Strategies Producers In the Northeast Are Using to Reduce Costs and Increase Profits In Tough Economic Times

The greenhouse and nursery industry in the Northeast is an important component of agricultural production with over $3.4 billion in farm cash receipts, equating to 20.4% of all farm cash receipts across the country. It is the number one agricultural commodity in 5 Northeastern states. Competition in the green industry has become fierce. The recent volatility of fossil fuels and general energy prices, domestic competition, off-shore production, a weakening and stressed economy, and the growth of the mass market add-up to collectively put downward pressure on prices.  Nationally, the number of producers continues to decline as a direct result of the newly defined economic risks. The industry's profit margins are typically low, leaving little room for growers to absorb significant increases in costs or decreases in revenues. Unlike farmers who produce field crops, nursery firms bear the entire price, market, and production risks because these crops have had no government support programs.  In this presentation I will discuss what strategies producers in the Northeast are using to reduce costs and increase profits in tough economic times.  How have they honed their marketing and management skills to continue to survive and respond to current trends?