Michigan State University Extension
Ag Experiment Station Special Reports - SR609201
07/28/98
Robert E. Schutzki and Curt Peterson Department of Horticulture
INTRODUCTION
Landscape horticulture is a broad and complex
commodity. Its segments encompass traditional agriculture
crop production (trees, shrubs, ground covers and
herbaceous perennials); the utilization and management of
these products through landscape design, plant installation
and management services; and retail marketing and
distribution of plants and horticultural products to the
consumer. Retail distribution centers also provide an
educational service and are a direct link between the
producers and consumers. Consumers often rely on the
retail distributors for information on use, handling and
care of the horticultural plants and related products. The
overall impact of landscape horticulture enhances
environmental ecology and our quality of life. The fruits
of the industry can be evaluated through the aesthetic,
economic and environmental appeal of our communities. The
complexity and diversity of landscape horticulture has
placed it in the heart of agriculture production, yet
separate from traditional programs related to food and
fiber. In order to appreciate landscape horticulture and
the contribution it makes to the agricultural economy, one
must become familiar with its scope. The scope and
national status of the industry will be discussed as it
relates to production, landscape service and retail sales.
Production. Farm cash receipts for nursery production
are aggregated with greenhouse crops by the USDA Economic
Research Service. In 1988, cash receipts for the
greenhouse and nursery industry (excluding food crops grown
under cover, seeds, and Christmas trees) exceeded $7.6
billion. Nursery crop production accounted for $4.9
billion or 63% of total receipts. Aggregate cash receipts
in 1990 were estimated at $8.1 billion.
Nursery and greenhouse crop production represents one
of the fastest growth segments of agriculture. Cash
receipts have doubled since 1981 and recently account for
10% of all farm receipts. Nursery and greenhouse crops
rank seventh of all farm commodities. Nursery crop
production is estimated on 450,000 acres, employing nearly
102,000 during peak seasons.
Landscape service. Information on the impact of
landscape service on the agricultural economy is not
available from the USDA Economic Research Service. Only
recently have professional organizations begun to conduct
surveys to estimate economic worth. In 1989, the
Associated Landscape Contractors of America estimated that
73,000 firms or individual contractors were involved in the
landscape industry. Gross receipts were estimated at $30
billion for services and products. This figure was based
on maintenance contracting, design/build service,
interiorscape, and specialty service related to landscape
management. It does not include wholesale nursery stock,
related wholesale products or retail sales.
The composition of the industry has changed
substantially since 1975. Landscape maintenance firms have
doubled. Design/build and interiorscape also have
experienced expansion. Although the landscape contracting
industry is predominantly composed of small businesses (65%
under $500,000 gross receipts), the growth has spawned
sophistication in business practice.
Retail sales. In 1988, retail consumer expenditures
for landscape and gardening products were estimated at $33
billion. This figure did not include the sale of hard
goods or services. Expenditures increased to $45 billion
in 1990. This represents a 36% increase over the two-year
period.
A 1985 Gallup Organization Audit of Leisure and Sports
Activity ranked gardening as the number one outdoor
leisure-time activity of American households. Eighty-four
percent of American households (74 million) participated in
one or more garden activities. Increased interest in home
and property values, the age shifts in household ownership,
and increases in discretionary income have contributed to
the continual increase in retail horticulture sales. The
influence and buying power of the baby boomers, coupled
with a renewed interest in the environment, have impacted
growth throughout the entire industry.
MICHIGAN LANDSCAPE AND NURSERY INDUSTRY
Michigan has traditionally maintained a position
within the top ten nursery producing states in the country.
Aggregate reports of nursery and greenhouse crops by the
USDA Economic Research Service indicated that throughout
the 1960s Michigan maintained eighth position with 3.5-4.0%
of U.S. grower cash receipts. In the 1970s, its position
vacillated between sixth and seventh, with similar shares
of receipts. Michigan began the 1980s in ninth position
with 3.2% of total cash receipts; in 1988 it rose to sixth
position with the same share. California was the reported
leader followed by Florida, Texas, Pennsylvania, and Oregon
respectively.
