USDA : Floriculture and environmental horticulture yearbook, 6.14.02
USDA U.S. Department of Agriculture - June 14, 2002
FLORICULTURE AND ENVIRONMENTAL YEARBOOK -- June 14, 2002
May 2002, ERS-FLO-2002
Approved by the World Agricultural Outlook Board
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This SUMMARY is published annually by the Economic Research Service, U.S.
Department of Agriculture, Washington, DC 20036-5831. The complete text of
FLORICULTURE AND ENVIRONMENTAL YEARBOOK (ERS-FLO-2002) will be available
about 2 weeks following this summary release.
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Summary
Floriculture and Nursery Sales Barely Increased in 2001
Grower cash receipts from sales of floriculture and nursery crops continued to
rise, but at a much slower pace, reaching $13.3 billion in 2001. Of this amount,
close to two-thirds, or 64 percent, are accounted for by sales of nursery crops.
The other 36 percent are from floriculture crops. Including net trade, U.S. per
household consumption of floriculture and nursery crops was $133 in 2001, or $50
per capita. Total domestic consumption of both crop groups was $14.2 billion in
2001 based on the wholesale value of sales and net imports.
The U.S. economic recession in 2001s third quarter left the value of
floriculture and nursery crops essentially flat from 2000. After healthy gains
in the late 1990s through 2000, when the domestic economy was booming, grower
sales of nursery crops declined in 2001. Nevertheless, increased sales of potted
flowering plants, foliage plants, and bedding and garden plants boosted overall
floriculture sales, offsetting nursery crops decline. Sales of cut flowers also
fell in 2001, reflecting their sensitivity to increased unemployment and weak
economic activity.
Western States Lead U.S. Sales
Among the geographic regions of the United States, the Western States were the
highest per capita consumers of floriculture and nursery crops. In 2000, per
capita sales in Western States were $68. In the next highest, the Southern
States, per capita sales were $55. North Central States averaged $30, and
Northeast States, $25. Among individual States, Oregon had the highest per
capita sales--$191, followed by North Carolina at $123. Florida was third at
$97.
Based on State shares of U.S. cash receipts from floriculture and nursery sales
in 2000, four States--California, Florida, Texas, and North Carolina--accounted
for half of total crop value. Three-quarters of total U.S. cash receipts were
earned by Western and Southern States. For the United States, consumption per
household of floriculture and nursery products in 2000 amounted to $134, more
than double 1985s $66 and triple 1980s $44, based on nominal wholesale value.
Since 1997, the total number of growers of floriculture crops in the United
States has fallen--from 12,717 to 10,965 in 2001. This reflects the steep
decline in the number of smaller growers with less than $100,000 in annual
floriculture sales relative to the number of large growers. In the size of
farming area (both covered and open field), larger growers with more than
$100,000 in annual sales increased their average acreage from 46,400 acres in
1999 to 53,700 acres in 2001. In contrast, the total growing area used by
smaller growers decreased to an average 8,800 acres in 2001 from 10,200 acres in
1997. These indicate that, in general, floriculture sales by larger operations
have increased relative to sales by smaller producers in recent years.
Recent Trends Show Greater Demand for Floriculture and Nursery Crops
Total floriculture and nursery crop sales increased continuously in the past two
decades, as have floriculture crops and nursery crops separately in the past
decade. Floriculture crop sales reached $4.7 billion in 2001, and nursery crop
sales were $8.6 billion, as represented by grower cash receipts. These are up
from only $1 billion and $2.5 billion, respectively, in 1980. Among floriculture
crops, only cut flower receipts have declined since the late 1980s. These
production declines were more than offset by imports, however, as the dollars
exchange rate appreciated. The growth in demand for other floriculture crops and
for nursery crops is reflected partly in increased domestic sales, but more so
in higher imports, especially of nursery crops. Foreign supply of cut flowers,
which comprise about 50 percent of total floriculture and nursery crop imports,
is largely from South America, whereas nursery stock is mostly from Canada and
the European Union.
The significance of imports of cut flowers and nursery stock is reflected in
their growth to almost $1.2 billion in 2001 from only $160 million in 1980.
Together they represent 3 percent of total U.S. agricultural imports, up from
less than 1 percent in 1980. Average imports of these products, including
Christmas trees from Canada, are now $11 per household, of which more than
$5 are for cut flowers. These are up from only $2 and $1.10, respectively, in
1980. The strength of the dollar and U.S. income growth in recent years underlie
the surge in imports. On the other hand, U.S. exports of floriculture and
nursery products, while only a fraction of U.S. imports, have declined in recent
years as the dollar strengthened and foreign demand weakened.
Floriculture crops--U.S. consumption of floriculture crops amounted to $5.5
billion in 2001, up 3 percent from 2000. Preliminary production estimates from
grower wholesale receipts were up 3.5 percent, from $4.6 to $4.7 billion.
