VIRGINIA CHRISTMAS TREE GROWERS ASSOCIATION Inside this Issue: Profile: Clouse’s Pine Hill Farm ─ 2 President’s Message ─ 4 NCTA Check Off Updates ─ 6 Trees For Troops Report ─ 7 Does Your Accounting Tell You Anything? ─ 8 VCTGA Annual Meeting Program ─ 10 Dr. Larry Kuhns to Speak at Summer Meeting ─ 11 Tips − Is it Time to Sell? Is it Smart to Buy? ─ 12 NCTA National Industry Perspective ─ 15 Christmas Tree Pest Info Resources from VA Tech ─ 16 Harris Consumer Poll ─ 16 VCTGA Member Grower Survey Results ─ 17 VCTGA Marketing ─ 18 Equipment for Sale ─ 19 Are you on Facebook? ─ 19
Volume 4, Issue 2
Spring 2014
Clouse’s Pine Hill Farm
Ryan, Roberta, and Ronald Clouse stand proudly in front of some mature trees they have spent years growing and caring for at Clouse’s Pine Hill Farm.
Advertisers Alpha Nursery ─ 5 Kelco Industries ─ 6 Riverside Enterprises ─ 6 Bosch’s Countryview Nursery ─ 7 Tim Mitchell’s Yule Stand System ─ 12 Philip Clayton Farms for Sale ─ 16 VCTGA Marketing ─ 18 Farm Credit ─ 19 Wagoner’s Fraser Knoll ─ 20
Save the Date: August 13th-14th VCTGA Annual Meeting, Winchester
Clouse’s Pine Hill Farm Where Christmas is always in the air! Story and photos by Jennifer Showalter
their lives consist of doing everything they can to raise ideal trees and market them as the freshest Christmas trees in town. How it all started Ronald and Roberta had no idea when they helped some neighborhood FFA members plant a few seedlings on their place back in 1977 that they would be in the business they are in today. The very next year they planted around 2,000 seedlings and in the early 1980’s signed a long-term lease on a farm where they planted about 20,000 white and Scotch pines and raised market and feeder pigs. Access to the farm was a challenge, so the Clouses focused on wholesale marketing their tress. Unfortunately, they were only able to harvest about half of their trees before losing their lease.
Growing Christmas trees involves more than planting trees and harvesting them seven to ten years down the road. Ronald Clouse spends a lot of time keeping the trees properly shaped up. 3 Roberta Clouse utilizes trimmings and greenery from cull trees to make fresh wreaths and roping. Her handmade ribbons and choice of decorations add a personal touch to each wreath and roping.
Christmas is a seasonal holiday that lasts a month or so each year, but for Ronald and Roberta Clouse it is more than a holiday. It is what their life is all about. Now that they are retired from their professional jobs, 2VCTGA |
News Journal – Spring 2014
Not willing to give up, the Clouses turned to the help of Farm Credit and purchased a 133 acre farm in De Haven, Virginia in 1985. “Farm Credit has treated us excellent! Through them, we were able to purchase the farm, and without them we couldn’t have,” says Ronald. Eager to get back in business, the Clouses planted around 5,000 trees on their new farm in 1986. They also continued to raise hogs, grow field corn, and plant some vegetables while they were waiting on their trees to reach maturity. “My wife said either the hogs were going or she was going, so the hogs went,” Ronald says with a smirk. Today, Ronald and Roberta have trees of various ages growing on 25 acres of their farm and lease out about half of their land to a local farmer for hay production.
Freshness of the wreaths, roping, and trees that Clouse’s Pine Hill Farm has to offer is something customers come back for year after year. The Clouses claim to have the freshest trees in town and go the extra mile to fulfill that promise.
In 1994, the Clouses opened a retail lot in Winchester, Virginia and in 1999 opened their farm up for customers to come out and choose and cut their own trees. With more and more people visiting their farm, the Clouses had some road improvements performed around their farm to ease access. Upon Ronald’s retirement from Allegheny Power in 2002, he planted approximately 12,000 additional trees over the next two years. Roberta retired from the postal service and came home to work fulltime on the farm in 2009. Customer service is key In addition to cut trees, customers can purchase dug trees and freshly made wreaths and roping from Clouse’s Pine Hill Farm. Ronald and Roberta take pride in selling freshly cut trees and freshly made wreaths VCTGA News Journal – Spring 2014 2
and roping. The freshness of their trees, wreaths, and roping brings the same customers back year after year. Being right on the West Virginia line, customers come from as far away as Martinsburg, West Virginia and the Washington, D.C. area. Among the 10,000 to 15,000 trees the Clouses currently have growing on their farm, there is a variety of sizes and types for customers to pick from. For years, white pine was their number one seller but about ten years ago fir tree sales really took off. In fact, Douglas firs were their best seller last year and the Clouses are having to purchase some firs to fill demand. In addition to white pine and Douglas firs, the Clouses grow Scotch pine, blue spruce, Norway spruce, Canaan firs, concolor firs, Fraser firs, and Nordmann firs.
