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, 1999 PROJECT: S-103 (DC-977-01), TECHNICAL AND ECONOMICAL EFFICIENCIES OF PRODUCING AND MARKETING LANDSCAPE PLANTS   PROGRESS OF THE WORK AND PRINCIPAL ACCOMPLISHMENTS: Numerous articles, bulletins, and other publications were completed as work progressed 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 blend of horticulturalists and agricultural economists continue to provide innovative and thorough analyses and collaboration. The committee includes representation from twenty two states, with twelve of these states being outside the Southern region. This national membership has evolved because of the relevance of investigating the production, marketing, and economic impacts of landscape plants within and across plant hardiness or climatic zones, rather than state or regional boundaries. Progress is reported under the appropriate project objective.   Objective 1: Evaluate alternative landscape (environmental) plant production, establishment and maintenance systems. a. Plant production systems Project objectives were to develop and evaluate alternative environmental plant production, establishment and maintenance systems, and to increase regional competetiveness within the envrionmental plant industry. Towards these objectives we evaluated the use of copper paints and copper-treated burlap for the control of rooting out in B&B nursery stock during holding in wholesale and retail yards. We also evaluated copper polymers for use in controlling circling of plant roots within containers. Plants grown in treated bags and containers were planted out in the field for evaluation of post-production root growth and plant health. We also evaluated (ongoing) the remediation of runoff from nursery and landscape facilities using treatment wetlands planted with ornamental plants that might provide additional income for growers. We evaluated the growing and marketing requirements of new sustainable plant species for introduction to the nursery industry. We also initiated trials of methods for repelling deer from nursery and landscape settings, with the goal of improving plant production and maintenance. Most important were the development and evaluation of methods for maximizing plant production and maintenance while reducing environmental impacts. This included methods of controlling and treating point source pollution from nurseries, methods for maintaining product quality through the control of root growth, introduction of new plant species and reduction in deer browse. Production costs were estimated for 38 combinations of crops, market, machinery and technology.  Production practices and inputs used for 4-row and smaller equipment were from a periodically updated commercial grower survey, and by Extension Specialists.  A state-wide survey of machinery dealers used to update machinery complement prices, and input prices were based on a supplier survey.  Chemicals included were updated as appropriate when labels changed.  Using the per hectare cost levels from budgets, and revenues from assumed prices and yields net returns depended on market channel, technology and mechanization assumed.  For most crops returns exceeded direct costs including a charge for all hours of labor required.  Generally, higher technology levels and larger machinery provided higher returns compared to standard technology and smaller equipment. In-field, above-ground, and pot-in-pot production methods for crapemyrtle were analyzed.  Container systems were more profitable than the in-field system and plant size at selling had important effects on profits.  The pot-in-pot system had highest total capital outlay and fixed cost levels but was least costly on a per harvested plant basis due primarily to less intensive, labor-saving cultural practices and the ability to grow more plants per unit of land. b. Plant establishment techniques The adaptability of flowering crabapple cultivars to extreme environmental conditions has been monitored for ten years in the Carolina sandhill region.  Conditions of summer drought and high temperatures along with late spring freezes have created very stressful conditions.  The study initially contained three trees each of 61 cultivars. After ten years, all three trees of the following cultivars were acceptable for non-irrigated landscape uses: Weeping Candid Apple, Red Jewel, Ruby Luster, hupehensis, Robinson, Ralph Shay,  Molten Lava and floribunda.  The following cultivars lost all three trees after ten years: baccata var. Jackii, yunnanensis, Jewelberry, Dolgo, and Harvest Gold.  This study will be  terminated due the relocation of the principal investigator. c. Plant Maintenance Two projects are examining plant maintenance issues. One project deals with evaluating methods for repelling deer from nursery and landscape settings, with the goal of improving plant production and maintenance (RI). The other project is evaluating the use of copper paints and copper-treated burlap for the control of rooting out in B&B nursery stock during holding in wholesale and retail yards (RI). In addition, copper polymers are being evaluated for use in controlling circling of plant roots within containers(RI). Plants grown in treated bags and containers have been planted out in the field for evaluation of post-production root growth and plant health .    Objective 2: Evaluate the regional competitiveness within the landscape (environmental) plant industry. A questionnaire was developed, and tested, to use in the third S-103 nation-wide survey of nurserymen.  As with the two earlier surveys, the S-103 regional committee is collaborating on this data collection activity.   The questionnaires have been distributed to the appropriate researcher in each participating state for distribution to their respective samples in January/February, 1999.  Also, TN received all of the mail-back questionnaires for coding and initial data analysis. Once the data are entered and cleaned, state data files with the supporting SAS programming codes will be provided to each collaborating researcher.  In 1989 and 1994, 23 and 24 states, respectively, were covered in those surveys.  For this new survey, 32 states were included and the combined production from these states represent slightly more than 95 percent of the total U.S. nursery crop production.  