USA: Pacific Northwest farmers may plant more barley in the years ahead

More barley production may move into the Pacific Northwest in the years ahead, Capital Press reported on November, 21.

Representatives of brewers and malting companies spoke with barley producers about the potential of the crop Nov. 17 during the Tri-State Grain Growers Convention in Spokane.

"There may not be a lot of acres in Northern Idaho and (Eastern) Washington today, but I believe down the road you will have folks wanting to buy barley here," MillerCoors Supply Manager Wade Malchow said.

Malchow said malting barley is a contracted specialty crop. He expects buyers will move west to find barley, giving growers more choices.

There will be new contracting tools, such as forward pricing and hedging, Malchow said. His company offers flat prices with only upside potential.

"You're going to continue to see folks offer very new, innovative and creative ways to eliminate what I call seller's remorse, where 'Shoot, I wish I hadn't sold so early,'" he said.

Malchow also pointed to barley storage capabilities, with brewers and other users getting the crop off the farm and growers paid at a time that is convenient for them.

"That partnership goes both ways, though - with these types of benefits are expectations of taking good care of the barley, maintaining quality, producing the highest quality you can," he said.

Malchow expects pressure on genetics in the industry, with desired traits including higher yields, drought resistance and disease resistance.

Clay Kaasa of Great Western Malt Co. said the barley market is demand-driven. Beer consumption is down with the economy, he said, but as the economy improves and beer demand increases, so will demand for malting barley.

Tim Pella of Busch Agricultural Resources LLC said there are challenges tied to rail transportation rates when contracting in northern Idaho and Eastern Washington.

Pella advised growers to know the cost of production when contracting, the better to know if they're making a profit. Costs to producers are going up, including land rentals, fertilizer, chemicals, fuels, management fees and machinery maintenance.

Latah, Wash., farmer Jeff Tee is interested in malting barley for the benefits it would provide as a rotation crop and for the premium price.

At the moment, the companies don't have much presence in northern Idaho and eastern Washington due to freight disadvantages, but Tee isn't closing the door on barley.

It might make more sense to focus on a feed barley right now, he noted, and not deal with the transportation costs or specifications that could derail a malt barley contract.

"I think the more choices we have as growers to have different cash crops on the ground, the better off we are," he said. "I hope it keeps moving further west and we have it here as a more viable option locally."

23 November, 2011