Tender loving care from start to finish The Clouses typically purchase 1,000 seedlings a year from nurseries and the VA Department of Forestry to fill in the gaps that have been cut out. The seedlings are planted in the middle to later part of March with either a dibble bar or a mechanical planter. Ronald and Roberta spend much of their spring and summer months controlling grass and weeds on their farm. RoundUp herbicide is used to suppress grass in order to give the seedlings a better start and to allow more mature trees to perform. They both spend a good amount of time on a zero turn mower keeping the rest of the grass around the trees down. Ronald only applies fungicides and insecticides when necessary. Once the seedlings are three to four years old, Ronald has to start shearing them. Shearing typically begins in the middle of June. Ronald starts with the pines and spends the rest of the summer working his way through all the firs and spruces. Shearing may seem like an easy task, but Ronald is quick to remind people that it is physically draining. “Shearing trees is like
VCTGA News Journal – Spring VCTGA News Journal – Spring 2014 2014
throwing square bales for one or two months, everyday, all day long.” Despite all their efforts to provide ideal growing conditions during the seven to ten years it takes a Christmas tree to reach maturity, the Clouses experience about a 60 percent survival rate. Deer damage, drought, late frosts in May, heavy snows, insects, and diseases tend to have the upper hand no matter how hard they try to win the battle but they can’t afford not to fight. “We would like to have a way to irrigate on the dry years, but our farm is actually too wet most of the time,” says Ronald. The Clouses still wholesale a few trees, but most of their trees are sold on the farm or at their Winchester lot. With freshness being so important to them, they take a fresh load of tress into the lot every day but hope to eventually get to where they only sell trees straight from the farm.
A business built around family efforts Ronald and Roberta try to keep up with all the tasks themselves, but contribute much of their success to the hard work their two grown sons, Ryan and Randy, have put into the business over the years. “If it wasn’t for Ryan and Randy, we couldn’t have grown trees over the last 30 years,” says Ronald. Ryan, their son and MidAtlantic Farm Credit loan officer, still helps out when he can, but additional seasonal workers are needed from Thanksgiving to Christmas. “I would like to eventually put the farm in a conservation easement and turn it over to our sons and their families,” says Ronald. Even though Ronald and Roberta have decided to scale back some, they hope to eventually build a house on the farm to eliminate them having to drive from Cross Junction, where they currently live, to the farm each day. The couple has other additions planned as well, such as a pumpkin patch (as well as a fence around it to keep out the deer)!
Contributing and Coordinating Editors Membership Kathy Rasnic Technical Support & Production John Carroll & Kyle Peer Mount Rogers Report Charlie Connor Pathology & Disease Norman Dart Pests Eric Day VDACS Support & Updates Danny Neel Dave Robishaw Marketing, Promotion, & Social Media Sue Bostic Grant Updates Greg Lemmer Editor in Chief - Jeff Miller Virginia Christmas Tree Growers Association Inc. 383 Coal Hollow Rd Christiansburg, VA 24073-6721 PH: 540-382-7310 Fax: 540-382-2716 secresecretary@VirginiaChristmasTrees.org tary@VirginiaChristmasTrees.org www.VirginiaChristmasTrees.org www.VirginiaChristmasTreees.org Obviously, this is one family business built on growing! Re-printed with permission , Farm Credit of the Virginias
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Presidentially Speaking‌. From President Greg Lemmer While Jeff and I were working on one of the grant reports, we came across some pretty good news. For those of you who are not familiar with Google Analytics, it is a service offered by Google that generates detailed statistics about a website's traffic and traffic sources. We signed up for the service just after launching our new website, but had not taken much opportunity to logon. We are still exploring the features, but we did take a look at the statistics generated during the period of November 15, 2013 to December 24, 2013 and compared them those from the same time frame of the previous year. As many of us suspected, new customers are finding their way to our farms as a result of internet searches. It is difficult to determine which internet site customers are researching as there are several available such as, our own VCTGA website, the NCTA site, VDACS, and many others such as pickyourownchristmastree.org.
The Google Analytics statistics from our site as follows: 2012
2013
# of visits
5,410
7,823
# of page views
13,773
19,759
Average visit time
2 Min 20 Sec
2 Min 18 Sec
% of visitors were new
83%
85%
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In conclusion, we enjoyed a significant increase in the number of visits, the visitors visited more than one page, it did not take the visitors long to find the information they were seeking and new website visitors constituted the majority. I believe that means our site is increasingly popular, it is easy to navigate and the information is readily available. Now, if everyone will just send their completed surveys to Jeff, we, along with VDACS and USDA, will know for sure if our marketing initiatives are on target and if we sold more products and generated more income in 2013.
Wytheville Winter Meeting Update For those who were unable to attend our Wytheville meeting, the weather was perfect, the facility was wonderful, the audiovisuals modern and functional and the presentations were current and informative. Thanks to our VP, Tim Williams, for putting together the schedule and program, to Danny Neel for recommending the facility along with Kyle Peer, Sherrie Taylor, Della Deal and Tim again for lining up our presenters. We, along with the Mount Rogers Area Christmas Tree Growers Association participated in a telephone conference on March 31 hosted by the Virginia Farm Bureau. The Farm Bureau is organizing a Christmas event at Meadow Event Park. A general description follows:
dazzling drive-through holiday light display, winding through a mile and a half of historic property at The Meadow Event Park. The lights shine brightly for guests nightly, including holidays, and is enjoyed from the comfort of a vehicle. Also featured is Santa's Village, complete with seasonal shopping, familyfriendly activities, Christmas tree lot, live music, pictures with Santa, tasty treats, and more. A full season of winter fun for all ages, Illuminate Light Show is sure to become a new holiday tradition. Many details remain to be worked out. The tree lot will most likely be staffed by a vendor, but that may work out to be a wholesale opportunity and an opportunity to advertise out farms. There are wreath demonstrations under consideration, again a chance to advertise our products and farms. We will be sure to keep the Association informed as planning progresses and opportunities are realized.
Annual Sumer Meeting/Conference I am looking forward to the summer meeting. Once again, Tim is putting together a relevant schedule to discuss professional concerns and allow time to visit among ourselves. Paris and Kathy Rasnic will be hosting us at their Moose Apple Christmas Tree Farm. Mark your calendars for August 13-14, 2014 in Winchester.
