New NY brewing law being pushed

Cuomo Pushes Bill Allowing Small Companies to Brew Beer

"New York State Governor Andrew Cuomo proposed a bill that would make it easier for small companies to brew craft beer and increase demand for New York-made beers and wines.

The law would allow brewers to sell New York wines and wineries to sell New York beers at their retail outlets.

So-called farm breweries would be allowed to open restaurants, conference centers, inns or hotels next to the brewery.

The proposed law would require that New York-made beers would have to contain 75 percent New York grown ingredients. After five years, a New York beer would need to have 90 percent of its ingredients grown in New York State.

thughes, you beat me to it. I was going to post about that this morning.
"One measure seeks to boost production of craft beers with a "made in New York" designation and to spur the state's farmers to plant more hops and barley needed to make beer. A similar initiative in 1976 expanded grape growing and wineries on the East End and elsewhere." Let's hope it helps brewers as much as it helped wine makers (winers?).

I'm doing my part by growing "NY" hops.

It's a no brainer.

petey_c said:

Let's hope it helps brewers as much as it helped wine makers (winers?).

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IIRC, the term is "vintners."

I like winers... hehehe... unlike moonshine, has anyone got sicker than a case of the trots from poorly brewed beer? Seems like anyone opposing this bill would have to have a mentality reminiscent of the temperance movement...

can you really source out enough barley from NY to establish something like this within 5 years? I mean grapes I get; NY wineries are already on the map. I just don't see the barley production pipeline being there as most barley is used for feed. That means barley producers would have to step up their game to get the barley usable in a food (beer) and get it into a sales pipeline. When producing feed grains they don't have to worry about cleanliness, packaging, etc.

This is awesome though -- and definitely a big boon for craft-brew shops. I just hope that the local grain farmers see it as a way to supplement income.

If what you are saying becomes a huge issue, could this mean we could see some unique NY brews using alternative grains?

ScottSingleton said:

can you really source out enough barley from NY to establish something like this within 5 years? I mean grapes I get; NY wineries are already on the map. I just don't see the barley production pipeline being there as most barley is used for feed. That means barley producers would have to step up their game to get the barley usable in a food (beer) and get it into a sales pipeline. When producing feed grains they don't have to worry about cleanliness, packaging, etc.

This is awesome though -- and definitely a big boon for craft-brew shops. I just hope that the local grain farmers see it as a way to supplement income.

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ScottSingleton said:

can you really source out enough barley from NY to establish something like this within 5 years? I mean grapes I get; NY wineries are already on the map. I just don't see the barley production pipeline being there as most barley is used for feed. That means barley producers would have to step up their game to get the barley usable in a food (beer) and get it into a sales pipeline. When producing feed grains they don't have to worry about cleanliness, packaging, etc.

This is awesome though -- and definitely a big boon for craft-brew shops. I just hope that the local grain farmers see it as a way to supplement income.

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This might force the issue for brewers in the state to utilize barley grown here in NY (I don't even know the numbers). I'm sure that if the grain production isn't then up to par, they'll petition the state for an extension.

VTDuffman, I knew that "winers" wasn't the correct term. I always get stumped when trying to remember vinters though. There are two guys here (at my job) that brew (communications technicians) and two that make wine (radar/ARTS techs). There's an eight foot stretch of walkway in between our areas. I was thinking of putting up a couple of banners. For their side, "spritzer drinking winemakers" and for our side "beer brewing men"...

75% huh?

OK:
25% NY hops
25% NY water
25% NY yeast

heh heh!

Since beer is almost entirely water, seems like you could hit those numbers just by using local water. I guess they mean the grains and hops. I wonder if there is much farming capability to grow barley in a way that would be more competitive than growing corn or whatever they grow in rural parts of NY.

That part of the law probably won't stand up to constitutional scrutiny though.

New Jersey needs something like that. Our brewing companies are terrible.

As an upstate native who admittedly knows NOTHING of farming, I WILL say that there is a LOT more arable land in NY state than out-of-staters might think. Whether that translates to barley, I dont know.

Now, if we can make a delicious brewsky out of sweet corn I'd say we had it made...

