For the Craft Beer Lovers
The Financial Times had an article last week regarding the rise in Hop prices for craft breweries partly due to the heat in the Pacific Northwest. About 90% or more of hops grown in the US is located within 30 miles of Yakima, Washington.
I have spent many years in Yakima and when hop harvest is going on you can certainly smell the aroma for many weeks. This is an expensive crop to get started (takes $7,000 or more per acre to put in the trellis and plants), but with the rapid increase in prices, the return can pay off very quickly.
We have heard that farmers in other states are starting to grow hops for the local craft breweries to take advantage of the “local” selection.
Although this is a small part of Ag production in the US, this is the fastest growing part based on revenues.
Paul Neiffer, CPA
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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