Oregon Again Adopts Laws to Foster Growth for Beer by Allowing New “Farm Breweries”

The Oregon legislature recently enacted Oregon Senate Bill (“SB”) 287 into law, allowing the establishment of farm breweries on land zoned for exclusive farm use or mixed farm and forest use. The new law allows breweries to enjoy the same privileges on farmland that have been available for wineries (since 2011) and cideries (since 2017). Now all three industries, each important to Oregon’s economy and communities, may produce and have visitors come see the facilities in which products they love are being made.

Starting January 1, 2020, a farm brewery will be a permitted use subject to standards within agricultural zones (including the EFU zone, the AF-20 zone, etc.). To be eligible, the farm brewery must produce a total of less than 150,000 barrels of malt beverages annually, and less than 15,000 barrels of malt beverages annually at the brewery site. The law authorizes additional activities at the farm brewery including agritourism or other commercial events up to 18 days a year. Local governments will still be involved in approving events and ensuring they do not create adverse impact on surrounding land.

In addition, farm breweries can include on-site kitchen facilities to prepare food and beverages, but gross income from the sale of incidental items or services may not exceed 25% of gross income from on-site retail sale of beverages produced in conjunction with the farm brewery.

This law continues Oregon’s tradition of innovation in brewery law, paving the way for more states to follow. Oregon was one of the first states to allow customers to purchase and fill up growlers at retail locations, and before that was also a pioneer state in legalizing brewpubs.

For more information on how to obtain a farm brewery license and other restrictions that apply to operations under such a license, contact Elaine Albrich or Olivier Jamin.

For more information, please see our Food + Beverage practice page.