Source: UNIVERSITY OF FLORIDA submitted to NRP
TECHNICAL AND ECONOMICAL EFFICIENCIES OF PRODUCING, MARKETING, AND MANAGING ENVIRONMENTAL PLANTS
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
HATCH
Reporting Frequency
Annual
Accession No.
0184879
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
S-290
Project Start Date
Oct 1, 1999
Project End Date
Sep 30, 2005
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIVERSITY OF FLORIDA
G022 MCCARTY HALL
GAINESVILLE,FL 32611
Performing Department
AGRI RES & ED CENTER, APOPKA
Non Technical Summary
The production and marketing of nursery plants is a growing part of agriculture. Yet few resources are directed at this industry. It is critical that mechanisms be developed to assist producers and marketers to better ascertain future opportunities and threats. The purpose of this research is to identify where strategic advantages reside, particularly regarding economic expansion of firms and the efficient use of scarce resources.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
2052199301015%
2056230301015%
6042199301050%
6046230301020%
Knowledge Area
205 - Plant Management Systems; 604 - Marketing and Distribution Practices;

Subject Of Investigation
2199 - Ornamentals and turf, general/other; 6230 - Marketing systems and sectors thereof;

Field Of Science
3010 - Economics;
Goals / Objectives
Objective 1. Evaluate alternative green industry plant production, establishment, and maintenance systems. Objective 2. Evaluate the regional competitiveness within the green industry. Objective 3. Evaluate the demand for green industry plants, materials, and services. Objective 4. Evaluate the effectiveness of alternative merchandising techniques.
Project Methods
Roughly 20 land grants institutions participate in this project, consisting of both horticulturists and economists. Four major objectives have been identified, and for each objective, subcommittee's have been formed to design and implement the project. Those objectives in which Florida is participating in are included in the following summary. Objective 1. Activity B. Determine economic feasibility of horticultural production systems. Florida has initiated its component of the project through the Nursery Business Analysis Program. This program collects detailed financial data on the states nursery firms each year, and publishes the results through departmental reports. Objective 2. Twenty-three states are participating in this objective, including Florida. Florida's approach has been to cooperate by using the project's national survey instrument that addresses management and marketing practices, and implementing the survey as part of the multi-state effort. In addition, Florida has conducted its own detailed research to determine the economic impact of the nursery industry to the states economy. Objective 3. The approach is to: 1) determine quality factors and plant characteristics for woody and floriculture products; 2) identify quality preferences of consumers and professionals; 3) investigate the relationships between quality attributes and prices paid by customers. Objective 4. Activity A. Examine the impact of statewide plant identification techniques that focus on specific plants, including the the affect promotional programs have on plant sales. Activity c. Examine the adoption rate and impact of electronic marketing technologies by different types of nursery firms.

Progress 10/01/99 to 09/30/05

Outputs
This regional project has involved researchers from as many as 26 land grant universities comprised of horticulturists and economists. The project's primary objective has been to provide practical, applied research that will benefit producers, wholesalers, retailers, and other allied businesses in the environmental horticulture industry. This group has worked successfully over the years at publishing many technical publications on production and cultural practices, comprehensive budgets of costs and returns for horticultural firms, a how to guide on establisning and operating a garden center, a first of its kind publication on the economic impact of the green industry, and most recently, an economic impact of the U.S. turfgrass industry.

Impacts
Early research from this project has provided practical guidance to businesses in the environmental horticulture industry on a wide range of issues, including human resource management, financial management, business management and marketing. More recently, a major national study of trade flows and marketing practices was just completed and published. This information allows growers, wholesalers and retailers to better understand traditional product market flows, as well as emerging market trends. Economic impact analysis provided the industries with information on the contribution of their industry to the national, state and local economies in terms of revenues generated, value added to the economy, jobs generated and taxes paid. In addition to establishing an industry'd value and contribution, it also sheds light on investment opportunities for nursery firms and allied businesses. More recently, research emphasis has switched to economic impact analysis