This third data set will permit considerable analyses of structural changes in the production and marketing of environmental crops within the U.S..  With data for the calendar years of 1988, 1993, and 1998, researchers will have three sets of cross sectional data at five year intervals.  Analyses of adjustments in production by crop groups and growing techniques, wholesale sales by type of market outlet, trade flows of product among states, and other production and marketing factors should help nurserymen when planning the mix and volumes of particular products to produce as well as reasonable identification of targeted market outlets.  Research was conducted to examine the financial structure of the ornamentals nursery and floriculture products sector using annual sales data for 1997 for 398 firms.  For comparison purposes, data for the top 41 firms was collected for the ornamental floriculture and nursery products industry and for the poultry industry, another prominent Southern agricultural industry.  When the top 398 firms (each representing more than $2 million in annual grower receipts) in the ornamental floriculture and nursery products sector were examined, the top firm had 6.3% market share, followed by the next four firms having 4.9%, 4.8%, 3.8%, and 2.9% market shares, respectively, of the aggregate sales for the 398 firms.  These five firms accounted for about 22% market share; the top 25 firms accounted for 41.66% market share; the top 50 firms accounted for 51.27% market share; and the top 100 firms account for 64.29% market share.  These numbers overstate the actual market share, for if $11.4 billion grower receipts for 1997 are used the market share numbers change dramatically.  For instance, the top firm’s market share dropped from 6.3% to 1.54%, with the next four firms having market shares of 1.20%, 1.19%, 0.93%, and 0.73%, respectively, for a top five market share of 5.61% of the $11.4 billion market.  Similarly, the top 25 firms, 50 firms, and 100 firms accounted for 10.22%, 12.58%, and 15.78% market share, with the 398 firms included in the sample accounting for a combined 24.54% market share. The poultry industry and the ornamental floriculture and nursery products industry were compared by examining the largest 41 firms in each industry.  The top firm in the poultry industry is much more dominant (23% market share versus 14% for the leading nursery).  The four firm concentration is 48% for poultry versus 41% for the ornamental floriculture and nursery products, using the 398 firm nursery data.     Objective 3: Evaluate the demand for landscape (environmental) plants, materials and service. a. Plants demand We conducted a consumer intercept stud y using photographs of ten species of perennials; four species of traditional indoor pot plants to develop a perceptual map. More than 200 self-selected participants of the annual Detroit flower show chose to complete the survey, providing us with their p erceptions of the similarity/dissimilarity of the pairs of plants shown. One perceptual map has been developed; we plan to develop additional maps using different segmentation scenarios. We conducted taste studies using six edible flower species with par ticipants from an annual gardening program at the MSU campus. Self-selected participants tasted three species and provided visual, scent, and taste evaluations. We also surveyed professional chefs in the Detroit metropolitan area and student chefs at MSU for their perceptions of these edible flower species. We surveyed 200 self-selected participants at the annual Detroit flower show for their perceptions of landscape value suing digitally altered photographs of a two-storey home. This was part of a seve n-state project. Results showed that customers perceived an increase of 10-12% on a $200,000 home which had good landscaping.} b. Materials demand Following up on a study of the demand for labor in Florida's turfgrass industry was an examination of associated labor issues affecting turf-related enterprises (FL). A similar project developed a business management oriented teaching case for a small nursery and landscape business (LA). The focus was on an employee empowerment program that moved decision-making closer to the work site. The case used balance sheets and owner description of objectives and implementation to show the firm's changing managerial structure in its attempts to encourage employee initiative and entrepreneurship, thus capturing the potential advantage of a decentralized management style. The case suggests caution since not all managers want to be in an empowered environment, and the learning curve in implementing this system may be a significant factor. Concentration in the produce/floral distribution system has been documented.  Because impacts are expected to vary by company size, a study of the perceived impacts and responses to the pressure of concentration on small and medium sized produce/floral distribution companies was initiated.  A literature review covering concentration and strategic planning and strategic response, both inside and outside the food/floral system, was conducted.  Research methodology for a national mail survey was identified, a mailing list from the Produce Reporter Company’s Blue Book Services was developed, and a survey instrument focusing on factors identified from the was written. c. Services demand Research was conducted on consumer perceptions and expectations of garden center products service quality (TX, AL, NC, GA, TN, DE). Data is currently being analyzed.  Effects of consumer advertising and the demand for plants purchased in independent garden centers during the fall marketing season. Consumer surveys were conducted and results indicate that garden center managers could improve the effectiveness of their advertising by focusing on a special promotion event or plant sale.  Quality characteristics consumers consider important when purchasing ornamental plants and estimating how much they will pay for these characteristics. The survey phase of this project was completed during the 1999 fall semester. Preliminary findings have been presented at the American Horticulture Society's Annual Meeting and at the Southern Nursery Association's Annual Research Conference.