CBBaron said:I don't believe the government pays for farmers to grow corn whether it succeeds or not. More farmers are growing corn because the increased demand for corn to make ethanol has caused prices for corn to increase to the point it is very profitable to grow corn. The government subsidies are used to make ethanol more affordable than gasoline which drives the demand for ethanol.
Minnesota may not be the best place for growing corn but I believe it can be successful and profitable at the current prices.
Oregon and Washington are less likely to grow corn because corn requires alot of water which would require irrigation in those regions and the profitability of corn is not sufficient to recoup the cost of the irrigation. In the midwest summers are usually sufficiently wet to produce corn harvests without irrigation.
Short term prices for barley could become fairly expensive but if the demand remains strong then the profits are sufficient to ensure plenty of farmers will grow barley. Hops will see a greater fluctuation in price as it takes several years for a hop field to become productive so it takes longer for acreage increases to affect the supply.
As for my brewing, I will be using hops that have not skyrocketed in price. I placed a significant order from the HBS for a variety of hops that were priced around $1/oz. I avoided the varieties that were going for $2, $3 or higher per oz. I like experimenting so this is a good time to try new varieties.
Craig
Point well taken