Publications

  • Park, D.M., Cisar, J.L., McDermitt, D.K., Williams, K.E., Haydu, J.J., and Miller, W.P. 2005. Using Red and Infrared Reflectance and Visual Observation to Monitor Turf Quality and Water Stress in Surfactant-treated Bermudagrass Under Reduced Irrigation. Journal of International Turfgrass Research, Volume 10, No. 2: 115-120.
  • Brooker, J. D. Eastwood, C. Hall, K. Morris, A. Hodges, and J. Haydu. 2005. Trade Flows and Marketing Practices within the United States Nursery Industry. Southern Cooperative Bulletin 404, 76 pp.
  • Hall, Charles C., A.W. Hodges, and J.J. Haydu. 2005. Economic Impacts of the Green Industry in the United States. The Department of Agricultural Economics, University of Tennessee, Knoxville, TN, 81pp.
  • Haydu, John J., L.N. Satterthwaite, and J.L. Cisar. 2005. An Economic and Agronomic Profile of Florida's Sod Production Industry in 2003. Florida Agricultural Experiment Stations, Florida Cooperative Extension Service, Food & Resource Economics Department, Mid-Florida REC, University of Florida, IFAS, April, 34 pp.


Progress 10/01/03 to 09/30/04

Outputs
Research and education program on horticultural economics includes business analysis of ornamental plant nurseries in Florida, analysis of economic structure and development, marketing of ornamental plants and turfgrass, and evaluation of technologies for plant production. This has involved survey research to collect various types of economic information. The principal research and education activities during the past year were: Economic impact of the U.S. green industry using secondary data and the Implan input output modeling software. Market survey research for turfgrass, ornamental plants, and related horticultural products. Research, client service, and education on business analysis for horticultural production. Training for nursery growers on an internet based system of cost analysis. Maintaining an internet website on horticultural business management, and economic impact analysis.Projects completed during the past year or currently underway are as follows:Economic impact of the U.S. Green industry (on-going).Economic and Agronomic Study of Florida sod production industry. Operating cost study of the Florida horticulture industry (on-going).Technical analysis of various growing media for nursery production. Economic analysis of various irrigation technologies in nursery production. Survey of consumer purchasing habits at retail garden centers.National marketing study of nursery and landscape producers. Technical analysis of nitrogen fertilizers used in sod production.

Impacts
The impact of these research programs is realized by horticulture industry managers who have adopted better management practices or are better informed about current economic conditions. Landscape service professionals who participated in the cost analysis and bidding program were enabled to produce more accurate estimates of landscape job cost, and to prepare more competitive bids for service contracts. Various industry groups continue to request market analysis and use the results for decision making. Economic impact analysis work enabled industry managers and leaders to better represent their industry to the public, regulators and policy makers, and to better understand the policy issues facing the industry. Economic evaluations of irrigation technologies serve a fundamental need of producer firms for more efficient water use. The management of internet websites for promulgation of research results has made this information more accessible than ever and is now the preferred means for information dissemination. Documenting the environmental benefits of agriculture and natural resource lands will allow clientele to better support the non economic benefits of their industries.

Publications

  • Satterthwaite, Loretta, J. Haydu, and A.W. Hodges. 2004. Exit Survey of Consumer Purchasing Habits at Florida Retail Garden Centers. Proceedings: Southern Nurseryman Association, Vol. 49:33-36.
  • Brooker, John, C. Hall, D. Eastwood, J. Haydu, and A. Hodges. 2004. The Fourth National Industry Survey of Production and Marketing Practices. Southern Nurseryman Association, Vol. 49:38-43.
  • Hodges, Alan and J. Haydu. 2004. An Internet-based System for Financial Benchmark Analysis of Wholesale Nursery Operations. Southern Nurseryman Association, Vol. 49:71-74.
  • Cisar, John, George Snyder, John Haydu, Daren Park and Karen Williams. 2004. An evaluation of N sources on bermudagrass quality. Journal of International Turfgrass Research, In press
  • Haydu, John J., John Cisar, and Loretta Satterthwaite. 2004. Florida Sod Production Industry: A 2003 Survey. Journal of International Turfgrass Research, In press


Progress 10/01/02 to 10/01/03

Outputs
Research programs on horticultural economics include business analysis of ornamental plant nurseries in Florida, analysis of economic structure and development, marketing of ornamental plants and turfgrass, and evaluation of technologies for plant production. This involved survey research to collect various types of economic information. The principal research activities during the past year were: Economic impact of horticulture and other sectors of Florida agriculture using primary survey data and the Implan input-output modeling software. Market survey research ornamental plants, and related horticultural products. Research, client service, and extension education on business analysis for horticultural production. Training for growers and landscape service professionals on marketing and cost analysis. Maintaining an internet website on horticultural business management, and economic impact analysis. Projects for this year include the following. Economic impact of agriculture and natural resource industries (completed). Economic impact of the green industry in the U.S. Economics of irrigation technologies for container-grown landscape plants (on-going). Operating cost study of the Florida horticulture industry (on-going). Environmental Benefits of Forest Lands and Open Range in Florida (on-going). Consumer Purchasing Habits of Florida Environmental Horticulture Products (on-going)

