2012 Maryland Horticulture Industry Economic Profile

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The Maryland Horticulture Industry

2012 Statistical Profile and Economic Summary December 2013

2012

Maryland Horticulture Industry Economic Profile

Sponsored by:

Maryland Nursery and Landscape Association

Dr. John Majsztrik Post Doctoral Research Associate, Dept. Plant Science and Landscape Architecture

Dr. Andrew Ristvey Senior Agent, University of Maryland Extension

Dr. Erik Lichtenberg Professor, Dept. Agricultural Resource Economics

Dr. John Lea-Cox Professor, Dept. Plant Science and Landscape Architecture

1 ACKNOWLEDGMENTS

This study was funded by the Maryland Nursery and Landscape Association. Data collection, statistical analysis, and report development were completed by The University of Maryland, with assistance from the Maryland Department of Agriculture, Plant Protection and Weed Management Section.

We wish to thank all members of the green industry who responded to the survey. Your input was invaluable. We would also like to express a special note of gratitude to the Maryland Nursery and Landscape Association Board of Advisors including George Mayo, Bernie Kohl, Garet Bunting, Brent Rutley, and Vanessa Finney. For providing advice and guidance throughout this project we would like to thank Carol Holko and Dick Bean from the Maryland Department of Agriculture.

For questions or comments regarding this survey, please contact the MNLA office at 410-823-8684.

2 EXECUTIVE SUMMARY

This fourth economic profile since 2000 provides comprehensive insights into the growth and strength of the horticulture industry in Maryland. The first survey in 2000 provided a baseline of information from which many management and leadership decisions could be based. The 2003 survey demonstrated the impact a drought year can have on industry growth. The 2007 survey predated one of the most significant economic recessions in our nation’s history. In 2012, the green industry was emerging from over four years of deep and widespread recession. The horticulture industry was hit hard by a major slowdown in the housing industry, which is only starting to recover. The economy is still a concern, and was identified as the number one factor limiting growth in this survey. Reported sales from 2011 to 2012 showed a 4.8% drop in gross income, although the expected sales for 2013 indicate an 8.6% increase over 2012 numbers. From 2011 to 2012, retailers showed the highest drop in gross income (-15.4%), while growers showed a modest increase (+2.8%). Since this survey was completed by operations in the second half of 2013, it is reasonable to assume that projected increases are based on more than just hope. Although there are many unknowns, the horticultural industry has shown a great degree of resiliency in the past five years, indicating that this industry will continue to thrive well into the future.

Important highlights from the 2012 survey include:

Gross receipts were estimated at $1.19 billion in 2012, expected to increase to $1.30 billion in 2013  Retail sales accounted for 25% of sales  Landscape Installation and Maintenance accounted for 46% of sales  Growers sales (both wholesale and retail) accounted for 29%  Other categories accounted for a relatively small 0.3% ($3.5 million) Maryland growers (wholesale and retail) generated $773 million in 2012 sales  Woody plants 45.7% - $357 million, more than twice the sales of annuals  Annuals 22.8% - $178 million  Herbaceous perennials 22% - $171 million  Specialty Greenhouse Products 5.5% - $43 million  Christmas Trees 0.7% - $6 million  Aquatics 0.5% - $4 million  Other products 2.9% - $22 million

Total area dedicated to nursery production and sales exceeds 29,980 acres including 495 acres of covered (greenhouse) space.

The industry employed 25,605 people  60% were employed full time (over 150 days per year)  Average wage rate for both experienced and non-experienced laborers was $10.80/hr – which is above the federal minimum wage

Factors limiting growth  Financial Resources/Economy – The housing and general economy continue to make it difficult for the industry to grow  Government and taxes - regulations and taxes reduce profits  Labor – quality and quantity, as well as immigration were important factors  Competition – likely made worse due to the weak economy

Although this survey does not encompass the total economic activity of the green industry in Maryland, it does provide a meaningful snapshot of the statewide trends. Although the majority of plants are grown and sold in the state, it also shows that Maryland is reliant on other states for both importing plants and for markets to sell finished plants. 3 TABLE OF CONTENTS

GENERAL Executive Summary...……………………………………………………………………………………...3 Objective…………………………………………………………………………………………………...5 Survey Design……………………………………………………………………………………………...5 Responses…..….…………………………………………………………………………………………..6 Responses by County.……………………………………………….………………………………..…...7

RESULTS AND SUMMARY OF THE SURVEY Sales of Horticultural Products and Services……...………………………………………………..……...8 Types of Plants Sold………….….……………….…………………………………………………..…....9 Method for Plant Products Sold…………………………………………………………………………...10 Source of Plant Material Sold……………..………………………………………………….…………...11 Destination of Plants Shipped……………………….……………………………………….…………....13 Industry Concerns………………………...……………………………………..…….………….……....14

REGIONAL PROFILES OF HORTICULTURE IN MARYLAND Sales by Region…………………………………………………………….……………….………….…16 Sales of Horticulture Products by Business Function by Region...……………………………………….17 Number of Horticulture Workers and Wages…...…………………………………………….………….21 Labor and Wages by Region……………..…………………………………………………….…………23 Western Maryland Profile………………………………………………..………………….……………24 Central Maryland Profile………..….…………………………………………………….……………....25 Southern Maryland Profile…………………………………………….….….……….….……………….26 Upper Eastern Shore Profile.….……………………………………….……….….…....…...…....…...... 27 Lower Eastern Shore Profile..….………………………………..……….………………....………….....28 Acreage in Horticultural Crops…………………………..…………………………………...….…….....29 Questionnaire……………………..……………………….………….…..….….….….….….…...... 31

4 Maryland Horticulture – 2012 A Statistical Profile of the Horticulture Industry in Maryland

OBJECTIVE

The 2012 Maryland Horticulture Survey was conducted to measure the scope and impact of Maryland’s horticultural industry. The survey quantifies the types of plants grown and sold in Maryland, the sources and destination of plant materials, the number of individuals employed in the industry, the tenure of operation, the value of land and equipment, and horticultural sales. This survey also identifies factors which may be impacting growth of the industry. One final objective was to provide a measure of change with the previous surveys conducted in 2000, 2003, and 2007.

