-Sam Anderson
Contracting barley in Montana can be puzzling for those unfamiliar with the dynamics of this specialty crop. There are many ways to secure barley from Montana, but I want to spell out the easiest way.
How barley is procured
There are a few large purchasers of barley in the Treasure State. Those large companies will look to secure their supply for the subsequent year in the months of October to January. The companies will contract with growers for a specified acreage or volume for a specified price. Quality, delivery, storage, and variety specific details are outlined in the contract with growers. These companies have been purchasing barley from Montana growers for generations, relationships are built on trust and pride in the products produced. The success is built on the abilities for growers to plan out their year’s crop rotations, incorporating barley with a designated market for the barley well in advance.
Why is trust needed?
Barley is used here mainly for malt. Barley for malt requires many downstream handling and time sensitive calculations that guarantee malthouses will be able to run efficiently. The malt house needs a steady supply of barley so they can consistently supply malt to the brewer who in turn supplies consumer. If there is ever a disruption in this, ultimately the grower is the one who is left with a bin full of barley with no market. The grower is left with options for feed markets which historically trade at a discount to barley for malt prices. Therefore, as growers they desire to contract with established companies so they know their barley bins will be empty before next years harvest.
The easiest way to get started:
The biggest challenge a new player in barley procurement faces is building rapport. The easiest way to get started procuring our high-quality barley is to look towards the companies that are already established. Those companies are trusted by growers, they have robust delivery points, and established logistical avenues. This would require an agreement between your company and an established company prior to the contracting period for barley. It is a huge challenge to think this far ahead of your demand needs. As we sit in the month of January, the timeframe to secure the 2023 crop of barley is close to expiring. Depending on your volume needs, you should be communicating with companies to secure barley for 2023 and already starting on your needs for the 2024 crop. This approach will help your organization get started, test Montana barley, and then give insight for future investments in the following years.
We want to grow more barley!
In the 1980’s Montana planted around 2-million acres of barley, now we grow around 1-million acres. There are many explanations for the downturn; feeders switching to corn, brewers using less malt, and higher yield advancements. Many of our producers reminisce about the good times of the 70’s and 80’s raising barley. The advantage a barley purchaser has is the strong demand from the grower to raise barley. It requires less inputs, can be fairly drought resistant and is disease resilient in the high desert climate Montana faces. Of the ten to fifteen different crops a Montana farmer wants to raise, barley will be consistently at the top of their list.
We can help!
The team at the Montana Wheat and Barley Committee is well versed in the complexities of contracting barley. We are well connected with the companies in our State and will help you get connected with the best fit. The biggest advantage we have is the perspective of helping the Montana farmer as a nonprofit entity. Our desire is for all players to be greatly successful and we’re here to help you along the way with unbiased advice.
If you are looking to secure barley needs in any volume, please contact us and we can help get you started!