Impacts
The impact of these research programs is realized by horticulture industry managers who have adopted better management practices or are better informed about current economic conditions. Landscape service professionals who participated in the cost analysis and bidding program were enabled to produce more accurate estimates of landscape job cost, and to prepare more competitive bids for service contracts. Various industry groups continue to request market analysis and use the results for decision making. Economic impact analysis work enabled industry managers and leaders to better represent their industry to the public, regulators and policy makers, and to better understand the policy issues facing the industry. Economic evaluations of irrigation technologies serve a fundamental need of producer firms for more efficient water use. The management of internet websites for promulgation of research results has made this information more accessible than ever and is now the preferred means for information dissemination. Documenting the environmental benefits of agriculture and natural resource lands will allow clientele to better support the non economic benefits of their industries.

Publications

  • Cisar, J. L., J. E. Erickson, G. H. Snyder, J. J. Haydu, and J. E. Volin. 2003. Documenting Nutrient Leaching and Runoff from Urban Landscapes. Chapter 12, Environmental Inpacts of Fertilizer Products on Soil, Air, and Water, W. Hall and W. Robarge, eds.
  • Haydu, John J and Daniel E. Legard. 2003. An Economic Analysis of Preharvest Fungicide Applications to Control Botrytis Fruit Rot in Annual Strawberries in Florida. HortScience, Vol. 38(1):124-127.
  • Haydu, J.J., A.W. Hodges, and J.L. Cisar. 2003. A Financial Appraisal of Floridas Environmental Horticulture Industry. Journal of American Academy of Business, Cambridge, Vol.2(2):386-392.
  • Hodges, Alan, W, John.J. Haydu. 2003. Structural Adaptation in the Florida Ornamental Plant Nursery Industry. Journal of American Academy of Business, Cambridge, Vol. 2(2):393-399.
  • Caron, Jean, Richard C. Beeson, and John J. Haydu. 2003. Saving Water with Sphagnum Peat in Nursery Growing Media. Acta Horticulturae, in review.
  • Haydu, John J., Richard C. Beeson, and Jean Caron. 2003. Economic Analysis of Five Irrigation Technologies for Container-grown Viburnum odoratissimum. Acta Horticulturae, in review.
  • Beeson, R.C., J.J. Haydu, T.H. Yeager, G.W. Knox, D. Hamon, and J. Caron. 2003. Container Systems for Reducing Overhead Irrigation Application Rates, Proceedings: Southern Nurseryman Association, (48):454-456.
  • Haydu, John J. and Alan W. Hodges. 2003. Developing New Markets for Turfgrass-sod in the United States. Proceedings: The Economics and International Business Research Conference, Vol.2(1):12-17.
  • Hodges, Alan W. and J.J. Haydu. 2003. Golf, Tourism, and Amenity-based Development in Florida. Proceedings: The Economics and International Business Research Conference, Vol. 2(1):127-134. Dicks, Bradley R., P.J. van Blokland and John J. Haydu. Florida Forest Industry. Teaching and Learning Paper Series, TLP 03-08. Dept. of Food & Resource Economics, Florida Cooperative Extension Service, IFAS, University of Florida.


Progress 10/01/01 to 10/01/02

Outputs
Our research programs on horticultural economics includes business analysis of ornamental plant nurseries in Florida, analysis of economic structure and development, marketing, and evaluation of technologies for plant production. This work has involved survey research to collect economic information from businesses. Research activities for the horticulture industry: Economic impact of horticulture and other sectors of agriculture using primary survey data and the Implan input-output modeling software; Market survey research for turfgrass, ornamental plants, and related horticultural products; Research, client service, and extension education on business analysis for horticultural production; Maintaining an internet website on horticultural business management (hortbusiness.ifas.ufl.edu), and economic impact analysis (economicimpact.ifas.ufl.edu). Projects that were completed during the past year or currently underway include: Market expansion strategies for turfgrass producers in the western U.S. (Completed). Economic impact of Florida's nursery industry (completed). Economic impact of Florida's golf course industry (completed). Operating cost study of the Florida horticulture industry (underway). Under the Economic Impact Analysis Program in the UF Food and Resource Economics Department, we conducted studies on the impact of horticulture and other Florida agricultural industries. Publications describing economic impacts of the horticulture industry were written and posted on an internet web site (http://economicimpact.ifas.ufl.edu). An economic impact study of Florida's environmental horticulture industry in the year 2000 was completed in 2002. An economic impact study of the Florida golf industry was also completed in 2002. A 3-year project entitled Market Expansion Strategies for Turfgrass Producers in the United States, funded by the International Turf Producers Foundation, was completed in 2002. This work sought to develop recommendations for increasing overall demand for turfgrass.