Consumption of flowering, bedding, and foliage plants was $4.5 billion in 2001,
compared with less than $1 billion for cut flowers. U.S. floriculture imports
were more than $900 million in 2001, but down 3.5 percent from 2000 as the total
quantity of imported cut flowers continued to drop from their peak in 1996. The
higher exchange value of the dollar is in part behind the decline in import
value. The import share of U.S. consumption of floriculture crops was 17 percent
in 2001, down from 21 percent in 1996. Without cut flowers, the import share was
7.5 percent.
Cut flowers--As prices of imported cut flowers started falling since 1992,
imports started to supplant domestic production. U.S. grower receipts began
falling even earlier, since 1990. Imports surpassed domestic producer sales in
1995, and the import share of U.S. cut flower consumption is now 60 percent. Cut
flower imports make up half of total U.S. imports of floriculture and nursery
products. The other half is composed largely of other floriculture crops. Among
the major cut flower imports, only roses (hybrid tea) increased in quantity in
2001. While prices of domestic cut flowers were down slightly from 2000, import
prices were down sharply, now 14 percent below 1997 prices. The competitiveness
of foreign growers stems from lower labor costs, smaller climate-control
investments, and their cheaper currencies. Overall prices of cut flowers in 2001
were 6 percent lower than prices in 2000, and 10 percent below 1998 prices.
Nursery crops--U.S. consumption of nursery crops in 2001 was down slightly from
2000, from $8.8 billion to $8.7 billion. This is due to smaller domestic
production, which fell to $8.6 billion in 2001 from $8.7 billion in 2000.
However, the value of imports, whose share of U.S. consumption is only 3
percent, increased 11 percent from 2000. Since U.S. consumption of nursery crops
is almost 60 percent larger than floriculture crop consumption, the overall gain
in total floriculture and nursery consumption in 2001 was marginal. U.S. nursery
crop consumption per household was $81 in 2001, down $3 from 2000, but still $30
bigger than the $51 per household consumption of floriculture crops.
Yearbook Notes:
The 2002 Floriculture and Nursery Yearbook contains all tables (see PDF file for
tables) pertaining to results of the 1998 Census of Horticultural Specialties
that appeared in the last Yearbook, which was published in 1999. Many tables
pertaining to Floriculture Crops have been renumbered, a few were added, and
some were eliminated. Results pertaining to the 2000 Nursery Crops survey are
shown in new tables, numbered from 81 to 90. The sequence of table numbers as
they pertain to the various sectors is unchanged from the 1999 Yearbook. All
data are annual and represent calendar year estimates.
Total grower sales according to the Census of Horticultural Specialties in 1997
and the Census of Agriculture in 1992 differ from corresponding estimates by
Floriculture Crops because the Census surveyed growers in all 50 States whereas
Floriculture Crops covers only 36 major States. The surveys include all growers
with at least $10,000 in corresponding sales. Grower cash receipts for the
remaining 14 States not surveyed in Floriculture Crops are estimated annually by
the National Agricultural Statistics Service (NASS) of the U.S. Department of
Agriculture (USDA).
A situation and outlook report on floriculture crops will be published by the
Economic Research Service in late summer, 2002. Included in the report are an
annual series of price indices for the various floriculture crops and groups of
crops, as well as a monthly producer price index for florists. The price index
for cut flowers is constructed as a weighted average of domestic and import unit
values. Projections for 2002 and 2003 will also be provided for key crop and
economic indicators, including U.S. gross domestic product growth, real
exchange-rate indices for imported cut flowers and nursery stock, and
corresponding import values. Further analysis of sales and price trends by crop
and by State will likewise be included.
Description of Sales and Trade Data
Floriculture and Nursery Crops:
The statistics in Floriculture Crops are collected from annual surveys of all
known growers of floriculture crops in 36 selected States, based on sales
previously reported in the Census of Horticultural Specialties. The survey is
conducted in questionnaire form by NASS of USDA. The survey covers retail and
wholesale sales by crop or product type--i.e., cut flowers, potted flowering
plants for indoor and patio use, herbaceous perennials, annual bedding/garden
plants, foliage plants (in pots and baskets), cut cultivated greens, and
propagative floriculture material and unfinished plants. Both the quantity sold
and value of sales are reported for each crop. Only commercial growers with
$10,000 or more in gross value of floriculture sales are included in the survey.
Selected Hawaiian crop data are also reported.
Additional sales data are collected for various sizes or container types (e.g.,
flats, pots less than 5 inches tall, pots 5 inches or more, or hanging baskets).
Growers are asked to provide data about the area used for crop production--i.e.,
the type and size of greenhouse cover. The number of hired workers on the
payroll on any one day of the year is also reported. Excluded are workers
employed only for the retail operation, landscapers, and nonpaid family members.
States with a limited number of operations reporting an item are suppressed to
avoid disclosing individual information.
The 1998 Census of Agricultural Specialties was conducted by NASS. The 1992
survey was part of the Census of Agriculture. Previous censuses in 1988, 1979,
and 1970 were conducted by the Bureau of the Census of the U.S. Department of
Commerce. The census includes sales of growers with $10,000 or more in
horticultural specialty product sales during the census year. The 1998 census
includes producers of floriculture, nursery, and other specialty crops, such as
sod, mushrooms, food crops produced under glass or other protection, transplants
for commercial production, and seeds. Growers in all 50 States were surveyed as
part of the Census of Agriculture and are the same growers surveyed in
Floriculture Crops. The next Census will be conducted in 2004/2005.
