How About a Little Respect for PA's Green Industry?

I have served on a variety of economic development committees in my 38-year career and no one in economic circles has ever championed the green industry in any of the meetings that I have attended or participated in. On the occasion when I could highlight new investments by entrepreneurs in their nurseries or greenhouse operations it was frequently met with feigned interest and nothing more by the participants that lined the various boardrooms. While every Pennsylvania "Green Industry" member recognizes our collective impact on the state economy, we often lack the numbers to support these personal assertions or beliefs.

Recently, the 2019 Census of Horticulture Specialties was released by USDA.

While it will take some time to sort through the data, it provides the best snapshot of the collective health and economic impact of specific segments of Pennsylvania's Green Industry.

First and foremost, I am not an economist, but I have taken the time to review and glean a variety of facts and data from this census that should make each of us very proud of our Pennsylvania Green Industry. In the 2019 Census of Horticulture Specialties, data was collected from approximately 60% of the businesses that make up the production side of the PA green industry. Approximately 40% of the production side of the industry did not participate in the census which unfortunately undervalues the overall industry and its relative economic impact in Pennsylvania. So, when considering the numbers that I am sharing please recognize the fact that our PA Green Industry is much more robust than what the data actually delineates.

According to the 2019 Census of Horticultural Specialties, Pennsylvania has sales of approximately $310 million which ranks us 10th in the nation in reported horticultural sales. Seventy-six percent of these sales are attributed to wholesale channels and twenty-four percent of these sales are attributed to the retail side of the industry. Ag-economists typically use a 3X multiplier when discussing the economic impact of sales on a community or state. Using our PA production sales figures of $310 million, the production side of our green industry has a statewide economic impact of $630 million. Embedded in this number is the fact that 49 of our horticultural operations had sales of $1 million or more.

Bedding plants are one of the major profit centers for PA greenhouse operations. According to the 2019 Census, PA had 426 operations growing bedding plants with sales of $85.8 million which ranked us 9th in the nation in bedding plant sales, but first in the nation in the number of operating bedding plant production facilities. Specialty cut flower sales are never discussed in terms of PA Economic impact, but in the 2019 Census, Pennsylvania ranked number 4 in cut flower sales (over $12 million) and we were ranked 6th in the nation in the number of US cut flower operations.

PA specialty greenhouse operators have embraced the production and sale of propagative materials and while only 25 operations reported in the census, they collectively generated sales of over $27 million in 2019 which ranks PA 8th in the nation in the sales of propagative horticultural materials. The 2019 Census also indicated that 177 Pennsylvania nurseries generated sales of approximately $65 million which ranks Pennsylvania 22nd in sales but 4th in the number of actual operations.

Christmas trees are another vital component of our PA Green Industry with 224 operations participating in the census with reported sales exceeding $17.6 million. According to the census, Pennsylvania ranks 2nd in the US in the number of operations and 4th in the US in reported sales. The census also revealed that as of January 1, 2020, Pennsylvania would have 270 operations in production with an inventory exceeding 35 million trees. With this anticipated increase from 224 to 270 operations, PA will move from 2nd to 1st in the US in the number of operating Christmas tree farms.

Food crops grown under protection (greenhouses and high tunnels) may not seem to belong in this green industry analysis, but an increasing number of our green industry professionals are diversifying their product portfolios and are beginning to grow hydroponic vegetables. According to the 2019 Census, 186 operations reported that they were growing food crops under protective cover with sales exceeding $22 million. In terms of US ranking, PA is ranked first in the number of operations and 5th in reported sales. As food insecurity issues increase in and around our urban centers, food crops grown under protection will become a major growth area for our green industry.

In summary, the 2019 Census of Horticultural Specialties provides a quick snapshot of our Pennsylvania Green Industry. While it does not offer a complete picture, it does effectively define the scope, breadth, and impact of the green industry on the Commonwealth and its communities. After reviewing the Census, maybe it is time for this vital industry to garner a little respect.