Impacts
The impact of these research programs is realized by horticulture industry managers who have adopted better management practices or are better informed about current economic conditions. Landscape service professionals who participated in the cost analysis and bidding program were enabled to produce more accurate estimates of landscape job cost, and to prepare more competitive bids for service contracts. Various industry groups continue to request market analysis and use the results for decision making. Turfgrass producers were better informed about potential new markets for their product that may increase overall demand for turfgrass. Economic impact analysis work enabled industry managers and leaders to better represent their industry to the public, regulators and policy-makers, and to better understand the policy issues facing the industry. Economic evaluations of irrigation technologies serve a fundamental need of producer firms for more efficient water use. The management of internet websites for promulgation of research results has made this information more accessible than ever before, and is now the preferred means for information dissemination.

Publications

  • Haydu, J., A. Hodges, and J. Cisar. 2002. Container-grown Nursery Crops as a Solution to Small Farm Profitability. Proceedings of the Hawaii Conference on Business, Honolulu, HI.
  • Hodges, A., J. Haydu, and P. van Blokland. 2002. Competition in the Horticulture Container Market in the Southeastern United States. Hawaii Conference on Business, Honolulu, HI.
  • van Blokland, P., A. Hodges and J. Haydu. 2002. Using Probabilities to Make Budgets More Realistic. Proceedings of the Hawaii Conference on Business, Honolulu, HI.
  • Haydu, J. and A. Hodges. 2002. Market Analysis of the Capillary Mat Irrigation Technology in the Southeastern United States. Economic Information Report, EIR 02-1, IFAS, University of Florida, 22 p.
  • Haydu, J. Careers in a Global Horticulture. 2002. John Deere Publishing, Moline, IL, 175 pp.
  • Hodges, A. and J. Haydu. 2002. Competition in the Horticulture Container Market in the Southeastern United States. Southern Nursery Association Research Conference, Atlanta, GA.
  • Hodges, A. .and J. Haydu. 2002. Economic Impacts of the Florida Environmental Horticulture Industry, 2000. Southern Nursery Association Research Conference, Atlanta, GA.
  • Haydu, J., R. Beeson, A. Hodges, J. Carron, and P. van Blokland. 2002. Cost-Benefit Analysis of Alternative Irrigation Technologies for Container-grown Landscape Plants. Proceedings of the Hawaii Conference on Business, Honolulu, HI.


Progress 10/01/00 to 10/01/01

Outputs
Projects are underway or recently completed. 1) Market expansion strategies for turfgrass producers in the central U.S. Completed. 2) Market expansion strategies for turfgrass producers in the western U.S.. Underway. 3) Economic impact of Florida's nursery industry. Underway. 4) Economic impact of Florida's golf course industry. Underway. 5) Prehearvest and postharvest benefits of field applications of captan and iprodione for control of fruit rot pathogens in strawberries. Completed. 6) Market analysis of the capillary mat technology in the southeastern U.S. Completed. 7) Competition in the container market in the southeastern U.S. Completed. 8) Comparison of Laval University capillary mats to other landscape nursery irrigation systems. Underway

Impacts
Market research continues because of strong demand for this type of information. Various industry groups continue to request for more market analysis and use the results for decision making. Economic evaluations of irrigation technologies and chemical prevention strategies serve a fundamental need of producer firms.