I see this as somehow being used in a spoof of the Pace Picante commercials. "New York City!"

also how is the proposed ingredients factored regarding percentage? if it's weight or volume that might be tough. but if each ingredient is weighted equally without factor to physical weight you could be on to something... grain could come from anywhere because it is only valued as 1 unit, just like gypsum or water, or hops, or any other additive

Or apples... NYS is lousy with apples. hmm... apple beer...

I know Tundra Brewery is almost entirely NY grown. I think the only thing out of state is the malting of the grains.

fletchsj said:

also how is the proposed ingredients factored regarding percentage? if it's weight or volume that might be tough. but if each ingredient is weighted equally without factor to physical weight you could be on to something... grain could come from anywhere because it is only valued as 1 unit, just like gypsum or water, or hops, or any other additive

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http://www.watershedpost.com/2012/cuomo-bill-would-create-farm-breweries-license

In order to receive a Farm Brewery license, the beer must be made primarily from locally grown farm products. Until the end of 2017, at least 20% of the hops and 40% of all other ingredients must be grown or produced in New York State. From January 1, 2018 to December 31, 2022, no less than 60% of the hops and 75% of all other ingredients must be grown or produced in New York State. After January 1, 2023, no less than 90% of the hops and 90% of all other ingredients must be grown or produced in New York State. The beer manufactured under these guidelines would be designated as "New York State labeled beer". The legislation is modeled after the 1976 "Farm Winery Act," which spurred the growth of wine production in this state, including the creation of 237 farm wineries and tripling the number of wineries.

Something to keep in mind, these requirements only apply to small breweries seeking the special "Farm Breweries" license that is only available to operations producing less than 15,000 barrels of beer a year. I'm assuming there are less stringent licensing requirements and likely a lower tax burden associated with such a license.

The point is less about beer and more about promoting NY agriculture using beer which is still cool because, you know...beer

I liked the part when beer.

CreamyGoodness said:

Or apples... NYS is lousy with apples. hmm... apple beer...

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Considering NYS produces the most apples after Washington state, I'd say we are pretty good with apples. We also produce a lot of heirloom varieties, many of which we should be using for hard cider. Talk about an untapped buisness opportunity.

The only problem with the farm brewing thing is that NY need more maltsters if this is to go anywhere. I think there is a very small malt operation somewhere near hudson, since some guy sells his beer at farmers markets. The NY Times did an article on him a while back.

Malting would definitely be the issue, but I'm sure someone would jump into the game. As far as grains, NY was one of the bread basket states when I was in grammar school, I definitely remember being taught that. I don't know if we still are, but as was mentioned above, because of the City, many people would be surprised to see just how much farming goes on in NY state.

I'm going to keep my eye on this one closely. As much as I say I don't want to brew "professionally", my cousin really wants to open a BBQ/Brewpub upstate, and if it becomes easier to do, I might start talking to him.

bierhaus15 said:

The only problem with the farm brewing thing is that NY need more maltsters if this is to go anywhere. I think there is a very small malt operation somewhere near hudson, since some guy sells his beer at farmers markets. The NY Times did an article on him a while back.

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Interestingly, if you look at the way the press release was worded, the ingredients need to either be "grown or produced" in NY. Which really, when you think about it means that you could use barley grown in NY but malted elsewhere, or conversely use barely grown elsewhere but malted in NY.

Again, if the point is to encourage agriculture and/or industry to move or be created in NY, it kind of does both.

When I said lousy with apples I meant it in the "we have more apples than we know what to do with" sense.

bierhaus15 said:

Considering NYS produces the most apples after Washington state, I'd say we are pretty good with apples. We also produce a lot of heirloom varieties, many of which we should be using for hard cider. Talk about an untapped buisness opportunity.

The only problem with the farm brewing thing is that NY need more maltsters if this is to go anywhere. I think there is a very small malt operation somewhere near hudson, since some guy sells his beer at farmers markets. The NY Times did an article on him a while back.

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My question about the whole thing is this... "Can I gat a tax break to build a malting house to malt the barley we have to grow in NYS?"

+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.

-S

It's been out of business for a while, but the building is still there.

Anyone else think of futurama when they saw this thread title because it says New New York?

I live in a really rural part of the state. I can assure you there is a lot of farmland no longer being used. It is mostly dairy farms and it is hard to turn a profit unless they are a huge operation. Maybe something like this would help utilize some of that abandoned farm land.

