Source: UNIVERSITY OF FLORIDA submitted to
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.
0184965
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)
Project Director
Hodges, A. W.
Recipient Organization
UNIVERSITY OF FLORIDA
G022 MCCARTY HALL
GAINESVILLE,FL 32611
Performing Department
FOOD & RESOURCE ECONOMICS
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 with 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 grant institutions participate in this project, consisting of both horticulturists and economists. Four major objectives have been identified, and for each objective, sumcommittees have been formed to design and implement the project. Those objectives in which Florida is participaing 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 from 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 state's 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 effect of promotional programs on plant sales. Objective 4, activity C: Examine the adoption and impact of electronic marketing technologies by the nursery industry.

Progress 10/01/05 to 09/30/06

Outputs
During this fiscal year, work was continued on economic impact analysis and business management education for the environmental horticulture industry. An economic impact study of the Florida Green industry was conducted under sponsorship by the Florida Nursery Growers and Landscape Association. Economic impacts in 2005 were evaluated based on telephone and internet surveys with over 800 industry producers, service providers and retailers. Total industry sales in 2005 were estimated at $15.24 billion (Bn), and total industry output amounted to $10.39 Bn, with $3.01 Bn for wholesale nurseries, $5.25 Bn for landscape services, and $2.13 Bn for horticultural retailers. Direct employment in the industry was 190,000 fulltime jobs, plus nearly 104,000 temporary, part-time or seasonal jobs, and total employment impacts were 319,000 jobs. Total value added impacts of $8.65 Bn included $5.19 Bn in labor income for employee wages, salaries, and business owner (proprietor) income. Since a previous study for the year 2000, total employment impacts increased by at an average annual rate of 11.1 percent, while output impacts increased by 4.2 percent annually. Estimates of industry sales, employment and economic impacts were developed separately for all Florida counties and nine regions. The study also evaluated the impacts on the industry from eight named hurricanes that struck Florida during 2004 and 2005. Some 79 percent of surveyed firms were adversely impacted by at least one hurricane. Total damages and losses due to hurricanes were estimated at $2.12 billion, including product (crop) losses of $1.05 Bn, structural damages of $465 Mn and cleanup costs of $605 Mn. Following on previous work, an economic impact analysis of the US turfgrass and lawncare industry was conducted during this year with estimates based upon survey data in conjunction with secondary data and economic multipliers derived from regional input-output models for each state using the Implan software system. The five sectors comprising the U.S. turfgrass and lawncare industry in 2002 generated total output (revenue) impacts of $57.9 billion (Bn), employment impacts of 822,849 jobs, value added impacts of $35.1 Bn, labor income of $23.0 Bn, and $2.4 Bn in indirect business taxes to local and state governments. Among individual sectors, sod producers generated $1.3 Bn in value added, and 17,028 jobs, lawn equipment manufacturers contributed $2.5 Bn in value added, and 34,000 jobs, lawncare goods retailing produced $5.8 Bn in value added, and sustained 114,294 jobs, lawncare services generated $13.3 Bn in value added, and 295,841 jobs, and golf courses provided $14.5 Bn in value added, and 361,690 jobs. Economic impacts were summarized for individual states and seven geographic regions of the U.S. Work was also continued on training of industry managers in use of financial benchmark analysis for improving nursery efficiency, productivity and profitability. Training sessions were conducted for growers on use of the internet-based system at http://hortbusiness.ifas.ufl.edu/hortnba.

Impacts
The economic impact studies for environmental horticulture in Florida and US turgrass and lawncare industries will help these industries to gain recognition for their important economic contributions, and to promote their interests in the public policy arena. The work on financial benchmark analysis will assist industry managers to achieve greater profitability.

Publications

  • Hall, Charles R, Alan W. Hodges and John J. Haydu. 2006. The Economic Impact of the Green Industry in the United States. HortTechnology, 16(2):345-356.
  • Haydu, John J, Alan W. Hodges and Charles R. Hall. 2006. Sales, Value Added and Employment Impacts of the United States Sod Production Industry. Accepted by Journal of Environmental Horticulture.
  • Haydu, John J., Alan W. Hodges and Charles R. Hall. 2006. Contribution of the Turfgrass Industry to the U.S. Economy. Proceedings of 22nd Australian Turfgrass Conference, Brisbane, Australia 22(1):32-47.
  • Haydu, J.J., A.W. Hodges and Charles R. Hall. 2006. Economic Impacts of the U.S. Golf Course Industry With A Closer Look at Florida. Proceedings of 22nd Australian Turfgrass Conference, Brisbane, Australia 22(1):48-60.
  • Haydu John J., Alan W. Hodges, and Charles R. Hall. 2006. Economic Impacts of the Turfgrass and Lawncare Industry in the United States. EDIS document FE632, University of Florida-Institute of Food and Agricultural Sciences, Gainesville, FL, 39 p., April.
  • Hodges, Alan W., John J. Haydu and Charles R. Hall. 2006. Economic Impacts of the Turfgrass and Lawncare Industry in the United States, Southern Nursery Association Research Conference Proceedings, Aug. 10.
  • Hodges, Alan W. and John J. Haydu. 2006. Economic Impacts of the Florida Environmental Horticulture Industry in 2005. EDIS document FE675, University of Florida-Institute of Food and Agricultural Sciences, Gainesville, FL, 40 p., October.
  • Satterthwaite, Loretta N., John J. Haydu and Alan W. Hodges. 2006. Consumer Purchasing Habits of Environmental Horticulture Products in Florida. Journal of Environmental Horticulture, 24(2):68-73.
  • Hodges, Alan W. and John J. Haydu. 2006. Characteristics of the Florida Nursery Industry: 2003-04 National Nursery Survey Results. EDIS document FE628, University of Florida-Institute of Food and Agricultural Sciences, Gainesville, FL, March.