SURVEY DESIGN

Survey Sample.1 All licensed nursery operations in Maryland were included in the 2012 Horticulture Survey. Surveys were mailed to 1,037 operations, a 9% reduction from the total sample size in 2007. Unlicensed businesses were not included in the survey.

Any individual or business that grows or sells perennial plant material in Maryland must be licensed by the Maryland Department of Agriculture, Office of Plant Industries and Pest Management. This includes growers of plant materials, landscape contractors, retail sales operations, and plant brokers. No license is required for businesses that grow or import annual plants, interior plants, or tropical plants. This exemption includes cut- flower growers, orchards, flower shops, and turf growers; however, many of these operations chose to be licensed so that they could ship plants out of state.

What is a Horticultural Product? For the purpose of the 2012 Nursery Industry Survey, horticultural production included nursery plant production, brokerage services, landscape design, installation, maintenance, renovation, lawn care, fertilization, mowing, trimming, mulching, erosion control / hydro-seeding, plant delivery, plant rentals, watering, irrigation, interior plant operations, tree work, tree moving, tree spraying, IPM, seeding, and sales of Christmas trees, floral greenery, and plugs.

The following items were not considered nursery items in the 2012 survey: gifts, Christmas shop sales, snow removal, lighting, consulting, drainage work, excavation, value added products, and sales of produce, mulch, soil, fertilizer and stone/pavers.

Data Collection. The MNLA sent out a letter requesting response to the survey in July 2013. Shortly thereafter, a postcard was mailed asking for participation, followed by the survey, which was mailed to all 1,037 addresses on file. Redelivery of any returned surveys was attempted via an internet search and/ or phone call. A second survey was mailed in mid-September to all operations that had not responded and we had no contact phone number for. From 15 August through 15 October, a minimum of 4 phone contacts were made with operations that had working phone numbers. Either a person was spoken with, or a message was left, asking the operation to complete and return the survey. All attempts were made to speak directly with the person responsible for completing the survey. An additional copy of the survey was mailed when requested.

The survey was also made available online using Surveymonkey. The online survey had exactly the same questions and format as the paper version. A link to the survey was included in the paper survey that was sent out, as well as follow-up contacts and in industry publications.

1 Because of the nature of state licensing, some “Green Industry” producers and businesses are not included in this survey. Therefore, it is understood that the conclusions contained in this document do not offer a complete profile of the entire “Green Industry” in Maryland.

5 Data Analysis. Paper surveys were returned to the University of Maryland. Any identifying information was removed, and the information from the surveys were then entered into an excel spreadsheet. Surveys entered online were downloaded into an excel spreadsheet as well. Data were collected, compiled, analyzed and summarized by the University of Maryland team. Data were entered and analyzed in Excel™. Survey responses were analyzed on a statewide and regional basis.

Estimation for Non-Response. Each sampled operation that did not respond was grouped into one of three categories based on type of operation (grower, landscaper, or retail sales). Category designations were made on the basis of our knowledge of the industry.

The assumption was made that responses received from completed questionnaires were representative of the population as a whole and that non-respondents would answer questions in a similar fashion. Therefore, if all or part of a questionnaire was left unanswered, it was assumed it was ‘typical’ of other operations of a similar type of business. State totals were thus estimated by multiplying sample averages for each category by the total number in that category for the state.

RESPONSES

We received a total of 259 survey responses (out of a calculated total of 921 operations) for the 2012 Maryland Horticulture Survey, or 28% of the population. An additional 60 operations declined participation, bringing the total response rate to 34% of all possible respondents.

The non-response rate was 65%, or 602 operations. This group consisted of operations that were spoken with at least once but they did not return the survey (24%), and operations that we called, or attempted to call, but were never able to speak with someone (41%). This included 18% of operations that we could not find a working telephone number with which to contact them.

The total number of operations was calculated as follows. Of the total 1,037 original operations, 60 were duplicates of the same operation, 16 were no longer in business, 21 had incorrect contact information that could not be updated, 10 stated that the survey did not apply to their business, and 9 were university/government businesses, totaling 921 operations.

Summary of Survey Responses.

Responses Reconciled Response rate Category (positive returns) Database (%) Grower 102 309 31.9 Landscaper 93 362 24.9 Retailer 64 250 25.5 Total 259 921 28.1

6 RESPONSES BY COUNTY

Of the total 259 respondents in business, the top five counties were Baltimore, Montgomery, Frederick, and an equal number in Carroll and Prince George’s.

1 4 3

2 4

Image copyright: www.maps.com

COMPARABILITY TO PREVIOUS SURVEYS

A number of questions were modified from the 2007 version of the survey to make the results more robust. For example, a question was added about which part of the country purchased nursery stock was from (within vs. outside of Maryland), and how those plants were purchased (already finished vs. finished by grower). We also added specificity to some questions, such as permanently covered space (greenhouses) vs. seasonally covered space (overwintering houses), and different types of production methods (i.e. pot in pot). A complete version of the survey questionnaire is included at the end of this document.

