Sustainable Landscape Management and Nursery Production

Project Leader: Kathleen Carroll

General Information

National Horticulture Industry situation:

According to a 2005 economic study by the University of Florida and the University of Tennessee, the nationwide boom in housing and other construction associated with urban development is driving one of the fastest growing segments of U.S. agriculture. The $147 billion environmental horticulture industry - also known as the ‘Green Industry" - is not only one of the nation's fastest-growing businesses, but it continues to expand even during recessionary periods," said Dr. Alan Hodges, an economist with the University of Florida's Institute of Food and Agricultural Sciences and one of three authors of the national study. He said the research is the first to evaluate the economic impact of the Green Industry for the United States, and it shows how the industry contributes to personal income and job growing within the local and regional economies. Regionally, the total value-added impact of the Green Industry was the largest in the Midwest with $19.2 billion followed by the Pacific ($18.4 billion), the Northeast ($17.9 billion) and the Southeast ($13.5 billion).

The largest individual states in terms of value-added impact were California with $13.7 billion, Florida ($7.1 billion), Texas ($6.1 billion), Illinois ($4.3 billion), Pennsylvania ($3.7 billion), New York ($3.5 billion) and Ohio ($3.5 billion).Nationwide, the industry generates a total of $147.8 billion in output or sales, 1.9 million jobs, $64.3 billion in labor income and $6.9 billion in indirect business taxes. The industry generates $95.1 billion in value-added impacts, which represent the value of output less the value of purchased inputs used in the production of goods or services for final consumption. The industry consists of a variety of businesses involved in production, distribution and services associated with ornamental plants, landscape and garden supplies and equipment, Hodges said. It includes wholesale nurseries, greenhouses and sod growers as well as landscape architects, contractors and maintenance firms, retail garden centers and various other retail stores selling plants and garden supplies.

In addition, he said the industry is linked to urban forestry by providing plant material and professional personnel for growing, maintaining and managing city trees. Besides Hodges, those participating in the study include Dr. Charles Hall, an agricultural economist at the University of Tennessee in Knoxville, and Dr. John Haydu, an agricultural economist at the University of Florida's Mid-Florida Research and Education Center in Apopka.Hall said results of the study will help legislators and other decision-makers understand the economic importance of the environmental horticulture industry. "There are several key labor, emissions and water-related issues that are currently being debated, and the results of this study will help clarify the impact of various policy alternatives," Hall said Robert Dolibois, executive vice president of the American Nursery and Landscape Association in Washington, D.C., said the study shows how the Green Industry is expanding its contribution to the economy and improving the nation's managed landscapes on a massive scale.

"It is worth noting that a dominant portion of this industry's activity is conducted by thousands and thousands of privately held, small businesses," he said. "They are a significant engine for creating new jobs, and the industry is a gateway of opportunity for entrepreneurs nationwide.

"With the nation's demo-graphics driving this growth, we can expect even larger numbers in future studies, as long as the industry has access to a legal and sustainable workforce," Dolibois said.

For the production and manufacturing sectors, including nurseries and greenhouses, lawn and garden equipment manufacturers, and greenhouse manufacturers, the study shows the total output impact was $34.6 billion. These sectors created 300,557 jobs with a value-added impact of $20.4 billion. For the horticultural service sectors of landscape services and landscape architects, the total output impact was $57.8 billion. These sectors created 753,557 jobs with a value added impact of $39 billion.

For the wholesale/retail trade sectors, the total output impact was $55.5 billion, generating 910,104 jobs and a $35.3 billion value-added impact. In terms of employment and value-added impact, the largest individual sectors were landscaping services, generating 704,875 jobs and $35.6 billion in value-added; lawn and garden stores (347,916 jobs and $14.8 billion); nursery and greenhouses (261,408 jobs and $18.1 billion); florists (200,461 jobs and $4 billion) and building material supply stores (123,591 jobs and $6.5 billion).Other sectors covered in the study included general merchandise stores with value-added impact of $4 billion, landscape architects ($3.5 billion), lawn and garden equipment manufacturers ($2.6 billion), lawn and garden equipment wholesalers ($2.7 billion), wholesale flower, nursery stock and florist suppliers ($1.9 billion), and food and beverage stores ($1.4 billion). This economic study and research was supported by a grant from the U.S. Department of Agriculture's Forest Service and its National Urban and Community Forestry Advisory Council, along with funding from the American Nursery and Landscape Association, the Professional Landcare Network, and the Nursery and Landscape Association Executives of North America.