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

Outputs
In this research and extension project, one thrust has been to evaluate the economic impacts of the environmental horticulture or "green" industry for all states in the United States, using Economic Census data together with industry surveys and regional economic models developed with the Implan software system. Estimates of total impacts nationally included $95 billion in value added and 1.96 million jobs. As part of this study, economic impact estimates were developed for the tree production and tree care services associated with the urban forestry sector. As a follow-up to this study, economic impacts were also estimated for the turfgrass sector of environmental horticulture. Results have been published in both print and electronic forms and findings were presented at national meetings. Another area of research was the continued development of an internet-based system for financial benchmark analysis of wholesale nursery operations. Workshops were conducted for users in 8 states. We are expecting to recruit enough users to develop regional benchmarks for various segments of the nursery industry. Research was also conducted to analyze the economic structure of the green industry, it development, marketing of ornamental plants and turfgrass, and evaluation of technologies for ornamental plant production. Much of this work has involved survey research to collect information from businesses, since secondary statistical data on this industry is not widely available. Outreach activities for the project included service to individual clients on business analysis for horticultural production, training growers and landscape service professionals on marketing and cost analysis, and maintaining an internet website on horticultural business management (hortbusiness.ifas.ufl.edu), and economic impact analysis (economicimpact.ifas.ufl.edu).

Impacts
The impact of these research and education programs is realized by horticulture industry managers who have adopted better management practices or are better informed about current market and economic conditions. Growers who participate in the Business Analysis program are able to make better use of their financial statements, and to compare their company's performance with benchmarks for key indicators such as inventory turnover, rate of return on net worth, cost per dollar value of production, and financial leverage. Many of the growers participating in the program have done so repeatedly for a number of years, indicating that they continue to find value in the program. Landscape service professionals who participated in the training programs on cost analysis and bidding were enabled to produce more accurate estimates of landscape job cost, and to prepare more competitive bids for service contracts. Turfgrass producers were better informed about potential new markets for their product that may increase overall demand for turfgrass. The economic impact analysis work enabled horticulture industry managers and leaders to better represent their industry to the public and to regulators and policy-makers, and to better understand the policy issues facing the industry. The development of internet websites for promulgation of research results has made this information more accessible than ever before.