Since we did not have access to the methodology used by the previous survey for accounting for non- responses, the methodology we used may be different from that used in previous surveys. This may account for some of the differences in total industry impact $1.96 billion in 2007 vs. 1.19 billion in 2012. Some of the difference between these numbers may be due to the impact of the continued recession on the horticulture industry in Maryland, but without a clear methodology from the previous survey, it is difficult for us to assess these differences.

‐7‐

RESULTS AND SUMMARY OF THE SURVEY

Sales of Horticultural Products and Services

Total gross receipts for Maryland licensed horticultural operations were $1.193 billion in 2012. Landscaper sales accounted for 46% of the total receipts with sales surpassing $546 million. The total gross sales decreased by 39%, compared to the 2007 survey results. The 2012 survey saw a 9% decrease in the number of licensed nursery operations in business compared to 2007.

Overall, licensed nursery operations in Maryland reported they expect an 8% increase in total sales in 2013. The sector with the largest anticipated increase was landscaper sales (10%) followed by retail sales (7%).

Sales by Business Function2

Horticulture distributor or re‐wholesale Landscaper Landscaper Mixed 2% and/or and/or 8% Other Interiorscaper Interiorscaper 1% (maintenance (installation/ only) maintenance) 1% 29% Retail sales 18%

Grower ‐ Grower ‐ retail wholesale only Landscaper and/or 15% and/or wholesale Interiorscaper 21% (installation only) 5%

Percent Percent Percent Percent 2013 Percent 2011 ($) 2012 ($) of change of change (projected) of

Industry (2011-12) Industry (2012-13) ($) Industry

Grower 339,689,647 27.2 2.8 349,564,303 29.3 8.5 381,829,119 29.3 Landscaper3 568,197,794 45.4 (4.0) 546,515,646 45.8 9.8 605,569,560 46.4 Retail sales3 342,586,086 27.4 (15.4) 296,919,205 24.9 6.5 317,546,299 24.3 Total 1,250,473,527 100.0 (4.8) 1,192,999,153 100.0 8.6 1,304,944,979 100.0

2The pie chart above represents direct returns from the survey, while the table scales the returns, based on returns and total number of operations in the state for each category (grower, landscaper and retailer) to the state level.

3Wholesale, retail, and landscape installation include sales for plant and hardscape products such as walkways, irrigation systems, decks, etc. ‐8‐ Types of Plants Sold

Revenue related to the sale, installation and maintenance of woody perennials totaled $357 million in 2012. This represented 46% of all plant-related sales and services by licensed horticulture operations. Sales of annual plants were second at $178 million; nearly 23% of all sales reported. Herbaceous perennial sales were very similar at $171 million at 22% of all reported sales.

Sales by Plant Type 400 350 300 millions

250 in 200 150 Dollars 100 50 ‐ Woody Plants Herbaceous Annuals Aquatic Plants Specialty Christmas Other Perennials Greenhouse Trees Products .

Plant Type 2012 ($) Percent Woody Plants 356,718,184 45.7 Annuals 177,604,922 22.8 Herbaceous Perennials 171,302,520 22.0 Specialty Greenhouse Products 42,547,148 5.4 Christmas Trees 5,724,605 0.7 Aquatic Plants 4,004,898 0.5 Other Products 4 22,451,488 2.9 Total 780,353,764 100.0

______

4Other products include items such as seeds, bulbs, etc., and any other sales related to other products and services not previously listed.

‐9‐ Method for Plant Products Sold

Of the total 2012 plant-related sales reported by licensed horticulture operations, 71% or $550 million were for container-grown products (including all types of greenhouse production). Sales of field-grown products totaled $216 million or 28% of total sales. Cut flower and other products made up a very small percentage of the total sales with 0.5% and 0.4%, respectively.

Sales by Preparation Method

300

250 millions

in 200 Dollars 150

100

‐ Field Grown Containers In‐ Containers Containers Cut Flowers Other Ground (Pot‐in‐ Above Ground Greenhouse Pot)

Preparation Method 2012 ($) Percent Field Grown 216,491,189 28.0 Containers In-Ground (Pot-in-Pot) 41,273,626 5.3 Containers Above Ground 256,228,490 33.2 Containers Greenhouse 252,106,294 32.6 Cut Flowers 3,792,570 0.5 Other 2,904,823 0.4 Total 772,796,991 100.0

‐10‐

Source of Plant Material Sold

The 2012 survey identified some significant changes in the quantities of plant material sold in various categories. In 2007, it was reported that 8% of plants were imported unfinished from other states, and 10% were imported finished. In 2012, 12% were imported unfinished, and 31% were imported finished. Likewise, there were reductions in 2012 of unfinished plants from another nursery in Maryland 4% vs. 11% in 2007, and finished plants from a grower in Maryland, 16% in 2012 vs. 37% in 2007.

About 35% of the Maryland nursery crop is grown from start to finish and sold directly from the farm, similar to the 33% reported for 2007. Small amounts of plant material (≈ 1%) were imported from outside the United States or of unknown origin.

