As the Brewmaster I should blog a little more about brewing so here goes.
The first corn whiskey was made at Jamestown back in about 1620. That is a few years ago! The first significant federal tax went into affect on Whiskey right after the signing of the Constitution and the formation of the USA in 1790, so Whiskey and taxes have been with us a very long time and it owes it's origin to the Native American corn which is now the most planted crop in the world. What would the world be like without corn and Whiskey? Not a very good place.
Now some economics. I looked these numbers up on the Internet and I think they are good. From one bushel of corn, you can make about 2.4 gallons of pure alcohol. The average farmer in Iowa can grow 175 bushels of corn per acre. That means he could make 420 gallons of alcohol per acre. Bourbon Whiskey is normally about 80 proof or 40% pure alcohol. That works out to 1,050 gallons of Whiskey per acre. Normally, Whiskey is sold by the fifth or 5 bottles per gallon. Now, that means that the farmer can make 5,250 bottles of Whiskey per acre. This is getting to be a very big number!
I normally buy the cheap stuff, so let's say the farmer got $10 per bottle. That would mean that he could gross $52,500 per acre! Compare that with current corn price at $3.50 per bushel where the farmer would gross only $612.50 per acre.
Are you starting to see why George Washington and his Secretary of the Treasury, Alexander Hamilton caused the famous "Whiskey Rebellion" by the farmers in Appalachia? The battle is still raging today.
You can look at this another way. What is the farmer's share of that fifth of Whiskey? Would you believe $0.12 per bottle? At $10 per bottle, that works out to just 1.2%. Just think if the farmer was not growing corn, but was growing Marijuana or Heroin how much he could have made. That is one of the reasons that we have such a problem with illegal drugs, The profit incentive is just too great.
I could put together the numbers for homebrew made from barley and the answer would be the same. How much to you think the farmer gets from a $3,00 beer? You would be very surprised.
The first corn whiskey was made at Jamestown back in about 1620. That is a few years ago! The first significant federal tax went into affect on Whiskey right after the signing of the Constitution and the formation of the USA in 1790, so Whiskey and taxes have been with us a very long time and it owes it's origin to the Native American corn which is now the most planted crop in the world. What would the world be like without corn and Whiskey? Not a very good place.
Now some economics. I looked these numbers up on the Internet and I think they are good. From one bushel of corn, you can make about 2.4 gallons of pure alcohol. The average farmer in Iowa can grow 175 bushels of corn per acre. That means he could make 420 gallons of alcohol per acre. Bourbon Whiskey is normally about 80 proof or 40% pure alcohol. That works out to 1,050 gallons of Whiskey per acre. Normally, Whiskey is sold by the fifth or 5 bottles per gallon. Now, that means that the farmer can make 5,250 bottles of Whiskey per acre. This is getting to be a very big number!
I normally buy the cheap stuff, so let's say the farmer got $10 per bottle. That would mean that he could gross $52,500 per acre! Compare that with current corn price at $3.50 per bushel where the farmer would gross only $612.50 per acre.
Are you starting to see why George Washington and his Secretary of the Treasury, Alexander Hamilton caused the famous "Whiskey Rebellion" by the farmers in Appalachia? The battle is still raging today.
You can look at this another way. What is the farmer's share of that fifth of Whiskey? Would you believe $0.12 per bottle? At $10 per bottle, that works out to just 1.2%. Just think if the farmer was not growing corn, but was growing Marijuana or Heroin how much he could have made. That is one of the reasons that we have such a problem with illegal drugs, The profit incentive is just too great.
I could put together the numbers for homebrew made from barley and the answer would be the same. How much to you think the farmer gets from a $3,00 beer? You would be very surprised.