Selling Homegrown Hops

[COLObrewer]

. . . . . . if your hobby business shows a loss. Just keep good records, and plan on taxes being more complicated. The top-end version of Turbotax has worked fine for us with a rental property and a hobby business.

Hobby business? . . . . What's a hobby business, never heard or seen that?

 

[SOB]

Total income. The sale of hops would need to be added to his regular income tax as additional income.

I'm an idiot...

 

[weirdboy]

Hobby business? . . . . What's a hobby business, never heard or seen that?

Something like this?
Or this?

 

[Airborneguy]

WOW... I never expected that so many posters on this forum were so perfect when it comes to reporting every dollar that passes from hand to fist to wallet every year!

My friend traded a bag of rhizomes to our LHBS this year and they sold them all. I don't think anyone went to jail for it or will in the future, but after reading this forum, I might just call him up and warn him that the gestapo might be banging on his door any day now.

 

[JeffHops]

WOW... I never expected that so many posters on this forum were so perfect when it comes to reporting every dollar that passes from hand to fist to wallet every year!

My friend traded a bag of rhizomes to our LHBS this year and they sold them all. I don't think anyone went to jail for it or will in the future, but after reading this forum, I might just call him up and warn him that the gestapo might be banging on his door any day now.

Not sure if this has been brought up on this thread yet. (Seems everything else has) But I think the main problem would be any liablity issues that could get back to the LHBS from customers claiming they got sick or ? from something that was purchased from him. Wrong/illegal chemicals applied, claiming they are Organic without being certified, making sure they are true to the variety claimed, ect. It would be a risk that I wouldn't want to take if I were the LHBS.

 

[COLObrewer]

Something like this?
Or this?

Doh, I thought you were talking about some tax code

 

[Retrofit]

Not sure if this has been brought up on this thread yet. (Seems everything else has) But I think the main problem would be any liablity issues that could get back to the LHBS from customers claiming they got sick or ? from something that was purchased from him. Wrong/illegal chemicals applied, claiming they are Organic without being certified, making sure they are true to the variety claimed, ect. It would be a risk that I wouldn't want to take if I were the LHBS.

Taxes aside, this is actually what the Local Homebrew Store was asking me about. He owns a business, I've owned a business in a past. We both know how to buy and sell stuff and record it for tax purposes.

He was wondering if there is some 'governing power' that prevented him from selling "Locally Grown Hops" in the store. So far the forum suggests that there isn't.

If I grow them, dry them, bag them, vacuum seal them, and label them. It sounds like he can try to sell them as "Locally grown hops".

I'm not putting up the product or the money to test them. I don't care what the alpha is. The store owner can if he wants to. The best I'll do is tell them what each hop is, what the average alpha MIGHT be, and then they are his to do with what he wants. Again, he's the one thats interested. I became interested when it occured to me my hops could pay for my grain, making my beer essentially free.

I appreciate all the comments. Had no idea this thread would see this sort of activity. I'm going to talk more with the LHBS and get back to you all with what we discuss.

 

[JMass]

Hi Retrofit,

If my LHBS had offered to buy some of my hops I would be pleased. I think that is the response you might have expected here but didn't get so much.

I don't know if this analogy holds, but my favorite restaurant is in a seaside town in Massachusetts where I live. The restaurant claims they know the fishermen that they get their fish from. For me, that is a good thing. I think that people are trying to help you by seeing possible obstacles, but they are losing sight of the advantages of buying locally.

As far as people getting sick from hops, I've never heard of that. I suppose if I served someone some of my homebrew and they got sick they could sue me?

As long as you didn't pick your hops way too early or late, they will be within the range that they are supposed to be for the particular hop.

As far as the governing power, I don't know. You may want to check if you have a local farmer's market and see how that works. That would be local growers selling things. I would think that this type of activity would be encouraged.

I say you have a balanced view on this issue.

 

[Retrofit]

I appreciate all the comments. Thanks again.

 

[JeffHops]

Hi Retrofit,

If my LHBS had offered to buy some of my hops I would be pleased. I think that is the response you might have expected here but didn't get so much.

