Schumer calls on USDA to support state farmers, brewers

From a farmstead brewery in Madison County, U.S. Sen. Charles Schumer called on the U. S. Department of Agriculture to establish a crop insurance program to protect New York farmers trying to meet the demand for malt barley crops from the state”™s rapidly growing craft beer industry.

“In order for local craft brewers to expand right here in Central New York and beyond, we need a strong local malt barley industry, since the crop is so important to the production of beer and spirits,” the Brooklyn Democrat said. “But the lack of insurance for malt barley is preventing farmers from planting this crucial crop. Without protections, the risk is just too high, and that is preventing our craft breweries from really taking off.”

The senator said in order to meet the increasing local demand farmers will need to increase malt barley production by 15 times and will need crop insurance to do so.

According to the New York State Brewers Association, the number of New York State breweries grew from 95 in 2012 to 207 in 2014.

State-grown malt barley will be especially important as brewers will be required to locally source greater percentages of their ingredients in the coming years, Schumer said.

Currently, 20 percent of all hops and 20 percent of all other ingredients, including malt barley, used by farm brewers licensed by the New York Farm Brewery are required to be grown or produced in-state. By 2018, that proportion is expected to jump to 60 percent, and by 2024 state law will require 90 percent of all farm craft beer ingredients be grown or produced locally within the state.

For farm distillers, 75 percent of all ingredients must be produced within New York State, according to Schumer”™s office.

Data from the Cornell Cooperative Extension shows there are 13 malt houses either in operation or planned to open in New York and 39 farms engaged in growing malt barley with an estimated 2,000 acres farmed as of 2014.  However, it is estimated malt barley production will have to grow fifteen-fold to 30,000 acres in the near term to meet the needs of New York State brewers and distillers.

To entice farmers to grow malt barley, according to Schumer, they need assurance they will not be at a crippling financial loss should the crop fail.

Currently, there is some insurance available to barley farmers, Schumer said, but it is only available at the level of animal feed quality. However, the barley used to feed animals requires far fewer  controlled conditions and it is two to three times cheaper to grow than the malt barley used to brew beer and make alcohol. That being the case, many farmers and farmstead brewers must choose between utilizing inadequate insurance that will not cover the full cost of their malt barley crop, or simply forgoing coverage altogether.

Schumer believes if farmers are included in the national malt barley crop insurance program, which has been available in other states since the 2011 crop season, they will take the risk on producing the crop. He is urging the USDA to fast track the development of a malt barley insurance program for New York because farmers and malt houses will need time to ramp up production and secure financing to purchase the additional equipment needed to successfully produce at higher levels.

This all must be done now rather than later, Schumer said, if upstate New York breweries and distilleries are to have the malt barley supply to fill their demand and the production needed to meet the 90 percent local ingredient requirement in 10 years.