Starting a hop growing business

[redbank]

I own a farm in north/west central PA and am planning to start an operation this year. I think it could be a decent way to make a go at farming aside from "normal farming" that we currently do. Everything costs so much these days and a small outfit like mine is hard to keep up. The big guys are the only ones succeeding around here.
I have standing larch poles just waiting to be cut for this hop yard, I already grow lots of stuff, we have free natural gas here so it seems I could use my existing grain dryers for drying the hops. Already have tractors and tillage equipment, fertilizer spreaders, and all the manure I would ever need. I'm just trying to figure out all the negative things to come. Could anyone with a commercial type operation give me some pointers as far as the pitfalls. I guess I'm looking for some negative feed back to doing this. I really feel confident about it right now.

 

[timdillon36]

If that's what you really want to do then I say go for it but know that it's too late to plant hops this year but you have all summer to get stuff set up, I'm guessing that like most farmers you have some time to spare between planting and harvesting season. But then you will have first year plants in the ground in 17 and might get a small crop then in 18 you could see a modest crop and hopefully have a great harvest in 19. Remember it either takes special equipment or lots of man power to harvest crops. (Think harvesting grain with out a combine)

With that said you also mentioned you have a grain dryer, what about trying to grow malt quality grain and mating and drying yourself. If the grain isn't good enough it's still animal feed but if it is it looks like the only investment would be to set up a floor malt house.

Check out sugar creek malt company. They just started a year or 2 ago and I have made some great beer with their grain.

 

[B-Hoppy]

Hops are a pretty unique crop to learn to farm and when it comes to harvesting and processing, most of the equipment is manufactured almost exclusively for hops. It's always good to have lots of $$ to spend when you're starting out with a crop like this: http://msue.anr.msu.edu/uploads/234/71501/MI_Hops_cost_of_production_Bulletin-E3236.pdf

 

[waterskj]

Here is some good info on hop growing in Ontario I'm sure a lot is relevant
http://www.omafra.gov.on.ca/english/crops/hort/hops.html

 

[brewcat]

Do you have an idea what varieties people want to buy? Do you have a hop yard blueprint? Certainly figure infrastructure before plants.

Talk to some local breweries to see if they would be potential customers. That will be key to be the local supplier for the locals.

 

[DarkCoder]

If that's what you really want to do then I say go for it but know that it's too late to plant hops this year but you have all summer to get stuff set up, I'm guessing that like most farmers you have some time to spare between planting and harvesting season. But then you will have first year plants in the ground in 17 and might get a small crop then in 18 you could see a modest crop and hopefully have a great harvest in 19.

It may be too late to find rhizomes for planting, but not too late to plant hops. Save you a year of waiting and plant small hops plants / rooted cuttings this year, as soon as you can. You will probably not harvest anything this year, but the plants will build their roots system and give you a small crop next year.

 

[GVH_Dan]

I guess I'm looking for some negative feed back to doing this. I really feel confident about it right now.

You want negative? Hit my partners blog: Captain Bringdown’s Top 5 Insane Reasons to NOT Start a Hop Farm

In all seriousness, if you search my posts going back several years you will find a lot of advice dispensed based on whatever issues we faced at the time.

Right now, the biggest reasons we are seeing people fail these days:

1. They order plants from us before they get the money and infrastructure in place. Once spring hits, you have to be ready to plant. Plants aren't something you can put on the shelf and leave for later.
2. They take out a bank loan from a normal farming bank that expects a full harvest after year 1 and all loans paid in full by the end of the year. The reality is it takes 3 to 5 years to break even so the farmer can't get a loan for year 2 and 3 operating expenses.
3. They finally get a harvest but can't sell it whole cone. Or the get it pelletized but they have to sell it through a merchant or for spot prices and don't make enough to cover expenses.
4. They have a brewer willing to buy in a couple of years when their plants mature but either a.) the brewer goes out of business or b.) the brewer gets fed up with someone else's hops and won't give them the time of day when they show up.

OK, you wanted negative...so now some positive. It can be done. We are doing it, growing, adding employees, selling hops but it wasn't easy. you have the advantage of many who have made mistakes and can teach you. You are at a disadvantage because the word "local" no longer guarantees a sale. Get yourself some partners. Someone with mechanical skills to help build pickers, dryers, etc. Also get someone with sales experience to sell everything.