25 July, 2003

Barley growers are hoping approval of their crop as a "heart healthy" food will boost domestic and foreign demand, Idaho Barley Commissioner Clark Kauffman told DTN at the US Grain Council's Board of Directors Meeting Monday. Barley production, especially malt, is up this year, as companies have contracted for more barley in North Dakota, Montana and Idaho.

There are important new breweries, including one with a 6.5 million bushel capacity built by the Mexican brewer Modello (where the barley is processed into malt which is cheaper than grain to ship). But prices are bad, Kauffman said bluntly.

The loan rate improved under the new farm bill, but it's still "no way to farm." One development for Idaho barley growers is that Revenue Assurance is available as a pilot program, and it's proved to be quite popular.

The number one challenge in improving export prospects is getting a consistent supply, Kauffman explained. Production is expected to be around 137 million bushels this year, up 7% over last year, but that's down from 175 m bu five years ago.

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