agusus
Well-Known Member
Does anyone feel a little bad (maybe a little) for the micro farmers who invested in setting up an acre or two with trellises based on hop prices of recent history? At current prices those producers will never recoup investment.
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Not really (I don't feel bad). That's the nature of the beast if you're going to get into the agriculture business. Crop prices can swing wildly from year to year.
For a moment I felt bad for Puterbaugh farms for having to sell their hops at such cheap prices but then I realized there's no reason to feel bad because they got a larger harvest this year and the increased volume probably makes up for some of the price drop.
Anyway, are there really that many micro hop farmers? That's the first I've heard of such a thing.
Also, this could be good for the beer industry. High hop prices in past years have pushed beer prices higher and/or made margins slimmer, especially at microbreweries that make high IBU beers.
The only ones I do feel bad for are my LHBS's. There are three within 20 miles of me and all are selling hops at $4/oz rates. They're going to need to either adapt to the new supply/demand point or they're going to lose business. I'm willing to pay a small premium for convenience and to support them, but $64 per pound when I could get it at $10 per pound is simply crazy.