Factors to Ponder Before Launching a Hops Cultivation Venture

Factors to Ponder Before Launching a Hops Cultivation Venture

Starting a hop farming business in Ohio requires thorough planning and consideration of several key factors, including market establishment, labor, facilities, insurance, and financial planning.

Getting Your Groove On: Market Time

To set the stage for success, establish your market first. Know your brewery buyers' requirements, such as hop varieties and volumes, to ensure you're growing the right crops. Visit the Ohio Craft Brewers Association website for a listing of many Ohio craft brewers, or check out the Ohio Division of Liquor Control's website for connections.

Ask your brewery buyers about their brewing processes, as this information will help you determine the costs associated with facility needs. Most brewers in Ohio prefer pelletized hops, but individual brewers may have different preferences.

Labor Love: Get the Team Together

Hop farming is a labor-intensive endeavor, so you'll need access to labor for production, management, harvesting, and processing tasks. Relying on readily available seasonal help will be crucial in your planning process.

Processing and Storage: Setting the Scene

Plan your facilities to meet your buyers' requirements, considering packaging, storage, and specific processing methods. At a minimum, you'll need a cooling facility and dryer and should plan to have freezer storage available.

Walking the Insurance Tightrope

Make sure you're protected by obtaining general farm liability insurance coverage, consult with several insurance companies to find the best options, and don't forget about product liability insurance coverage for your crop.

Money, Money, Money: Funding Your Farm

For tax purposes, up to 10 acres of land used for hops can qualify for reduced property taxation under Ohio's Current Agricultural Use Valuation (CAUV) program. Discuss with your tax consultant about filing a Schedule F with your federal income taxes for farm-related expenses and income.

Consider registering your farm property with the USDA Farm Service Agency (FSA) to access financial assistance programs that may help you with expenses. Examples include the USDA Farm Loan Programs such as Micro-Loan for New & Beginning Farmers, Socially Disadvantaged Farm Loan Program, Beginner Farm Loan Program, as well as Environmental Quality Incentive Programs (EQIP).

Figure 1: A successful hop operation requires preplanning and preparation. This could take up to three years or more to complete. Photo by Brad Bergefurd, OSU Extension.

Casting the Field

The ideal site for hops has well-drained soils and receives plenty of sunlight. Drainage is essential, so systematic drainage tile installation is recommended prior to planting and trellis construction.

Picking Your Crops: Plant Selection

Work closely with your brewery buyers to determine the most suitable hop varieties for their brews, since specific varieties or blends of varieties may be required. Consult with several nurseries to find high-quality plants that meet these requirements, as orders and deliveries may take time.

Consider soil testing to determine nutritional needs and acidification requirements for your site, especially if you are using deep-well irrigation water with high alkaline levels.

Plant Nutrition and Fertilization

A soil test will help you determine the needed nutritional amendments for your site. Because hops are perennial, nutritional amendments may require multiple applications and incorporation before planting to achieve optimal soil conditions for long-term plant development.

Pest Patrol: Dealing with Malice

Like all crops, hops are vulnerable to pests such as weeds, insects, and diseases. Pesticides should only be used on products with hops listed on the label, as all pesticides must pass safety tolerance testing for use on crops for human consumption.

Resources: Rolling the Dice

Ohio Hop Growers Guild is an association that helps hop growers network, share information, and access resources for improving the quality of hop production in Ohio. The Ohio Department of Development's Small Business Center can assist with writing your business and marketing plan.

The Ohio State University's South Centers offer information on hops production, business planning resources, and templates. The Ohio State University Extension also provides information on hop production, pest management, and financial resources.

Figure 2: Site selection and preparation should be done one year prior to planting the first hops plant. Photo by Brad Bergefurd, OSU Extension.

[1] West Central Ohio Agricultural Research and Development Center. (2019). Ohio Hop Production Factsheet. https://cedarville.osu.edu/wp-content/uploads/sites/1101/2019/08/2018-Ohio-Hops-Production-Factsheet.pdf

[2] Ohio Department of Agriculture. (2021). Agriculture Equipment Registration Information. https://agri.ohio.gov/divisions/Livestock-Environmental-Programs/Agricultural-Equipment

[3] Ohio State University Extension. (2018). Kehoe, J., Swick, N., & Newell, T. (2018). Optimizing IPM strategies for hop production: A case study from Ohio. Journal of Integrated Pest Management, 8(1). https://www.jipm.info/jipm/archive/08-1/Newell_2018/index.html

[4] Ohio Department of Taxation. (2021). Agricultural Tax Incentives. https://www.tax.ohio.gov/businesses/faqs/agricultural_tax_incentives.aspx

1. In the farming of hops, soil testing is advisable to determine the nutritional needs and acidification requirements, especially when using deep-well irrigation water with high alkaline levels.
2. For a successful hop farming business in Ohio, it's essential to establish the market first by identifying potential brewery buyers and understanding their hop variety and volume requirements.
3. Hop farming is labor-intensive, requiring access to labor for production, management, harvesting, and processing tasks, with relying on seasonal help being crucial in the planning process.
4. Facility needs can be determined by understanding the brewers' processes, as most brewers in Ohio prefer pelletized hops, but individual brewers may have different preferences.
5. To protect your business, it's important to obtain general farm liability insurance coverage and product liability insurance coverage for your crop.
6. Tax purposes can benefit from land used for hops qualifying for reduced property taxation under Ohio's Current Agricultural Use Valuation (CAUV) program, and discussing this with a tax consultant is advised.
7. Financial assistance programs can be accessed by registering your farm property with the USDA Farm Service Agency (FSA), such as the USDA Farm Loan Programs and Environmental Quality Incentive Programs (EQIP).
8. The Ohio Hop Growers Guild, Ohio Department of Development's Small Business Center, Ohio State University's South Centers, and Ohio State University Extension offer valuable resources for hop growers in Ohio, including networking, information sharing, and business planning resources.

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