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The true state of the hop industry.

Writer's picture: Billy GoatBilly Goat

If you care about the craft beer industry, please read this.


Of course, you have a BA Independent Craft Brewer Seal in your brewery. And of course, part of it is to help get customers in the door, but part of it is also because you BELIEVE in the value of independent businesses. You know that these businesses create community, reflect the culture of a place, and keep money in a network that you are part of. 


There is no better time or industry to put these values into practice than now and into the hop industry.  



This data and observations are taken from the USDA National Hop Report for 2024 Production and Eric Sannerud's Hop Notes 20. (If you are unfamiliar with his monthly hop analysis, I highly recommend checking it out.)


  • Overall US acreage declined 16% in 2024 and 10% in 2023.

    • The cuts were made deliberately and not equitably. 

      • Idaho has dropped 35% of acreage since 2022.

      • Oregon has dropped 24% of acreage since 2022.

      • Washington has dropped only 16% since 2022.


  • 75% of acreage now sits in Yakima Valley - any negative impact of weather, climate, labor or any other disruption in this 50 mile stretch of highway will have large effects on the market. 


  • Proprietary vs Public varieties also have a disparity.

    • Proprietary controlled acres increased to 63%.

    • Public variety acres decreased to 36%.

    • Taking alpha acreages out of the mix as it’s balanced on a global scale, tilts the scale even more.

      • 70% / 30% proprietary-public split of the aroma market. 


  • "Haas and Yakima Chief Hops networks of companies (including HBC,YCR) make up 40% of total US acreage." 

    • Their control of acres is greater than all other proprietary variety acreage.

    • Their control is also greater than all public variety acreage. 

    • Just 3 companies control 47% of the US hop acreage (Haas, YCH, and Steiner). 

    • Brewers and farmers lose as competition decreases. 


  • As with any industry, when a very large company controls the market, the consumer is at the mercy of that company's pricing. 


  • This is happening right now:

    • Cascade and Centennial makeup over one third of the public aroma acres.

    • The largest private breeding companies have started breeding and marketing replacements for Cascade and Centennial. 

    • This is completely self-serving and controlling the market.

    • The new varieties are not a clear replacement for either variety.


  • Most brewers are not aware of the discrepancy of where hops are grown or of proprietary vs public varieties. 

    • Conferences or trade publications rarely discuss this concentration of the hop market.

    • "In a more concentrated hop future, most brewers are going to be losers, paying higher prices for one of their most important ingredients." 


Note:  Proprietary hops were bred and are owned by a company.  They control the growing and selling rights of those varieties. Often royalties are also paid by the farmer. The owning company typically has deep pockets for marketing and sales of the proprietary varieties as well. Public varieties on the other hand, are open to the public to grow, buy, and sell at will. They don’t have an entity cheerleading behind them.   



From a personal and small-farm perspective... 


  • Colorado

    • We started Billy Goat Hop Farm in 2017

    • We’ve seen roughly 200 acres of hops taken out in the state.

    • Many farms only survived because the corporate giant Molson-Coors chose to make a line of beers using all Colorado grown ingredients. As of last year, that program has been terminated. Without a market to take its place, those associated farms are now also closed.

    • There are only 2 sources to buy locally grown hop pellets in the state.


  • Michigan

    • Local farmers estimate that in 8 years, hop acreage has dropped from 1,000 to only 250 acres.

    • Hop Growers of America 2023 Statistical Report shows Michigan dropped 53% from 2019 to 2023.


  • New York

    • The NY Hop Guild reports an explosion of hop farms from 2010 to 2015 thanks to the state’s Farm Brewery legislation

      • Since 2015 there has been a decline in the number of growers and acreage. 

    • Hop Growers of America 2023 Statistical Report shows New York dropped 25% from 2019 to 2023. 


  • Billy Goat Hop Farm gained national recognition becoming the first farm to ever win the prestigious Hop Quality Group’s Cascade Cup outside of Washington or Oregon, and then as the first farm ever to win it back-to-back.  

    • There was a sense of pride then, and still today, for every small hop farmer around the country.

    • Interest in our Cascade, and primarily only Cascade, increased.

    • Cascade was the only variety that we already had a loyal group of brewers fully purchasing.

    • Stress levels remain high as we continue to beat our heads against the wall trying to decide how to pivot to keep our poles up, and asking why?



The state of the current hop industry is truly heart wrenching for many of us, and if changes aren’t made it will be for you too. 


Changes can be made. Your decisions can change this.  

  • Buy direct from farmers.

  • Buy public and independent-farmer-owned varieties

  • Buy from farms other than Washington state. 

  • Know that doing 1 or 2 'local beers' a year isn't enough. 


And most importantly…

  • TELL YOUR CUSTOMERS THAT YOU ARE DOING THIS!

  • Educate them that by supporting your brewery they are also supporting independent hop farms. Their dollars spent go beyond aiding just your small business.

  • Invite your local hop farmer, whom you support, out for a ‘Meet the Farmer’ night at the brewery. Most people have no idea where hops come from.

  • When the end consumer demands it, change is inevitable.


If you are a craft beer drinker, you can help too.

  • Ask your local and favorite breweries where they get their hops.

  • Tell them that sourcing from independent hop farms is important to you as a consumer.

  • Tell them that using public and independent-farmer-owned varieties is important to you.

  • Ask your brewer if you may send them this blog... and then send it.


 

I’d like to end with a quote from Sannerud’s Hop Notes 16.


It is important to remember that “these numbers are more than just data points, they are a story about power, priorities, and market expectations. They represent incredible losses to a number of independent family hop farmers, small independent merchants, and the staff, families and communities of these farms and businesses. And something that should frighten us all, the trends foretell a future hop market that is more consolidated and less competitive than ever before.”



Please pass this around to anyone who cares about or enjoys craft beer.


Sincerely, thank you.




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