Forestry and Finance: The Economics of U.S. Christmas Tree Farms

Every year when the winter holiday season comes around, we’re reminded of the many different products from the forestry industry which are to thank for holiday traditions. This includes things such as chestnuts roasting on an open fire, wood chips and pellets used in smokers to prepare holiday feasts, paper used to wrap presents for loved ones, and of course, Christmas trees.  

As temperatures dropped this December, we sat down with Dr. Jamie Dinkins Bookwalter and Dr. Will Kohlway, two Christmas tree specialists from North Carolina State Extension for the final episode this year of FRE Lunch: The Food and Resource Economics Podcast.

Join us as we discuss economic impacts of the forestry industry, the ecosystem services forests provide, the unique Christmas Tree farm industry in North Carolina, and how North Carolina’s Christmas tree farms were impacted by Hurricane Helene this year.

Where do Christmas Trees Come From?

When it comes to trees purchased to bring home and decorate, there are quite a few options, and many factors that go into the consumer’s decision making process.

46% of Americans plan to purchase an artificial tree. These are typically made of plastic or metal and come in all sorts of colors, from green to white! 

For those who did purchase a real Christmas tree, 1 out of every 4 people purchased these trees from “Choose & Cut” farms in 2023. This might indicate that there is an aspect of tradition or enjoyment of the experience that goes into decision-making.  Chain stores, nurseries, retail lots, and nonprofits such as the Boy Scouts are also options for farm-grown Christmas tree purchasing.

A father and son walking through a tree farm
A father and son walking through a tree farm. (Adobe Stock Image)

Despite what our warm weather may lead you to believe, even Florida produces Christmas trees! Red cedar, Virginia pine, sand pine, spruce pine and Leyland cypress are grown in Florida. According to the Florida Christmas Tree Association, they have 17 member farms across 13 counties.

However, the vast majority of Christmas trees are coming from producers in Oregon, North Carolina and Michigan with 1/3 of all trees coming from Clackamas County, Oregon, Ashe County, North Carolina, and Missaukee County, Michigan.

The North Carolina Christmas Tree Industry

North Carolina is the second largest producing state and is known in particular for its cultivation of the North Carolina Fraser Fir. This unique species, which has been chosen for the White House tree more times than any other,  is a glacier relic which has existed for over 12,000 years.

“Our ecosystem here in the southern Appalachian Mountains is so unique, because these are the remnants of boreal forest from the Pleistocene,” Bookwalter explained.

Bookwalter and Kohlway both emphasized the impact that Christmas trees have on North Carolina’s economy and ecosystems, as well as how the sale of these trees support local farming

When Hurricane Helene hit the southeast in late September 2024, North Carolina, and particularly Western North Carolina, was severely impacted by the storm, with landslides and flooding occurring throughout the region. This damage has also impacted the region’s Christmas tree farms.

According to Kohlway and Bookwalter, some of the highest level of damage was damage to infrastructure, as well as to farmers that grow seedlings. Landslides also impacted some growers of mature trees.

“In Avery County alone, the county director there estimated over $30 million in losses in his five highest volume growers,” Bookwalter said. “I spoke to the specialized agent for nurseries in western North Carolina, and he had estimated that one fourth of seedling nurseries grown in western North Carolina were impacted. So, it’s a mixed bag. Some got away with no damage, and others were extremely, extremely impacted.”

However, with recovery efforts that started straight away, they said that the North Carolina Christmas Tree Association expects there to be no impact to the pricing or availability of trees this year.

“I have been using the word tremendous because we have the tree for the White House actually is from Avery County this year, and that’s one of our most heavily impacted counties from Helene,” Kohlway said. “And, you know, they named it tremendous as kind of a representation of the tremendous spirit our growers have up here.”

Because of the long-term nature of the industry in which trees take many years to grow, the impacts from the loss of those seedling trees may be felt several years from now, but growers, extension agents and others are working to ensure the industry recovers stronger than ever.

Want to Learn More?

FRE Lunch Podcast Cover Art
To learn more, listen to our latest episode available on your favorite podcasting platforms.

Tune in here: https://fred.ifas.ufl.edu/fre-lunch-podcast 

For more info on North Carolina’s Christmas Tree Industry, visit NC State Extension’s Christmas Tree Program website:

F.R.E. Lunch is the official podcast of the UF/IFAS Food and Resource Economics Department, showcasing how economics can help us understand and address the complex issues facing agricultural and natural resource industries. Each month, a short 15—to 20-minute episode features FRE faculty and student research presented in a bite-sized, easily digestible format that will surely bring you back for seconds. 

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Alena Poulin
Posted: December 20, 2024


Category: Agribusiness, Agriculture, Crops, Forests
Tags: Christmas Tree Farms, Economic Impacts, Economics, Food And Resource Economics, Forestry, FRE Lunch Podcast


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