In 1989, the USDA S-103 Regional Research Committee
conducted a study on trade flows and marketing practice
within the U.S. nursery industry. Participants in the
study represented 75.6% of total U.S. nursery farm cash
receipts. The Michigan nursery industry reported gross
cash receipts of $142 million, with 2.9% of U.S. totals.
When cash receipts from Michigan farm products were ranked
and compared with U.S. totals in 1990, nursery and
greenhouse crops were ranked fourth, behind dairy products,
corn, and cattle/calves, with a $264 million value.
Nursery crops ($140 million) alone would have ranked sixth
in comparisons.
The number of nursery production operations rose from
627 in 1978 to 662 in 1987. The increase in operations was
coupled with a 17.3% increase in field acres (from 10,468
to 12,176) and an 88.1% increase in square feet under
protection (3,767,878 to 7,104,974).
A 1990 study divided markets for Michigan nursery
stock into three categories: rewholesale, retail outlets
and landscape trades. Michigan distributed 17.6% of sales
into the rewholesale market, 48.0% into retail outlets
including mass marketers and garden centers, and 34.4% to
landscape sales. Wholesale trade information indicated
that 63.8% of Michigan sales were in Michigan markets.
Michigan also supplied markets in Illinois (10.1%), Indiana
(6.5%), Ohio (6.2%), West Virginia (6.1%), Missouri (3.7%),
Minnesota (2.3%). Approximately 0.4% was involved with
export. Major states shipping stock into the state
included Pennsylvania (14.0%), Ohio (13.8%) and Oregon
(12.0%).
Trade for Michigan retail nurseries and lawn/garden
supply stores was reported in the U.S. Department of
Commerce 1987 Census of Retail Trade Geographic Area
Series, Michigan. The census reported on 436
establishments. Sales were estimated at $297 million.
The estimated worth of landscape services in the
Michigan agricultural economy is difficult to predict. The
Michigan Nursery and Landscape Association, in conjunction
with the Michigan Department of Agriculture and the
Michigan State University Department of Agricultural
Economics, is in the process of collating data from an
industrywide survey. MDA-registered nursery licensees were
surveyed in the fall of 1991. Results of the survey will
identify businesses that produce and sell nursery products,
landscape contractors, and retail distributors. Gross
sales will be reported for 1990 as well as the percent of
sales attributed to nursery (wholesale and retail),
landscape service (design/build and management), and garden
center (living plant material and hard goods).
Ohio and Oregon had completed industrywide surveys in
1988. The scope of the industry in these two states is
similar to Michigan. Ohio reported industry economic worth
in excess of $1.25 billion. The Oregon survey estimated
the economic impact of the nursery and landscape industry
between $1 and 1.2 billion. The results of the Michigan
survey will aid in estimating economic worth and will be
important in directing future industry expansion and
development. The Michigan Nursery and Landscape
Association worked with the vegetable and fruit commodity
groups within the state to include their respective
commodity statistics in the Michigan Agricultural
Statistics Report. A three-year rotational survey was
established with fruit statistics to be reported in 1991-
92, vegetables in 1992-93, and landscape/nursery in 1993-
94.
Nursery licensees registered with the Michigan
Department of Agriculture currently total 6123
individuals/companies involved in production and/or sales.
MDA Nursery License Categories
Registered
Acres
General nursery (growers) 1,539 10,582
Dealers (nongrowers, buy & sell) 3,360
Plant growers (herbaceous perennials) 428
1,384
Plant dealers (nonwholesale perennials) 796
Total Licensed 6,123
Total Acres 11,966
Landscape contractors are included in the dealer
license category. Plant inspection fees are collected by
the Michigan Department of Agriculture for all categories.
SALIENT TRENDS
Several events influenced developmental changes in the
landscape horticulture industry during the 1970s and 1980s.