Greg Lemmer, VCTGA President
Event overview: The Meadow Event Park is pleased to announce its inaugural holiday festival, Illuminate Light Show and Santa's Village. The festival showcases a VCTGA News Journal – Spring 2014 4
VCTGA News Journal – Spring 2014
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NCTA Check Off NCTA Check Off Updates Updates We made it! We survived another We made it! all Wethesurvived another harvest. From buzz, I believe harvest. From all the buzz, I sales were a little better inbelieve 2013 sales with werealla the little better 2013 (even crazy coldinweath(even with all the crazy cold weather). Let’s say goodbye to those er). Let’s saysnowflakes goodbye and to hello those wispy delicate wispy delicate snowflakes and hello to cheerful canary daffodils. Now is to cheerful canary daffodils. Now the time to start fresh and makeis the time to start fresh make plans for a successful 2014.and I wanted plans a successful 2014. I on wanted to giveforyou a brief update the to give you a brief update on the checkoff. The information below checkoff. The information below was provided directly from the was provided directly from the NCTA. NCTA. “With the signing of the Farm Bill “With the signing of the Farm Bill this February the Real Tree industhis February the Real Tree industry’s long, hard journey to making try’s long, hard journey to close making the checkoff a reality is very to the checkoff a reality is very close to success. Contained in the farm bill is success. Contained in the farm bill a provision requiring the Presidentis a lift provision the President to the stayrequiring on the program within to lift the stay on the program within
60 days of the bill’s signing. 60 days of the bill’s signing. NCTA supports the checkoff. The NCTA supports checkoff. The checkoff is not anthe NCTA program, checkoff notnot an be NCTA program, the funds iswill collected by the funds be collected by NCTA, andwill thenotvolunteer leaders NCTA, and the volunteer leaders and staff of the association will not and staff the association willisnot receive theoffunds. The checkoff a receive the funds. The checkoff wholly separate organization, withis aa whollymade separate with board up oforganization, producers who area board made of producers whonot are subject to theup assessment. It was subject to the assessment. It was not something forced on the industry by something forced on the industry by NCTA or any “outsider”. It was deNCTA or any “outsider”. It was developed for producers, by producers. veloped for producers, by producers. While the checkoff is new to our While the checkoffareisnot new to and our industry, checkoffs new, industry, checkoffs are not new, and there is an extensive amount of exthere isatan amount expertise theextensive USDA and in theofpripertise at the USDA the private sector about howandto instructure vateadminister sector about to structure and themhow effectively and and administer them effectively and equitably. CTPN will seek advice equitably. CTPN will seek advice and guidance from those sources, and guidance from thoserepeating) sources, because (and it bears because it bears repeating) those board(and members are themselves those board members are themselves subject to the assessment. subject to the assessment. In the past NCTA has born much of In the past NCTA has born much of
Ad – Kelco Industries Ad – Kelco Industries
VCTGA News Journal – Spring 2014 News Journal – Spring 2014
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In the past NCTA born much of the backlash from has those who disathe backlash thosedespite who disagree with the from checkoff, the gree majority with the of checkoff, despitesupthe vast the industry vast majority of the industry supporting it. However, we as the naportingassociation it. However, national and we youasasthestate tional association and you as state associations find ourselves in a posiassociations findthose ourselves in to a position similar to subject the tion similar We to those the assessment. aren’tsubject exactlytosure assessment. We aren’t exactly sure what the future holds now that we what thea checkoff, future holds nowhope thatthat we do have but we do have a checkoff, but we hope that is a future that includes a Real Tree future that includes Tree atis athe center of everya Real family’s at the center of every family’s Christmas tradition. And, because Christmas tradition.weAnd, because we are associations, believe that we are associations, we believe that we are far more likely to get there we are far more likely to get there together than we are alone—and the together than weanother are alone—and the checkoff is just expression checkoff is just another expression of that concept.” of that concept.”
Information above provided by Information above provided by the National Christmas Tree the National Christmas Tree Association (NCTA) Association (NCTA) Sherrie Taylor – VCTGA National Sherrie Taylor to – VCTGA National Director the NCTA Director to the NCTA
Ad – Riverside Enterprises Ad – Riverside Enterprises
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VCTGA News Journal – Spring 2014 6
our total since the inception of the program eight years ago to more than 139,000 trees. This year's trees were delivered by FedEx to 62 military bases in the U.S. and Middle East, covering every branch of the armed services.
9,685
Final Numbers Thank you to all of our generous donors who make this program a success year after year. We were coming off big numbers the previous two years. With the help of everyone involved in the program this year, we have some NEW milestones to celebrate.
Growers continue to be a huge factor in Trees for Troops' success, having donated 9,685 trees this year. Members of NCTA and many state and regional associations donated trees by the thousands. This is quite a logistical undertaking and a sacrifice, as these are quality, sellable trees being harvested, donated and collected during the busiest possible time for growers.
17,051
7,216
This year, Trees for Troops provided 17,051 real Christmas Trees to military families and troops, bringing
Consumers and retailers supported Trees for Troops Weekend by donating another record high 7,216 trees
at the 60 farms and retail locations across the country that hosted FedEx trailers Dec. 6-8, 2013. This year, four garden centers teamed up and sold 2,500 trees among their combined locations in Maryland, Massachusetts, Michigan and Wisconsin. Many other Trees for Troops Weekend participants also well exceeded their goals and previous donations. We are excited and proud to see Trees for Troops continue to grow year after year!
