Bill preserves historic Napa Valley vineyard

A historic Napa Valley vineyard, considered among the top 10 vineyards in the world, is the first agricultural land in the nation being preserved through new legislation aimed at saving America's farms and ranches.

Napa Valley grape grower Andy Beckstoffer on Tuesday announced he was trading a conservation easement on his famed To Kalon Vineyard for a significant tax deduction on his farming income. The tax incentive for farmland preservation was included in a bill signed Thursday by President Bush.

Beckstoffer was the first in line because he worked closely with Rep. Mike Thompson, D-St. Helena, to win congressional approval for a tax break to encourage farmland preservation. The wine industry leader hopes his actions will spur other North Coast growers and vintners to donate conservation easements on their vineyards.

"This world-famous vineyard will be preserved forever. My family will always own and farm it, but it can never be developed with houses or even a winery," said Beckstoffer, 66. "This legislation is a big deal because it's good business while allowing us to be good stewards of our land."

The legislation provides expanded tax incentives for landowners who voluntary donate conservation easements to nonprofit entities like the Napa Land Trust or Sonoma Land Trust.

The Sonoma County Agricultural Preservation and Open Space District uses a sales tax to buy conservation easements. Land owners who sell conservation easements are not eligible for the tax breaks given to those like Beckstoffer who are making a charitable donation.

Beckstoffer was joined by Thompson and John Hoffnagle of the Napa Land Trust in touting the legislation as another tool in protecting the agricultural integrity of Wine Country.

The expanded tax incentives for permanent protection of land are good through 2007. Thompson said if it's successful, the tax provision could be extended, giving farmers from California to Maine the opportunity to protect their land.

"It's important that we do something to keep urban development from destroying our farmlands and harming the environment," Thompson said. "We lose two acres of farmland every minute in this country."

Tuesday's announcement was made amid the vines at To Kalon, an 89-acre vineyard located near Oakville in the heart of the Napa Valley. The vineyards' prized cabernet sauvignon grapes are still weeks away from being picked, but the smell of harvest is in the air.

Wine Country's first grapes of the season will be harvested today in Yountville and pressed for champagne at Mumm Napa near Rutherford. Other sparkling wine producers in Napa and Sonoma counties will bring in their first grapes at the end of the week or next week.

Hoffnagle said the legislation and Beckstoffer's leadership will go a long way in keeping Napa Valley rural. He said Napa County already has protected 50,000 acres with conservation easements. He said the tax incentives could put an additional 5,000 to 10,000 acres under conservation easements by the end of 2007.

The new tax provision extends the carry-forward period for tax deductions for voluntary conservation agreements from five to 15 years. It also raises the limit on those deductions from 30 percent to 50 percent of a donor's adjusted gross income. It's even better for working farmers like Beckstoffer who can deduct 100 percent of the easement's value.

Beckstoffer said the land will be appraised to determine the value of his donation.

Beckstoffer only owns a portion of the 360-acre To Kalon vineyard first planted by Napa Valley pioneer Hamilton Crabb in 1868. The majority of the historic vineyard, 250 acres, is owned by the Mondavi Wine Co.

In the 1880s, Crabb's wines ranked among Napa Valley's top vintages. To Kalon has continued to produce some of the Napa Valley's most sought-after wines during the past 140 years. Today it's used in cult cabs made by coveted winemakers like Paul Hobbs and Harlan Enterprises.

"What Hamilton Crabb started in 1868, we're finishing by forever preserving this historic vineyard," Beckstoffer said.