Imported into Unknown US 1% 1%

From another Grown entirely state: Finished on one farm 31% 35%

From another state: Maryland Unfinished grown: Already 12% finished Maryland 16% grown: Finished by you 4%

Category 2012 sales ($) Percent Grown entirely on one farm 249,718,457 34.5 Maryland grown: Finished by you 29,963,230 4.1 Maryland grown: Already finished 119,289,033 16.5 From Another State: Unfinished 87,093,329 12.1 From Another State: Finished 225,201,212 31.2 Imported into US 4,334,496 0.6 Unknown 7,428,195 1.0 Total 723,027,952 100.0 ‐11‐

70 Woody Plants Herbaceous Perennials 60 Annuals Aquatic Plants Specialty Greeenhouse Products 50 Christmas Tree Other Products 40

Percent 30

0 Grown entirely MD grown: MD grown: Eastern grown: Eastern grown: Southern grown: Southern grown: on farm Finished by you Already finished Finished by you Already finished Finished by you Already finished

15 Woody Plants Herbaceous Perennials Annuals Aquatic Plants 10 Specialty Greeenhouse Products Christmas Tree Other Products

Percent 5

0 Central grown: Central grown: Western Western Canada grown: Canada grown: Other I do not grow Finished by Already grown: grown: Already Finished by Already Countries: plants in this you finished Finished by finished you finished category you

Eastern States include: ME, VT, NH, MA, CT, RI, NY, PA, DE, NJ, VA, WV Southern States include: SC, GA, AL, FL, AR, LA, MS, NC, TN, TX, OK, PR Central States include: OH, MI, WI, IN, IL, IA, NE, KS, MO, ND, SD, MN, KY Western states include: AK, WA, OR, ID, MT, WY, NV, UT, CO, NM, CA, AZ, HI

‐12‐ Destination of Plants Shipped

Most of the plants that were produced in Maryland were sold within the state. The majority (48-80%) of plant material was shipped within the state in all categories. The remaining material was shipped primarily to the Eastern or Southern United States. A very small amount of plant material was shipped to Central, Western states and Canada; no foreign exports were reported.

Destination of Plants Shipped 90 Woody Plants 80 Herbaceous Perennials 70 Annuals Sales

60 Aquatic Plants Specialty Greenhouse Products

Total 50

40 Christmas Tree Other Products 30 Percent 20 10 0 Maryland Eastern Southern Central Western Canada Other States States States States Countries

‐13‐ Industry Concerns

The 2012 Horticulture Industry Survey asked respondents to list the most important factors that limit growth or were problematic to their business. The results from the 2007 survey indicated that there were two primary factors that affected growth or were potential obstacles to business; (1) the economy / financial resources and (2) labor. To a lesser degree, competition, taxes, and weather were also cited.

In 2012, similar trends were seen. Concerns about the economy and finances were most often reported, although there were more concerns about competition, government regulations, and labor costs compared to concerns cited in 2007.

Factors Limiting Growth 80

50 responses

30 Number 20

0 Economy Competition Government Labor High costs Cash flow Weather Taxes

‐14‐ REGIONAL PROFILES OF HORTICULTURE IN MARYLAND

Maryland was divided geographically into five regions – the mountainous Western region, a Central urban core, Southern Maryland, and rural counties on the Upper and Lower Eastern Shore.

Regions defined for the 2012 Horticulture Survey correspond to Maryland Crop Reporting Districts (as defined by USDA-Maryland Agricultural Statistics Service), and were the same as previous surveys. The Western region includes Allegany and Garrett counties; the Central region includes Baltimore, Carroll, Frederick, Harford, Howard, Montgomery, and Washington counties; the Southern region includes Anne Arundel, Calvert, Charles, Prince George’s and St. Mary’s counties; the Upper Shore region includes Caroline, Cecil, Kent, Queen Anne’s, and Talbot counties; and the Lower Shore region includes Dorchester, Somerset, Wicomico, and Worcester counties.

Western Maryland Central Maryland Southern Maryland Upper Shore Lower Shore

‐15‐ Sales by Region

The Central Region, which includes the areas around the cities of Baltimore and Washington, D.C. led the state in the value of horticulture sales and services. In 2012, state-licensed companies in this region had an estimated total sales of plants, products, and services of $635 million, followed by sales of over $473 million in Southern Maryland. The Upper Eastern Shore Region accounted for nearly $79 million in estimated sales. The Upper Shore, Lower Shore and Western Maryland accounted for less than 10% of all estimated sales in 2012.

Total Sales by Region (percent)

Lower Upper Shore, 1.8 Western, Shore, 6.6 0.3

Southern, 39.7 Central, 51.6

Region 2012 Sales in millions ($)5 Scaled sales ($) Percent of Total Western 921,608 3,671,905 0.3 Southern 118,860,281 473,567,526 39.7 Central 154,378,185 615,079,273 51.6 Upper Shore 19,766,669 78,755,093 6.6 Lower Shore 5,503,025 21,925,356 1.8 Total 299,429,768 1,192,999,153 100.0 ______

5 This column contains the sum of the actual reported sales for each category. The “scaled sales” column reports the values scaled to represent the entire state.

‐16‐ Sales of Horticulture Products by Business Function by Region

The majority of the reported horticultural retail and landscape sales in 2012 were made in the urban central region of the State. There were also large numbers of plants grown and sold wholesale in these areas, presumably to the landscape industry. Wholesale production was also significant on the Upper Eastern Shore.

