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ANNUAL REPORT OF COOPERATIVE REGIONAL PROJECTS
Supported by Allotments of the Regional Research Fund,
Hatch Act, as Amended August 11, 1955
January 1 to December 31, 1995
PROJECT: S-103, TECHNICAL AND ECONOMICAL EFFICIENCIES
OF PRODUCING AND MARKETING LANDSCAPE PLANTS

PROGRESS OF THE WORK AND PRINCIPAL ACCOMPLISHMENTS:
Cooperative research was conducted on the three major project objectives: 1) evaluate alternative landscape (environmental) plant production, establishment, and maintenance systems, 2) evaluate the regional competitiveness within the landscape (environmental plant industry), and 3) evaluate the demand for landscape (environmental) plants, materials, and services. The unique multi-disciplinary participation by horticulturists and agricultural economists continues to provide innovative, yet thorough analyses and collaboration. The technical committee also includes representation from many non-Southern states--all possible because of the focus of producing and marketing landscape plants within and across plant hardiness or climatic zones, rather than state or regional boundaries.

A World Wide Web site on the Internet was developed during 1995 to disseminate research findings and general program information related to the S-103 Regional Research Committee. Titled, "EnviroPlants Research," this site carries a complete description of the project objectives, project participants, and results of the 1994 survey that documented trade flows and marketing practices within the United States nursery industry for 1993. Additional publications and links to other internet resources are also available. The URL address for this site is: http://hortwww-2.ag.ohio-state.edu/s103/s103.html. Progress is reported under the appropriate project objective:

Objective 1: Evaluate alternative landscape (environmental) plant production, establishment and maintenance systems.

a. Plant production systems
Relative costs and returns for selected plants grown using infield, above-ground container and pot-in-pot production methods were evaluated for a 10-acre nursery with a five acre production area and a three year growing cycle. Pot-in-pot system had high initial capital outlay which resulted in higher fixed cost per plant. However, less intensive cultural practices and increased plant numbers resulted in the lowest per plant cost for the alternative system (AL).

In an analysis of the competitive relationship of three warm-season turfgrass species, variation in the prices of the different grasses had little impact on the profit maximizing combination of grasses within current observable price ranges. Bermudagrass, with its shorter production cycle and positive influence on cash flow, dominates the higher-valued, longer production-cycle grasses--zoysia and centipede.
b. Plant establishment techniques
Transplant studies are continuing with two tree species Acer rubrum 'October Glory' and Quercus phellos to determine the effect of plant size at transplanting on performance. Root control techniques for the urban landscape are being evaluated in a study that began in 1989 and will continue through 1997 (AL).
g. Floriculture crop production
The data assembly was begun to update research on costs of producing selected floricultural crops in Climatic Zones 7 and 8. The previous research is 15 years old and needed to be revised as to crops and greenhouse and plant production technology (TN).
h. Plant establishment in disturbed areas
The comparison study of little bluestem cultivars and 'Alamo' switchgrass completed the second year in the field. 'Alamo' switchgrass is the dominant grass in this study with the seeded plots significantly taller than the transplanted plots and all of the little bluestem cultivar plants both seeded and transplanted. Percent plant coverage was not significantly different between switchgrass and little bluestem cultivars SCS 9029926 and 'Aldous' but was different from little bluestem cultivars 'Pastura' and 'Cimmeron.' Biomass data shows the switchgrass significantly greater than the other species. SCS 9029926 little bluestem cultivar seeded and transplanted was the best of the bluestem cultivars in each of the growth indices. Seeding the species tended to produce a better stand and growth than transplanting in each of the cultivars.

Application of Plateau and Roundup herbicide significantly reduced growth of bahiagrass and suppressed seedhead development and suppressed seedhead development for 8 weeks after application.

Objective 2: Evaluate the regional competitiveness within the landscape (environmental) plant industry.

a. Marketing and management practices
Nineteen states from within the project and 5 additional states cooperated to conduct an ornamental plants trade flow survey designed as a follow-up to the 1989 survey. Trade Flows and Marketing Practices within the United States Nursery Industry will be published in hard copy and on the World Wide Web (TN, and all participating S103 states).