I don't know if this analogy holds, but my favorite restaurant is in a seaside town in Massachusetts where I live. The restaurant claims they know the fishermen that they get their fish from. For me, that is a good thing. I think that people are trying to help you by seeing possible obstacles, but they are losing sight of the advantages of buying locally.

As far as people getting sick from hops, I've never heard of that. I suppose if I served someone some of my homebrew and they got sick they could sue me?

As long as you didn't pick your hops way too early or late, they will be within the range that they are supposed to be for the particular hop.

As far as the governing power, I don't know. You may want to check if you have a local farmer's market and see how that works. That would be local growers selling things. I would think that this type of activity would be encouraged.

I say you have a balanced view on this issue.

I'm sure they know the people they buy thier fish from(So does every large brewer that buys Hops)...but they are still "commercial" fishermen.
As to the Farmers Market aspect. That's fine. Grower to user. After that, We are talking a third party transaction. You need to CYA.(Cover your ass!)

 

[EricT]

I would be thrilled if my LHBS offered to make some sort of deal with me in exchange for my hops. Good for you. I got some hops from one of the LHBS here and remembered it did not list the AA's on the package. My other store always has it listed, I wonder if they might have been home grown and then peletized. Maybe your LHBS will get them tested, at least you'll know what percentage they are

 

[JeffHops]

I would be thrilled if my LHBS offered to make some sort of deal with me in exchange for my hops. Good for you. I got some hops from one of the LHBS here and remembered it did not list the AA's on the package. My other store always has it listed, I wonder if they might have been home grown and then peletized. Maybe your LHBS will get them tested, at least you'll know what percentage they are

Why would any LHBS sell something like Hops and then not be able to tell the customer what the BV is?

 

[EricT]

Not sure, I didnt even realize it when I bought it. It was my second brew ever and I didnt notice until I took the package out of the fridge with the leftovers to see what all I had on hand. as a matter of fact, the hops name (progress) was written not typed like normal.

 

[Homercidal]

Why would any LHBS sell something like Hops and then not be able to tell the customer what the BV is?

They may have bought the hops in bulk, maybe a season end sale or something. Then they repackage in their own bags to sell.

 

[JeffHops]

They may have bought the hops in bulk, maybe a season end sale or something. Then they repackage in their own bags to sell.

Again I ask. Why would a LHBS buy "bulk" Hops without knowing what the BV was and then not put the BV on thier own repackaged bags?
If I bought Hops from a store, I would want to know what I was getting. Take Nuggets, they will range from 8% to 16% alpha from one grower to the other in the same season. And that is in the commercial growing regions of the US. Lord knows what local growers from other parts of the country will range from year to year?!

 

[jgln]

Total income. The sale of hops would need to be added to his regular income tax as additional income.

I'd be more worried about the LHBS than someone's personal income tax. They tend to look at receipts for a business a lot closer than the odd sale from a private citizen. But if the business adds the sale into their books, then the IRS can track the sale back to the grower and wonder why it didn't show up on their return.

I think the easiest thing it so simply claim it as additional income. We're probably not talking about too much money here.

Beat me to it! Yeah, when they check his sales on the hops they will wonder where the product came from. I have a cleaning lady for my rental and I deduct what I pay her for cleaning. If they tracked my income tax filing it would lead to her and if she did not claim the income she would be in trouble.

 

[ak40kush]

I've never had dreams/ambitions of going pro. My goal as a home hop grower was to produce more hops than I can use, therefore my hops are essentially free and bountiful.

I was chatting with the owner of the local homebrew store and he asked me what my plans are for my extra hops. I said, "I'll store what I can, eventually I'll probably start not harvesting, or maybe just give them away."

Then he asked me if I know what the laws are concerning selling hops to him for his store. I said, "I have no idea!"

I personally think as a 1st year/2nd year grower that my yield isn't going to be so large that I'll have the luxury to even consider this, but I could see my 3rd year and forward a senario where I'll have hops to spare.