Lower Region Western Southern Central Upper Shore Shore6 Wholesale - Plant sales 23,909 11,636,362 258,749,417 41,846,719 185,920 Wholesale - Hardscape sales 0 4,661,557 8,725,662 791,483 617,557 Retail - Plant sales 1,387,938 307,367,622 41,924,473 13,263,227 1,668,531 Retail - Hardscape sales 320,731 25,220,220 9,522,442 2,109,653 0 Landscape/ Interiorscape 962,193 39,232,324 112,060,401 7,623,798 6,602,921 installation – No Hardscape Landscape/ Interiorscape 656,403 25,877,619 49,879,415 2,697,805 2,401,652 installation - Hardscape only Landscape/ Interiorscape 160,366 36,608,419 116,395,306 4,137,540 10,371,480 maintenance Other 160,366 22,963,401 17,822,157 6,284,867 77,294 Total 3,671,905 473,567,526 615,079,273 78,755,093 21,925,356

______6 Based on comparisons to the 2007 survey and knowledge about active operations on the Lower Eastern Shore, the preparers of this survey believe that the Lower Eastern Shore Region was underreported, and therefore underrepresents the economic impact in this region. These reported numbers were not adjusted to account for this underreporting, but we did want to note that these numbers are likely higher than reported.

‐17‐ Wholesale Plant Sales in Maryland by Region 300

250

200 millions

in 150

100 Dollars 50

0 Western Southern Central Upper Lower Shore Shore

Wholesale Hardscape Sales in Maryland by Region 10 9

8 7 6 millions 5 in

4 3 Dollars 2 1 0 Western Southern Central Upper Lower Shore Shore

‐18‐ Retail Plant Sales in Maryland by Region 350 300 250 Millions 200 in

150 100 Dollars 50 0 Western Southern Central Upper Lower Shore Shore

Landscape Installation/Maintenance in Maryland by Region

140

120

100

millions 80 in 60

40 Dollars 20

0 Western Southern Central Upper Lower Shore Shore

‐19‐ Retail Hardscape Sales in Maryland by Region

20 millions

in 15

10 Dollars 5

0 Western Southern Central Upper Lower Shore Shore

Other Green Industry Sales in Maryland by Region 25

15 millions in

Dollars 5

0 Western Southern Central Upper Lower Shore Shore

‐20‐ Number of Horticulture Workers and Wages

In 2012, there were 25,605 workers employed by Maryland’s state-licensed nursery and landscape businesses, compared with 18,588 in 2007, a 38% increase over the number reported in 2007. Over half (60%) of the industry employees were employed for at least 150 days, compared to 59% in 2007, while the remainder were seasonal workers. Total wages paid in 2012 were $361 million (30%), while labor overhead totaled $84 million (7.1%). The labor overhead includes items such as payroll taxes, workers’ compensation, benefits, and other costs of hiring and processing foreign labor. On average, laborers were paid $10.80 per hour, supervisors were paid $19.63 per hour, and managers were paid $19.09 per hour. Out of the 25,605 total workers employed, 2,774 workers were reported as migrant workers, who were either foreign or domestic. Of this total, 952 were enrolled in the H2A program, and 670 were enrolled in the H2B program. Horticultural Worker's Hourly Wages 25

20 Hour 15 per

10 Dollars

0 Labor‐ Inexperienced Labor‐ Experienced Supervisors Managers

Categories 2012 Labor Scaled Total Workers Total workers 5,003 25,605 Worked 149 days or less 2,012 10,297 Worked 150 days or more 3,043 15,574 Migrant worker programs Total migrant workers 542 2,774 Workers from H2A program 186 952 Workers from H2B program 131 670 Workers from unspecified programs 225 1,152

‐21‐ Labor and Wages by Region

The central region led the state with 16,595 (65%) of the horticultural workers employed by state licensed operations7, followed by the southern region with 5,788 (23%) of reported workers. The remaining 3,222 workers (13%) were employed in the Western, Upper Eastern Shore and Lower Eastern Shore regions. About 40% of all workers employed by the industry worked on a part-time/seasonal basis (less than 150 days) in 2012.

Number of Workers by Region 18,000 16,000 14,000

Employes 12,000

10,000 8,000 6,000

Numbers 4,000 2,000 0

Western Southern Central Upper Shore Lower Shore

Region Total Employed # Employed < 150 Days # Employed > 150 Days Western 361 361 0 Southern 5,788 2,756 3,012 Central 16,595 5,702 10,767 Upper Shore 2,419 1,180 1,155 Lower Shore 442 100 341 Total 25,605 10,099 15,275

______7 Operations in multiple locations were placed in the location where the main operation was reported.

‐22‐ Total Wages by Region

Total wages paid by the horticultural industry in 2012 were $361.3 million. The majority of the wages paid were in Maryland’s Central region accounting for nearly $254 million of all wages paid by State licensed businesses. In Southern Maryland, wages totaled just over $72 million.

Regions Gross Wages ($) Overhead and Benefits ($) Western 891,868 10,150 Southern 72,145,692 26,611,726 Central 253,759,459 50,009,653 Upper Shore 28,550,246 5,115,202 Lower Shore 5,909,452 2,466,907 Total 361,256,716 84,213,638

25 21.32 20.87

($) 18.29 20 18.40 17.48 17.20 16.34 14.00 15.00 Wage 14.00 15 12.70 12.15 12.50 11.45 10.42 9.71 9.12 8.71 9.50 Hourly 10

8.20

5 Average

0 Western Southern Central Upper Shore Lower Shore

Labor‐Inexperienced Labor‐Experienced Supervisors Managers

‐23‐ Western Maryland: (Allegany, Garrett Counties)

Sales Percent Value Wholesale 0.7 $ 20,458 Retail 46.5 $ 1,462,094 Landscape installation/maintenance 48.4 $ 1,522,244 Other 4.4 $ 137,224 Total sales of horticulture products and services 2012 100.0 $ 3,142,020