78,839 FedEx Freight donated in-kind a total of 78,839 miles to pick up and deliver over 17,000 trees this year. And that does not include the thousands of miles donated by FedEx Express to pick up and deliver the 150 trees that went to U.S. troops in Afghanistan and Southwest Asia. Many locations reported having the same FedEx driver as in previous
Ad – Bosch’s Countryview Nursery 10785 84th Avenue • Allendale, Michigan 49401 Phone: (616) 892-4090 • Fax: (616) 892-4290 Email: brian@boschsnursery.com www.boschsnursery.com
Wholesale Price List for
Quality Seedlings & Transplants Age
Size
Per 100 Rate
Per 1,000 Rate
Age
Size
Per 100 Rate
Per 1,000 Rate
FRASER FIR (2-2, PL+2) 8-15” $110.00 $750.00 (3-2, PL+2) 10-18” $115.00 $775.00 (P+2, P+3) 12-22” $125.00 $850.00
WHITE SPRUCE - Lake States (2-0, 3-0) 9-15” $40.00 $175.00 (2-1, 2-2) 15-20” $90.00 $595.00 (2-2) 15-24” $110.00 $750.00
BALSAM FIR (P+1) 8-14” $86.00 $575.00 (P+2) 10-18” $110.00 $750.00 (P+2, P+3) 12-22” $115.00 $795.00
NORWAY SPRUCE - Lake States (2-0, 3-0) 9-15” $40.00 $175.00 (2-1, 2-2) 15-24” $90.00 $650.00 (2-2) 15-24” $110.00 $750.00 (X-LG) 20-30” $250.00 XXX
CANAAN FIR (P+1) 8-14” $90.00 $595.00 (P+2) 10-18” $115.00 $795.00 (P+2, P+3) 12-22” $125.00 $850.00 DOUGLAS FIR - Lincoln (2-0, 3-0) 9-15” (2-1) 12-18”
$40.00 $175.00 $86.00 $575.00
CONCOLOR FIR (2-0) 5-12” $45.00 $225.00 (2-1, P+1) 8-14” $90.00 $595.00 (2-2, P+2) 10-18” $115.00 $795.00 COLORADO BLUE SPRUCE - San Juan & Kiabab (2-0, 3-0) 9-15” $40.00 $175.00 (2-1, 2-2) 10-16” $82.00 $550.00 (2-2, P+2) 10-18” $110.00 $750.00 (P+2, P+3) 12-22” $115.00 $795.00
VCTGA News Journal – Spring 2014 Ad_1_BW.indd 1
VCTGA News Journal – Spring 2014
BLACKHILL SPRUCE (2-0) 5-12” (2-1) 6-12” (2-2) 12-18” (X-LG) 15-24”
$40.00 $175.00 $75.00 $495.00 $110.00 $750.00 $250.00 XXX
SERBIAN SPRUCE (2-0) 8-14” $45.00 $225.00 (2-1, P+1) 8-15” $90.00 $595.00 (2-2, P+2) 12-18” $115.00 $795.00 AUSTRIAN PINE (2-0) 6-12”
$40.00 $175.00
RED PINE - Lake States (2-0, 3-0) 6-14”
$45.00 $225.00
Age
Size
Per 100 Rate
Per 1,000 Rate
WHITE PINE - Lake States (2-0, 3-0) 6-14” $45.00 $225.00 (2-1) 8-14” $82.00 $550.00 (2-2) 12-18” $110.00 $750.00 (X-LG) 18-24” $250.00 XXX SCOTCH PINE - Scothighland + French (2-0) 6-12” $35.00 $165.00 (2-0, 3-0) 9-15” $40.00 $175.00 WHITE CEDAR (2-0) (3-0) (2-1) (2-2)
4-8” 8-15” 8-15” 12-18”
$40.00 $60.00 $82.00 $110.00
$195.00 $295.00 $550.00 $750.00
ARBORvITAE - DARK GREEN, TECHNY, EMERALD & GREEN GIANT (RC+1) 6-12” $125.00 $850.00 (RC+2) 12-18” $165.00 $1,100.00 Discount on orders over 10,000 plants For complete list please write or call us. Brian Bosch / Owner
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years and love hearing how excited the drivers are to participate in this program each season!
Media Coverage This year's program received excellent media coverage and PR support in many markets across print, broadcast, radio and online.
Is Your Business Using the QuickBooks Best for You?? Does Your Accounting Tell You Anything?
In the six weeks surrounding Trees for Troops from the Kickoff on Nov. 19 through the end of December, FedEx recorded over 360 different media hits that were captured through their tracking service.
Numerous Workarounds
To view summary of 2013 Trees for Troops media coverage, go to http://goo.gl/n2GKiv. http://goo.gl/n2GKiv . PR Manager Rick Dungey conducted numerous radio interviews throughout the season and Executive Director Dustin McKissen appeared on the Fox morning show in Indiana. In addition, Trees for Troops was featured on ABCnews.com and Program Manager Lauren Mangnall helped coordinate a national broadcast story with NBC Nightly News and appeared in an interview on their blog. Thank you to all the state and regional associations who ran articles on Trees for Troops in their publications.
[EDITOR’S NOTE: QuickBooks is probably the most used small business accounting program today. I use it for the VCTGA, other associations, my own business and personal use. As a result of responses from our recent member survey, it appears that a lot of members could use some help in business tracking to be able to have the necessary information to make sound management decision on profitability and production by tracking income and expenses by different crops (tree varieties), consumer preferences, etc. If you do use QuickBooks, or if you don’t, I would recommend subscribing the e-new listed at the end of the article. You should at least be able to pick up some tips on accounting. This is not an endorsement by the VCTGA of any particular accounting process or program. Jeff Miller]
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News Journal – Spring 2014
Have you ever tried on a shirt or jeans and found they didn’t fit at all? They looked great on the hanger, but that was the end of it. QuickBooks come in various sizes, shapes, and colors just like clothing; and just like clothing, some versions of QuickBooks fit your business better than others. You may not be aware that your version of QuickBooks does not fit your business, but there are signs that will give it away. Here are five of them: A workaround happens when your current system can’t do all the things you need or want it to do. A workaround can take the form of a spreadsheet, a report, a program, or a database that is created with extra time spent every month so you can get the information out of your system and manipulate it the way you need it to run your business. Workarounds are often expensive in terms of time and data entry errors. I find many who need job costing are doing workarounds that may not be necessary. Since QuickBooks is a “generic” program, you may need a couple workarounds to meet your unique business needs. However, if you have too many, then you probably have either outgrown your current QuickBooks and need to upgrade to a newer or higher-end version with more functionality OR you need an add-on that integrates with QuickBooks that can address your other needs. We can help you decide. Downtime or Wasted Time If you are unable to access your system when you need to do your job, then you are experiencing downtime in one form or another. You may be waiting for a file to be fixed, or the system may actually be down. If your system runs slowly, then that’s another form of downtime that VCTGA News Journal – Spring 2014
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wastes your time. When you have too many of these time-wasters, it could be time to look for ways to improve your existing system. We’ll be happy to help.
accommodates “anywhere, anytime” accounting. There are several ways to have remote access to QuickBooks so let us know if this is important to you.
