Project Summary

This multi-state project will conduct applied research and outreach education in support of improved production, management and marketing practices in the U.S. environmental horticulture or “green” industry. The project encompasses four broad objectives:

1. Investigate environmental, social, and economically sustainable practices in ornamental crop production and landscape systems


2. Evaluate structural economic characteristics and economic contributions of the U.S. green industry to the national and state economies of the United States.


3. Evaluate consumer preferences for environmental plants and related horticultural products, and their contribution to health and well-being.


4. Investigate labor management practices and automation/mechanization in the nursery and greenhouse industry 

These objectives support the “Sustainable Ag Intensification” and “Ag Climate Adaptation” themes identified in the USDA Science Blueprint: A Roadmap for USDA Science from 2020 to 2025. A team of research and extension faculty from numerous public universities will participate, including both agricultural economists and horticulturists. This group, known as the Green Industry Research Consortium, has a longstanding history of interdisciplinary collaboration since 1976. Project investigators will utilize various scientific methods to address these research objectives, such as mail and online surveys, experimental auctions, conjoint analysis procedures, consumer eye-tracking, input-output analysis, enterprise budgeting, field trials, energy and water audits, and life-cycle analysis. The project will develop outreach materials for industry audiences, including, trade press articles, workshops, presentations at industry conferences, and various electronic media such as websites, blogs, webinars, and podcasts, while also developing materials for academic audiences, including peer-reviewed publications and presentations at professional meetings.

Statement of Issues and Justification

The environmental horticulture industry, also known as the green industry, includes nursery and greenhouse producers, landscape service providers, horticultural product wholesalers/retailers, and various allied professionals. Nursery and floriculture (greenhouse) crops include a wide variety of ornamental plants for landscaping purposes such as trees, shrubs, ground covers, turfgrass, bulbs, and propagation stock, as well as plants used for interior or patio decoration such as cut flowers and greens, potted flowering plants, foliage plants, and bedding/garden plants.

The United States green industry generates over 2 million jobs in the U.S., however, information on labor use, demographics and employment characteristics is very scant for this industry. Labor costs have risen about 40% since the “Great Recession” of 2008.  Labor shortages, immigration reform and legal status of employees are widely reported as some of the most critical issues in the U.S. green industry. Competitive rivalry in the green industry is intensifying, especially at the retail level. One of the impacts of the mass marketing of nursery and floricultural crops has been to bring about an increase in size of growing operations.  The capital requirements and infrastructure to produce these mass quantities of product have increased. Larger growers have started partnering, usually on a contract basis, with smaller growers to handle the volumes required to supply large retail chains.  Several dozen growers may be involved to satisfy a retail chain’s product supply needs in one market area. This may help to spread the risk among several producers. Still, there are numerous examples of producers who supply 50 to 100 percent of their output to one box store. The focus on mass markets by large growers has also created opportunities for smaller growers to develop niches serving independent retailers/landscapers or to go into retailing themselves, selling directly to the consumer. Some producers have also used their own retail outlets as a diversification tactic for risk management. Another impact of mass marketers has been consolidation within the production sector. These stresses have created intense market pressures and heightened competitive rivalry among larger producers. The smaller producers’ struggle to remain competitive in a viable niche can be difficult in markets inundated by competing chains.

One of the most widely discussed topics in the green industry today is the issue of environmental sustainability brought about by consumers with a greater degree of environmental awareness. A common assumption is that using environmentally friendly practices will bring profits (Majsztrik et al, 2019). However, sustainable alternatives often require a price premium in the marketplace or a cost reduction within production to be economically viable. Project investigators have and continue to evaluate consumer acceptance of environmentally friendly products as well as the costs associated with green industry firms becoming more environmentally sustainable. 

With respect to consumer acceptance, producers need information around the impact of labeling, including such labels as organic, native, locally grown, and sustainable.  Though project investigators have examined the impact of some of these labels (e.g., Behe et al., 2013; Zaffou and Campbell, 2016; Zaffou and Campbell, 2017; Khachatryan et al., 2017; Khachatryan et al., 2018a), the green industry has relatively little research-based information to help professionals understand how consumers view horticultural products, product attributes, and services through this new and important environmental lens. As consumer preferences, perceptions, and purchase behaviors continue to evolve, producers need updated information on consumer and market characteristics to evaluate opportunities that provide a good return on investment.

On the production side, project investigators have been and are continuing to examine water usage and mechanization.  Water issues, specifically irrigation scheduling and efficiency, surface and groundwater water management, and water quality are quickly becoming topics of major concern to the ornamental plant industry even in states that have previously had ample water resources. Drought, urban competition for surface and groundwater water reserves, salinity and runoff water quality, and increasing regulation at national, state and county levels are increasing the need for ornamental crop producers to manage water more effectively.  Increased regulation and competition for water resources call for improved water management techniques with respect to application and runoff. Recycling water for residential use, including the landscape, can help provide water for landscaping (McClaren et al 2020). Landscape plants in urban areas provide critical environmental ecosystem services for nutrient cycling, pollution absorption, shade, moderation of temperatures, and noise buffers (Hall and Dickson, 2011). 

Mechanization is normally defined as the replacement of a human task with a machine, but true automation encompasses the entire process, including bringing material to and from the mechanized equipment and normally involves integrating several operations. Mechanization and automation have been important strategies for reducing labor costs in the nursery industry.  However, as noted by Krahe and Campbell (2016), producers do not seem to be substituting labor for mechanization, but rather reallocate labor to other areas.  Understanding the interface between labor shortages and cost-effectiveness of becoming more mechanized is essential.  

As the green industry continues to evolve, industry stakeholders need more information to help make critical decisions.  The lack of information was heightened by the “Great Recession” of 2007-09 as the USDA-NASS annual survey of wholesale growers of floral and nursery crops now only covers 15 states, the USDA-ERS has discontinued its annual Situation and Outlook reports, and The Census of Agriculture and the Census of Horticultural Specialties are conducted only every five years.  A multi-state collaborative effort is imperative because these issues are simply too comprehensive for any single researcher to adequately address alone and since state budgets for many land-grant institutions have been cut dramatically in recent years.  These collaborative efforts enable the research team to more effectively utilize constrained research dollars in a synergistic fashion. Moreover, since limited granting programs are available to conduct research in this area, the research collaborations (and teams formed) by these multi-state efforts will enable the research teams to more effectively compete for grant dollars.   Furthermore, the need to have a multi-state project in place with members already working on firm profitability that can rapidly respond to industry issues (e.g., the impact of Coronavirus on industry profitability, weather damage, and labor shortages, etc.) is critical and essential.