Land area in production (total acres) 1,504

Total Wages paid to workers (2012) $ 891,868 Inexperienced Laborers $ 8.20 Experienced laborers $ 10.42 Wage rate Supervisors $ 14.00 Managers $ 14.00 8 Full time 0 Number of workers Seasonal 316

8 We assume some people who filled out the survey did not include themselves in the total number of workers

Western Maryland Horticultural Sales by Type

Other Wholesale 4% 1%

Landscape Retail 48% 47%

‐24‐ Central Maryland: (Baltimore, Frederick, Carroll, Harford, Howard, Montgomery and Washington Counties)

Sales Percent Value Wholesale 43.5 $ 228,876,311 Retail 8.4 $ 44,022,718 Landscape installation/maintenance 45.3 $ 238,169,165 Other 2.9 $ 15,250,279 Total sales of horticulture products and services 2012 100.0 $ 526,318,473

Land area in production (total acres) 22,455

Total Wages paid to workers (2012) $ 253,759,459 Inexperienced Laborers $ 9.71 Experienced laborers $ 12.70 Wage rate Supervisors $ 20.87 Managers $ 21.32 Full time 10,767 Number of workers Seasonal 5,702

Central Maryland Horticultural Sales by Type Other 3%

Landscape Wholesale 45% 44%

Retail 8%

‐25‐ Southern Maryland: (Anne Arundel, Calvert, Charles, Prince George’s, St. Mary’s Counties)

Sales Percent Value Wholesale 6.7 $ 13,946,001 Retail 42.2 $ 87,931,876 Landscape installation/maintenance 41.7 $ 87,039,599 Other 9.4 $ 19,649,601 Total sales of horticulture products and services 2012 100.0 $ 208,567,077

Land area in production (total acres) 1,878

Total Wages paid to workers (2012) $ 72,145,692 Inexperienced Laborers $ 9.12 Experienced laborers $ 12.15 Wage rate Supervisors $ 17.48 Managers $ 18.29 Full time 3,012 Number of workers Seasonal 2,756

Southern Maryland Horticultural Sales by Type

Wholesale 7% Other 9%

Landscape Retail 42% 42%

‐26‐ Upper Eastern Shore Maryland: (Caroline, Cecil, Kent, Queen Anne’s, Talbot Counties)

Sales Percent Value Wholesale 54.1 $ 36,485,173 Retail 19.5 $ 13,154,453 Landscape installation/maintenance 18.4 $ 12,372,574 Other 8.0 $ 5,377,911 Total sales of horticulture products and services 2012 100.0 $ 67,390,111

Land area in production (total acres) 4,045

Total Wages paid to workers (2012) $ 28,550,246 Inexperienced Laborers $ 8.71 Experienced laborers $ 11.45 Wage rate Supervisors $ 17.20 Managers $ 16.34 Full time 1,155 Number of workers Seasonal 1,180

Upper Eastern Shore Maryland Horticultural Sales by Type

Other 8%

Landscape 18%

Wholesale 54% Retail 20%

‐27‐ Lower Eastern Shore Maryland: (Dorchester, Somerset, Worcester, Wicomico Counties)

Sales Percent Value Wholesale 3.7 $ 687,529 Retail 7.6 $ 1,427,749 Landscape installation/maintenance 88.4 $ 16,579,936 Other 0.4 $ 66,140 Total sales of horticulture products and services 2012 100.0 $ 18,761,354

Land area in production (total acres) 76

Total Wages paid to workers (2012) $ 5,994,684 Inexperienced Laborers $ 9.50 Experienced laborers $ 11.45 Wage rate Supervisors $ 15.00 Managers $ 18.40 Full time 341 Number of workers Seasonal 100

Lower Shore Maryland Horticultural Sales by Type

Other Wholesale < 1% 4% Retail 8%

Landscape 88%

‐28‐ Total Acreage and Covered Growing Space

There are an estimated total of 33,971 acres of land reported, of which, 23,957 were used for horticultural production in the state. An estimated 14,193 acres were reported for field production, 7,683 acres for container production (out of ground), and 1,324 acres of pot-in-pot production in the state. There were an estimated 495 acres of covered greenhouse space, 42 acres of temporary overwintering houses, 123 acres of shade houses, and 98 acres listed as other. A scaling factor of 4.5454 was applied (22% of respondents) to reported acreage. Estimated acreages were similar to those reported in 2007 for open production (23,200 acres in 2012 vs.20,442 acres in 2007) and permanent greenhouse space 495 acres in 2012 vs. 436 acres in 2007). There are an estimated 4,777 acres currently in conservation/preservation programs (1,051 acres reported).

The average operation has been open for 29 years, and 164 operations out of 198 (83%) were reported to be family owned.

Outdoor Production Acreage

10000 Field production 8000 Container production (in ground) Container production (out of ground) 6000 Acres 4000

2000

0 Western Southern Central Upper Shore Lower Shore

Container production Container production Regions Field production (in ground) (out of ground) Western 1,118 9 124 Southern 202 16 276 Central 10,024 1,264 6,612 Upper Shore 2,848 13 652 Lower Shore 09 23 19 Total 14,193 1,324 7,683

9 Based on comparisons to the 2007 survey and knowledge about active nurseries on the Lower Eastern Shore, the preparers of this survey believe that the calculated growing areas were under-reported by at least 250 acres of container- nursery production, 1.5 acres of greenhouse and 40 acres of field production, substantially increasing the economic impact of the industry on the Lower Eastern Shore. Other areas were not adjusted, since there were a number of responses from the other regions and we assume the scaling factors accounted for non-responses.

