Nursery and Greenhouse Industry Statistics

Nursery and Greenhouse crop production is not a small alternative crop industry in North Carolina any more. The Nursery and Greenhouse industry is the most rapidly growing segment of agriculture nationally and in North Carolina. Nationally, farm receipts have increased approximately 5% each year and in 1998 had reached approximately $55 billion dollars to rank fifth among commodity groups. North Carolina is ahead of the national pace with the most dramatic increase in the U.S. during the 1990's decade. According to North Carolina Department of Agriculture, the Nursery and Greenhouse Farm Receipts for 1997 were $943,050,000 and 13.4% of all farm receipts in comparison to the leading North Carolina crop, tobacco which was 13.9%. USDA statistics indicate that North Carolina's greenhouse and nursery industry currently ranks third nationally for nursery / greenhouse farm receipts.
North Carolina is currently increasing in population by 287 people per day( New and Observer, Raleigh, N.C. 12/99). This expansion in population pushes new building starts, stimulates the economy and drives demand for environmental / landscape crops and services. As long as this economic trend and population influx continues there would be no expected changes demand for nursery and greenhouse products. However, the major expansion in the industry is coming from within current businesses. Considerable expansion in nursery container production acreage occurred in 1999. Field grown nursery businesses are not expanding as rapidly as container crop acreage.
Marketing of environmental landscape crops is complex. Over 3000 different crops could be considered for production by nursery and greenhouse businesses. The species / crops produced, the size grown and the number of each crop, have a great influence on targeting market strategies. Propagation nurseries and nurseries who produce woody ornamentals in small containers including quarts, 1 , 3 and even 5 gallon containers crops may primarily sell to other nurseries who need liner materials for growing larger sized crops. Other primary markets for small container plants are retail garden centers, mass-merchandise centers and professional landscapers. Landscapers frequently prefer larger sized woody ornamentals, but will buy color/bedding plants, perennials and ornamental grasses in smaller containers. Usually a grower must produce large quantities of crops to consider selling to mass-merchandise retail centers. Largest container crops usually grown are 15 and 25 gallon containers A 25 gallon tree generally would not be larger than 2.5 inches in caliper. Larger landscape plants are usually are field grown crops. Large sized landscape plants frequently are sold to professional landscapers and to re-wholesale nurseries that sell to professional landscapers although some larger containerize crops are sold to retail garden centers. An alternative for some growers is to sell crops through sales agents and brokers which allows them to concentrate on growing crops.
New growers will need to contact the North Carolina Department of Agriculture and Consumer Services, Plant Industry/Plant Protection Section before any crops are sold (919-733-0461) so they can be inspected and certified as insect and pest free. Wholesale nurseries are considered agricultural businesses and must therefore comply with many governmental laws, including Migrant and Seasonal Agricultural Workers Protection Act, federal minimum wage laws, and agricultural tax laws. Retail garden centers or retail sales are not considered agriculture. Professional tax and accounting assistance may be required by new nursery businesses. Other legal issues may include local laws on zoning and withdrawal of water from surface or ground water supplies. There is a state registration requirement for withdrawals that exceed over 100,000 gallons within a 24 hour period of water from surface or groundwater supplies (Division of Water Resources 919-715-5443) . If retention / irrigations basins are to be created for water supplies, seeking help from the local Soil and Water Conservation Office is strongly advised. Your county cooperative horticulture agent can assist in acquiring information on nursery and greenhouse facilities, layout / design of growing areas , irrigation systems, horticultural equipment / suppliers and professional magazines published for the nursery and greenhouse industries.