Brief Summary of Minutes of Annual Meeting

Numerous articles, bulletins, and other publications were completed as work progressed on the four major project objectives: (1) evaluate alternative green industry plant production, establishment, and maintenance systems, (2) evaluate the regional competitiveness within the green industry, and (3) evaluate the demand for green industry plants, materials, and services, and (4) evaluate the effectiveness of
alternative merchandising techniques. The unique multi-disciplinary blend of horticulturalists and agricultural economists continue to provide innovative and thorough analyses and collaboration. The committee includes representation from 22 states, with 12 of these states being outside the Southern region. This national membership has evolved because of the relevance of investigating the production,
marketing, and economic impacts of landscape plants within and across plant hardiness or climatic zones, rather than state or regional boundaries. Progress is reported under the appropriate project objective.

Objective 1: Evaluate alternative green industry plant production,
establishment and maintenance systems.

The economics of various types of roadside vegetation strategies are being studied with 34 pilot plots throughout Delaware in a program entitled Enhancing Delaware Highways. This research is geared to finding alternatives to annual wildflower plantings that meet with public approval and are eonomically feasible for departments of transportation. Pilot plots are used to test establishment and maintenance techniques. Costs associated with all aspects of installation and maintenance are tracked to provide an economic comparison of vegetation strategies. Pilot plots will also provide photographs for a public opinion survey to be conducted in 2003. The first draft of a Roadside Vegetation Concept Manual was submitted to DelDOT in December 2001.

Forsythia x ‘Meadowlark‘, and daylily ‘Catherine Woodbury‘ were used to evaluate the plantability of 2.3 L untreated and Cu-treated (2400 mg Cu/ kg fiber dry mass (DM)) fiber pots that had either slit or hole wall openings. Slit and hole wall openings of equal area (2.85 cm2) were either 3 or 6. Plants of each taxon were planted, with the pot remaining on the rootball, into either a Hagerstown silty clay loam
field for 17 and 63 wks or into a 10.8 L plastic pot for 14 and 52 wks (Repot-in-a-Pot trial). Irrespective of trial and taxon, planted untreated fiber pots decomposed or softened quickly; however u-treated pots (CTP) did not. Roots grew profusely through untreated pot (UP) walls, but not through CTP walls where root growth was exclusively through wall openings. In the field trial, forsythia rooted through CTP openings the fastest. At 17 and 63 wks, 44 % and 43 % fewer forsythia large roots exited CTP than UP. Average shoot dry mass of forsythia in CTP was significantly less than UP at 17 wks, but not at 63 wks. At 17 and 63 wks, 90 % and 92 % fewer large daylily roots exited from UP than CTP. Avg shoot dry mass of daylily in UP and
CTP differed significantly at both harvests. Among the wall opening treatments of CTP, both taxa exhibited a trend of increasing shoot dry mass and number of larger roots with increasing number of wall openings. Irrespective of taxon, the average number of large roots the Cu-treated control pots (having only drainage holes)frequently differed from the 6 hole and 6 slit treatment and less frequently differed significantly from the 3 hole and 3 slit treatment. Average shoot dry of forsythia, in contrast to daylily, did not differ among the wall opening treatments of CTP.

In the Repot-in-a-Pot pot experiment, at 14 and 52 wks, forsythia CTP
averaged 63% and 65% fewer large roots and had average root dry mass outside fiber pots that averaged 27% and 25% less than forsythia in untreated fiber pots. Average shoot dry mass did not differ between forsythia in CTP and UP at 14 wks shoot dry mass at 52 wks missing). Similarly, at both harvests daylily in CTP averaged 72% and 80% fewer large roots and had average root dry mass outside fiber pots that averaged 68% and 83% less than daylily in untreated fiber pots.
Similar to forsythia, differences in average shoot dry weights of daylily CTP were not significant at 14 wks; however they were significantly different at 52 wks. Both taxa in CTP exhibited trends of increasing average number of large roots and root and shoot
dry mass as the number of wall openings increased. At both harvests the avg number of daylily and forsythia large roots exiting the Cu-treated control pot (drainage holes only) had significantly fewer roots than 75% of the slit and hole wall opening treatments of the CTP. At 14 wks, average daylily or forsythia root dry mass outside
of the control pots were significantly less than the 6 slit and 6 hole treatment of CTP. At 52 wks, these differences remained for daylily, but not forsythia. With one exception, average shoot dry weights did not differ among the wall opening treatments at 14 wks for forsythia and at both harvests for daylily.

Objective 2: Evaluate the regional competitiveness within the green
industry.

