Constellation announces $100 million investment that includes Idaho farmers

By Sean Ellis

Idaho Farm Bureau Federation

POCATELLO – A $100 million investment in the American beer supply chain could provide a needed boost to Idaho barley and hop growers.

Constellation Brands, a U.S.-based beverage alcohol company, announced Aug. 19 it would invest the money over the next five years to support farmers in Idaho, Montana and North Dakota.

Idaho is the No. 1 barley-producing state in the nation and ranks No. 2 in hop production. Both are main ingredients used in the beer-brewing process.

Montana and North Dakota rank Nos. 2 and 3 in barley production.

Idaho farmers typically produce about 55 million bushels of barley off of about 500,000 acres annually.

Idaho farmers produced 39 percent of the nation’s total barley crop last year.

Like farmers who produce other crops, Idaho barley growers have faced still financial challenges the past few years as farm production costs continue to climb while farm-level barley prices have decreased.

According to a news release by Constellation, the investment reinforces “the company’s long-term commitment to American agriculture and the vital role it plays in sustaining America’s iconic beer industry. The investment includes incremental purchases from American farmers and initiatives designed to help strengthen the future of these U.S. farming communities.”

“This investment reflects the company’s continued commitment to U.S. farmers as they face sustained pressure from declining acreage, shifting demand, rising input costs, and weather-related challenges that have made it harder for many growers to maintain and expand their businesses,” the news release adds.

Constellation said it will partner with growers in Idaho, Montana and North Dakota “to identify opportunities that help sustain their farming operations for the long term.”

According to the news release, the company will establish a grower-led advisory committee that will consist of farmers, trade groups and community leaders, “to help inform investments intended to strengthen agricultural resilience and the domestic agricultural supply chain.”

According to the news release, Constellation already invests more than $750 million annually with American farmers and suppliers and purchases about 80 percent of all U.S. barley exports.

“As part of this initiative,” the news release states, “Constellation Brands will partner with growers and agricultural partners to determine how its investment can help support farm resiliency, market access, sustainability, and the continued economic vitality of farming communities in key producing states.”

"Idaho is proud to be one of the top barley-producing states in the nation, and this investment from Constellation Brands is great news for our farmers and rural communities,” Gov. Brad Little, a rancher and farmer, stated in the news release. “Our growers work hard every day to supply the barley that fuels a critical American industry. This kind of long-term partnership recognizes their contribution to Idaho and the U.S. economy.”

In a joint statement, the Idaho Barley Commission, Montana Wheat and Barley Committee and the North Dakota Barley Council stated: “Constellation Brands’ current and future support for our agricultural community comes at a critical time. Our sustainable future depends on committed partners, innovative products and new markets for American-farmed barley and wheat, inside and outside of the U.S. We appreciate the continued steadfast support of Constellation Brands in support of our growers and look forward to working with them and other great companies who support our future.”