These included environmental awareness, OPEC oil embargo,
rising inflation, double-digit interest rates, the passage
of the Occupational Safety and Health Act, and the
formation of the Environmental Protection Agency.
Environmental awareness became the most influential
movement to impact the industry. Environmentalism fueled
growth in landscape development. Public agencies enacted
site plan review ordinances which established minimum
landscape standards on public and private development. The
demand for landscape development increased on both
commercial and residential properties. The surge in
development sparked an expansion in landscape maintenance
contracting. Many companies had survived the depression in
new construction because of stability in maintenance
contracting. Landscape maintenance continues to be a major
profit center in landscape horticulture. The increased
discretionary incomes of the baby boomers coupled with less
discretionary time, has led to the demand for management
service.
Interiorscape emerged in the 1970s as a significant
growth segment in the contracting industry. Northern
garden centers increased foliage plant inventories and
expanded sales into the winter months. Florida foliage
producers tripled sales volume between 1971 and 1976.
Several conglomerates entered the nursery industry in
the 1970s. Large-scale growing methods, mechanization and
vertically integrated distribution systems entered
production operations. Nationally, nursery production and
sales increased at an overwhelming pace during the decade,
from $283.6 million in 1970 to $1.15 billion in 1982.
Environmental concerns led to the development of the
Environmental Protection Agency. Closer evaluation of
chemical use in agriculture resulted in the elimination
and/or restriction of previously labeled products. New
regulations changed business operations in each segment of
the industry.
The mid- to late-1970s was a period dedicated to
efficiency, innovation and professionalism in the nursery
production trade. Growers, in cooperation with the MSU
Department of Horticulture faculty, evaluated container and
field production techniques, such as bark/peat media, slow
release fertilizers, overwinter protection, chemical weed
control, trickle irrigation and micropropagation
technology.
The early 1980s were disastrous for the landscape
horticulture industry. High inflation rates led to a
recession that undercut demand. The conglomerates were
reconsidering their commitments. Large volumes of low-
priced container stock were placed on the market. Many
growers reduced prices, while others destroyed excess
plants.
In 1982, the cycle bottomed out. Economic recovery in
1983, as well as the catastrophe of two southern freezes,
reduced the oversupply. Increased demand provided a
booming postrecession business, particularly in the
landscape trade. By 1985, supplies of the larger landscape
sizes were scarce nationwide. Record production in 1986
and 1987 temporarily raised suspicions of another glut,
however the midwest drought in 1988 eliminated the
potential threat. A steady demand for larger landscape
plants continued to tighten the market.
Popularity in herbaceous perennial plants rose on the
coattails of economic recovery. Consumer interest in the
variety of perennials sharply increased. The landscape
design/build segment of the industry was using more
perennials in projects. Retail distributors were stocking
greater numbers and a wider selection than in previous
years. The increased demand was met by both expansion of
existing production facilities and an increase in number of
producers. The surge in interest by producers, contractors
and retail distributors led to the formation of the
Perennial Plant Association in 1983. Herbaceous perennial
plant production and landscape utilization became the
important growth areas in the 1980s and will continue
expansion in the future.
Pesticide scrutiny continued to limit or prevent use
of many agricultural products. As a result, integrated
pest management (IPM) shifted from the experimental phase
into practice. Reduced costs per acre instigated shifts in
production operations.
Labor issues surfaced in the 1980s. Population shifts
and declining enrollments in landscape horticulture
programs inspired new recruiting and public relation
programs. The 1986 Immigration Reform and Control Act
directed attention toward the importance of field
employees.
A random search of higher plants for novel cancer
chemotherapeutic agents initiated by the National Cancer
Institute (NCI) resulted in an exceptional product, taxol,
from Taxus brevifolia, for the treatment of breast, ovarian
and a series of other human cancers. Research thus far has
identified and quantified levels of taxol within a wide
selection of species, hybrids and cultivars of Taxus.