Publications

  • Hall, Charles R, Alan W. Hodges and John J. Haydu. 2006. The Economic Impact of the Green Industry in the United States. HortTechnology, 16(2):345-356.
  • Haydu, John J, Alan W. Hodges and Charles R. Hall. 2006. Sales, Value Added and Employment Impacts of the United States Sod Production Industry. Accepted by Journal of Environmental Horticulture.
  • Haydu, John J., Alan W. Hodges and Charles R. Hall. 2006. Contribution of the Turfgrass Industry to the U.S. Economy. Proceedings of 22nd Australian Turfgrass Conference, Brisbane, Australia 22(1):32-47.
  • Haydu, J.J., A.W. Hodges and Charles R. Hall. 2006. Economic Impacts of the U.S. Golf Course Industry With A Closer Look at Florida. Proceedings of 22nd Australian Turfgrass Conference, Brisbane, Australia 22(1):48-60.
  • Haydu, John J. and Alan W. Hodges. 2002. Summary of Florida Sod Production. TPI Turf News, Vol.26, No.1, p. 34.
  • Haydu, John J. and Alan W. Hodges. 2002. Contribution of Floridas Golf Course Industry to the States Economy. Florida Turf Digest, Vol.19, No.4, pp. 8-14.
  • Haydu, John J. and Alan W. Hodges. 2002. Contribution of Floridas Golf Course Industry to the States Economy. The Florida Green, Summer Edition, pp. 40-46.
  • Hodges, Alan W. and John J. Haydu. 2002. Florida Green Industry Makes Enormous Economic Impact. Ornamental Outlook, Vol.11, No.9, September, pp. 38-40.
  • Haydu, J.J. A.W. Hodges, L.N. Satterthwaite and J.L. Cisar. 2002. Market Expansion Strategies for Turfgrass Producers in the Central U.S., Part 2. Turf Dollars and Sense, 14, pp. 1-4.
  • Haydu John J., Alan W. Hodges, and Charles R. Hall. 2006. Economic Impacts of the Turfgrass and Lawncare Industry in the United States. EDIS document FE632, University of Florida-Institute of Food and Agricultural Sciences, Gainesville, FL, 39 p., April.
  • Hodges, Alan W., John J. Haydu and Charles R. Hall. 2006. Economic Impacts of the Turfgrass and Lawncare Industry in the United States, Southern Nursery Association Research Conference Proceedings, Aug. 10.
  • Hodges, Alan W. and John J. Haydu. 2006. Economic Impacts of the Florida Environmental Horticulture Industry in 2005. EDIS document FE675, University of Florida-Institute of Food and Agricultural Sciences, Gainesville, FL, 40 p., October.
  • Hodges, Alan W. and John J. Haydu. 2006. Characteristics of the Florida Nursery Industry: 2003-04 National Nursery Survey Results. EDIS document FE628, University of Florida-Institute of Food and Agricultural Sciences, Gainesville, FL, March.
  • Satterthwaite, Loretta N., John J. Haydu and Alan W. Hodges. 2006. Consumer Purchasing Habits of Environmental Horticulture Products in Florida. Journal of Environmental Horticulture, 24(2):68-73.
  • Brooker, John, Charles R. Hall, David Eastwood and Alan W. Hodges. Marketing Practices Within the U.S. Nursery Industry: the 2003 National Survey. Proceedings of the Southern Nursery Association Research Conference, vol 50, Dec. 2005.
  • Hall, Charles R., Alan W. Hodges and John J. Haydu. Economic Impacts of the Green Industry in the United States. Report to the National Urban and Community Forestry Advisory Committee; University of Florida/IFAS electronic document FE566, July 2005, 88 pages, available at http://edis.ifas.ufl.edu.
  • Haydu, John J. and Alan W. Hodges. Florida sod production industry: a look back at the past forty years. Proceedings of the Southern Nursery Association Research Conference, vol 50, Dec. 2005.
  • Haydu, John J., Alan W. Hodges and Charles R. Hall. Economic Impacts of the Turfgrass Industry in the United States. Report to the International Turfgrass Producers Foundation, University of Florida/IFAS, 41 pages, Nov. 2005.
  • Hodges, Alan W., Charles R Hall and John J. Haydu. The Big Green Machine. Ornamental Outlook, p. 36., Nov. 2005.
  • Hodges, Alan W. and John J. Haydu. Analyze This! Greenhouse Grower, p. 60, May 2005.
  • Hodges, Alan W., Charles R. Hall and John J. Haydu. Economic Impacts of the Environmental Horticulture Industry in the United States. Proceedings of the Southern Nursery Association Research Conference, vol 50, pp. 305-310, Dec. 2005.
  • Hodges, Alan, W and J.J. Haydu. 2002. Competition in the Horticulture Container Market in the Southeastern United States. Southern Nursery Association Research Conference, Atlanta, GA.
  • Hodges, Alan W.and J.J. Haydu. 2002. Economic Impacts of the Florida Environmental Horticulture Industry, 2000. Southern Nursery Association Research Conference, Atlanta, GA.
  • Haydu, J.J., R.C. Beeson, A.W. Hodges, J. Carron, and PJ van Blokland. 2002. Cost-Benefit Analysis of Alternative Irrigation Technologies for Container-grown Landscape Plants. Proceedings of the Hawaii Conference on Business, Honolulu, HI.
  • Haydu, J.J., A.W. Hodges, and J.L. Cisar. 2002. Container-grown Nursery Crops as a Solution to Small Farm Profitability. Proceedings of the Hawaii Conference on Business, Honolulu, HI.
  • Hodges, A.W., J.J. Haydu, and P.J. van Blokland. 2002. Competition in the Horticulture Container Market in the Southeastern United States. Hawaii Conference on Business, Honolulu, HI.
  • van Blokland, P.J., A.W. Hodges and J.J. Haydu. 2002. Using Probabilities to Make Budgets More Realistic. Proceedings of the Hawaii Conference on Business, Honolulu, HI.
  • Haydu, John J. and Alan W. Hodges. 2002. Market Analysis of the Capillary Mat Irrigation Technology in the Southeastern United States. Economic Information Report, EIR 02-1, University of Florida, 22 p.