Analysis of survey data collected from nurserymen in several states continues to be a productive area. The descriptive data from three nationwide nursery surveys continues to be examined. The importance of mass merchandisers as an outlet increased from 18.8% of all wholesale sales in 1993 to 22.1 percent in 1998. Sales to garden centers dropped from 26% in 1993 to 18.6% in 1998, and the other retailer category declined as well. This confirms that growers are facing a significant change in the competitive infrastructure as these large retailers exert their market power in the marketplace. For shares of production in specified plant categories, there were minor changes in the leading categories between 1993 and 1998. Deciduous trees and the combination of the road-leaved evergreen shrub/azalea categories each amounted to a little more than 13% of production. Root packaging was dominated by the container category, particularly in the south. The balled-and-burlapped method was the only other significant category, and is more important for woody ornamentals in cooler climatic zones. Consumers attitudes toward a new dogwood tree that is resistant to powdery mildew were collected at two locations in Tennessee, one in Michigan, and one in Mississippi. The primary goal was to determine the additional amount consumers would be willing to pay for such a dogwood. Results indicated consumers willingness to pay more for five feet, one-inch caliper trees in a five-gallon container, which typically retails around $55 to $60, ranged from $11.87 in Mississippi, $13.91 in Nashville, $14.58 in Knoxville, and to $16.78 in Michigan.

A study has been completed that investigated the most important factors affecting profitability in the greenhouse industry. A publication has been generated, reviewed, and is ready for publication as a regional bulletin. Another study is underway that is investigating the economic effect of landscaping on residential home valuations. It is theorized that landscaping adds value to the home value that is much greater than the actual cost of installation. A standardized image assessment survey instrument has been developed for retail garden centers to determine their image relative to competitors. This analytical survey tool has been used at several regional sites, which will help determine the general trends impacting the industry at the retail level. An update of the publication entitled "Economic Impact of the Green Industry in Texas" has been completed. This publication provides an overview of the relative economic contributions of the grower, landscape, and retail sectors. The Texas portion of the National Nursery Industry survey has been analyzed and reported in a departmental publication. The Texas data was also included in a regional publication published recently.

A preliminary business analysis instrument was designed in Excel format and tested it with two greenhouse operations in Upstate New York. The business analysis instrument was demonstrated at the Cornell Greenhouse Advisory Board meeting and the Cornell Farm Management retreat to solicit input. Project leaders gave presentations on the importance of financial management and demonstrated the business analysis project at numerous extension education programs and extension in-service workshops during fall and winter 1999-2000. Promotional brochures were printed and sent to New York greenhouse businesses and extension colleagues to recruit greenhouse participants during the period of November 1999 to February 2000. NYS Department of Agriculture and Markets printed promotional brochures and mailed them to all registered greenhouse growers in New York in June 2000.
Information about the project is posted at the Cornell Horticultural Business Management and Marketing Web-site at http://aem.cornell.edu/special_programs/hortmgt/index.htm. Program leaders and local extension specialists visited greenhouse businesses to gather business information on a standardized worksheet. This confidential information was then processed and analyzed by the program leaders using the business analysis instrument in Excel format and a computer database program developed for this program. A total of 30 greenhouses from around New York State participated in the 2000 business summary program.

Market channels changes in the Louisiana nursery industry were analyzed. To predict channel use, a model estimated proportion of sales through channels as a function of market-oriented variables. Generally, models were inconclusive regarding the importance of explanatory variables. For market channel comparisons, 1998 survey
was compared 1988 and 1993 data using ANOVA, and comparing La. To other Gulf States. Large and small Louisiana nurseries have increased the proportion of sales to re-wholesalers and retailers at the expense of sales to landscapers, while proportions changed little in other states. Conjoint analysis is being used to determine relative importance of landscape attributes as measured by values consumers say they would be willing to pay for these distinct products (home and
specific landscape), and by part-worth utilities measured by regression parameters. Customers visiting 5 retail nurseries rated 18 poinsettia cultivars based on personal preference and asked to provide demographic information. Seventy-six percent of 109 participants were female and 24 % were male. The average age was 45 years, average years of formal education was 16 and 90% purchased poinsettias the
previous year with an average purchase of 5 poinsettias per year. Ninety-six percent purchased red, 29% white, 30% pink and the remaining other colors. Freedom Red received the highest rating regardless of bract color and was the highest rated among red cultivars, however, all other red cultivars were rated good to excellent. Festival Rose was the highest rated pink cultivar while  Pepride Marble and Plum Pudding were the highest rated novelty cultivars. Poinsettia buyers had a higher household income and were older than non-buyers. Five percent reported buying only non-red cultivar and all female with 2.4 more years of education and a higher
household income.

Research was conducted to examine the financial structure of the ornamentals nursery and floriculture products sector using annual sales data for 398 firms. For comparison purposes, data for the top 41 firms was collected for the ornamental floriculture and nursery products industry and for the poultry industry, another prominent Southern agricultural industry. When the top 398 firms (each representing more than $2 million in annual grower receipts) in the ornamental floriculture and nursery products sector were examined, the top firm had 6.3% market share, followed by the next four firms having 4.9%, 4.8%, 3.8%, and 2.9% market shares, respectively, of the aggregate sales for the 398 firms. These five firms accounted for
about 22% market share; the top 25 firms accounted for 41.66% market share; the top 50 firms accounted for 51.27% market share; and the top 100 firms account for 64.29% market share. These numbers overstate the actual market share, for if $11.4 billion grower receipts for 1997 are used the market share numbers change dramatically. For instance, the top firms market share dropped from 6.3% to 1.54%, with the next four firms having market shares of 1.20%, 1.19%, 0.93%, and 0.73%,
respectively, for a top five market share of 5.61% of the $11.4 billion market. Similarly, the top 25 firms, 50 firms, and 100 firms accounted for 10.22%, 12.58%, and 15.78% market share, with the 398 firms included in the sample accounting for a combined 24.54% market share.