Old Technology
The same can be said for mobile access. New apps enable many accounting features to be completed from your mobile phone, such as checking bank balances, approving a bill, and taking a picture of a receipt and uploading it, to name a few. If you want to do you accounting from your mobile phone, ask us about mobile apps that we can link to your system to enable this functionality.
If your QuickBooks is more than about three years old and you’ve chosen not to update it, then you are missing out on newer time-saving features that could help you reduce the amount of time you spend doing your accounting. If your QuickBooks is more than six or seven years old, then you are definitely losing lots of productivity. Labor is expensive!! It’s time to bite the bullet and upgrade so ytou can experience better profit margins in your business. Contact our office so we can help you get the version best for you at a great price. Limited Users or Security If your current QuickBooks does not provide you with enough users, then you might have more expensive employees doing lower level jobs, which is costing you more in payroll expenses. You may also need tighter security access so you grant access to certain parts of the system to different users. This is an area where QuickBooks Enterprise Solutions shines above the other versions of QuickBooks.
Boosting Your Accounting Productivity We might be a little biased, but accounting has gotten easier in the last few years with advancements in technology. If you see any of the signs listed above, it might be worth evaluating your version of QuickBooks to see if it is the best fit for This website your business. http://muirassoc.com/chooseqb.html http://muirassoc.com/chooseqb.html can help you evaluate. If you have additional questions or want to purchase a version of QuickBooks, contact our office so we can be sure you get the version best for you at a great price.
We find that user access is a hot button with a lot of business owners, so if it’s true for you, please reach out and let’s have a conversation about this. Limited Physical Access If your QuickBooks is located on a private PC or server in your business, this limits access to your files. If you have more than one business location, you like to work from home, or your employees work from their homes occasionally, then you may want to look for a setup that
VCTGA News Journal – Spring VCTGA News Journal – Spring 2014
2014
January 22, 2014 "Monica Mitchell Muir helps businesses make dollars and sense with QuickBooks. She helps businesses save time and money so they can run their business profitably! Sign up for her free e-newsletter and get her 5 Keys to Increasing Your Profitability Using QuickBooks at muirassoc.com muirassoc.com"
Save the Date: August 13-14 VCTGA Annual Meeting, Winchester 9| 9
VCTGA Annual Meeting and Conference August 13-14, 2014 – Winchester, VA Description of Topics & Events 1. Tree Farm Risks and Management: No viable business is devoid of risks and the successful entrepreneur is proactive in anticipating and limiting the exposure. This topic will cover, among other things, the various operational, environmental, market, product, legal/regulatory, labor and investment risks associated with a Christmas tree farm. It will also cover some of the policies, practices and tips that can be employed to mitigate the exposure in your business.
3. Forestry Management PlansTypes and Uses If you are like others, your farm has a combination of fields, streams, cropland, pastureland, wildlife and forests/timber. Learn more about the what, why and how of establishing a Forest Management Plan and how it might improve your farm’s financial opportunities and environmental
include practical policies and procedures that have led to its success. 6. Advances in Point of Sale Technology More and more customers are shifting from purchasing commodities with cash or check to debit card, credit cards and other methodologies. Are you ready for the shift? What do you need? How do you start? How do you operate the equipment? What are the issues? This topic will discuss new point of sale methodologies and how they can impact your business.
profile.
2. Virginia Grown, Direct Marketing Associations & what some farms do Ok, you’ve grown the trees-now what? How do you market and sell your product? Who is your competition and what are the timing and other important changes in the market place? Fortunately, there is help. You will learn about the benefits of the Virginia Grown, and the Direct Marketing Associations as well as what other successful farms are doing. 10VCTGA |
News Journal – Spring 2014
4. Consideration for the New Grower So you want to be a Christmas tree farmer. What do you do? Where do you start? How much does it cost? It’s more than planting some trees and coming back 7-8 years later to harvest them. This topic will provide you with practical and useful information on issues such as: land acquisitions strategies, soil analysis, product selection, farm layout, equipment needs, pest and disease management, shearing and wholesale vs retail operations and time commitments. 5. A Choose and Cut/Wholesale Operation You will get to see how a successful Choose and Cut and Wholesale tree operation looks like? The topic will
7. Who is your customer? Our Dinner speaker will brief you on the demographic profiles of the people that might buy your Christmas tree products. Whether it’s a baby boomer, generation X or millennium generation buyer, you need to know, what they like, don’t like, their expectations and values. 8. Tree nutrition and soil analysis Ok, you’re going to plant some trees. How do you keep them healthy? How do you maximize their growth? How do you increase their resistance to pests and pathogens? This topic will discuss many of the species grown on tree farms, VCTGA News Journal – Spring10 2014
on one basis.
their preferred and tolerable soil types. This topic will also discuss soil tests and the various options available to carry out the recommendations.
14. Small Engine Repair If you are like many farms, small engines are a significant part of your equipment arsenal. Whether it’s a weed whacker, chain saw, power sprayer, power blower, small mower, power auger, tree shearer, or chipper shredder, you need to know the basics of their function and repair especially with the new fuels and lubricants available on the market.