‐29‐

Covered Growing Space

400 Permanent Greenhouse 350 Overwintering Shade Houses 300 Other 250 200

Acres 150 100 50 0 Western Southern Central Upper Shore Lower Shore

Reported Acreage

Covered Shade Regions Overwintering Other Greenhouse Houses Western 1.4 0.2 1.2 0.1 Southern 21.9 4.0 11.4 11.5 Central 83.5 4.5 13.0 9.4 Upper Shore 2.1 0.6 1.5 0.4 Lower Shore8 0.0 0.0 0.0 0.0 Total 108.9 9.3 27.1 21.4

Scaled-up Acreage

Covered Shade Regions Overwintering Other Greenhouse Houses Western 6.3 0.8 5.4 0.5 Southern 99.3 18.3 51.7 52.4 Central 379.5 20.3 58.9 42.9 Upper Shore 9.7 2.6 6.7 1.6 Lower Shore8 0.2 0.1 0.0 0.1 Total 495.0 42.1 122.7 97.5

‐30‐ 2012 MARYLAND HORTICULTURE SURVEY

University of Maryland 2102 Plant Science Building College Park, MD 20742

Note: Use 2012 fiscal year Address Label if you are unable to provide calendar year data.

Dear Green Industry Professional, This survey is being conducted by the University of Maryland in association with the Maryland Nursery and Landscape Association to document the current growth, scope and impact of the Maryland Green Industry, including Garden Centers.

This survey is being sent to all licensed nursery and landscape operations in Maryland. If you do business at more than one location in Maryland, please combine the data for all locations on one questionnaire. Include sales from Maryland locations only. Please have the person at your operation who has access to financial and employment information fill out this survey. Other individuals may be consulted for additional information.

Response to the survey is voluntary; however your response is important to ensure reliable results. The information you provide is strictly confidential and is protected from the Freedom of Information Act and other inquiries by Federal Law. Information we collect will only be reported in combination with other growers in the State or region, and will not be able to be traced back to individual operations.

Surveys may either be completed online (see below), or returned in the enclosed postage paid envelope. If you have any questions, please do not hesitate to give us a call or send us an email. Our contact information is at the end of the survey. We appreciate your help in this important effort.

Sincerely,

John Lea‐Cox Professor, Nursery Extension Specialist Andrew Ristvey Senior Agent, Commercial Horticulture John Majsztrik PostDoctoral Research Associate

An online version of this survey is available at http://www.surveymonkey.com/s/MNLA2013. To reduce the time needed to complete the survey and prevent mistakes, we strongly suggest using this paper copy to gather your information beforehand. The online version will automatically skip questions that do not apply to your operation. If you prefer, the completed form can be returned in the postage paid envelope.

‐31‐ Check here if this operation is no longer in business and return in the provided stamped envelope.

SECTION 1 ‐ Type of Operation

1. Did you produce or sell nursery or greenhouse crops or provide landscape services during 2012? Yes [Continue Below] No [skip to page 8, question 28]

2. Which of the following categories BEST describes your business (check one): Grower ‐ wholesale only Landscaper and/or Interiorscaper (installation only) Grower ‐ retail and/or wholesale Landscaper and/or Interiorscaper (maintenance only) Horticulture distributor or re‐wholesale Landscaper and/or Interiorscaper (installation/ maintenance) Retail sales Other ______

3. How many years has this business been in operation? ...... 4. Is this operation a Family Owned Business? (Circle one) ...... YES NO

SECTION 2 ‐ Gross Sales 2011 2012 Projected 2013

5. What were your total gross sales from nursery and greenhouse crops and landscaping? (Including hardscapes e.g. walkways, irrigation systems, decks etc.). Note: use fiscal year values if calendar year values are not available

6. What PERCENT of your total sales in 2012 were from: 2012 a) Wholesale ‐ Plant sales……...... b) Wholesale ‐ Hardscape sales ...... c) Retail ‐ Plant sales ...... d) Retail ‐ Hardscape sales ...... e) Landscape/ interiorscape installation ‐ Excluding hardscape...... f) Landscape/ interiorscape installation ‐ Hardscape only...... g) Landscape/ interiorscape maintenance...... h) Other (please specify) (Percentages should add to 100%) 100 %

‐32‐

7. What percent of your plant sales were in the following categories?

(Include plants installed and maintained) 2012 a) Woody plants ...... b) Herbaceous perennials ...... c) Annuals ...... d) Aquatic Plants ...... e) Specialty Greenhouse (e.g. indoor plants & tropicals) ...... f) Christmas Trees ...... g) Other (e.g. seeds, sod and bulbs) (Percentages should add to 100%) 100 %

8. What percent of your sales were produced by the following methods? 2012 (Include plants installed and maintained) a) Field Grown (include aquatic plants) ...... b) Containers 1) In‐ground containers (Pot‐in‐Pot)...... 2) Above ground containers ...... 3) Greenhouse ...... c) Cut Flowers ...... d) Other (please specify) (Percentages should add to 100%) 100 %

