Parma, Idaho--Idaho isn't a large player in the U.S. wine industry, but state grapegrowers depend as much on local research as do growers in any other state. When the word came abruptly in June that the Parma Research and Extension Center at the University of Idaho could close as a result of $3.2-million in cuts to state funding of the University of Idaho's budget, growers of grapes and other crops spoke up.

The result was a reprieve last week for the center, one of a number of research facilities across the country that is subject to increasing pressure as states feel the pinch from reduced tax revenues and rising program costs during the current recession. Now, Idaho Governor C.L. "Butch" Otter and the university announced that the center will remain open indefinitely. At a joint appearance last week with the university's new president, M. Duane Nellis, Otter postponed the closure. According to Gov. Otter, school officials had neglected to consult with Nellis and the state Board of Education prior to eliminating the center. Idaho law requires universities proposing to cut or spend between $250,000 and $500,000 to get approval from the board's director; budget changes exceeding $500,000 must be approved by the full board.

"Part of what we promote as our jewel out here is the research center in Parma," said Ron Bitner of Bitner Vineyards in Caldwell, Idaho, and a member of the Caldwell/Canyon County Economic Development Council (EDC). "It's really critical to the growth of the Idaho industry."

One of the key contributions Parma has made, he said, is in helping growers identify the right varietals for the high-desert conditions in Canyon County, Idaho's main grapegrowing area.

"We've got 40 different varieties out there that we started planting in 1995 to look at what we could grow," Bitner told Wines & Vines. "We found that we can grow almost everything well except Zinfandel--and we're not hot enough for that and we're too hot for Pinot. But we can grow everything in between."

Bitner formerly worked as an entomologist at the center, and he believes new funding models are critical to ensure that Parma continues to serve the industry as cutbacks bite into research and extension activities across the country. "A lot of states are faced with that, but we just had to think outside the box," he said. "It's not going to be done the same from now on." He added that the EDC is looking into ways it might support the center.

The financial crush from limited research budgets has been chronic in many parts of North America for years, a situation that has prompted some centers to investigate alternative funding models that would allow them to tap private-sector cash.

Ontario's example

The former government-run station in Vineland, Ontario, has made significant contributions to the Ontario winegrape industry, but two years ago chronic funding shortfalls nearly led to its closure. Instead, it was re-launched as the Vineland Research and Innovation Centre, with a mandate to become self-sufficient.

The center has received one-time funding totaling more than CAD$40 million to date (US$35.9 million), but most of those funds are designed to restore capacity that was allowed to dwindle in recent years.

"These dollars will go to build up some of our initial capacity and the expectation is it's also setting the groundwork with the government to tease dollars out of industry," said Paul Truscott, business development officer for Vineland. "Industry has to come in and match and drive the process."

In addition to funding from industry associations, the center has a number of tenants on its campus overlooking Lake Ontario, and it plans to develop a portfolio of intellectual property that will provide ongoing revenue for its research activities. By next year, its five-year-plan suggests it could be in the business of licensing grape cultivars in the center's care.

Still, private sector funding in itself isn't sufficient. Truscott recognizes this, as does Oregon State University, where establishment of the Oregon Wine Research Institute is backed by $2 million over five years from winemakers and grapegrowers.

However, significant cuts in state funding of the university, which were discussed this past spring, would have limited plans for the center's establishment