If you are not aware of the current economics of beer making in the US (and the world currently), then you should be aware of the fact that there is a global shortcoming in the supply of both hops and malted barley.

In short, the supply and demand pendulum has swung unfavorably to far in the demand direction. Since the mid-1990s hop and barely acreage has been decreasing. The amount of growers producing these products has decreased, mainly due to low prices. While breweries and especially homebrewers have enjoyed these low prices growers have not. They have been turning their crop acreage over to more lucrative harvests (i.e. better priced crops).

Couple these decreases in production, with a perfect storm like scenario of bad weather, growing season and flooding in many of the worlds key hop growing regions. European harvests are well below average numbers as are the US production numbers. The demand in the US to use corn for ethanol production has put higher demand on the price of feed quality barely, as livestock feed from corn has gotten too pricey for some farmers. Higher demand for feed barely pushes barely farmers to turn over malt quality barely into feed quality barely.

All these things have contributed to higher prices at the “pump”. You can expect to pay more for your favorite beers as the flow from the taps and what you get in 6-packs. Prices at your local homebrew supply shop are going up too. Many of the top shops don’t even have supplies of things like cascade or East Kent Goldings. The end isn’t coming but you can expect it to be a bit lean for while. Many predict that you’ll still be able to get what you want in variety, but you’ll be paying for it. In some case double to triple what you did before.

There is a nice write up at the American Homebrewers Association website with a little more detail than I have here. I have no fear outside of the increased prices. Homebrewers are notoriously resourceful people. Maybe we’ll just start growing our own hops and trading them online.