  • Haydu, John J. and Alan W. Hodges. 2002. Economic Impact of Floridas Golf Course Industry. Economic Information Report, EIR 02-4, University of Florida, 30 p.
  • Hodges, Alan W.and J.J. Haydu. 2002. Economic Impacts of the Florida Environmental Horticulture Industry, 2000. Economic Information Report, EI 02-3, IFAS, University of Florida, 79 p.
  • Haydu, John J. and Loretta Satterthwaite and John L. Cisar. 2002. An Economic and Agronomic Profile of Floridas Sod Industry in 2000. Economic Information Report, EIR 02-6, University of Florida, 25 p.
  • Hodges, Alan W. and John J. Haydu. 2002. Floridas Nursery and Landscape Industry Soars to Record Economic Heights. Farm Credit Leader, Winter, 2002. Farm Credit of Central Florida, pp.4-7.
  • Hodges, Alan W. and John J. Haydu. 2002. Demographic Trends in the United States Relevant for Sod Producers. TPI Turf News, Vol.26, No.1, pp. 36, 38, 40-41, 44-45.
  • Haydu, J.J. A.W. Hodges, L.N. Satterthwaite and JL Cisar. 2002. Market Expansion Strategies for Turfgrass Producers in the Central U.S., Part 3. Turf Dollars and Sense, 14, pp. 1-4.
  • Haydu, J.J. A.W. Hodges, L.N. Satterthwaite and JL Cisar. 2002. Market Expansion Strategies for Turfgrass Producers in the Central U.S., Part 4. Turf Dollars and Sense, 14, pp. 1-4.
  • Hodges, A. Outlook for Ornamental Plants. 2001. Food & Resource Economics Newsletter, University of Florida.
  • Haydu, John J., Alan W. Hodges, and Ronald W. Ward. 2002. Market Analysis of the Capillary Mat Irrigation Technology in the Southeastern United States. EDIS Document FE 334, Florida Cooperative Extension Service, University of Florida.
  • Hodges, Alan W. and John J. Haydu. 2002. Competition in the Market for Manufactured Horticultural Containers in the Southeastern United States. EDIS document FE 336, Florida Cooperative Extension Service, University of Florida, Gainesville, FL.
  • Haydu, John J. and A.W. Hodges. 2002. Economic Dimensions of the Florida Golf Course Industry. EDIS document FE 344, Florida Cooperative Extension Service, University of Florida, Gainesville, FL.
  • Hodges, A. and J. Haydu. 2002. Economic Impacts of the Florida Environmental Horticulture Industry. EDIS document FE 338, Florida Cooperative Extension Service, University of Florida, Gainesville, FL.
  • Haydu, John J., Alan W. Hodges and John L.Cisar. 2001. Trends in Florida's Nursery Industry: A FinancialAssessment of the 1990's. Proceedings of the Hawaii Conference on Business, Vol.II (H39-53), Honolulu, June 2000.
  • 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.
  • Haydu, J.J. and A.W. Hodges. Developing Markets for Turf Producers in the Eastern United States. Acta Horticulturae, 536: 499-505, Sept. 2000.
  • Haydu, J. and A. Hodges. Maximizing Your Marketing Strategy. Ornamental Outlook, pp. 18-19, Apr. 2001.
  • Hodges, Alan W. and John J. Haydu. 2001. Structural Change in Florida's Ornamental Plant Nursery Industry, 1989 to 1999. Proceedings of the Hawaii Conference on Business, Vol.II (H108-121), Honolulu, June 2000.
  • Hodges, Alan W. and John J. Haydu. 2001. Competition in the Horticultural Container Market in the Southeastern United States. Economic Report ER 01-2, Food & Res. Econ., IFAS, University of Florida, 31 pp., March 2001.
  • Hodges, A. and J. Haydu. Economic Impact of Florida's Environmental Horticulture Industry. Acta Horticulturae, 536: 251-259, 2000.
  • Hodges, A. and J. Haydu. Economic impact of Florida's Environmental Horticulture Industry. Journal of Environmental Horticulture, 18(3): 123-127, 2000.
  • Hodges, A. Ornamental Plants, in Outlook 2001, Fla. Food & Resource Economics (newsletter), Dec. 2000.
  • Hodges, A. and J. Haydu. Business Analysis for Nurseries. Ornamental Outlook, pp. 20, 22, 24, 27, Apr. 2001.
  • Hodges, A. and J. Haydu. Using Business Analysis in Ornamental Plant Nurseries. University of Florida/IFAS, electronic document FE274 (EDIS), 5 pages, May 2001.
  • Hodges, A.W. 2000. Ornamental Plants in Outlook 2000, Florida Food & Resource Economics, ed. J. Reynolds, Univ. Florida, Gainesville, Dec.1999.
  • Hodges, A.W., L.N. Satterthwaite and J.J. Haydu. 2000. Analysis of Cut Foliage Businesses in Florida, 1997. UF-FRED Economic Information Report 00-1, March 2000.
  • Hodges, A.W. and J.J. Haydu. Economic Impact of Florida's Environmental Horticulture Industry. 2000. Journal of Environmental Horticulture, 18(3):123-127, Sept, 2000.
  • Hodges, A.W. and J.J. Haydu. 2000. A Decade of Change in Florida's Ornamental Plant Nursery Industry, 1989-99. UF-FRED Economic Information Report 00-3, April, 2000.
  • Hodges, A.W. and J.J. Haydu. 2000. Economic Impact of Florida's Horticulture Industry. Acta Horticulturae, 536: 251-259, Sept. 2000.
  • Hodges, A.W., L.N. Satterthwaite and J.J. Haydu. 2000. Business Analysis of Ornamental Plant Nurseries in Florida, 1998. UF-FRED Economic Information Report 00-5, November, 2000.
  • Hodges, A.W., W.D. Mulkey, and E. Philippakos. 2000. Economic impacts of the Florida Botanical Gardens and related cultural attractions in Pinellas County, Florida. July 2000. UF-IFAS Extension Fact Sheet. (http://www.fred.ifas.ufl.edu/publications.htm)
  • Haydu, J.J. and A.W. Hodges. 2000. Market Expansion Strategies for Turfgrass Producers in the Eastern United States. UF-FRED Economic Information Report 00-2, April 2000.
  • Haydu, J.J. and A.W. Hodges. 2000. Developing Markets for Turf Producers in the Eastern United States. Acta Horticulturae, 536: 499-505, Sept. 2000.
  • Mulkey, W.D. and A.W. Hodges. 2000. Using IMPLAN to assess local economic impacts. UF-IFAS Extension Fact Sheet. (http://www.fred.ifas.ufl.edu/publications.htm)