9. Rhizosphaera Needle Cast and Pine Shoot Beetle Spruce and Pine growers beware! You want to learn about the issues that can threaten your crop and what you can do about it. 10. Chemical protection Methods Ok, you’ve protected your trees with various chemicals and sprays. What protects you? This "hands on" demonstration will show you the types of clothing, boots, gloves, and masks etc. that are available today and which types should be used for various applications. Safety is number one!
11. Wreath and Roping Demonstrations Do you want to avoid selling your customer “Charlie Brown “ garland or wreaths? Learn from a champion wreath maker on the proper way to make a wreath and garland. Learn the do’s and don’ts and what’s popular today. 12. & 13. Field talks- Insects and Pathogens The farm tour will have on site three experts in their respective fields of entomology, tree pathology, and tree physiology in order to help you identify and mitigate the risks in these areas. They will also be on hand to answer questions on a one
THE FLEA MARKET Bring us your slightly used, unused small equipment and supplies yearning to be free! This is an opportunity for a non-retail trading/sale of items between farmers and an opportunity to recover some of your investment. Of course, you will have to take
Dr. Larry Kuhns to Speak at Summer Meeting By John Carroll Dr. Larry Kuhns, Professor Emeritus of Ornamental Horticulture at Penn State University is slated to speak at our Summer Meeting in Winchester on August 13-14, 2014. Dr. Kuhns is an active Christmas tree grower with a choose and cut and wholesale operation. He and his wife purchased their farm while he was teaching at Penn State and have expanded their operation over the years.
back what your don’t sell. On Thursday, all the activities and programs10-14 will be at Moose Apple Christmas Tree Farm in nearby Berryville. They were featured in the VCTGA News JourJournal – Spring 2012 which is available online at http://issuu.com/hortga_springnl_final http://issuu.com/hortga_springnl_final
VCTGA News Journal – Spring 2014 2014 VCTGA News Journal – Spring
Tim Williams, Vice President and Annual Meeting Program Chair
He brings a wealth of experience and technical knowledge to the VCTGA program. He will most likely make two presentations during his visit. One will be on his operation in Centre Hall, PA, the practices he uses, his stories of success and the challenges he’s faced during his time in the Christmas tree business. The second presentation will be more of the technical nature and true to his service oriented nature he has made VCTGA a great offer. | 11
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He would like 6 growers to provide soil samples from their farms and he will conduct a workshop on how to read the report, select nutrients to amend the soil, and how to manage soils for specific species. In my opinion, this information is invaluable and could really help take the complexity out of using soil test information to get the best possible results in the field.
carrollresourcemgmt@gmail.com carrollresourcemgmt@gmail.com or mail to my home address: 207 Fairway Drive, Louisa, VA 23093.
a good cross section of growers from across the state to participate. John Carroll, Claybrooke Farm
I will forward the information to Dr Kuhns as he prepares for the meeting. It would be good if we could get
This is a natural follow up to the excellent presentation we had at last year’s meeting in Blacksburg. I will be coordinating this for Dr. Kuhn’s and if you would like to provide a soils report for the meeting, please send that to me along with the species being grown in the field, past crop history, etc. Soil sample boxes are available at your VA Tech Extension office and the tests are free to producers. You may send your test results to my email
Ad – Tim Mitchell’s Yule Stand System
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Tips - Is it Time to Sell? Is it Smart to Buy?
mistic about the future. Eventually, however, the tide of business turns. As competition increases, demographics shift, economic prosperity sours and profits shrink, owners may begin to think twice about hanging onto their once-prized companies.
If you seriously are thinking about throwing in the towel or are ready to retire, consider the following steps before seeking a buyer: Thinking about selling, buying or merging? Invest in upfront planning first. If you are considering selling or buying a business, you will avoid costly mistakes and maximize your value by investing in upfront planning. Sellers want to maximize their return by seeking the highest price for their company. Conversely, buyers want to acquire a business at a fair price to increase the value of their investment. Regardless of which side of the transaction you find yourself, consider these key resources for both parties to navigate the waters of selling or buying a business.
SELL SIDE Bootstrap businesses Most landscape businesses fall under the classification of bootstrap operations, businesses started with little capital. When an owner is bootstrapping a business, he or she is highly dependent on personal credit and savings, as well as operating profits, to fund growth. In years when the economy is expanding and consumers are spending money on outdoor services, landscape companies thrive. Owners feel euphoric when their business is compensating their efforts with financial returns, and they grow opti-
VCTGA News Journal – Spring 2014
VCTGA News Journal – Spring 2014
1. Get your business in order. A well-organized business is much more attractive to buyers than a chaotic operation. Be sure to have budgets, written procedures and well-defined processes and systems in place for all areas of your operations. Also, consider your team and the key players involved with making your organization successful. Determine whether your negotiations with a future buyer will include a commitment to retain these key employees. 2. Become financially organized. Before becoming marketable, a company must have clean, audited financial statements for the last 3 to 5 years. This means the financial statements must be prepared according to GAAP (Generally Accepted Accounting Principles) and based on accrual—not cash—accounting. In addition, financial statements will help buyers see the potential of the business in future years ahead. 3. Timing matters. Consult with an expert on the timing for selling your business. On average, most businesses take anywhere from 6 to 9 months to sell, if not longer. Depending on the time of the year, the valuation of the company may vary significantly.
