By Josh Chetwynd
U.S. Sen. Charles Schumer is looking to give insurance agents in New York a reason to raise their mugs in celebration. The Senator recently announced he’s asking the U.S. Department of Agriculture to set up a new crop insurance program for malt barley farmers in Central New York.
The push comes at a time when state leaders are looking to grow New York’s already popular craft beer industry. In 2013, a new law aimed at increasing local production was signed by Gov. Andrew Cuomo. In order to obtain a farm brewery license, producers must prove at least 20% of its beer ingredients are grown in the state. By 2024, that number increases to 90%.
But those requirements might be unattainable without federally backed insurance, according to Schumer. On Aug. 20, the Senator told guests at the Empire Farmstead Brewery in Madison County, New York that the coverage is vital because malt barley used in beer production is very susceptible to the variations in weather that often affect New York farms. Without insurance, it’s too risky to grow large amounts of the crop in the state.
Currently, malt barely yields would need to be increased by 15 times its present rate in order to meet all in-state brewery needs. While other states offer this insurance, New York’s lack of it “is preventing our craft breweries from really taking off,” Schumer said.
Independent insurance agents aren’t currently big players in New York’s overall crop insurance business, according to Tim Dodge, a spokesperson for the Independent Insurance Agents and Brokers of New York. Still, he said that this new insurance development would be a very welcome addition for those few currently in the business. He also believes the change would likely lure others into the market.
“I think what will happen is some agencies will give it some thought,” Dodge said. “Just like in other places in the country, the craft brewing business is growing in popularity and with the prospect of local farms growing more malt barley, it’s sure to bring some interest.”
