+1 on the malting tax break.
The issue is also infrastructure. Valley Malt in MA is running a reasonably successful operation. But they are constantly running out of stock and can't keep a steady flow of product... At least to brew stores here in NYC.
Plus, they have also had to work out the land as they went. There are few barley fields in NY as they have all moved to the Midwest. There are some wheat fields, but malting barley is in short supply.
I think adopting the whole chain is too risky as a new, organic operation (anyone follow NY weather this year?). But, if there are farms willing to grow the malt, I know how to malt!
If anyone gets that far, I'll be your maltster! Then, it's about delivering a consistent product with the regularity and growth to work with fledgling, expanding, and high volume breweries in the state.
The demand is there, but there are quite a few steps to get there before you start competing with the big boys.