Massachusetts Horticulture (Green Industry) Situation

The Massachusetts Green Industry, also known as the Environmental Horticulture Industry is a major sector of agriculture in Massachusetts according to a 2006 survey conducted by the New England Nursery Association There are more than 4,520 firm in this industry. These firms are involved in Production (nurseries, greenhouses, herbs, cut flowers, turfgrass) retail, (garden center florists), landscape services (landscape design, installation, maintenance, lawn care, tree care) Many firms are involved in more than one of the types of businesses. The Environmental Horticulture industry in Massachusetts produces income. The estimated value in Massachusetts for 2004 is $2.2 billion gross income. Overall industry income has grown since the last survey in 2001.Over a three year period, between 2001 and 2004, more than 2,400 firms increased their income. The average increase per firm was 24 percent. Many additional firms, not counted in the survey, derive at least partial income from this industry. These include seasonal outlets such as roadside markets, hardware stores, mass market stores and property maintenance firms. At least 58,800 people are employees in the industry in Massachusetts. An additional 13, 100 are needed. An estimated 29,000 are full time This industry paid an estimated $980 million to employees in 2004.More than half the businesses reported an increase in the cost of labor. The average increase per firm was 26 percent.

The industry is comprised of the following types of businesses:

• 70% landscape and tree services
• 46% retail
• 39% wholes production
• 20% other

Over two-thirds of firms provide, and derive income from, landscape and tree services. Plant production and sales are a significant part of the Environmental Horticulture industry. Plant sales, generate an estimated $947million. This includes:

• $218 million from plants produced totally by the seller.
• $227 million from young plant grown further (pre-finished) prior to selling
• $502 million from finished plants bought for resale, either wholesale or retail.

Plant production generates $445 million. A majority of firms (88 percent) sold plants.

This industry is keeping more than 79,000 acres in agriculture, of which 58 percent is open space and 29 percent is in a land preservation program. The majority of income (85 percent) comes from in-state sales and services. Businesses in this industry paid almost $190 million in taxes in 2004. Taxes increased for nearly half the firms. The average increase per firm was 23 percent.

The Sustainable Landscape Management and Nursery Production Project has the following priorities:

The Landscape, Nursery and Urban Forestry Program teaches landscape integrated pest management practices and environmental stewardship strategies to municipal, private landscape professionals and nursery growers. Home gardeners are a secondary audience.

Participants learn about integrated pest management concepts and the optimization of pest control, fertilizer application and water use through proper cultural management of horticultural and landscape plants. Programs are conducted on landscape plant health maintenance and production practices focusing on ecological soil and water principles; the selection of plant materials requiring few pesticides, water or maintenance, tolerance for wetland adaptability; and elimination of invasive potential. Programs that include pest management options offer alternatives to pesticides with an emphasis on learning the basic biology of pests and disease causing organisms and their optimal management windows. Efficient fertilizer strategies that optimize plant development and avoid non-point source pollution are also conducted.

Activities

• Research, write and distribute 2008 Professional Management Guide for Insects, Diseases and Weeds in New England
• Write technical articles for Hort Notes and Garden Clippings newsletters
• Scout for pests in the landscape and write report for Landscape Message
• Conduct Technical Presentations to organized association groups, non-profit agencies and private companies
• Write fact sheets and update photos for umassgreeninfo web site
• Conduct research on Winter Moth project
• Conduct research project on switchgrass trials
• Conduct comprehensive workshops and meetings on Environmentally Sound Practices and Products for Professional Grounds Managers,
• Write and produce 2009 Garden Calendar
• Update Massachusetts Certified Horticulturist training manual,
• Participate in the development and implementation of the NE Extension Great Ideas exhibit at NE Grows
• Respond to technical inquiries by target audience as needed
• Organize and speak at School IPM Conference
• Act as research and technical advisor for non profit, government and private groups
• Organize and conduct education program for the MNLA/MFGA Summer Field Day
• Teach Nursery Management Course for Department of Plant Soil and Insect Sciences
• Teach Turf Winter School

Inputs: Time and Effort

Outcomes:

This Project will document progress towards the following:

• Participants adopt practices that reduce risk of exotic pests, diseases and invasive species
• Participants acquire the knowledge, skills and motivation to adopt practices that reduce risk of exotic pests, diseases and invasive species.
• Participants promote, implement or adopt sustainable resource management and environmental best management practices for operating Natural Resources-based businesses
• Participants have the knowledge and skills to promote, implement or adopt sustainable resource management and environmental best management practices for operating Natural Resources-based businesses
• Participants increase their knowledge and skill for practices that increase the economic viability of natural resource-based businesses

Extension program related to this project: Agriculture & Landscape