Michigan is the leading producer of ornamental Taxus in the
United States. Taxus production includes propagation of
seedlings, rooted cuttings, and finished plants for sale to
the retail and wholesale landscape trades. Taxus
production is found throughout the state and contributes
significantly to the Michigan nursery and landscape
economy. Processing of clippings and the harvesting of
plants for taxol is an expanded market for Michigan
nurseries as well as an important resource in the fight
against cancer.
Finally, as the 1980s ended, the industry started to
market its products as professionally as it produced them.
Fall promotions, association marketing programs, bar
coding, and many new customer services were instituted.
Retailers experimented with diversification and
specialization as ways to attract consumers wanting more
than mass merchandisers offered. Landscape construction
contractors expanded into maintenance. Rewholesale
businesses became an integral part of the industry's
distribution system.
ASSUMPTIONS FOR THE 1990s
The 1990s offer opportunities and challenges for the
landscape and nursery industry. Social trends and consumer
attitudes are causing a shift from the traditional
producer-led market to a consumer-driven market.
Urbanization, development of smaller properties and
multifamily units, two-income families, and an increased
demand for renovation of existing properties will drive
expansion in all segments of the industry. Business
success will be judged on the ability to respond to
consumer demands for products and service. Consumers are
more environmentally conscientious. Timothy Rostan,
American Nurseryman, outlined the results of a Chicago
Tribune poll indicating that 76% of Americans consider
themselves to be environmentalists. The ecoconsumer will
demand a high quality and a broader selection of products.
Landscape design/build and maintenance services also will
be sought by this educated consumer.
Environmentalism will have a pronounced influence on
business operations. It will direct legislative policies
on land development, water quality and consumption, waste
management, and pesticide regulation.
Land Development
Legislation on land development and reclamation has
focused on environmental issues. Wetland and dune
preservation are two examples where legislative policies
have directed residential and commercial development. In
each situation, the focus is on protecting and/or managing
the ecosystem. As a result, the industry has seen a demand
for native plant materials. Nursery operations have begun
producing plants specific to sensitive natural ecosystems.
Water Quality and Consumption
The reauthorization of the Clean Water Act and the
Safe Drinking Water Act will dictate water quality and
quantity regulations. Much of the attention given to water
pollution since the adoption of the Clean Water Act has
focused on point source pollution. As attentions
broadened, the agriculture industry was identified as a
potential source of nonpoint pollution. Greenhouse and
container nurseries have become proactive in developing
containment systems which control waste water discharge
into the environment, as well as addressing concerns about
consumption.
Groundwater protection has also risen as a major
factor in responsible water management. Nitrate
contamination of groundwater supplies has led to
modification of agriculture management practice.
Monitoring groundwater for fertilizer and pesticide
contamination will lead to further improvements in the
delivery of agricultural chemicals. Whether government or
industry initiated, strategies to maximize cultural
efficiency with little or no environmental implication must
be continually explored.
Water consumption remains an underlying concern of the
industry. Programs to address this problem tend to be
reactionary. Most of the country uses California as a
guide to determining consumption regulations. Agriculture
in the Midwest reacts during periods of drought. The
landscape and retail merchandisers in urban areas tend to
be especially vulnerable to drought-imposed restrictions.
The industry needs baseline information on plant
requirements to develop more efficient use of water
resources. Technological advances in monitoring and
delivery systems should be the basis for developing water
use strategy. Strategies need to be tailored to the
specific requirements and plant performance standards in
each of the industry segments.
Waste Management
Waste disposal issues have also caused recent changes
in operations. The Environmental Protection Agency has
established goals for solid waste management that include
source reductions, recycling, incineration and burial in
landfills. Landfill and open burning regulations have
impacted the disposal of organic wastes. Public agencies
and private business have initiated composting and
recycling programs. Organic wastes are being used in both
nursery production and landscape operations. State
agencies have begun to establish testing policies for
composted products. Research is needed to develop
container media specifications with added composted
materials and to explore other markets for horticultural
wastes. Plastics are also posing a disposal problem. The
reuse of containers, in addition to the limited use of
nonrecyclable plastics, will shrink waste. However, the
container industry presently relies on polyethylene films
for overwinter protection. There is a need to develop
environmentally sound yet economic alternatives to present
plastic materials. The landscape and nursery industry has
a history of recycling waste. Bark from the forest
industry, expended railroad ties, and broken concrete are
a few examples of materials which are used in nursery
production and landscape development.