Objective 3: Evaluate the demand for green industry plants, materials and services.

A subcommittee of S-290 revised and updated Establishing and Operating a Garden Center: Requirements and Costs. The manuscript has been submitted to NRAES for publication.

A study underway at Lousiana State University investigated how growers‘ allocations among the alternative market channels using an econometric model, and compared Louisiana to other gulf coast states in terms of shares of output going to marketing different channels.

Survey of home owners was taken in the spring regarding value of pest resistant plants. The survey was in cooperation with other states. The object was to determine whether a customer would be willing to pay more for a plant that had shown evidence of being more resistant to a specific pest or whether the market was limited by the traditional price for the species. If the customer is willing to pay more, plant
development individuals would be willing to select and introduce new plants with benefits when knowing their costs could be recovered. New plants could reduce pesticide use/or improve esthetic quality. To have a further understanding of the pricing structure in the nursery industry, data was collected on plant prices over time. Seven species were analyzed for their price trends over the past 125 years by
collecting data at five year intervals. Six firms, which had been in operation for most of the time period, were tracked. Data is being analyzed. A budget on the startup and operational costs of a small and large landscape firm were updated.

An Economic impact analysis of horticulture and other sectors of Florida agriculture were conducted using primary survey data and the Implan input-output modeling software. Market survey research for turfgrass, ornamental plants, and related horticultural products was completed. Research, client service, and extension education on business analysis for horticultural production was also conducted.
Training for growers and landscape service professionals on cost analysis and bidding was given. Maintaining an internet website on horticultural business management (hortbusiness.ifas.ufl.edu), and economic impact analysis (economicimpact.ifas.ufl.edu) was completed.

Objective 4: Evaluate the effectiveness of alternative merchandising
techniques.

Several Southern states, including Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, and Texas have implemented plant promotion programs. These programs havr goals of of identifying specific plants and generating awareness of these plants through state-wide marketing campaigns. Most of these programs were initiated during the early 1990‘s and have many similarities, including stated objectives of the program, governance and participation, and basic plant selection
criteria. The similarities cease with respect to costs incurred and how the programs are funded. Little documentation exists as to formal monitoring/oversight to see if the programs actually achieve their goals. Since additional states are considering adoption of state plant promotion programs, a synopsis of the various programs of a
few selected Southern states was accomplished using a survey instrument. Programs in Georgia, Kentucky, Mississippi, and Texas were compared as to name; establishment date; sponsorship; governance; goals; funding; plant selection criteria; selection announcement to industry; oversight, monitoring and feedback; and overall assessment. A grant from the Horticultural Research Institute was awarded to
investigate this in 2002.

A grant was obtained to study the impact of state marketing programs on ornamental plant sales. The grant was obtained from the Horticultural Research Institute (MS, GA, TX, TN, NC). Funding was obtained in November, 2001 and work is progressing. Investigations of service quality relative to horticultural businesses are planned
through survey research.

Surveys have been received and data compiled relative to the third national marketing survey regarding sales in 1998. Comparison of results from the three surveys conducted by members and associates of the of S-290 committee will be compared over the 15 years and could present adjustment trends in the location and type of buyers purchasing landscape plants from U.S. nurserymen. This market structure information could help industry participants when making
intermediate and long-run production or marketing decisions.

The S-290 committee continues to use innovative communication routes to communicate with clientele. Its World Wide Web Page (http://www.hcs.ohio-state.edu/s290) has been a highly effective tool to publish results. Both short reports to assist garden center mangers and owners and information from the previous national surveys on trade flows and marketing practices within the United States nursery industry are currently available over the WWW.

Current publications are in the publishing stage. They will be available on the S-290 and the CSREES website in PDF format.

Behe, B.K. 2001. Successful Sales Strategies. Michigan Certified Nursery Manual. Chapter 18, pages 1-5. Michigan Nursery and Landscape Association. Okemos, MI.

Behe, B.K. 2001. Displays: Your Silent Salesperson. Michigan
Certified Nursery Manual. Chapter 19, pages 1-4. Michigan
Nursery and Landscape Association. Okemos, MI..

Brooker, John R., David B. Eastwood, and Bill Klingeman, Added Value of a Powdery Mildew Resistant Dogwood, Proceedings of Research Conference, Southern Nursery Association, 45th Annual Report, 2001.

Hall, Charles R. and Melissa K. Jupe, "The Economic Impact of the Nursery Industry in Texas," Proceedings of Southern Nurserymens Associations Research Conference Forty-Sixth Annual Report, Volume 46, 2001.

Hall, Charles R., "An Image Assessment of Blooming Colors Nursery, Coppell, Texas," Texas Agricultural Extension Service, August, 2001.

Hall, Charles R. " The Economic Impact of the Green Industry in Texas," Final contract report for the Texas Nursery and Landscape Association, agecon.tamu.edu/faculty/hall/impact/impactstudy2000.html, January 2001.