Skip to content
NOWCAST WLWT News 5 Today
Live Now
Advertisement

Bah humbug: Expect to shell out more for a Christmas tree this year

Bah humbug: Expect to shell out more for a Christmas tree this year
REPORTER: THIS PART OF MASSACHUSETTS NOW IN THE LEVEL THREE WHICH IS THREE OUT OF FOUR IN THE CRITICAL DROUGHT CATEGORY. THAT'S PRETTY OBVIOUS WHEN YOU SEE HOW BROWN THIS BASEBALL DIAMOND IS BEHIND ME. NOW THIS DROUGHT MAY IMPACT HOLIDAY SEASONS IN THE FUTURE. >> USUALLY IT'S QUITE EWET HERE. IN YEAR IT'S DRY. REPORTER: HE SHOWS AROUND HIS FARM IN AUBURN WHERE HE GROWS 7000 CHRISTMAS TREES. >> I PROBABLY LOST 800 THIS YEAR BECAUSE OF THE DROUGHT. REPORTER: THE SMALLER YOUNGER TREES ARE MOST VULNERABLE. NEEDLES TURNING BROWN FROM A LACK OF WATER. >> THERE'S A BIG ONE HERE THAT DIDN'T MAKE IT. REPORTER: LUX RELIES ON RAIN WATER TO GROW TREES. HE SAYS IT'S ONE OF THE WORST DROUGHTS IN THE FARM 60-YEAR HISTORY. >> OUT BEEN SO HOT AND MUGGY TO WORK ANYTHING OUT IN THE FIELD. IT'S RIDICULOUS THIS YEAR. REPORTER: THE GOOD NEWS THE DROUGHT WILL NOT IMPACT TREES READY TO BE CUT FOR THIS YEAR'S CHRISTMAS SEASON. >> THE BIGGER TREE HAVE DEEPER ROOT. REPORTER: IT TAKES ABOUT EIGHT YEARS FOR A TREE TO GROW LARGE UP TO SELL. LUX IS HOPING FOR RAIN BUT PLANS TO PLANT MORE TREES TO MAKE UP FOR THE LOSSES. >> WELL, WE HAVE TO LIVE WITH IT. WE CAN'T FIGHT MOTHER NATURE. IT IS WHAT IT IS. REPORTER: DROUGHT IS HAVING INDIRECT IMPACTS. LUX SAYS HE'S FINDING MORE ANIMALS ON HIS FARM EATING AWAY SOME OF HIS CROPS LIKELY, BECAUSE THEY ARE NOT FINDING FO
Advertisement
Bah humbug: Expect to shell out more for a Christmas tree this year
Related video above: How drought is impacting Christmas tree crops in MassachusettsIn the spirit of holiday cheer, here's the good news first: Christmas tree farms say this year's harvest looks good and they don't expect shortages.But here's the reality check. Expect to pay more for that perfect fir, pine or spruce compared to last year.As with so many products lately, blame inflation.Tree farms' operating costs — from labor and raw materials to shipping trees to retailers —have also risen over the last year.Just how much more will this Christmas cheer cost in 2022?The industry group Real Christmas Tree Board in August surveyed 55 wholesale growers of Christmas trees who account for about two-thirds of the nationwide supply.They found 71% of those surveyed expect to raise the wholesale prices they charge retailers by 5% to 15% compared to last year, and some others cited increases as high as 20%.At the store level, larger retail chains might be able to absorb some of the price increase, but they will likely need to pass some of those costs on to shoppers."We separately surveyed consumers in July about their expectations for tree prices this year. They told us that they do expect to pay more for trees because of overall inflation but that they're still going to buy their tree," said Marsha Gray, executive director of the Real Christmas Tree Board.But while consumer price inflation is hovering above 8%, farmers' production costs are skyrocketing much higher as fees for labor, fuel, seed and fertilizer continue to rise."Agriculture inflation has far surpassed consumer inflation," said Bob Shaefer, CEO of Noble Mountain Tree Farm, a 4,000 acre wholesale farm in Salem, Oregon, that produces half a million trees a year.Shaefer said Noble Mountain expects its wholesale prices to go up 8% this holiday season from a year ago. Oregon and North Carolina are the two largest U.S. producers of Christmas trees."We want to be as reasonable as we can with our prices given these challenges," Shaefer said, but he acknowledged the crunch is happening across the agriculture industry.For Noble Mountain, Schaefer anticipates the biggest cost increase will be tied to freight.That tracks with the wider industry's outlook: The Real Christmas Tree Board's survey showed top concerns for growers this year are freight and shipping costs followed by supply chain slowdowns and the impact of inflation on consumer spending."Our trees are primarily transported on trucks. The trucking industry is facing a shortage," Gray said. "For our farms, they're all challenged about getting their products from point A to point B for the holiday season and how much more it's going to cost them."

Related video above: How drought is impacting Christmas tree crops in Massachusetts

In the spirit of holiday cheer, here's the good news first: Christmas tree farms say this year's harvest looks good and they don't expect shortages.

Advertisement

But here's the reality check. Expect to pay more for that perfect fir, pine or spruce compared to last year.

As with so many products lately, blame inflation.

Tree farms' operating costs — from labor and raw materials to shipping trees to retailers —have also risen over the last year.

Just how much more will this Christmas cheer cost in 2022?

The industry group Real Christmas Tree Board in August surveyed 55 wholesale growers of Christmas trees who account for about two-thirds of the nationwide supply.

They found 71% of those surveyed expect to raise the wholesale prices they charge retailers by 5% to 15% compared to last year, and some others cited increases as high as 20%.

At the store level, larger retail chains might be able to absorb some of the price increase, but they will likely need to pass some of those costs on to shoppers.

"We separately surveyed consumers in July about their expectations for tree prices this year. They told us that they do expect to pay more for trees because of overall inflation but that they're still going to buy their tree," said Marsha Gray, executive director of the Real Christmas Tree Board.

But while consumer price inflation is hovering above 8%, farmers' production costs are skyrocketing much higher as fees for labor, fuel, seed and fertilizer continue to rise.

"Agriculture inflation has far surpassed consumer inflation," said Bob Shaefer, CEO of Noble Mountain Tree Farm, a 4,000 acre wholesale farm in Salem, Oregon, that produces half a million trees a year.

Shaefer said Noble Mountain expects its wholesale prices to go up 8% this holiday season from a year ago. Oregon and North Carolina are the two largest U.S. producers of Christmas trees.

"We want to be as reasonable as we can with our prices given these challenges," Shaefer said, but he acknowledged the crunch is happening across the agriculture industry.

For Noble Mountain, Schaefer anticipates the biggest cost increase will be tied to freight.

That tracks with the wider industry's outlook: The Real Christmas Tree Board's survey showed top concerns for growers this year are freight and shipping costs followed by supply chain slowdowns and the impact of inflation on consumer spending.

"Our trees are primarily transported on trucks. The trucking industry is facing a shortage," Gray said. "For our farms, they're all challenged about getting their products from point A to point B for the holiday season and how much more it's going to cost them."