VOLNEY, N.Y. (AP) — Construction is underway in central New York on a state-of-the-art malted grain production facility.

The 1886 Malt House is being built on the campus of the former Miller Brewing plant in Volney, located about 30 miles north of Syracuse. It's expected to be fully operational next July and will be able to produce 2,000 tons of malt annually to meet growing demand.

New York currently has over 300 active farm and craft breweries and more than 140 active distilleries.

The 40,000-square-foot facility received a $700,000 grant as part of Gov. Andrew Cuomo's upstate revitalization initiative.

Demand for craft malt has outpaced supply in New York since a state law was passed in 2012. It requires a higher percentage of New York-grown and produced ingredients, including hops and malt.

[STORY BY: THE ASSOCIATED PRESS]

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