California's Nursery and Cannabis Industries Chapter 12. California's Nursery and Cannabis Industries Part 1. Nursery and Floral Production by Hoy F. Carman Abstract Authors' Bios Nursery and floral production is an important component Hoy F. Carman is an emeritus professor in the Department of California’s agricultural output, accounting for 7.5 of Agricultural and Resource Economics at the University percent of the state's farm sales. Annual sales of $3.5 billion of California, Davis, and a member of the Giannini mean that California accounts for 20 percent of U.S. sales of Foundation of Agricultural Economics. Hoy can be nursery and floral products.Nursery products and flowers contacted by email at [email protected]. are produced through out California, but production is concentrated in Central Coast and South Coast counties near the largest population centers; a third of sales are in San Diego County. 1 California Agriculture: Dimensions and Issues Table of Contents Part 1. by Hoy F. Carman ......................................................................................................................................................................................1 Abstract ..............................................................................................................................................................................................................1 Authors' Bios ....................................................................................................................................................................................................1 Nursery and Floral Production...........................................................................................................................................................................3 Nursery and Floral Industry Sales .............................................................................................................................................................3 Figure 1. Annual California Floral and Nursery Sales As Percent of Total Agricultural Sales, 1992–2015 ......................4 Figure 2. Annual Value of California Floral and Nursery Production, 2000–2015................................................................4 Structure of California’s Nursery and Floral Industry .................................................................................................................................5 Table 1. Selected Characteristics of California Nursery and Floriculture Farms, 1982–2012 .............................................5 Table 2. California Gross Value of Production of Nursery, Flowers, and Foliage in 2013 through 2016, Top 15 Counties in 2016 with 2016 Share of State Total ..............................................................................................................6 Location of Production .................................................................................................................................................................................6 Crops Produced ....................................................................................................................................................................................................8 Sales Trends ....................................................................................................................................................................................................8 Table 3. Wholesale Value of California Floral and Nursery Products by Major Categories, 2001, 2008, and 2016 ....9 Figure 3. Index of Total Wholesale Value by Crop, 2001–2016 .................................................................................................9 Figure 4. Index of Annual Total Wholesale Value by Crop, 2001–2016 ................................................................................. 10 Retail Sales ............................................................................................................................................................................................................. 11 Sales Tax Data................................................................................................................................................................................................ 11 Table 4. Statewide Taxable Sales by California Retail Florists and Farm and Garden Supply Stores, Calendar Year, 2000–2015 ................................................................................................................................................................. 11 Table 5. Number of Retailers and Average Sales Per Retailer, California Florists and Farm and Garden Retailers, 2000–2015............................................................................................................................................................................................. 12 Firms Licensed to Sell Nursery Products ..........................................................................................................................................13 Table 6. Number of California Firms Licensed to Sell Nursery Stock by Category and Total, 2003, 2011, 2013 and 2018 ................................................................................................................................................................ 13 Structural Changes ............................................................................................................................................................................................. 14 Appendix ................................................................................................................................................................................................................ 16 Appendix Table 1. Population (2017), Value of Nursery and Floral Production (2016), and Number of Greenhouse, Nursery, and Floriculture Producers (2012) by California County .................................... 16 Appendix Table 2. Annual Value of California Nursery Products by Category, 2001–2016 ..............................................17 Appendix Table 2. Continued .............................................................................................................................................................17 Appendix Table 2. Continued ............................................................................................................................................................ 18 References ............................................................................................................................................................................................................. 19 2 California's Nursery and Cannabis Industries Nursery and Floral Production Nursery and floral production is an important component While nursery and floral sales continued to grow through of California’s overall agricultural output and annual farm 2007, growth of total agricultural sales meant that nursery income. California’s nursery and flower crops returned sales as a percentage of total sales were 11.5 to 12.5 of total average cash returns of over $3.5 billion annually for the farm sales, and their share of total farm sales shrank after five crop years 2011 through 2015. Only three California the 2008-09 recession, when total farm sales continued to crops exceeded this annual average for the five year increase. The increase in nursery and floral relative to total period: dairy and milk, $7.57 billion; almonds, $5.49 billion; agricultural sales between 2014 and 2015 was the result and, all grapes, $4.81 billion. Overall, the annual nursery of total agricultural sales decreasing from $56.61 to $47.07 and floral share of total agricultural sales ranged between billion while nursery and floral sales decreased from $3.69 6.5 to 7.8 percent from 2011 to 2015 with a five-year average to $3.64 billion. of 7.5 percent. Nursery and flower production is located Annual floral and nursery sales are shown in Figure 1. The throughout California, with at least one farm operation largest components of the floral crop category include cut reported in 56 of 58 counties. The industry has a definite flowers and greens and potted flowering plants. Floral urban orientation, with the majority of production taking sales ranged from a low of $0.932 billion in 2000 to a high place in the most populated counties. of $1.112 billion in 2012. Floral sales were over $1.0 billion in 11 of the 16 years shown and have exceeded $1.0 billion Nursery and Floral Industry Sales for the six years since 2010. The largest components of California nursery and floriculture production and sales annual nursery sales are ornamental plants and nursery enjoyed a 15-year expansion extending, with sales rising stock. The split between floral and nursery sales are from $1.96 billion in 1993 to $3.98 billion in 2007. Nursery typically about 30 percent floral and 70 percent nursery. and floral sales were increasing relative to the rest of The USDA 2014 Census of Horticultural Specialties, California production through 2002 when they accounted which gathered data for all horticultural operations for 12.5 percent of total California agricultural sales with sales greater than $10,000, reported that 1,710 (Figure 1). Figure 1. Annual California Floral and Nursery Sales As Percent of Total Agricultural Sales, 1992–2015 14% Nursery Percent Total 12% 10% 8% 6% 4% 2% Percentage of Total Agricultural