Iowa Public Television

 

O' Christmas Tree

posted on December 08, 2006

When it comes to decorating for Christmas, Americans generally fall into two camps: fake trees or real ones. Regardless of your personal preference, this much is known: In recent years, the popularity of real trees has surged and led to some profitable opportunities at traditional farm operations. Jeannie Campbell explains about two such businesses that producer Chris Gourley found in the Midwest.

O' Christmas Tree

The Davis family will have something in common with 33 million other American families this holiday season when they celebrate Christmas around a real tree.

Jeff Davis: “It’s just fun to come out and pick out a tree. You can get a different one every year, depending on what you look for. We have a good time and everybody gets a little bit of input into what kind of tree we get.”

In 1989, the sales of real Christmas trees and artificial trees were equal, according to the USDA. But nine years later, sales of real trees had dropped to 40 percent of total sales, while sales of artificial Christmas trees had climbed to a little more than 60 percent.

Jan Anderson: “Real pine scent… Artificial trees... And also they have these little incense things you can plug in that have Christmas trees on it and everything, so wait… Psssheew! There you go sir, Merry Christmas.”

In the past few years, live tree sales have rebounded. Nearly 33 million live trees were sold in 2005, according to the National Christmas Tree Association. That's up more than 10.5 million trees from the 22 million sold in 2002.

Bill Dennis AKA Captain Jack, Des Moines, Iowa: “I think the market is up for buying real Christmas trees versus the artificial ones. But, we’ve always been pretty steady here. We’ll sell anywhere from 2 to 5 thousand trees with about 15 to 20 thousand people coming out. The tree itself is only part of the story. It’s the adventure of getting the tree.”

There are nearly 22,000 tree growers located nationwide. More than half of them are cut-your-own operations. In 2005, the retail value of harvested U.S. Christmas trees was $1.4 billion.

Steve Fennig, Bryant, Indiana: “It can be a lot better than an acre of corn. It takes a lot more work than an acre of corn. So, you have to weigh the amount of labor it takes to grow an acre of this versus growing 100 acres of corn maybe or something.”

Steve Fennig is president of the Indiana Christmas Tree Growers Association and along with his wife Terry, farm 1,600 acres of corn and soybeans, 70 acres of wheat and six acres of Christmas trees in northern Indiana. Like many growers, the Fennigs don’t grow Christmas trees as their primary crop.

Steve Fennig, Bryant, Indiana: “It works pretty well for a crop farmer because of the timing of things. We can plant the trees in the spring before it is fit to be in the fields. Usually we plant the trees in March and then we come back and prune in the summertime after we've finished spraying the beans and put nitrogen on the corn. Then it’s time to prune in late June and early July. That part doesn’t work too bad, but there's trade offs. There's trade offs and it doesn't fit every operation but it could certainly fit in some operations.”

The Fennigs began growing Christmas Trees in 1984, partly as a way to save for their children’s college education. Using converted pastureland they owned and with fir seedlings costing only a dollar each, their initial investment was low. Adding to the appeal was that in eight years, those $1 seedling trees could be harvested and sold for $35 to $40 apiece. Still, according to the Fennigs, if the idea simply was to cover the cost of college, it would have been much easier to set aside a few acres of corn each year.

Steve Fennig, Bryant, Indiana: “And honestly, there's times that I have thought that's probably what we should have done. But, they had a lot of experiences here that they wouldn't have had if I would have given them an acre of corn and…”

Terry Fennig, Bryant, Indiana: “They've had a lot more business experiences too because they got very involved in the marketing.”

Steve Fennig, Bryant, Indiana: “We wanted them to have something they could be a part of that would be their own.”

In addition to growing and selling Christmas trees, the Fennigs started another business producing and marketing soy candles. The first year they sold six dozen candles in a week and a half at their Christmas tree store on the farm. They now sell 15,000 candles a year, marketing to 600 stores in 30 states and also through the Internet.

Terry Fennig, Bryant, Indiana: “This is hydrogenated soybean oil in flake form. It’s what is used in pizza dough and biscuits. We purchase it from a food company. Our candles are 100% soybean oil. We just add our scent and our color. And they’re highly scented candles. The highest level of scent the market will allow.”

The Fennigs also have joined Christmas tree growers and retailers in 27 states in donating to “Trees for Troops.” The program was created by the Christmas Spirit Foundation and FedEx and distributed 4,000 trees in 2005 to military bases located in the U.S. Another 300 trees were shipped to troops in the Middle East. This year, more than 14,000 trees have been committed to the program.

Tom Dull, Thorntown, Indiana: It’s a way to give to the troops…To help support the troops and lift their morale at Christmas time. What a great opportunity to be a part of sending the Christmas spirit to troops who are going to be away from their families and homes at Christmas time.”

Purchasing a living tree also may be a step, albeit a small one, in reducing the trade deficit. According to the U.S. Department of Commerce, 85 percent of all artificial trees are imported from China, while domestically the real Christmas tree industry employs 100,000 people. Global economics don’t seem to matter, however, when it comes to searching for the perfect tree. For Market to Market I’m Jeannie Campbell.