Pesticide Regulation
The regulation of agricultural chemicals and their
commercial use in the landscape will continue to generate
public and political attention. Michigan Public Act 637
will dictate procedures for commercial applicators.
Research into integrated pest management practices is
critical to reducing the chemical dependency of all
segments of agriculture. This is particularly true for
landscape management services, which are in constant public
view.
The landscape and nursery industry is concerned that
the groundswell of public pressure for pesticide regulation
is preventing proper review of the effectiveness of
existing legislation.
Labor
A labor shortage will affect the landscape and nursery
industry, as it does other segments of agriculture. The
industry is lacking a labor pool of trained individuals.
In many areas, businesses are competing with the fast food
and restaurant industry for unskilled labor. The
seasonality of operations has also limited interest in the
industry, however, many companies have diversified in order
to offer year-round employment. The industry places a
priority on education. Training programs are needed to
provide basic information for individuals entering the
industry without any prior experience or formal education.
Michigan State University must take the lead in organizing
outreach programs to serve the nontraditional student.
PROJECTIONS TO THE YEAR 2000
Many challenges face the nursery and landscape
industry in the next century. Land development trends will
have trickle-down effects on landscape and nursery markets.
Changes toward high density and multifamily residential
units will increase the demand for small-scale landscape
projects and personal service. The two-income families
will result in more disposable income with less leisure
time, further creating demand for quality service. This
population will create market demand for new plant
materials. Plant selection will go beyond traditional
aesthetic characteristics. Improved native selections and
introduced cultivars must exhibit stress tolerance, low
maintenance, and pest resistance. The industry must
continue to promote the value of plants and their
ameliorating influence on the quality of life.
Consumer-driven markets will be the prevailing
influence over business operations. Market surveys and
accurate consumer projections will aid in directing
business decisions at all levels. Current and future
economic climates will require the sophistication of
business management skills and creativity in marketing.
The incorporation of new technologies and
mechanization into production and landscape operations will
control rising costs and maintain market positions.
Concerns with our environment will continue to govern
landscape and nursery practice. The environmental
sensitivity of the landscape and nursery industries will
bolster their image as environmental stewards.
NEEDS FOR ACTION
The industry must establish its political position in
both the agriculture and the urban arenas. For the past
six years, the Michigan Nursery and Landscape Association
has aggressively sought to create the Michigan Landscape
and Ornamental Plant Council. The proposed legislation
would establish the council through an increase in the
Michigan Department of Agriculture nursery licensing fees.
The revenue generated from the council would fund research
and promotional projects for production, landscape
design/build, retail distribution and consumer education.
Public Act 232 used by the traditional agricultural
commodities would not fit the structure of this
multicommodity, multifaceted industry. Efforts to
establish the council were thwarted by three special
interest groups, two of which are outside of agriculture.
The lobbies representing the Merchants Council and the
Michigan Grocers Association commented that promotion of
plants would only benefit growers, and that Michigan State
University is already receiving state support to conduct
research in this area. The Michigan Farm Bureau only
supports councils established through Public Act 232.
Public Act 232 does not cover the diversity in crops or
business operations within the nursery, landscape and
garden center industry. The industry needs to be
recognized as a viable segment of agriculture and given the
political assistance to establish legislative programs to
insure its economic and environmental sustainability. The
economic vitality of the nursery and landscape industry has
added benefits to the labor market, equipment dealers and
material suppliers.