Publications

  • Haydu, John J., Alan W. Hodges and John L.Cisar. 2001. Trends in Florida's Nursery Industry: A Financial Assessment of the 1990's. Hawaii Conference on Business, Vol.II (H39-53).
  • Cisar, J. L. , G. H. Snyder, J.J. Haydu, and K.E. Williams. 2001. Turf Response to Coated-Urea Fertilizers. International Turfrgrass Society Research Journal 9:368-374.
  • Cisar, J. L., Snyder, G. H., Haydu, J. J., and K.E. Williams. 2001. Turf Response to Coated Urea Fertilizers. Fla. State Hort. Soc. 114:112-118.
  • Alan W. Hodges and John J. Haydu. 2001. Structural Change in Florida's Ornamental Plant Nursery Industry, 1989-1999. Hawaii Conference on Business, Vol.II (H108-121).
  • Hodges, Alan W., Loretta N. Satterthwaite and John J. Haydu. 2001. Business Analysis of Ornamental Plant Nurseries in Florida, 1998. Economic Information Rpt. EI 00-5r, Food & Res. Econ., IFAS, University of Florida, February, 23 pp.
  • Hodges, Alan W. and John J. Haydu. 2001. Competition in the Horticultural Container Market in the Southeastern United States. Economic Rport ER 01-2, Food & Res. Econ., IFAS, University of Florida, 31 pp.
  • Haydu, John J. and Alan W. Hodges. 2001. Market Expansion Strategies for Turfgrass Producers in the Central United States. Economic Information Rpt. EI 01-04, Food & Res. Econ., IFAS, University of Florida, February, 25 pp.


Progress 10/01/99 to 09/30/00

Outputs
Several projects are underway or concluded. 1) Trade Flows and Marketing Channels for U.S. Nursery Products, is fourth study in 12 years which examines changes in marketing practices among nurseries. Florida is one of 26 states. Project is completed and Florida's portion published. 2) Market Expansion Strategies for Turfgrass producers in the Eastern U.S. Project completed. Central U.S. study underway. 3) Improving Irrigation Management in Container-grown Landscape Ornamentals. Project is in final stages. 4) Competition in the Horticultural Container Market in Southeast U.S. Objective is to determine current degree of market competitiveness for nursery containers in the southern U.S. Project is underway. 5) Market Potential for Improved Irrigation Efficiency Through Capillary Mat System. Objective is to determine if wholesale growers and retail garden centers in the southeast U.S. are receptive to improved irrigation efficiency and technologies. Project underway.

Impacts
Trade Flows research continued because of demand for market information. Data covers a good part of nursery industry and represents useful trend analysis. Market Expansion Strategies final report given in San Antonio in February. Results published in international trade magazine. Phase 2 funded. Irrigation Management field day brought over 200 people. Trade journal article published with an international audience. Projects 4, 5 underway.

Publications

  • Cisar, J.L. G. L. Snyder and J.J. Haydu. 2000. The Occurrence and Alleviation by Surfactants of Soil-water Repellency on Sand-based Turfgrass Systems. Journal of Hydrology(2000) 352-358.
  • Hodges, Alan W. and John J. Haydu. 2000. Economic Impact of Florida Environmental Horticulture Industry. Journal of Environmental Horticulture. 18(3):123-127. Haydu, John J., Alan W. Hodges, P.J. van Blokland. 2000. Developing Markets for Turf Producers in the Eastern United States. Acta Horticultura 536, ISHS (2000): 499-505. Hodges, Alan W., John J. Haydu, and P.J. van Blokland. 2000. Contribution of Environmental Horticulture to Florida's Economy. Acta Horticultura 536, ISHS (2000): 251-259.
  • van Blokland, P.J., Mei Wang, J.J. Haydu, and A.W. Hodges. 2000. How Big Must A Nursery Firm Be To Produce A Reasonable Family Income. Acta Horticultura 536, ISHS (2000):223-230.
  • Hodges, Alan W. and John J. Haydu. 2000. A Decade of Change in Florida's Ornamental Plant Industry, 1989 to 1999. Economic Information Rpt. EI 00-3, Food & Res. Econ., IFAS, University of Florida, 15 pp.
  • Haydu, John J. and Alan W. Hodges. 2000. Market Expansion Strategies for Turfgrass Producers in the Eastern United States. Economic Infor. Report EI 00-2. Food & Res.Econ., IFAS, University of Florida, 26 pp.
  • Beeson, R.C. and J. J. Haydu. 2000. Cycling Micro-irrigation for Production of Container-grown Landscape Ornamentals: Plant Growth and Water Conservation. International Water & Irrigation. Volume 20, No. 2, Tel Aviv, Israel.
  • Hodges, Alan W., Satterthwaite, L.N., and J.J. Haydu. 2000. Analysis of Cut Foliage Businesses in Florida, 1997. Econ. Information Report EI 00-1. Food & Resource Economics, IFAS, University of Florida, 15 pp.