New trends in the Christmas tree industry

Husband and wife team Ron and Roberta Clause, operators of Clause Tree Farm, will bring their award-winning evergreen trees to Richmond to be used to decorate the Governor's Mansion this Christmas. Ron had the Grand Champion Christmas tree and Roberta created the Grand Champion wreath. There were five entrants in the VCTGA tree contest and 13 entrants in the VCTGA wreath contest. The awards ceremony was conducted by Lori Grove, center. (Photo by Jane W. Graham)

FLOYD, Va. – “Christmas trees are a luxury.”
This statement by Christmas tree wholesaler Earl Deal surprised members of the Virginia Christmas Tree Growers Association.
Deal and Kyle Peer, director of the Reynolds Homestead Resources Research Center in Patrick County, Virginia, discussed new trends that are challenging both supply and demand in the Christmas tree industry during a panel discussion at the association's annual conference Aug. 1-3.
Deal, owner and manager of Smokey Hollar Trees, said he found a Google list of 10 common items that are now unaffordable, including Christmas trees.
“We are now selling a luxury item,” he repeated as the panel discussion drew to a close. “You are not selling a tree, … you are selling a luxury item. You are selling an experience.”
Deal outlined many of the family-friendly activities offered to customers at Christmas tree farms, including hay rides, mazes and nature experiences.
“Why do people think a Christmas tree has to be cheap?” he asked. “We need education. It's a tradition. It's a luxury. It's not a necessity.”
The two panelists examined the changes that have taken place in Virginia's Christmas tree industry in recent years and the reasons behind them. Demand has declined while supply is picking up. The COVID-19 pandemic has played a big role in demand at nurseries, they said.
The farms were a place for people to go and feel safe in the fresh air and open spaces while searching for the family tree and pursuing other farm activities.
The demand for trees had increased and the supply had decreased.
Wholesalers and retailers were looking for trees. Part of the problem was that fewer trees had been planted in previous years and they had not had the eight years of growth needed to reach a marketable size.
“You could sell anything you could get,” said Deal, who remembered buying trees from Oregon.
Deal said there will be plenty of trees this year that are six feet or less tall.
He said it will be harder to find taller trees. Demand for taller trees is increasing with the trend toward higher ceilings in new homes. He said there will be plenty of seven-foot trees next year, too.
“A lot of trees are planted,” he added. “About 20 to 25 percent of the trees die, mainly due to root rot.”
“The industry doesn't have part-time farmers anymore,” Deal said. The farms are larger and target big box stores. “My goal is to sell 100,000 trees, 10 at a time,” he said.
Peer, who is responsible for the statewide Christmas tree extension program, is a technical advisor to VCTGA.
He said it is difficult to determine how many Christmas tree plantations there are in Virginia, Peer said.
He reported on the various attempts to conduct a census and the frustrations he experienced.
The numbers vary considerably from state to state, he said.
Very few of them are found in the east of the state, a larger number are produced in the southwest.
Last year, nurseries and lots closed when tree stocks ran out, Peer said. “Everyone has more customers than trees,” he said.
He described the Christmas tree market as “stable to upward.”
Peer shared his concerns about the weather and climate change.
“The drought monitor was pretty terrible,” he said, referring to the current drought across the state. He said about 50 percent of the seedlings are growing.
“Always think about climate change,” he said. “It's not going away. Think ahead about climate change. Cushion your losses.”
The three-day conference attracted producers from across the state and beyond.
They visited the Sweet Providence Tree Farm in Floyd and learned how drones can be used in the field.
The conference concluded with a tour of White Horse Farm in Calloway, Virginia.
During the business meeting, they elected Ian Hamilton and Tyler Wegmeyer to the board.
Ryan Clouse remains president and will serve alongside incumbents Ben Snyder (vice president) and Tim Williams (treasurer).