Data from Nursery Crops are obtained also by questionnaire from NASS. The first
Nursery Production Survey was conducted for the year 2000 to supplement the more
comprehensive Decennial Census of Horticultural Specialties conducted by NASS.
All known growers in 17 selected States were included in the survey, based on
sales reported in the Census of Horticultural Specialties. The nine nursery
plant categories in the survey are broadleaf evergreens, coniferous evergreens,
deciduous shade trees, deciduous flowering trees, deciduous shrubs and other
ornamentals, fruit and tree nut plants, cut and to-be-cut Christmas trees,
propagation material or lining-out stock, and transplants for commercial truck
crop production. Only commercial growers with $10,000 or more in nursery sales
are included in the survey. The next survey of nursery crops will be in
2004/2005.
Crop production estimates are based on producer cash receipts which are the
value of sales at the farm gate. Most producers, or growers, act as wholesalers
to buyers, who are usually retailers. However, a small portion of crops may be
sold directly to consumers, in which case grower sales are classified as retail,
not wholesale.
Crop prices are estimated from unit values of crop sales divided by quantity
sold. Domestic prices pertain only to U.S.-grown crops. A composite price index
for floriculture crops is a weighted average of domestic and import unit values,
reflecting both U.S. and foreign production costs. Prices of each variety of cut
flowers, flowering plants, and bedding plants can be computed from their
respective tables of annual sales values and quantities sold. Summary price
tables will be available in a subsequent report.
U.S. Trade:
The source of import and export data for floriculture and nursery crops is the
trade database of the Foreign Agricultural Service of USDA
www.fas.usda.gov/ustrade). The U.S. Bureau of the Census compiles the trade
data. Import values include cost, insurance, and freight (c.i.f.), representing
the landed value of the merchandise at the first port of arrival in the United
States. C.i.f. values exclude import duties.
U.S. export values are free alongside ship (f.a.s.), which represents the
transaction price, including inland freight, insurance, and other charges
incurred in placing the merchandise alongside the carrier at the U.S. port of
exportation. F.a.s. values exclude the cost of loading the merchandise aboard
the exporting carrier and also exclude freight, insurance, and any charges or
transportation costs beyond the port of shipment.
Floriculture and nursery trade data are divided into 4 groups, each classified
by a 4-digit code: U.S. harmonized tariff system codes 0601, 0602, 0603, and
0604. Each crop group is further reclassified into 6-digit subgroups, then 10-
digit-coded products. Import data from FATUS (Foreign Agricultural Trade of the
United States) are divided into cut flowers and nursery stock, while exports
are grouped in nursery and greenhouse products. All import and export values
and quantities are available for years 1989 to date.
Description of Crop Groups
Annual bedding and garden plants: Include plants in flats, pots, hanging
baskets, and herbaceous perennials. Excludes plants used in commercial vegetable
production. Starting in 2000, begonias, geraniums, impatiens, marigolds,
pansy/viola, and petunias are included.
Cut flowers: Starting in 2000, include standard carnations, roses, pompon
chrysanthemums, gladioli, tulips, orchids, lilies, alstroemeria, delphinium and
larkspur, gerbera daisies, iris, lisianthus, and snapdragons.
Floriculture crops: Include bedding/garden plants, cut cultivated greens, cut
flowers, potted flowering plants, foliage plants, and propagative floriculture
material.
Foliage plants: Finished plants in pots or hanging baskets for indoor or patio
use; not intended for landscape use.
Herbaceous perennials: Field-grown plants, including hardy/garden
chrysanthemums, hosta, and other herbaceous perennials. Unfinished plants are
excluded.
Nursery crops: Include broadleaf evergreens, coniferous evergreens, deciduous
shade trees, deciduous flowering trees, deciduous shrubs and other ornamentals,
fruit and nut plants for home use, cut and to-be-cut Christmas trees, and
propagation material or lining-out stock.
Potted flowering plants: Plants for indoor or patio use only, including plants
grown from bulbs. Plants intended for landscape use are excluded. Starting in
2000, African violets, azaleas, chrysanthemums, Easter lilies, orchids,
poinsettias, roses, and spring bulbs are included.
Production area: The gross physical space used for plant propagation, including
aisles and walkways, in open ground or covered by greenhouses made of glass,
fiberglass, film plastic, or shade and temporary cover.
Propagative material: Include cuttings, liners, plug seedlings, prefinished
plants, or tissue cultured plantlets. Plants sold to other growers for further
growing-on are also included.
Wholesale value of sales: The value of all crops grown then sold on a gross
wholesale basis before deductions for sales commissions, transportation costs,
and other similar charges.
Abbreviations:
ERS: Economic Research Service, USDA.
FAS: Foreign Agricultural Service, USDA.
FATUS: Foreign Agricultural Trade of the United States, the trade database of
FAS.
NASS: National Agricultural Statistics Service, USDA.