Any comments, thoughts, advice, whatever.

Again, this isn't something I planned or even plan on doing. I was approached, but having been asked the question now I'm curious what the logistics might be.

All comments are appreciated.

see its funny you mention this. I had some testing to do today so when i finished i had time to kill so i went to the homebrew store in the town i was in today (lindsay) and picked up some stuff that i cant get ahold of at home. I asked if they could order hops or grain for me. grain they didn't say a thing but for hops they gave me a phone number of some guy whos growing them,brews and was considering selling them to the store or to individuals.
So now when I log on anc cruise the forum I find this! hahaha

 

[uechikid]

I've never had dreams/ambitions of going pro. My goal as a home hop grower was to produce more hops than I can use, therefore my hops are essentially free and bountiful.

I was chatting with the owner of the local homebrew store and he asked me what my plans are for my extra hops. I said, "I'll store what I can, eventually I'll probably start not harvesting, or maybe just give them away."

Then he asked me if I know what the laws are concerning selling hops to him for his store. I said, "I have no idea!"

I personally think as a 1st year/2nd year grower that my yield isn't going to be so large that I'll have the luxury to even consider this, but I could see my 3rd year and forward a senario where I'll have hops to spare.

Any comments, thoughts, advice, whatever.

Again, this isn't something I planned or even plan on doing. I was approached, but having been asked the question now I'm curious what the logistics might be.

All comments are appreciated.

How many plants do you have? There was a post here last year that a guy had a couple of acres of first and second year plants that he set up a "You Pick" business. I know there are some huge liability issues with that but it's something to think about.

 

[svengoat]

I have a guy at the local co-op that wants to buy my excess hops..I'm gonna package them as tea or herbs without the AA%.. He says folks come in all the time asking for hops... They are good for other things besides brewing.. (can't imagine what tho)

 

[uechikid]

I have a guy at the local co-op that wants to buy my excess hops..I'm gonna package them as tea or herbs without the AA%.. He says folks come in all the time asking for hops... They are good for other things besides brewing.. (can't imagine what tho)

Great idea. I have read that they are used in a medicinal tea.

 

[artyboy]

Ding! Sell your hops. Deduct your purchases for hops-growing -- all of them. Did you buy a shovel? Deduction! Wood and twine? Deduction! Build a drying frame? Deduction! Fertilizer? Deduction! Portion of the water bill that goes to hops? Deduction!

The best part is, it's entirely above-board, legal, and can even end up LOWERING your tax bill, if your hobby business shows a loss. Just keep good records, and plan on taxes being more complicated. The top-end version of Turbotax has worked fine for us with a rental property and a hobby business.

This. Just last year I would have had to owe the IRS if I hadn't sold a bunch of crap on Ebay. Luckily, the new computer, printer, some driving and a few other office supplies were deductible. Keep track and the IRS can't do anything about it. You can only lose money on a business 2 out of 5 years, though. If you're only profiting a few bucks then it's still a profit.

 

[cuinrearview]

Can't recall finding a thread that got this retarded in the growing forum ever. We usually seem to play nice here. RDWHAHB!

Retro, my advice to you when you get a surplus is to offer your hops to your club and local brewers first. I started a first timer out this year with the promise that I would provide the guidance and the homegrown hops. After that try craigslist. If you have any left, which I doubt you will, go to the LHBS. I give my extras away to fellow brewers to encourage them to grow their own. When they ask what variety to grow I tell them what I grow and suggest OTHER varieties that I've seen others have success with. In the end it's a win-win.

 

[Retrofit]

Originally I was going to give away my hops, the Local Store pitched this alternative idea to me. If the idea hadn't been suggested, it wouldn't have occured to me. Anyway, I still appreciate all the comments. I still have low ambitions, but whatever extra I have. We'll see...

 

[cheezydemon3]

Iwill NEVER buy more hops than I can use!!

lol, by that I mean: My latest IIPA has not much bitterness now.

I have decided not to fight the lupuline shift, but rather to up the ante.