Change of product ownership in competitive agricultural industries is a critical event, yet little research has examined the transaction methods used by firms and the corresponding factors that influence the choice of transaction method. A sample of landscape plant nurseries across the U.S. provided data to model this decision. Transaction methods included sales by telephone, personal visits, mail order, and at trade shows. In addition, factors that influenced negotiated sales were investigated. Influential factors included age of the business, size (as measured by gross sales), location, market channel use, owenrship structure, and perspective on competitive situation. Using a tobit estimation procedure, profiles of nursery firms more likely to use a particular transaction method were developed (GA).
b. Interregional competition
Three months was spent in Melbourne, Australia developing an economic profile on the Australian nursery and greenhouse industries (NJ).
Objective 3: Evaluate the demand for landscape (environmental) plants, materials and service.

a, b., and c. Demand for landscape, materials and service.
A survey of the commercial members of the Perennial Plant Association (PPA) indicated that gross sales of perennials by PPA members for 1994 was an estimated $1.38 billion, with 29% of this amount generated from sales of perennial plants. Sales of perennials increased over 1993 levels for 86% of all respondents. The most popular genus sold in the U.S. for 1994 was Hosta, followed by: Hemerocallis, Coreopsis, Chrysanthemum, and Astilbe (OH).

The relative size of the green industry within the U.S. economy and how it is linked to supporting industries through the volume of transactions and economic impact multipliers was examined. This analysis was based on IMPLAN, an input-output model developed by the U.S. Forest Service. In terms of 1990 employment, the green industry was the second leading employer in U.S. production agriculture. In terms of output, the greenhouse and products sector ranked sixth within production agriculture (GA).

Data describing the status and nature of Alabama's ornamental plant industry were summarized and published (AL)

Turf acreage and maintenance costs conducted by various states were summarized by the major strata. This data will serve as a basis for estimating the size and relative imporatnce of the US turfgrass industry (GA,NC,TX,TN).

Trends to nursery crop production for Mississippi are being examined to assess potential for landscape plant production. Data from three surveys and agricultural census data are the basis for this analysis (MS)
d. Consumer attitude toward landscape plants.
A review of the current literature on consumer preferences for plant materials from retail outlets is in progress. Sections will include an introduction with an overview of the economic impact of the green industry, an overview of market research in individual states, general demographic data on garden center consumers, a summary of consumer preference research and an overview of the landscape industry as it relates to preferences of retail consumers (GA, DE, KY, TX)

A grant was received from the Bedding Plants Foundation, Inc. to investigate consumers' decision-making process and preferences for geranium by simultaneously defining the importance of and preferences for (1) flower color, (2) leaf variegation, and (3) price (DE, NC, GA, AL, TX).