For example, a company that sells in January will be valued based on the prior year's financial performance. Conversely, a business for sale in May will be valued based on the year-to-date performance and pro forma projections through the remainder of the year. This makes a big difference. 4. Increase the value. A company's value is based on both its historic and projected financial performance. To maximize the valuation of your company, look for opportunities to cut unnecessary expenses, implement efficiencies to reduce operating costs and boost sales by increasing marketing efforts. Companies with higher revenues and profits will demand a higher selling price. 5. Consult with experts. Selling a business takes careful planning to avoid costly mistakes and lost opportunities for a higher valuation. One of the biggest surprises to hit business owners is the key man discount, which is applied to a business that relies on the efforts, reputation or knowledge of a key owner or employee. It is imperative to work with an ex-pert to create an organizational structure that operates independently from any key employee. Otherwise, the key man discount will cost anywhere from 30 to 50 percent-$300,000 to $500,000 for a million-dollar company. Ouch!
Sellers want to maximize their return by seeking the highest price for their company. Conversely, buyers want to acquire a business at a fair price to increase the value of their investment. 13 | 13
BUY SIDE Growth via Acquisition In the United States, 28 percent of the population, or 77 million people, are considered a part of the baby boomer generation. With this wave of people on the horizon of retiring, studies estimate that more than 300,000 boomer-owned, small- and medium-sized businesses will be coming on the market in the next 5 to 7 years. This surge in supply of businesses for sale is creating opportunities for buyers to acquire companies as part of their growth initiatives. As a result of the sluggish economy in the last few years, businesses are looking to grow by acquiring other companies, rather than through organic means. How does closing an acquisition and merging two companies actually happen? Below is a timeline of events for two landscape businesses that recently went through this process: Acquirer: A landscape maintenance company established in the late 1970s was looking for opportunities to expand its geographical service area. Rather than opening a new branch location and growing it from the ground up, the company decided to acquire an existing business in the desired market.
1. Target Company identified: A boot strap company was taking in annual revenues of $1 million. After over a decade of dedication, the owner was tired of struggling through the day-to-day operations of the business. The Acquirer learned of the Target Company's desire to sell the business. The owners of both companies met and considered the deal. 2. Initial valuation performed. Before proceeding with an offer, the Acquirer hired a professional to perform a preliminary valuation of the company. They obtained financial statements from the target company and scrutinized the company's financial position 3. A valuation price range was determined: After the initial analysis, a valuation range was given on the Target Company. This range helped the owners of the Target Company determine whether the acquisition was feasible and in sync with their requirements. 4. Parties discussed preliminary price: Contingent upon the results of the due diligence process, the owners of both compa-
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nies discussed a target price for the acquisition. A letter of intent was drafted and signed by both companies. 5. Due diligence: A professional consultant performed the due diligence of the Target Company's financial statements, assets and liability accounts. This process involves auditing financial statements; gathering documents about the company's structure and practices; taking inventory of all physical assets; reviewing contracts with suppliers, subcontractors, and customers; scrutinizing personnel records; examining the prices of products and services and determining if there are outstanding or pending claims against the company. These services were performed on site 30 days prior to buying the business. 6. Approval, legal, and closing: After the due diligence was performed and the deal was approved by the board of the Acquirer, the legal documents were finalized. Shortly after, the owners met at the closing and exchanged titles, legal documents and cash. 7. Integration: After the deal closed, the owner of the Target
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Company remained involved for a couple of months to help with the transition. The Acquirer went through the process of onboarding the employees, switching vehicle decals and transferring over con-tracts to the new entity.
business experts contend that keeping things quiet until the sale is finalized
sale, don't deny it or cover it up. Call a meeting and provide your employees
is a safer approach. After all, in the preliminary stages of the deal, many contingencies can prevent a buyer from following through with the purchase. Until the deal is finalized, why risk disrupting business operations on a prospect that may never come to fruition? Also, some employees may inform customers of a potential sale, causing them to have concerns about shifts in quality and flee to competitors.
with the information they need. Discuss candidly the possible outcomes, and if your plan involves selling to a buyer who will commit to retaining the existing staff, let them know at this time.
Looking to sell? The right time to tell the team: When planning to sell the business, owners need to decide when the timing is right to talk to the employees. Although there are many options for how and when you get the word out, following are the two most common approaches. Remain transparent: As the saying goes, "Honesty is the best policy." Most experts agree that keeping employees informed of a potential or imminent sale from the beginning is best practice. However, revealing your plans to sell does not mean that everything has to be disclosed. By divulging too much, you give employees an opportunity to leak sensitive information to outsiders that may jeopardize the deal. Furthermore, employees who fear losing their jobs may become less productive. Rather than opening the floodgates of information, consider releasing information step by step as the deal progresses. If you are not comfortable telling the whole staff, consider informing only your most trusted employees. Keep quiet: To avoid disrupting normal business operations or causing a mass exodus among your staff, other
Contributed by Steve Coughran, Reprinted with permission from Colorado Green, published by the Associated Landscape Contractors of Colorado, VOL 30, January/February, 2014.
