The greenhouse and nursery industry continues to predict high profits during the pandemic, according to the latest market snapshot by Northwest Farm Credit Services.
In a straw poll, container and B&B growers in the Northwest reported a 12.05% increase in sales in 2020, although most of the gains were reported by the container growers — B&B reported a decline in revenue. Greenhouse growers saw 5.06% sales growth, despite a brief period of uncertainty in the early weeks of the pandemic. Shade tree sales increased 2.34%, reaching a plateau from previous years of consistent gains. The nursery industry’s overall year-over-year sales have increased 8.79%, according to sales information available by May 31.
For the renewed interest in home gardening, container growers ran out of inventory and it will be a while before replenishing inventory reaches a sellable size. Budget cuts by municipalities and large landscaping projects will likely harm bare root shade tree sales, but next year’s orders are needed to determine how much change is coming.
The U.S. economy continues to be tested by the shutdown, where a 20–30% decrease in gross domestic product is expected and 22 million people remain unemployed. The financial institution advises producers to continue to build and preserve working capital, keep operational costs low, and set achievable sales goals for the next 1-, 3-, and 5-year windows. For more information, download the full report here.