Komo for Cascadia Capital

May 22, 2015

When Washington Governor Jay Inslee declared a statewide drought emergency, brew masters took notice.

According to the USDA, Washington State accounted for 79 percent of hop production in the United States. The declaration will mean water restrictions on some farmers who grow hops, and hops use a lot of water – up to three gallons per day per plant.

Frustrated growers and investors from drought stricken California are purchasing farm land with long-term water rights.

Michael Butler, Chairman and CEO of Cascadia Capital, says the land is being bought for premium prices for speculative reasons and future crop production, including very profitable almonds. The purchases make it harder to expand hop production.