would be established to promote farm winery permit holders. This fund would be supported by half of the $500 permit fee paid by farm wineries and potentially other sources, with oversight by the Texas Department of Agriculture. TWG has successfully received a contingency appropriation of up to $5M to support the program. This is contingent on the passage of the bill and us working through the Appropriations process (which is a separate effort from HB 3385 / SB 2038). This amount is subject to change.
A Path Forward: Supporting Texas Wine’s Growth
Texas Wine Growers has actively participated in shaping the proposed Farm Winery Permit legislation (HB 3385 and SB 2038). TWG worked with TABC throughout the interim to help craft the Farm Winery Permit Study. Based on the information and analysis of the report, TWG crafted the legislation.
This legislation is a crucial step towards supporting the Texas wine industry by:
- Distinguishing Texas Producers: The permit will separate genuine Texas wine producers from retailers who do not produce wine, ensuring that only those holding a “G” Permit and actively producing wine in Texas can obtain a Farm Winery Permit all without affecting any of the rights of existing “G” permit holders.
- Prioritizing Texas-Grown Fruit: The bill requires that 75% of the fruit used by Farm Winery Permit holders be grown in Texas. This decision was made to align with existing federal grape original requirements and to minimize opposition from groups that had expressed resistance to a 100% Texas-grown fruit requirement. This helps stabilize Texas grape growers, many of whom face significant challenges, preserving agricultural jobs and revenue in rural communities.
- Incentivizing Industry Growth: The permit provides smaller Texas wine operators tools to build a stronger foundation and cuts red tape by consolidating permits, reducing bureaucratic hurdles for wineries and TABC.
- Driving Economic Impact: The Texas wine industry is a significant economic driver for the state, contributing over $20 billion to the Texas economy in 2022. This legislation will further bolster this impact by supporting Texas wineries, Texas grape growers, and promoting the use of Texas-grown fruit, keeping more Texas dollars in Texas.
Summary
The Farm Winery Permit legislation represents a significant opportunity to support the growth of the Texas wine industry, promote Texas agriculture, and enhance consumer access to Texas wines. Texas Wine Growers remains committed to working with legislators and TABC to ensure the successful implementation of this legislation and to address any potential concerns. By working together, we can cultivate a thriving future for Texas wine.
What can you do?
We encourage you to contact your State Representative and State Senator to express support for the Farm Winery Permit bill. We anticipate that the Senate will be holding a hearing soon, and supporters can attend in person and register their support at the Capitol. In the meantime, calling/emailing your State Representative and Senator’s offices is the best way to support the Farm Winery Permit bill. Bill numbers are listed below in the Resources section.
Resources and More Information
- Use the Who Represents Me? Tool to confirm your Texas House Representative and State Senator. This tool directly links you with their contact information to easily send an email or make a phone call.
- Link to House LAP committee hearing on April 1, 2025
- Links to HB 3385 and SB 2038
- Links to live feeds in the House and Senate