Home Project Statement Project Participants Annual Reports Meeting Minutes Resources		ANNUAL REPORT OF COOPERATIVE REGIONAL PROJECTS Supported by Allotments of the Regional Research Fund, Hatch Act, as Amended August 11, 1955 January 1 to December 31, 1995 PROJECT: S-103, TECHNICAL AND ECONOMICAL EFFICIENCIES OF PRODUCING AND MARKETING LANDSCAPE PLANTS PROGRESS OF THE WORK AND PRINCIPAL ACCOMPLISHMENTS: Cooperative research was conducted on the three major project objectives: 1) evaluate alternative landscape (environmental) plant production, establishment, and maintenance systems, 2) evaluate the regional competitiveness within the landscape (environmental plant industry), and 3) evaluate the demand for landscape (environmental) plants, materials, and services. The unique multi-disciplinary participation by horticulturists and agricultural economists continues to provide innovative, yet thorough analyses and collaboration. The technical committee also includes representation from many non-Southern states--all possible because of the focus of producing and marketing landscape plants within and across plant hardiness or climatic zones, rather than state or regional boundaries. A World Wide Web site on the Internet was developed during 1995 to disseminate research findings and general program information related to the S-103 Regional Research Committee. Titled, "EnviroPlants Research," this site carries a complete description of the project objectives, project participants, and results of the 1994 survey that documented trade flows and marketing practices within the United States nursery industry for 1993. Additional publications and links to other internet resources are also available. The URL address for this site is: http://hortwww-2.ag.ohio-state.edu/s103/s103.html. Progress is reported under the appropriate project objective: Objective 1: Evaluate alternative landscape (environmental) plant production, establishment and maintenance systems. a. Plant production systems Relative costs and returns for selected plants grown using infield, above-ground container and pot-in-pot production methods were evaluated for a 10-acre nursery with a five acre production area and a three year growing cycle. Pot-in-pot system had high initial capital outlay which resulted in higher fixed cost per plant. However, less intensive cultural practices and increased plant numbers resulted in the lowest per plant cost for the alternative system (AL). In an analysis of the competitive relationship of three warm-season turfgrass species, variation in the prices of the different grasses had little impact on the profit maximizing combination of grasses within current observable price ranges. Bermudagrass, with its shorter production cycle and positive influence on cash flow, dominates the higher-valued, longer production-cycle grasses--zoysia and centipede. b. Plant establishment techniques Transplant studies are continuing with two tree species Acer rubrum 'October Glory' and Quercus phellos to determine the effect of plant size at transplanting on performance. Root control techniques for the urban landscape are being evaluated in a study that began in 1989 and will continue through 1997 (AL). g. Floriculture crop production The data assembly was begun to update research on costs of producing selected floricultural crops in Climatic Zones 7 and 8. The previous research is 15 years old and needed to be revised as to crops and greenhouse and plant production technology (TN). h. Plant establishment in disturbed areas The comparison study of little bluestem cultivars and 'Alamo' switchgrass completed the second year in the field. 'Alamo' switchgrass is the dominant grass in this study with the seeded plots significantly taller than the transplanted plots and all of the little bluestem cultivar plants both seeded and transplanted. Percent plant coverage was not significantly different between switchgrass and little bluestem cultivars SCS 9029926 and 'Aldous' but was different from little bluestem cultivars 'Pastura' and 'Cimmeron.' Biomass data shows the switchgrass significantly greater than the other species. SCS 9029926 little bluestem cultivar seeded and transplanted was the best of the bluestem cultivars in each of the growth indices. Seeding the species tended to produce a better stand and growth than transplanting in each of the cultivars. Application of Plateau and Roundup herbicide significantly reduced growth of bahiagrass and suppressed seedhead development and suppressed seedhead development for 8 weeks after application. Objective 2: Evaluate the regional competitiveness within the landscape (environmental) plant industry. a. Marketing and management practices Nineteen states from within the project and 5 additional states cooperated to conduct an ornamental plants trade flow survey designed as a follow-up to the 1989 survey. Trade Flows and Marketing Practices within the United States Nursery Industry will be published in hard copy and on the World Wide Web (TN, and all participating S103 states). Change of product ownership in competitive agricultural industries is a critical event, yet little research has examined the transaction methods used by firms and the corresponding factors that influence the choice of transaction method. A sample of landscape plant nurseries across the U.S. provided data to model this decision. Transaction methods included sales by telephone, personal visits, mail order, and at trade shows. In addition, factors that influenced negotiated sales were investigated. Influential factors included age of the business, size (as measured by gross sales), location, market channel use, owenrship structure, and perspective on competitive situation. Using a tobit estimation procedure, profiles of nursery firms more likely to use a particular transaction method were developed (GA). b. Interregional competition Three months was spent in Melbourne, Australia developing an economic profile on the Australian nursery and greenhouse industries (NJ). Objective 3: Evaluate the demand for landscape (environmental) plants, materials and service. a, b., and c. Demand for landscape, materials and service. A survey of the commercial members of the Perennial Plant Association (PPA) indicated that gross sales of perennials by PPA members for 1994 was an estimated $1.38 billion, with 29% of this amount generated from sales of perennial plants. Sales of perennials increased over 1993 levels for 86% of all respondents. The most popular genus sold in the U.S. for 1994 was Hosta, followed by: Hemerocallis, Coreopsis, Chrysanthemum, and Astilbe (OH). The relative size of the green industry within the U.S. economy and how it is linked to supporting industries through the volume of transactions and economic impact multipliers was examined. This analysis was based on IMPLAN, an input-output model developed by the U.S. Forest Service. In terms of 1990 employment, the green industry was the second leading employer in U.S. production agriculture. In terms of output, the greenhouse and products sector ranked sixth within production agriculture (GA). Data describing the status and nature of Alabama's ornamental plant industry were summarized and published (AL) Turf acreage and maintenance costs conducted by various states were summarized by the major strata. This data will serve as a basis for estimating the size and relative imporatnce of the US turfgrass industry (GA,NC,TX,TN). Trends to nursery crop production for Mississippi are being examined to assess potential for landscape plant production. Data from three surveys and agricultural census data are the basis for this analysis (MS) d. Consumer attitude toward landscape plants. A review of the current literature on consumer preferences for plant materials from retail outlets is in progress. Sections will include an introduction with an overview of the economic impact of the green industry, an overview of market research in individual states, general demographic data on garden center consumers, a summary of consumer preference research and an overview of the landscape industry as it relates to preferences of retail consumers (GA, DE, KY, TX) A grant was received from the Bedding Plants Foundation, Inc. to investigate consumers' decision-making process and preferences for geranium by simultaneously defining the importance of and preferences for (1) flower color, (2) leaf variegation, and (3) price (DE, NC, GA, AL, TX).