08/18/08 Malt barley contracting

Idaho farmers are watching Anheuser Busch to see if any malting barley contract changes are ahead in the wake of the InBev purchase. Idaho Barley Commissioner Dan Mader grows barley on his Genesee farm and knows that the Belgian based brewer didn't get a 'fixer-upper' when it bought Anheuser. MADER "They really bought the cream of the crop. We're optimistic that they will appreciate the components of Anheuser Busch that made it a premium asset." Mader says there's no reason to make major changes in what's been a successful operation from field to keg. Barley Commission Administrator Kelly Olson expects to see contracts rolled out next month but some farmers may hesitate to sign right away after many of them left money on the table by signing early last year. OLSON "The way the contracts were offered is that growers could price it at any time up to July of this year, the following year. So you know I think growers will get a little smarter at looking at their pricing strategies." And Mader agrees with that assessment. MADER "Having said that you know they may have contracts now that are higher this year, the early contracts than they were last year. I don't know where those will come out." As any producer will tell you today's commodity pricing is something no one could have predicted and there are no sure bets on tomorrow's prices either. Today's Idaho Ag News Bill Scott