Barley growers worry about Budweiser takeover

Barley growers probably have nothing to worry about, according to James Wetzel, an economics professor at Virginia Commonwealth University. He said InBev likely wants to boost U.S. market penetration by the beers it already produces, brands that include Beck's and Stella Artois. The company might end up brewing some of its foreign beers in the United States, requiring more barley from U.S. producers, Wetzel said.

"If I had to bet $10 one way or the other, I would think the barley growers in America are going to come out ahead," he said.

Agricultural economist Gary Brester of Montana State University said that who manages a company is often more important than who owns it, and there is no indication that InBev would change managers or direction if it acquired Anheuser-Busch. Yet the proposed takeover does pose some risks for growers.

"Suppose InBev decided malting barley was less important than hops (for research and development) and they put their R&D into hops," Brester said. "They might not think Montana malting barley is as special as A-B thinks it is."

Although Anheuser-Busch may seem like family in some grain communities, there is no question the company is in business to make money. Each truckload of barley is sampled and tested at delivery. If it fails to meet company standards for quality, the barley is rejected and likely becomes cattle feed, said Fairfield grower Tom McInerney. That brings about half as much money as malting barley.

Some growers grumble that the company has taken advantage of volatile grain markets, contracting for lower prices than farmers would have received on the open market, McInerney notes. Still, he sees more pluses than minuses with Anheuser-Busch.

"Historically, they've been good for this area and they've offered some stability with a decent contract program," McInerney said. "I'd like to see them stay. We have a known entity in them."

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