Upping barley production is not a problem in my view... the "infrastucture" is already here in NY for growing any grain. Hops is another matter, but close behind the barley. My question is who wants to go in with me on a malting facility?

Now HERE's a dumb question. Just how hard is it to grow hops in Orange County's famously rocky soil?

I believe a lot of the land in OC was sprayed with a chemical to fight the blight which makes hop growin impossible forever. Beer Sessions Radio had a guy on recently who mentioned something about that.

Another thing I was just thinking is if we could convince New Yorkers that good quality apfelwein is something that they want to drink we could get it on the shelves within the law's guidelines easily. With so few ingredients and ingredient #1 being New York apples (perhaps New York water if forced to make a concentrate), it seems like a no brainer. Long before us New Yorkers were making whiskey we were making apple jack, and lots of it... maybe this is could be a return to our roots with a twist.

Agreed, but for cider. I hate apfelwein.

...or cider... I like cider too...

I wish I knew this law was coming a few years ago so I could have started a hop farm. We have several hop farms around us and they sell the whole crop before it's harvested every year. There is no way they could plant enough hops in the near future to keep up with local demand. We have 3 new microbreweries opening soon and another distillery. I was at a local brewery last week and he thinks the biggest problem will be getting the barley malted, he seemed to think it had to be done in NY? He did say that he was going to save lots of money when he can change his license.

CreamyGoodness said:

Another thing I was just thinking is if we could convince New Yorkers that good quality apfelwein is something that they want to drink we could get it on the shelves within the law's guidelines easily. With so few ingredients and ingredient #1 being New York apples (perhaps New York water if forced to make a concentrate), it seems like a no brainer. Long before us New Yorkers were making whiskey we were making apple jack, and lots of it... maybe this is could be a return to our roots with a twist.

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The first hooch I ever made was apple jack from FFA cider that turned on us before wee could sell it all. I managed to take possesion of it... by the New Year it was very nice stuff. I was out in the wood shed ast the back of the house and it froze. Welll.... My buddy and I got it drizzling into bottles during the Christmas break ... not a drop was wasted... but we were.

It's looking good:

Albany, NY (June 14, 2012)

Governor Andrew M. Cuomo, Majority Leader Dean Skelos, and Assembly Speaker Sheldon Silver today announced an agreement on legislation that will strengthen and help grow New York State's vibrant craft beer industry.



The legislation is designed to support New York's breweries and wineries, increase demand for locally grown farm products, and expand industry-related economic development and tourism. The legislation will protect an important tax benefit for small breweries that produce beer in New York, exempt breweries that produce small batches of beer (regardless of location) from paying an annual State Liquor Authority fee, and create a Farm Brewery license that will allow craft brewers to expand their operations through opening restaurants or selling new products.



"New York's craft breweries are not just creating great beer that is consumed across the world, they are creating jobs, supporting farmers and our hops growers, and bringing in tourism dollars all across the state," Governor Cuomo said. "This is a big victory for our craft brewers and will help New York's already vibrant beer industry continue to grow. This shows that New York State is truly open to business once again, and I thank Majority Leader Skelos, Speaker Silver, and the legislative sponsors for their hard work in reaching this agreement."

http://www.governor.ny.gov/press/06142012-craft-breweries

Under the agreement, any brewery that produces 60 million or less gallons of beer in New York would be eligible for a refundable tax credit applied against New York State personal income and business taxes. The credit amounts would be 14 cents per gallon for the first 500,000 gallons produced in New York, and 4.5 cents per gallon for the next 15 million gallons produced in the State.

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I'm all for helping the little guys get established, but that's 2m barrels/year. Giving huge corporate breweries (ahem, Bud) significant tax breaks, just gives them more an advantage then they already have.

The label payment exemption is pretty nice for the smaller breweries though.

hmmm what about kilning? is this permitted to occur outside of NY state? seems stringent but a good step forward nonetheless.

So it looks like this will go into effect sometime in July 2013? Sounds like Cuomo signed it and reading the text of the law it says it goes into effect 180 days after it's signed. I'm not a lawyer or anything but that's how I read it.

Oh hell, now spammers are going to spam in older threads?