However, if word does leak about a
National Industry Perspective from NCTA "It’s an interesting time for the industry. While there has been some consolidation and reduction of total farms growing trees, consumer demand is still strong and predicted to get stronger. However, there are challenges. Farmers, suppliers and retail outlets need to work together now more than ever in learning about consumer preferences for both trees and buying experiences. There will always be strong demand for the on-farm, cut your own tree experience. That's an important tradition for many families. But there are also many consumers who would buy a farm-grown real tree each year if offered more choices in trees and more choices in ways to buy one, get it home, get it set up and get it recycled after Christmas." - Rick Dungey, National Christmas Tree Association Provided by Sherrie Taylor, Severts Tree Farms, Elk Creek and VCTGA Director to the NCTA
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Christmas Tree Pest Info Resources VA Tech Entomology Fact Sheets
Bagworm Balsam Twig Aphid Balsam Woolly Adelgid Bark Beeltes Blackheaded Pine Sawfly (General) Aphid fact sheet Hemlock Woolly Adelgid Introduced Pine Sawfly Nantucket Pine Tip Moth Pales Weevil Pine Bark Adelgid Pine Bud Mite/Needle Sheath Mite Pine Sawyers Pine Tortoise Scale Pine Needle Scale Pine Shoot Beetle Redheaded Pine Sawfly Southern Pine Beetle Spruce Spider Mites Virginia Pine Sawfly White Pine Weevil
2013 Harris Interactive Consumer Poll Results These are a portion of the poll results 33.02 million trees were purchased in 2013 Mean average spent on a tree $35.30 Total Retail $ spent on Real Trees $1,165,641,300 (up from 2012) Trees purchased from a farm was 24% in 2012 and increased to 27% in 2013 More than 60% said tree prices were about the same cost as previous years % of Households Displaying: 54% Fake Tree, 18% Real Tree, 29% No Tree
All available online at: http://www.insectid.ento.vt.edu/fact -sheets/christmas-treepests/index.html
Information provided by the National Christmas Tree Association
For Sale preseason price
Ad – Philip (subject to change after Clayton Farms For Sale work season begins):
1). In Whitetop, VA: 24,745 Fraser Firs 5/6's and 6/7's; Premiums, No. 1's and many "baby dolls." $12/tree on the stump for all of them. 2). In Sturgills (near Lansing, NC) 28 acre Fraser Fir Tree Farm with 10,619 trees. Mostly 5/6's; one block of 4/5's. Bold stream through property, barn and 1600 feet of state road frontage. Price $299,000 for the farm and the trees together, paid upfront (no seasonal carry over). 3). On the Blue Ridge Parkway at mile post 190, 48 acre farm in three tracts (or together). Selling mix of 5/6's, 6/7's and 8/9's; all premiums and no. 1's at 14.95/ tree on the stump. Tracts sell separate or all together. Price of land upon request. Call Philip Clayton, Hawkridge Farm 540 463 5435
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VCTGA News Journal – Spring 2014
2013 VCTGA Member Grower Survey 15 responses from 102 members producing trees on 955 acres # Sold Off‐ # Sold Farm Choose & # in # sold Cut Species Production Wholesale Retail Fraser Fir 541,357 66,346 238 750 White 28,011 790 969 Pine Canaan 26,408 335 25 511 Fir Douglas 18,125 25 386 Fir Scotch 18,077 1,050 740 Pine Blue 17,768 712 477 Spruce Norway 9,671 266 426 Spruce Concolor 5,350 274 25 Fir Other 3,750 35 450 46 White 2,000 35 98 Spruce Leyland 450 25 72 Cypress Blue Ice 375 45 Cypress Caroline Sapphire 50 6 Cypress Virginia Pine Austrian TOTAL 671,392 69,843 763 4,551 Summary by Jeff Miller
Wreaths: 1,047 wreaths sold retail by 10 members 9,186 wreaths sold wholesale by 5 members o 2 members make their own o 5 members buy o 3 members make and buy Roping: 5 members sold 1,154 feet of roping retail None sold wholesale Gross Sales Retail: $322,271 from 11 members o $49.63 Average per retail customer Wholesale: $145,426 from 7 members o $2,834 average wholesale customer 5 members did retail and wholesale Cost to shear 500 trees $150 trees age 4 $265 trees age 8 Current wholesale price #1 Fraser Fir: $22‐28 #2 Fraser Fir: $15‐24 % change is sales overall 8 members were up 5‐30% 3 members were down 6‐20% 4 members were same Did the VCTGA media promotions and marketing efforts have any bearing on your sales? 5 Yes 1 No 7 Don’t Know Comments: Clients mention the website primarily Lost two wholesale customers who due to age are no longer growing trees for C&C Both VCTGA & NCTA promote real trees so don’t know whether helped any New customers learn about farm and returning customers make it a tradition to return Nearly all new customers said ”Found you on computer” Almost 100% Customers found us on internet. We love the VCTGA farm webpage Website is important
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Ma r for keting Me mb Info ers
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VCTGA News Journal – Spring 2014
Ad – Farm Credit (comp) Ad – Farm Credit (comp)
Equipment For Sale Equipment For Sale 1985 Kubota B7200HST 4WD 1985 Kubota B7200HST 4WD Drive diesel tractor with 42” Bush Drive diesel tractor with 42” Bush Hog mower, automatic transmission, Hog mower, automatic new seat, ag tires,transmission, roll bar, new seat, ag tires, roll bar, 3 weights, rear fender extensions 3and weights, rear fender extensions front fenders to protect trees, and front fenders to protect trees, 3190 hours, excellent maintenance 3190 hours, excellent maintenance program. Owner retiring. $2875 program. Owner retiring. $2875 Call 336-372-2992. – Ron Farmer Call 336-372-2992. – Ron Farmer
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The The VCTGA VCTGA is! is! Logon Logon and LIKE LIKE us. us. and
Let other other members membersknow know Let what you’re you’redoing doing what Ask for for solutions solutionstotoyour your Ask problems problems Post photos photosof ofyour yourbusibusi Post ness operations operations ness Offer seasonal seasonaltips tipsand andsoso Offer lutions that thathave havehelped helped lutions you you Let Let other other members membersknow know how you are using Facehow you are using Facebook book or or other othersocial socialmedia media www.facebook.com/vctga www.facebook.com/vctga
VCTGA News Journal – Spring 2014
VCTGA News Journal – Spring 2014 VCTGA News Journal – Spring 2014
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383 Coal Hollow Rd Christiansburg, VA 24073-6721 383 Coal Hollow Rd 540-382-7310 Christiansburg, VA
STD PRST US POSTAGE PAID WYTHEVILLE, VA PERMIT 172
24073-6721 540-382-7310 www.Virginia
ChristmasTrees.org
www.Virginia ChristmasTrees.org
Save the VCTGA Annual Date! Membership SAVE THE DATES!! Meeting & Conference August 15-16 Blacksburg
August 13-14
VCTGA Annual Meeting, Winchester
VCTGA News Journal – Spring 2013
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