Dive Brief:
- Weather woes have played havoc with this year's crop of malt barley.
- Heavy rains in August soaked barley fields across the West, particularly in Idaho and Montana. Rain leads to early germination, which makes the barley unsuitable for use in beer production.
- Major brewers are importing barley to make up for what is expected to be a major shortfall in supply, which makes price increases at retail unlikely.
Dive Insight:
Growing malt barley is a tricky business. Much can go wrong, and much often does. But farmers are protected from the swings in the market by crop insurance - in most places. New York state, where the rise of craft breweries combined with a state law mandating the use of local ingredients, has become a center of malt barley production. But the state's farmers are not yet eligible for the insurance that protects their Western brethren. New York Sen. Chuck Schumer is looking to change that.