Progress 10/01/04 to 09/30/05

Outputs
Druing the past year, our research for the environmental horticulture industry has focused on evaluating the economic impacts of the "green" industry for all states in the United States, using Economic Census data together with industry surveys and regional economic models developed with the Implan software system. Estimates of total impacts nationally included $95 billion in value added and 1.96 million jobs. As part of this study, economic impact estimates were developed for the tree production and tree care services associated with the urban forestry sector. As a follow-up to this study, economic impacts were also estimated for the turfgrass sector of environmental horticulture. Results have been published in both print and electronic forms and findings were presented at national meetings. Another area of research this past year was the continued development of an internet-based system for financial benchmark analysis of wholesale nursery operations. Workshops were conducted for users in 8 states. We are expecting to recruit enough users to develop regional benchmarks for various segments of the nursery industry.

Impacts
The research on economic impacts of the U.S. green industry is expected to assist the industry by demonstrating its importance to regional economies. The information can be used by industry leaders for promotions, obtaining further public assistance, and gaining fair treatment in legislation and regulations. The research on financial benchmark analysis provides critical information on norms for financial performance in the industry, as a guide for decision-making by owners and managers in marketing, business expansion, and human-resources.

Publications

  • Brooker, John, Charles R. Hall, David Eastwood and Alan W. Hodges. Marketing Practices Within the U.S. Nursery Industry: the 2003 National Survey. Proceedings of the Southern Nursery Association Research Conference, vol 50, Dec. 2005.
  • Hall, Charles R., Alan W. Hodges and John J. Haydu. Economic Impacts of the Green Industry in the United States. Report to the National Urban and Community Forestry Advisory Committee; University of Florida/IFAS electronic document FE566, July 2005, 88 pages, available at http://edis.ifas.ufl.edu.
  • Haydu, John J. and Alan W. Hodges. Florida sod production industry: a look back at the past forty years. Proceedings of the Southern Nursery Association Research Conference, vol 50, Dec. 2005.
  • Haydu, John J., Alan W. Hodges and Charles R. Hall. Economic Impacts of the Turfgrass Industry in the United States. Report to the International Turfgrass Producers Foundation, University of Florida/IFAS, 41 pages, Nov. 2005.
  • Hodges, Alan W., Charles R Hall and John J. Haydu. The Big Green Machine. Ornamental Outlook, p. 36., Nov. 2005.
  • Hodges, Alan W. and John J. Haydu. Analyze This! Greenhouse Grower, p. 60, May 2005.
  • Hodges, Alan W., Charles R. Hall and John J. Haydu. Economic Impacts of the Environmental Horticulture Industry in the United States. Proceedings of the Southern Nursery Association Research Conference, vol 50, pp. 305-310, Dec. 2005.


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

Outputs
Our research and education program on horticulture economics and business management in the environmental horticulture industry includes business analysis of ornamental plant nurseries in Florida, analysis of its economic structure and development, marketing of ornamental plants and turfgrass, and evaluation of technologies for ornamental plant production. Much of this work has involved survey research to collect information from businesses, since secondary statistical data on this industry is not widely available. The principal activities of this research and education program for the horticulture industry during the past year were: * Economic impact analysis of horticulture and other sectors of Florida 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, * Training for growers and landscape service professionals on marketing and cost analysis. * 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 are as follows: * Market expansion strategies for turfgrass producers in the western U.S. (completed). * Economic impact of Floridas nursery industry (completed). * Economic impact of Floridas golf course industry (completed). * Operating cost study of the Florida horticulture industry (underway). An economic impact study of Floridas environmental horticulture industry in the year 2000 was completed in 2002 to update results from an earlier study. An economic impact study of the Florida golf industry was also completed in 2002. Marketing is a crucially important business function, but many managers in the horticultural industry lack basic marketing skills. A thrust of our extension programming efforts has been to train industry managers in strategic marketing, i.e. to capitalize on their comparative advantages to position their products and services in the most competitive and profitable manner possible. This is particularly important for a rather uniform and undifferentiated commodity such as turfgrass. A major 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. Funding of 24,300 dollars was recently approved by the Florida Nurserymen and Grower's Association for a project entitled Operating Cost Study of the Florida Horticulture Industry. Principal investigators are J. Haydu and A. Hodges. This project will update previous estimates of costs and returns for wholesale nursery firms in Florida. It will also develop an interactive internet website to display results for various industry sectors or geographic areas.

