Economic Impact on Nurseries

The latest economic data for the nursery industry have been compiled and released by Dr. Hoy Carman, Professor Emeritus, Agricultural and Resource Economics at University of California-Davis. It reveals that the combined onslaught of drought, recession, the housing slump, and regulatory measures hit the industry hard.

Here are key highlights drawn from the report:

• Total sales impact: wholesale sales $3.75 billion, retail sales $11.74 billion.
• Nursery enjoyed an uninterrupted 7.4% average annual growth rate (AGR) over 15 years from 1992-2007, but fell 19.4% in 2008-2009 due to the combined impacts of recession, drought, and the homebuilding collapse.
• California nurseries are uniquely urban and geographically diverse: 55 out of 58 California counties produce nursery crops. Nursery crops are the top-ranked agricultural commodity in 12 out of 58 counties.
• California nursery and floriculture generate 192,065 jobs: 3,549 producers employ 74,940 for a total payroll of $1.78 billion, while 11,142 retail outlets employ 76,225 for a total payroll of $2.29 billion. Indirect effects add 40,900 jobs worth $1.5 billion, for a total of 192,065 jobs worth $5.6 billion.
• California leads the nation with 21.9% of total nursery production and 8.7% of lawn and garden retail sales.
• Combined, nursery and floriculture are California’s #2 agricultural commodity, producing 9.1% of the state’s total agricultural output.

To obtain a copy of the full report, ''Economic Impacts of the California Nursery Industry, 2008-2009,'' contact Robert Dolezal, Executive VP, at rdolezal@cangc.org or by phone at (916) 928-3900 Extension 17.