Economic feasibility of growing hops in Nebraska

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Show simple item record Craig, Julie 2017-04-11T14:26:41Z 2017-04-11T14:26:41Z 2017-05-01 en_US
dc.description.abstract Nationwide, the craft brew industry has enjoyed massive growth. Hops are an important ingredient in craft brew beer and rapid growth of this industry has created many opportunities to grow hops. Currently, hops production is concentrated in the Pacific Northwest. That is beginning to change with new hops acres being planted every year across the country. The study looks at how economically feasible it is to plant hops in Nebraska. Is there enough local demand? Finally, given that Nebraska’s weather is dramatically different than the Pacific Northwest, can hops flourish there? The research begins by assessing all costs associated with a starting a three acre hops operation. Estimated yield and income is projected for ten years to establish cash flow. Instances of hail, wind and tornados for Clay County Nebraska for the years 2006-2016 were calculated to determine a probability of those weather events occurring. The probability was then used to determine the effect it could have on yield of hops per year. In addition to cost of production, the study also documented the growth of Nebraska’s craft brew industry to establish demand for locally grown hops. The researched concluded that if production stayed constant and our discount rate at 5%, assuming prices remain where they are or higher, then it is economically feasible to grow hops in Nebraska. Wind, hail and tornadoes do pose a threat in the Midwest but their effect on yield is not enough to deter someone from planting hops there. Access to reliable capital to begin and sustain a hops operation appears to have a greater impact. In addition, Nebraska’s craft brew industry continues to expand rapidly suggesting a strong market for locally grown hops. This information is important for anyone who is considering planting a commercial hops yard. Given how expensive the start-up costs are and how labor intensive the crop is, this research can provide guidance to those seeking to add hops production to their new or existing farming operation. en_US
dc.publisher Kansas State University en
dc.subject Hops en_US
dc.subject Net Present Value en_US
dc.subject Economic feasibility en_US
dc.subject Craft Brew Industry en_US
dc.subject Alternative Crops en_US
dc.title Economic feasibility of growing hops in Nebraska en_US
dc.type Thesis en_US Master of Agribusiness en_US
dc.description.level Masters en_US
dc.description.department Department of Agricultural Economics en_US
dc.description.advisor Vincent R. Amanor-Boadu en_US 2017 en_US May en_US

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