Growing up in the mountains of southwestern Pennsylvania, We learned about the Whiskey Rebellion in school. It wasn’t just about farmers resisting a tax—it was about a government policy designed to eliminate small producers in favor of large, industrial operations. Today, we see the same thing happening across our food and agriculture system, but HB 1562 is an opportunity to correct course.

The Whiskey Tax: A Strategy to Crush Small Producers and Enforce Government Control

In the late 1700s, whiskey wasn’t just a product—it was a currency. Western farmers used whiskey as a medium of exchange, paying debts, wages, and even taxes with it. Why? Because hard currency (gold and silver) was scarce on the frontier. Instead of selling raw grain, which was bulky and expensive to transport, they distilled it into whiskey, which was easier to trade and held its value better.

But this posed a problem for Alexander Hamilton and his vision for a strong, centralized financial system. He needed a tax base built on hard currency, and he wanted economic control over the frontier economy. The Whiskey Tax of 1791 was about more than just raising revenue—it was about forcing small farmers into the formal monetary system while consolidating power in the hands of large Eastern distilleries.

How the Tax Rigged the Market Against Small Producers

The tax was based on still capacity, not actual production. Large distilleries, which operated year-round, could spread out the tax and keep costs low, while small farmers who distilled occasionally paid a much higher effective rate.

Wealthy Eastern distillers could opt for a flat tax, making it far cheaper for them to comply. Small-scale producers, who couldn’t afford the lump sum, had to pay per still, which drove up costs and made their product uncompetitive.

Whiskey was the most efficient cash business for Western farmers, but the tax made it impossible for them to compete. Given a level playing field, they would have won on quality and efficiency, but the tax forced many out of business.

By eliminating small distillers, the government strengthened large Eastern distilleries—businesses that already operated within the formal financial system and aligned with Hamilton’s vision.

The Result?

Thousands of small distillers and farmers refused to comply. They saw the tax for what it was—a deliberate attempt to drive them out of business in favor of larger, more politically connected enterprises. When the government sent tax collectors to enforce it, Western Pennsylvania farmers fought back. This led to the Whiskey Rebellion, which President George Washington eventually crushed with federal troops.

The lesson? When the government picks winners and losers through regulation, small producers are always the first to suffer.

The Braddock’s Field historical marker commemorates the largest armed resistance of the Whiskey Rebellion, where 5,000-7,000 Western Pennsylvania farmers assembled in protest of unfair taxation.

HB 1562: A Step Toward Restoring Fairness

Fast forward to today, and government regulations still favor large-scale producers over small farms and food businesses. While industrial food processors can push mass-produced, preservative-laden products into every grocery store, small independent producers face regulations that make it harder to sell fresh, local, preservative-free food directly to consumers.

That’s why HB 1562 is so important. It removes unnecessary barriers that prevent small farms and home-based food producers from selling directly to their communities. The bill:

• Begins to Level the playing field by allowing direct-to-consumer sales from farms, homes, and online (within Indiana).
• Prevents government overreach by limiting excessive health department regulations that disproportionately burden small businesses.
• Expands access to local, preservative-free food, improving health and food security in Indiana communities.

Indiana Lawmakers Standing Up for Small Farmers and Local Food

Unlike the past, when government policies were used to push small producers out, Indiana’s leadership is taking action to support small farmers and local food businesses. One of the strongest advocates for HB 1562 is State Representative Hunter Smith—a regenerative farmer and former Indianapolis Colts punter. He ran for office to fight for small farms and local food systems, and his first bill delivers on that promise.

By supporting HB 1562, Indiana lawmakers are standing up for small farmers, independent food producers, and the health of our communities. This is about more food freedom, more choices for consumers, and fewer barriers for local businesses.

Take Action to Support HB 1562

Right now, HB 1562 is in the Senate Public Health Committee, and it needs a hearing to move forward. Senator Ed Charbonneau is the chair, and it’s up to him whether this bill gets the chance it deserves.

If you believe in fair competition, food freedom, and supporting small businesses, reach out to Senator Charbonneau and ask him to schedule a hearing for HB 1562.

Email: s5@iga.in.gov

The fight for independent producers against government-backed industry giants isn’t new. It started with 230 years ago with whiskey and continues today with food and farming. Indiana has a chance to get this one right—and HB 1562 is a step in the that direction direction.