Impacts
The impact of these research and education programs is realized by horticulture industry managers who have adopted better management practices or are better informed about current market and economic conditions. Landscape service professionals who participated in the training programs on cost analysis and bidding 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 more 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. The economic impact analysis work enabled horticulture 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

  • Hodges, Alan, W and J.J. Haydu. 2002. Competition in the Horticulture Container Market in the Southeastern United States. Southern Nursery Association Research Conference, Atlanta, GA.
  • Hodges, Alan W.and J.J. Haydu. 2002. Economic Impacts of the Florida Environmental Horticulture Industry, 2000. Southern Nursery Association Research Conference, Atlanta, GA.
  • Haydu, J.J., R.C. Beeson, A.W. Hodges, J. Carron, and PJ van Blokland. 2002. Cost-Benefit Analysis of Alternative Irrigation Technologies for Container-grown Landscape Plants. Proceedings of the Hawaii Conference on Business, Honolulu, HI.
  • Haydu, J.J., A.W. Hodges, and J.L. Cisar. 2002. Container-grown Nursery Crops as a Solution to Small Farm Profitability. Proceedings of the Hawaii Conference on Business, Honolulu, HI.
  • Hodges, A.W., J.J. Haydu, and P.J. van Blokland. 2002. Competition in the Horticulture Container Market in the Southeastern United States. Hawaii Conference on Business, Honolulu, HI.
  • van Blokland, P.J., A.W. Hodges and J.J. Haydu. 2002. Using Probabilities to Make Budgets More Realistic. Proceedings of the Hawaii Conference on Business, Honolulu, HI.
  • Haydu, John J. and Alan W. Hodges. 2002. Market Analysis of the Capillary Mat Irrigation Technology in the Southeastern United States. Economic Information Report, EIR 02-1, University of Florida, 22 p.
  • Haydu, John J. and Alan W. Hodges. 2002. Economic Impact of Floridas Golf Course Industry. Economic Information Report, EIR 02-4, University of Florida, 30 p.
  • Hodges, Alan W.and J.J. Haydu. 2002. Economic Impacts of the Florida Environmental Horticulture Industry, 2000. Economic Information Report, EI 02-3, IFAS, University of Florida, 79 p.
  • Haydu, John J. and Loretta Satterthwaite and John L. Cisar. 2002. An Economic and Agronomic Profile of Floridas Sod Industry in 2000. Economic Information Report, EIR 02-6, University of Florida, 25 p.
  • Hodges, Alan W. and John J. Haydu. 2002. Floridas Nursery and Landscape Industry Soars to Record Economic Heights. Farm Credit Leader, Winter, 2002. Farm Credit of Central Florida, pp.4-7.
  • Hodges, Alan W. and John J. Haydu. 2002. Demographic Trends in the United States Relevant for Sod Producers. TPI Turf News, Vol.26, No.1, pp. 36, 38, 40-41, 44-45.
  • Haydu, John J. and Alan W. Hodges. 2002. Summary of Florida Sod Production. TPI Turf News, Vol.26, No.1, p. 34.
  • Haydu, John J. and Alan W. Hodges. 2002. Contribution of Floridas Golf Course Industry to the States Economy. Florida Turf Digest, Vol.19, No.4, pp. 8-14.
  • Haydu, John J. and Alan W. Hodges. 2002. Contribution of Floridas Golf Course Industry to the States Economy. The Florida Green, Summer Edition, pp. 40-46.
  • Hodges, Alan W. and John J. Haydu. 2002. Florida Green Industry Makes Enormous Economic Impact. Ornamental Outlook, Vol.11, No.9, September, pp. 38-40.
  • Haydu, J.J. A.W. Hodges, L.N. Satterthwaite and J.L. Cisar. 2002. Market Expansion Strategies for Turfgrass Producers in the Central U.S., Part 2. Turf Dollars and Sense, 14, pp. 1-4.
  • Haydu, J.J. A.W. Hodges, L.N. Satterthwaite and JL Cisar. 2002. Market Expansion Strategies for Turfgrass Producers in the Central U.S., Part 3. Turf Dollars and Sense, 14, pp. 1-4.
  • Haydu, J.J. A.W. Hodges, L.N. Satterthwaite and JL Cisar. 2002. Market Expansion Strategies for Turfgrass Producers in the Central U.S., Part 4. Turf Dollars and Sense, 14, pp. 1-4.
  • Hodges, A. Outlook for Ornamental Plants. 2001. Food & Resource Economics Newsletter, University of Florida.
  • Haydu, John J., Alan W. Hodges, and Ronald W. Ward. 2002. Market Analysis of the Capillary Mat Irrigation Technology in the Southeastern United States. EDIS Document FE 334, Florida Cooperative Extension Service, University of Florida.
  • Hodges, Alan W. and John J. Haydu. 2002. Competition in the Market for Manufactured Horticultural Containers in the Southeastern United States. EDIS document FE 336, Florida Cooperative Extension Service, University of Florida, Gainesville, FL.
  • Haydu, John J. and A.W. Hodges. 2002. Economic Dimensions of the Florida Golf Course Industry. EDIS document FE 344, Florida Cooperative Extension Service, University of Florida, Gainesville, FL.
  • Hodges, A. and J. Haydu. 2002. Economic Impacts of the Florida Environmental Horticulture Industry. EDIS document FE 338, Florida Cooperative Extension Service, University of Florida, Gainesville, FL.