ECONOMIC
Federal and state governments must become familiar
with the economic impact of the industry. Annual
statistical reporting should be extended to this segment of
agriculture. The volume of cash receipts for nursery crops
and its rank in relation to other farm commodities
justifies its annual inclusion in the Michigan Agricultural
Statistics Report. Market research and analysis, as in
other agricultural commodities, is needed to capitalize on
market trends. Labor policies, pesticide regulations and
increased energy costs are a few factors leading to rises
in the gross marginal cost of doing business. Cost
analysis research is needed to evaluate the efficiencies of
production and distribution systems.
CONSUMER EDUCATION
The landscape and nursery industry is a direct link
among agriculture, the environment and the urban
population. Public relations programs are needed to
promote the interrelationship. Educational programs should
focus on the transfer of technology from researcher to both
producers and consumers. The benefits of advances made by
the Michigan research community should be promoted at the
consumer level. This will result in a more informed
population on agricultural and environmental issues. The
"greening" of Michigan has its roots in the landscape and
nursery industry.
PLANT INTRODUCTION AND EVALUATION
Selection and evaluation of new and improved plants
are priorities of the landscape and nursery industry.
Concerns are for the identification of aesthetically
desirable species and the characterization of their
adaptation to the diverse climatic and soil conditions
found in urban, suburban and rural landscapes. The
characterization of morphological and physiological traits
assures a return on the long-term investment in woody plant
production and performance in the landscape. Problems such
as cold hardiness, drought and flood tolerance, temperature
adaptability, insect and disease resistance, and variations
in ornamental traits have been associated with limitations
in adaptive capability. Research will provide the basis
for management technique and landscape use.
INTEGRATED PEST MANAGEMENT
Integrated pest management (IPM) programs are needed
for plants in production and landscape systems.
Information about plant care, as influenced by insects,
diseases and cultural practice (crop spacing, irrigation,
fertilization and pruning), is needed to achieve effective
pest control. Investigations on the use and mode of action
of biological agents are also needed to effectively develop
management strategies. The dependence on chemical control
of plant pests will decrease as intensified research
efforts lead to new insights on the mechanisms of
resistance.
MECHANIZATION AND PRODUCTION SYSTEMS
New technologies in mechanization and material
handling need to be incorporated into nursery production.
Mechanization of field and container operations can lead to
the more efficient use of labor. Research must reevaluate
fertilization and irrigation programs according to crop
performance requirements and environmental impact.
Advances in water delivery, recirculation and management
systems will address environmental regulations on water
consumption and wastewater discharge. Controlled
atmospheric storage (temperature and humidity) systems are
needed for improved storage of bare-root herbaceous and
woody plants. New developments in spray technology will
improve the delivery of agricultural chemicals.
TRANSITION HANDLING AND LANDSCAPE ESTABLISHMENT
Production is a relatively controlled environment
compared to the fluctuating conditions during harvest,
shipping and storage. Postproduction concerns tend to
focus on the alleviation of environmental stress during
transition handling and reestablishment of plants in the
landscape. Environmental stress leads to the deterioration
of container and field-grown plant quality at rewholesale
distribution and retail centers. Research on water
management and fertilization are needed to maintain plant
quality during this transitory period.
Urban and suburban site limitations are usually caused
by poor soil conditions. Proper site preparation and
planting specifications are crucial to the initial
establishment and long-term development of landscape
plants. Planting specifications need to address potential
differences in soil physical properties among the plant
soil ball, the planting backfill and the existing site.
The characterization of soil water movement across
divergent soil textures and its implications for irrigation
scheduling is the basis for tailoring specifications to
individual site conditions. Research on plant
establishment continues to be a concern of landscape
contractors on commercial sites.
Water use, surface runoff management, fertilization
and pesticide application tend to be the major concerns of
landscape management professionals. These individuals are
usually concentrated in population centers. Governmental
regulations and public scrutiny necessitate timely
technological advances in cultural practice and equipment
operations.
