Brews to Barns: A Win-Win-Win

Overview

Brews to Barns is a federal and state legislative proposal that encourages and rewards breweries to donate their spent grain — the main byproduct of brewing — for agricultural uses. The program would provide an excise tax credit to brewers who supply this valuable material for agricultural use.

American brewers generate about 4.7 million metric tons of spent grain annually. Many brewers, especially small and independent ones, already donate their spent grain — a valuable feed and soil additive — to local farmers. It’s a partnership that reduces farm input costs, keeps valuable organic matter out of landfills, and strengthens local economies. Still, a significant amount of spent grain is wasted, often ending up in landfills where there is no commercial benefit and contributes to greenhouse gas emissions.

A Policy Solution

To encourage more of these beneficial donations, the Brewers Association supports an excise tax credit tied to the dry weight of spent grain donated. The proposal is simple: when brewers give their byproducts to farmers and ranchers, they would earn a credit against their federal and state excise tax bill(s).

Benefit to brewers

Currently the value on the open market of spent grain is roughly $40 per wet ton, which breaks down into approximately 8 cents per dry weight pound. Using these numbers, even a small brewer would see a significant benefit to their bottom line, helping to offset rising costs of inputs.

Benefit to agriculture

By lowering feed costs with donations, the credit should boost donations, helping farmers and ranchers weather volatile markets. Feed prices hit their ninth-highest mark on record in March 2025, making affordable inputs especially critical.

Benefit to the environment

When spent grain decomposes in landfills, it releases methane — a greenhouse gas many times more potent than CO₂. Just one ton of spent grain in a landfill produces the equivalent of 513 kilograms of CO₂, roughly the same as driving a gas-powered car from Phoenix to Chicago. Redirecting this material significantly cuts emissions.

Why Now?

Small brewers are being squeezed from multiple directions: inflation, tariffs and supply chain pressures, state budget shortfalls, new and proposed regulatory mandates, and increasing operating costs. Farmers are dealing with global price shocks in feed and inputs. Meanwhile, many states are searching for practical, bipartisan policies that support local economies and reduce environmental impacts and create maximum value from waste streams.

The Brews to Barns Act gives small businesses breathing room, helps farmers manage costs, and keeps organic waste out of landfills. Most importantly, it encourages collaboration between two sectors that are both central to the American economy and way of life.

Spent grain is the malted barley and other grains left over after the beer-making process. It is rich in nutrients and highly useful as livestock feed and a soil additive.

A Win–Win–Win

Passing a tax credit for spent grain donations isn’t just good policy — it’s common sense. Brews to Barns supports small brewers who keep our communities vibrant, farmers and ranchers who keep America fed, and an environment that belongs to all of us.

Brews to Barns Federal Tax Credit Calculator

Estimate your annual federal excise tax credit from spent grain donations.

Annual production (barrels)

Spent grain donated

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0 lbs— lbs (100%)

Federal excise tax

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Estimated Brews to Barns credit

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* Credit capped at $35,000/year maximum.

Disclaimer: The tax credit cannot exceed your total federal excise tax liability and is capped at $35,000/year. Additional savings could be realized if similar legislation passes at the state level. The 67 lbs/BBL dry weight figure is an average based on BA data — actual savings will vary by recipe. This calculator is for illustrative purposes only and does not constitute tax advice.

Brews to Barns State Tax Credit Calculator

Estimate your potential state excise tax savings if Brews to Barns legislation passes in your state.

Annual production (barrels)

State

Spent grain donated

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0 lbs— lbs (100%)

State excise tax paid

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Estimated Brews to Barns credit

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Disclaimer: State-level Brews to Barns legislation has not yet passed. These figures are estimates of potential savings if similar legislation were enacted in your state. The credit is capped at $30,000/year and cannot exceed your total state excise tax liability. The 67 lbs/BBL dry weight figure is an average based on BA data — actual savings will vary by recipe. State excise tax rates reflect barrel-based rates and may not capture all state-specific structures. This calculator is for illustrative purposes only and does not constitute tax advice.

FAQs

Spent grain is the malted barley and other grains left over after the beer-making process. Although it leaves the brewhouse as “waste,” it is rich in nutrients and highly useful on farms as livestock feed and soil additive.

U.S. breweries generate roughly 4.7 million metric tons (20+ billion pounds) of spent grain each year.

For every average barrel (31 gallons) of beer, breweries produce over 65 pounds of grain that can go straight to agriculture.

About 90% of spent grain is currently reused, mainly as animal feed or compost.

But a significant amount still ends up in landfills because small brewers often lack the resources, scale, or local connections to distribute it. Brews to Barns helps close this gap.

The program supports three key challenges at once:

Rising costs for brewers — Inflation, tariffs, supply chain issues, and higher operating expenses are squeezing small and independent breweries.
Volatile feed prices for farmers — Feed costs remain elevated in 2026, with USDA’s March Feed Outlook projecting continued pressure across U.S. feed markets.
Environmental impacts — Landfill disposal of spent grain creates unnecessary greenhouse gas emissions.

Brews to Barns creates an excise tax credit based on the dry weight of spent grain donated to farms.

Brewers receive a credit applied to their existing excise tax bill.

The credit is capped at $35,000 annually for federal excise tax (states will vary) and cannot exceed the brewery’s total excise tax paid — focusing the benefit on small and independent brewers.

This structure rewards responsible reuse while avoiding excessive giveaways to large producers.

While spent grain is worth about $40 per wet ton (≈8¢ per dry pound), that value is rarely accessible to small breweries, which can’t cost-effectively process or transport it.

A tax credit:

Provides meaningful financial relief.
Encourages participation from small brewers who previously lacked scale.
Expands the supply of free or low-cost feed, compost, and fertilizer available to farmers and ranchers.

Farmers and ranchers receive:

Lower-cost feed at a time of price volatility.
A consistent, local supply of nutrient-dense agricultural material.
Potential compost inputs that support soil health and climate-smart practices.

This reduces operational costs and improves resilience in uncertain markets.

The program reduces landfill waste and emissions.

One ton of spent grain in a landfill produces 513 kg of CO₂e — roughly equal to driving from Phoenix to Chicago in a gas-powered car.

By redirecting material to farms, states can support climate-smart agriculture and waste-reduction goals at minimal cost.

Small brewers face increasing costs due to inflation, tariffs, and regulatory changes.

Farmers are struggling with global supply shocks and rising feed prices.

States are seeking practical, bipartisan solutions that strengthen local economies, reduce waste, and support small businesses.

Brews to Barns delivers on all three.

No. Brews to Barns is a common-sense, bipartisan solution that:

Supports local agriculture
Strengthens small businesses
Reduces environmental impact
Promotes circular-economy practices

It aligns with economic, rural, and sustainability priorities across the political spectrum.

The Brewers Association supports the policy and stands ready to help lawmakers adopt and implement it. Brewers and farmers in many states have also expressed interest in expanding reuse and reducing waste streams.

Brews to Barns creates a win–win–win:

Brewers get financial relief and avoid disposal costs.
Farmers gain affordable feed and compost materials.
The environment benefits from reduced emissions and landfill waste.

By introducing or supporting Brews to Barns legislation, lawmakers can create a cost-effective, high-impact program that strengthens local economies, supports family farms, and promotes sustainability — all with minimal administrative burden and broad stakeholder buy-in.

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