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

Outputs
The principal thrusts of my research and education activities for the horticulture industry during the last year were: Economic impact analysis of horticulture and other sectors of Florida 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, Training for growers and landscape service professionals on cost analysis and bidding, Maintaining an internet website on horticultural business management (hortbusiness.ifas.ufl.edu), and economic impact analysis (economicimpact.ifas.ufl.edu). Projects completed or underway are as follows: Market expansion strategies for turfgrass producers in the central U.S. (completed). Market expansion strategies for turfgrass producers in the western U.S. (underway). Economic impact of Florida's nursery industry (underway). Economic impact of Florida's golf course industry (underway). Market analysis of the capillary mat irrigation technology in the southeastern U.S. (completed). Competition in the container market in the southeastern U.S. (completed). As co-leader of an Extension State Major Program on Business Management for Florida's Horticulture Enterprises, we sponsored an educational program for growers and landscape professionals entitled Management Under Uncertainty in the Horticultural Industry, given at W. Palm Beach, FL (July 2001), and Apopka, Fl (Aug. 2001), with a total of 81 participants in attendance. As co-leader of the Economic Impact Analysis Program in the UF Food & Resource Economics Department, we conducted several studies on the impact of horticulture and other agricultural and natural resource industries in Florida. Several publications describing economic impact analysis 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 was conducted in 2001 to update results from an earlier study in 1997. An economic impact study of the Florida golf industry was initiated. Results for both of these studies are expected in early 2002. Research Grants Received Florida Nurserymen and Grower's Association. Economic Impact of Florida's Horticultural Industry, Update 2000, J. Haydu and A. Hodges, $45,000, 2001-02. Florida Turfgrass Association. Economic Impact of Florida's Golf Industry, J. Haydu and A. Hodges, $48,000, 2001. Florikan, Inc. Competition In The Horticultural Container Market in the Southeast United States, A. Hodges and J. Haydu, $20,000, 2000-01. Turfgrass Producers International. Market Expansion Strategies for Turfgrass Producers in the Central United States (2000-01); ...Western United States (2001-02), J. Haydu and A. Hodges, $40,000.

Impacts
The impact of these research and education programs is realized by horticulture industry managers who have adopted better management practices or are better informed about current market and economic conditions. Landscape service professionals who participated in the training programs on cost analysis and bidding 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 for more 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. The economic impact analysis work enabled horticulture industry managers and leaders to better represent their industry to the public and to 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. The management of internet websites for promulgation of research results has made this information more accessible than ever before.

Publications

  • Haydu, John J., Alan W. Hodges and John L.Cisar. 2001. Trends in Florida's Nursery Industry: A FinancialAssessment of the 1990's. Proceedings of the Hawaii Conference on Business, Vol.II (H39-53), Honolulu, June 2000.
  • 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.
  • Haydu, J.J. and A.W. Hodges. Developing Markets for Turf Producers in the Eastern United States. Acta Horticulturae, 536: 499-505, Sept. 2000.
  • Haydu, J. and A. Hodges. Maximizing Your Marketing Strategy. Ornamental Outlook, pp. 18-19, Apr. 2001.
  • Hodges, Alan W. and John J. Haydu. 2001. Structural Change in Florida's Ornamental Plant Nursery Industry, 1989 to 1999. Proceedings of the Hawaii Conference on Business, Vol.II (H108-121), Honolulu, June 2000.
  • Hodges, Alan W. and John J. Haydu. 2001. Competition in the Horticultural Container Market in the Southeastern United States. Economic Report ER 01-2, Food & Res. Econ., IFAS, University of Florida, 31 pp., March 2001.
  • Hodges, A. and J. Haydu. Economic Impact of Florida's Environmental Horticulture Industry. Acta Horticulturae, 536: 251-259, 2000.
  • Hodges, A. and J. Haydu. Economic impact of Florida's Environmental Horticulture Industry. Journal of Environmental Horticulture, 18(3): 123-127, 2000.
  • Hodges, A. Ornamental Plants, in Outlook 2001, Fla. Food & Resource Economics (newsletter), Dec. 2000.
  • Hodges, A. and J. Haydu. Business Analysis for Nurseries. Ornamental Outlook, pp. 20, 22, 24, 27, Apr. 2001.
  • Hodges, A. and J. Haydu. Using Business Analysis in Ornamental Plant Nurseries. University of Florida/IFAS, electronic document FE274 (EDIS), 5 pages, May 2001.


