USA: Decline in hop stock an encouraging sign of industry stabilization, experts say

A significant drop in hop stocks is another encouraging sign of industry stabilization during a decline in beer drinking and other trends, Capital Press reported on September 23.

The inventory of hops held by growers, dealers and brewers was 116 million pounds at the start of September, down 15% from the previous year, according to a new USDA report.

The Pacific Northwest grows nearly all of the country’s hops and farmers have tried to shed inventory with acreage reductions in recent seasons.

“It certainly hasn’t been comfortable to cut acreage to that extent,” said Michelle Palacios, Oregon Hop Commission administrator.

Hop grower Diane Gooding of Gooding Farms, based in Parma, Idaho, said while the reduction in stocks isn’t bad, big brewers are holding large amounts of inventory.

“I know some brewers are more in balance, but if I’m guessing, I’d guess we still have a ways to go,” added Gooding, the Hop Research Council’s president.

Maggie Elliot, science and communications director for the Washington Hop Commission and Hop Growers of America, hopes to see additional contractions in the next hop stocks report in March.

“Our harvest this year also won’t be as large,” she said.

This year’s hop crop looks to be high quality, with excellent brewing potential, but with average yields it won’t contribute to oversupply, Palacios said.

In August, the USDA estimated the harvest at 82.1 million pounds, down 5.7% from 2024.

According to a June USDA report, U.S. hop acreage this season was forecast at 44,793 acres, down 6% from 2024.

In Washington, 31,701 acres were strung for harvest, down 5% from the previous year.

Oregon had 5,241 acres of hops, down 4%, while Idaho had 5,109, down 12%.

Unfortunately, farmers removing hop acreage don’t have a bright spot to pivot to with poor crop prices, experts said.

Some Oregon farmers planted wheat or strawberries between poles if they wanted to keep trellises up in hopes of securing more hops contracts.

“It’s not a profitable endeavor, but it can prolong the decision to have to pull those hops poles,” Palacios said.

“If they are completely pulling those hop poles out, that’s a long-term commitment and it isn’t going to be going back to hops anytime soon,” she added.

Oregon hop farmers also are delving into row crops, mint or wine grapes to diversify, Palacios said.

Many hop farmers in Oregon also grow hazelnuts and grass seed because of the crop timing and some are leaning more into hazelnuts.

Elliot said Treasure Valley, Idaho hops farmers have switched acreage to seed crops, but growers in Washington’s Yakima Valley have shifted to hemp, corn or left the ground fallow.

“Most of the acreage that has come out has not been replaced by another crop. … By and large it’s just empty fields,” Elliot said.

“If you look at some of the options growers have in the Yakima Valley — apples, grapes, blueberries — all of them are in oversupply. That does make this particularly devastating,” she added.