VALUE ADDED MARKETS
The industry must transcend traditional markets and
explore diversification and alternative uses of ornamental
plants and plant products. The landscape and nursery
markets are dependent on discretionary income. Economic
climate impacts the dollars spent on landscape and nursery
products. Nontraditional value- added markets will aid
financial stability during lows in the economy. Recent
advances in natural products chemistry have identified the
anticancer activity of taxol, an extract from the genus
Taxus. Concentrations of the chemical have been extracted
from several cultivated species. Michigan is the largest
producer of cultivated Taxus in the United States, if not
the world. Michigan should capitalize on the opportunities
for the nursery industry and other related industries.
CONCLUSION
The Michigan landscape and nursery industry is a
multifaceted commodity within agriculture. It spans
production, landscape contracting and retail distribution.
Nationwide, landscape/nursery and garden center industries
are the fastest growing segments in agriculture, with
double digit annual growth projected throughout the 1990s.
The landscape and nursery industry not only contributes to
the economic welfare of Michigan, it maintains and enhances
environmental quality. Its competitiveness as a viable
part of agriculture depends on the concerted efforts of the
Michigan legislature, Michigan research and education
institutions and industry members.
The Status and Potential of Michigan Agriculture was
extremely valuable, not only in documenting the future
needs of this industry, but also through encouraging self-
examination. Both the ndustry and the Agricultural
Experiment Station examined where we are and where we have
been. Together, we have charted a path for the future. At
the conclusion of the workgroup session, several questions
were raised by the industry review team.
How are the nursery, landscape and garden center industries perceived within the agricultural community?
How are the nursery, landscape and garden center industries perceived by the MSU College of Agriculture and Natural Resources administration?
How do we define commitment, both in terms of the industry's commitment to MSU and MSU's commitment to the industry?
How can we build upon the exchange fostered by this exercise?
The answers to these questions will take time. The
Agricultural Experiment Station has provided the catalyst
for the future vitality and environmental sustainability of
the industry. The Status and Potential of Michigan
Agriculture has fostered a working relationship between MSU
and the agricultural community-- a relationship that will
guide research efforts into the year 2000. Agriculture
faces many challenges in the coming years. The ornamental
and recreational plant industries are prepared to provide
the link among agriculture, the environment and the urban
populations.
SUMMARY
Landscape horticulture is a broad and complex
commodity. Its segments encompass traditional agriculture
crop production; the utilization and management of
agriculture products through landscape design, construction
and management services; and retail marketing and
distribution of products to the consumer. The complexity
and diversity of landscape horticulture has placed it in
the heart of agriculture production, yet at the same time
separate from traditional programs related to food and
fiber.
Nationally, nursery and greenhouse crop production
represents one of the fastest growth segments of
agriculture. Cash receipts have doubled since 1981 and now
account for 10% of all farm receipts.
Michigan has traditionally maintained a position
within the top ten nursery producing states in the country.
In 1990, cash receipts from nursery crops were estimated at
$140 million. Trade for Michigan retail nurseries and
lawn/garden supply stores reported in the U.S. Department
of Commerce 1987 Census was estimated at $297 million. The
estimated worth of landscape services in the Michigan
agricultural economy is difficult to measure. The Michigan
Nursery and Landscape Association, in conjunction with the
Michigan Department of Agriculture and the Michigan State
University Department of Agricultural Economics, is in the
process of collating data from an industrywide survey.
Many challenges face the nursery and landscape
industry in the future. Land development trends will have
trickle-down effects on landscape and nursery markets.
Changes from production to consumer-driven markets will be
the prevailing influence over business operations. Current
and future economic climates will require the
sophistication of business management skills and creativity
in marketing. Concerns with our environment will continue
to govern landscape and nursery practice. The
environmental sensitivity of the landscape and nursery
industries will bolster their image as environmental
stewards.
The industry must establish its political position in
both the agricultural and urban arenas. Federal and state
governments must become familiar with the economic impact
of nursery production, landscape service and retail
distribution. The landscape and nursery industry not only
contributes to the economic welfare of Michigan, it
maintains and enhances environmental quality. Its
competitiveness as a viable part of agriculture depends on
the concerted efforts of the Michigan legislature, Michigan
research and education institutions and industry members.