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

Outputs
The principal thrusts of my program for the horticulture industry during the last year were: -Economic impact analysis of Florida horticulture, -Market survey research for turfgrass and other horticultural products, -Client service and extension education on business analysis for horticultural production, and landscape service professionals. The business analysis program is an ongoing research and extension effort which seeks to compile financial benchmarks for various horticultural businesses, and teach managers about their application. Data collected for the Florida cut foliage industry for 1997 were published and presented to an industry group. Financial data were collected for a sample of 37 wholesale ornamental plant nurseries in Florida for 1998, and results were published as an Economic Information Report. A presentation on the Nursery Business Analysis and Outlook for the Florida Ornamental Plant Industry was made to Farm Credit. An educational training program on Landscape Cost Analysis and Job Bidding was presented to landscape service professionals at the Central Florida Tree and Landscape Maintenance Conference, and the Trees Florida 2000 Conference. A marketing study survey of turfgrass buyers was conducted in the eastern and the Central US. Results of the study were published as a FRED report and in Acta Horticulturae. A presentation on Demographic Trends Relevant for Sod Producers in the New Millennium was made at the annual meeting of Turfgrass Producers International. As co leader of an Extension State Major Program on Business Management for Floridas Horticulture Enterprises, we sponsored an educational program for growers entitled Surviving A Tax Audit,in which an expert on tax law informed nursery growers about coping with tax reporting requirements. Also sponsored two in service training programs for University of Florida agricultural extension agents. A program entitled The Labor Labyrinth provided information on the continually evolving rules for employers. A program entitled Determining Asking Price, presented techniques for setting prices for products bases on financial statement information. As co leader of the Economic Impact Analysis Program in the UF Food and Resource Economics Department, we conducted several studies on the impact of agricultural and natural resource industries in Florida. Several publications describing economic impact analysis of the horticulture industry were written. An internet web site was developed to provide publications, Florida economic data, and information on Center projects, services offered, and center personnel. Results of an economic impact study of Florida's environmental horticulture industry in 1997 were published in the Journal of Environmental Horticulture and Acta Horticulturae, and were presented at the annual meeting of the Southern Regional Science Association, and at the International Society for Horticultural Science. A special project was done on economic impacts of the Florida Botanical Gardens and related cultural attractions in Pinellas County, Florida, as requested by Pinellas County Extension, and results were published as a staff paper on our website.

Impacts
The impact of these research and education programs is realized by horticulture industry managers who have adopted better management practices or are better informed about current market and economic conditions. Growers who participate in the Business Analysis program are able to make better use of their financial statements, and to compare their company's performance with benchmarks for key indicators such as inventory turnover, rate of return on net worth, cost per dollar value of production, and financial leverage. Many of the growers participating in the program have done so repeatedly for a number of years, indicating that they continue to find value in the program. Landscape service professionals who participated in the training programs on cost analysis and bidding were enabled to produce more accurate estimates of landscape job cost, and to prepare more competitive bids for service contracts. Turfgrass producers were better informed about potential new markets for their product that may increase overall demand for turfgrass. The economic impact analysis work enabled horticulture industry managers and leaders to better represent their industry to the public and to regulators and policy-makers, and to better understand the policy issues facing the industry. The development of internet websites for promulgation of research results has made this information more accessible than ever before.

Publications

  • Haydu, J.J. and A.W. Hodges. 2000. Market Expansion Strategies for Turfgrass Producers in the Eastern United States. UF-FRED Economic Information Report 00-2, April 2000.
  • Haydu, J.J. and A.W. Hodges. 2000. Developing Markets for Turf Producers in the Eastern United States. Acta Horticulturae, 536: 499-505, Sept. 2000.
  • Mulkey, W.D. and A.W. Hodges. 2000. Using IMPLAN to assess local economic impacts. UF-IFAS Extension Fact Sheet. (http://www.fred.ifas.ufl.edu/publications.htm)
  • Hodges, A.W. 2000. Ornamental Plants in Outlook 2000, Florida Food & Resource Economics, ed. J. Reynolds, Univ. Florida, Gainesville, Dec.1999.
  • Hodges, A.W., L.N. Satterthwaite and J.J. Haydu. 2000. Analysis of Cut Foliage Businesses in Florida, 1997. UF-FRED Economic Information Report 00-1, March 2000.
  • Hodges, A.W. and J.J. Haydu. Economic Impact of Florida's Environmental Horticulture Industry. 2000. Journal of Environmental Horticulture, 18(3):123-127, Sept, 2000.
  • Hodges, A.W. and J.J. Haydu. 2000. A Decade of Change in Florida's Ornamental Plant Nursery Industry, 1989-99. UF-FRED Economic Information Report 00-3, April, 2000.
  • Hodges, A.W. and J.J. Haydu. 2000. Economic Impact of Florida's Horticulture Industry. Acta Horticulturae, 536: 251-259, Sept. 2000.
  • Hodges, A.W., L.N. Satterthwaite and J.J. Haydu. 2000. Business Analysis of Ornamental Plant Nurseries in Florida, 1998. UF-FRED Economic Information Report 00-5, November, 2000.
  • Hodges, A.W., W.D. Mulkey, and E. Philippakos. 2000. Economic impacts of the Florida Botanical Gardens and related cultural attractions in Pinellas County, Florida. July 2000. UF-IFAS Extension Fact Sheet. (http://www.fred.ifas.ufl.edu/publications.htm)