CUT FLOWER

FYI: Recession's impact on US hort evident in new census

26 May 2014

The 2012 census was the first to capture the fallout of what’s been termed, the Great Recession, which most economists agree began in 2007, reached it depths in 2008-2009, and from which many aspects of the economy are still recovering. While agriculture as a whole showed considerable strength in 2012 when compared to 2007 – 33 percent increase in total sales – most of that increase was due to gains in row crops. Not surprising, the horticulture industry was not nearly as fortunate. 

Nursery and Floriculture crops, which includes things like cuttings, bulbs, annuals, perennials, woody plants, and Christmas trees, took a significant hit since the last census. Sales dropped nearly $2 billion (14%) since 2007, with nursery sales seeing the biggest drop, approaching $1.5 billion, a decline of 22 percent. Much of this decline is attributed to the Great Recession’s impact on the housing market and new residential and commercial construction. However, many also believe changing consumer demographics associated with the ageing of the “baby boomers” are an underlying factor.  

One area of production that did see an increase was in cuttings, seedlings, liners, and plugs, where sales were estimated to be up over $140 million, an increase of 33 percent. 

Despite the troubling revenue numbers there did not appear to be a corresponding decline in the number of operating farms in 2012, when compared with 2007. In late 2015, the results of the 2014 Census of Horticultural Specialities, will provide a much more detailed look into the industry. 

A revised Economic Impact of the Green Industry report, which is being created by a consortium of universities, will be published late in 2014. 

Source: americanhort.theknowledgecenter.com