‐33‐ SECTION 3 – Wholesale Production and Sales

9. Did you produce, purchase or install Yes [Continue] No [skip to question 11] plants in 2012?

10. Please enter the percent of your 2012 plant material that you produced, purchased or installed in each category and region identified in the table below. Applicable columns should sum to 100. Location (purchased Woody Herbaceous Annuals Aquatic Indoor Plants Christmas Other from) Plants Perennials Plants and Tropical Trees (e.g. seeds, Greenhouse sod, bulbs) Grown entirely on your farm/ nursery Maryland grown: Finished by you Maryland grown: Already finished Eastern States grown: Finished by you Eastern States grown: Already finished Southern States grown: Finished by you Southern States grown: Already finished Central States grown: Finished by you Central States grown: Already finished Western States grown: Finished by you Western States grown: Already finished Canada grown: Finished by you Canada grown: Already finished Other Countries: ______Total 100% 100% 100% 100% 100% 100% 100%

Note: Eastern States include CT, Wash. DC, DE, MA, ME, NH, NJ, NY, PA, RI, VT, and WV Southern States include AL, AR, FL, GA, KY, LA, MS, NC, OK, Puerto Rico, SC, TN, TX, and VA Central States include IA, IL, IN, KS, MI, MO, MN, ND, NE, OH, SD, and WI Western states include AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA, and WY ‐34‐ 11. Did you wholesale and/ or re‐wholesale Yes [Continue] No [skip to question 13] materials to customers in 2012?

12. Please enter the percent of your 2012 sales by plant material category sold to each region identified in the table below. Applicable columns should sum to 100. States Woody Herbaceous Annuals Aquatic Indoor Plant Christmas Other Plants Perennials Plants and Tropical Trees (e.g. seeds, Greenhouse sod, bulbs) Maryland Eastern States Southern States Central States Western States Canada Other Countries: ______Total 100% 100% 100% 100% 100% 100% 100% Note: Eastern States include CT, Wash. DC, DE, MA, ME, NH, NJ, NY, PA, RI, VT and WV Southern States include AL, AR, FL, GA, KY, LA, MS, NC, OK, Puerto Rico, SC, TN, TX and VA Central States include IA, IL, IN, KS, MI, MO, MN, ND, NE, OH, SD and WI Western states include AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA and WY

Section 4 ‐ Land, Buildings, and Equipment

13. What is your estimate of the current market value of land and structures (owned and/or rented) and equipment used in your operation as of December 31, 2012? ......

14. What was the total acreage your operation owned and/or rented for nursery sales and production in 2012 (Including all production, sales and holding areas)?

‐35‐ 15. Please provide the number of acres your operation owned and/or rented for nursery sales and production in 2012 for each of the categories below:

a) Field production (in ground) ...... b) In‐ground Container production (pot‐in pot) ...... c) Out‐of‐ground Container production (container nursery) ...... d) Permanent greenhouse (eg. propagation houses; not overwintering structures) ....

e) Holding/sales ......

16. Did your operation have any greenhouse, shade‐ Yes [Continue] No [ Skip to question 18] house or overwintering areas in 2012?

17. Please indicate type and area of covered space in use in 2012. (Include covered space used for holding, selling, or finishing product.) Fill in EITHER square feet or acres Square Feet Acres a) Glass greenhouses (not overwintering) ...... b) Rigid plastic greenhouses (not overwintering) ...... c) Film plastic greenhouses or hoop houses (not overwintering)...... d) Hoop houses, or other houses used only for overwintering ...... e) Shade houses ...... f) Other (please specify)______......

18. Please list the Maryland counties where your operation is located. If your operation is in more than one county, please list the total acreage in each county. (report acreage to the nearest whole number) COUNTY ACREAGE

‐36‐

SECTION 5 ‐ Labor

19. What were the TOTAL number of workers employed by this operation during 2012? a) Of these workers, how many were paid for working 149 days or less?...... b) Of these workers, how many were paid for working 150 days or more? ......

20. Of these workers (item 19), how many were foreign laborers or migrant workers? ...... How many workers from the total above (item 19) were from the H2A a) program? ...... How many workers from the total above (item 19) were from the H2B b) program? ...... How many workers from the total above (item 19) were from other foreign or c) migrant worker programs? ......

21. What were the total gross wages paid by your operation during 2012? (Include employer’s cost for social security, workers compensation, insurance premiums and any other benefits provided)...... 22. Of the total gross wages paid (item 21) how much was for labor overhead (e.g. payroll taxes, workers’ comp, benefits, other costs of hiring and processing foreign

labor) ......

23. During 2012, what was the average hourly wage for: a) Inexperienced laborers ...... b) Experienced laborers ...... c) Managers ...... d) Supervisors ......

24. How many UNPAID workers were on this operation in 2012? (Include family members, operators, interns and partners not paid a salary) ......

‐37‐

SECTION 6 ‐ Industry Factors

25. Please list the 3 most important factors that are limiting growth or are problematic for your business.

26. Is any of your land in a land preservation/conservation program? (Circle one)…….. YES NO

27. If Yes: How many acres did you have total in preservation/conservation programs in 2012? ......

SECTION 7 ‐ Conclusion 28. Would you like a copy of the survey results? (Circle one) ...... …….. YES NO

Please share with us any comments on issues affecting your industry:

Reported by: Date:

Phone: ( ) Email:

If additional help is needed please feel free to contact us to answer your questions

John Majsztrik: email: [email protected] or call 301‐741‐8185 John Lea‐Cox: email: [email protected] or call 301‐405‐4323 Andrew Ristvey: email: [email protected] or call 410‐827‐8056

STOP This is the end of the survey. Thank you for your time!

‐38‐ Maryland Nursery and Landscape Association P.O. Box 726 Brooklandville, MD 21022 Phone: 410-823-8684 • Fax: 410-296-8288 E-mail: [email protected] Web: www.mnlaonline.com