Nursery & Landscape Notes Winter 2017 by North Carolina Nursery & Landscape Association

Publication of the North Carolina Nursery & Landscape Association, Inc.

Winter 2017 | Vol. 51, No. 1

Life after Matthew An Industry Rallies to Rebuild

YOU’RE KNOWN BY THE

Winter 2017 | Vol. 51, No. 1

COMPANY YOU KEEP.

FEATURED PRODUCT

COMMENTARY President’s Message

NCNLA Executive Vice President’s Message

NCNLA NEWS Member Spotlight: Art Miller, Carolina Creations Landscapes 10

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Vendor Spotlight: Parker Bark

Two Nominated for 2017 Board of Directors

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Legislative Update

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Green Industry Update

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Best Practices: NC Sales Tax on Services — New Rules in Effect Now

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RESEARCH UPDATE Pace to Plant for a Healthier Urban Landscape

Red-headed Flea Beetle Biology and Management

Do Essential Oils from Ornamental Plants have Biopesticide Potential?

New Members

Life After Matthew

Calendar of Events

An Industry Rallies to Rebuild

Advertiser’s Index

Cover photos: Background photo by The News & Observer. Small photos, from left to right: Currins Nursery, Nursery South, Casey’s Nursery.

WINTER 2017 | NURSERY & LANDSCAPE NOTES | 3

Published by North Carolina Nursery & Landscape Association, Inc. 968 Trinity Road, Raleigh, NC 27607

A Soil Amendment

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NCNLA Staff Corey Connors Executive Vice President Cody Lewis Director of Finance & Administration Kathryn Stansbury Director of Business Development Kaley Jacobs Manager of Marketing & Communications Judi Neff Manager of Member Services Nursery & Landscape Notes is published quarterly by the North Carolina Nursery & Landscape Association, Inc. especially for nursery production, nursery research, interior and exterior maintenance and design build contractors in the landscape industry. The publication is distributed to approximately 1200 horticulture producers, landscape professionals and industry suppliers. NURSERY & LANDSCAPE NOTES is provided as a member service.

2017 NCNLA Board of Directors Chad Gragg, President Buffalo Creek Nurseries, Inc. Lenoir, NC Shanon Spivey, Vice President/Secretary/ Treasurer Spivey's Nursery, Inc. Kernersville, NC Brad Rollins, Past President Fairview Garden Center Raleigh, NC

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Jamie Thomas Swift Creek Nursery Clayton, NC Hugh Crump Greenline Designs Charlotte, NC

Chris Mitchell Ewing Irrigation and Landscape Supply Garner, NC William Bass, Hawksridge Farms *Nominated 2016 Richard Gant, Gant's Nursery *Nominated 2016 Educational Advisors Justin Snyder Alamance Community College Graham, NC Dr. John Dole NC State University Raleigh, NC

Lynn McCleneghen Parker Landscape Services Cary, NC

showing promise to help reduce plant mortality rates. It helps build soils that keep trees, shrubs, beds and sod thriving and drought-resistant, with significantly less water.

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C O M M I T T E D T O T H E CA R O L I N A S WILSON • GREENSBORO • ABERDEEN • WILMINGTON • LINWOOD • KINSTON ©2016 Cardinal Turf & Ornamental. A division of Triangle Chemical Company. No warranty or representation is made, expressed or implied, concerning the results to be obtained from the use of this product if not used in accordance with directions or established safe practices. For product information, please visit www.coolterra.com. Always read and follow label directions.

Advertising

For Advertising rates and content submission, contact Stephanie Schaefer for a Marketing Opportunities Kit. 919-609-0803 The inclusion of products or brand names in this publication is not an endorsement by the editor or the North Carolina Nursery & Landscape Association.

Purpose Statement

NCNLA PRESIDENT’S MESSAGE

Proud to Serve

s a fifth-generation nurseryman, I am deeply honored to be serving as President of NCNLA for 2017.

My great-great grandfather, Julius Gragg, started our family legacy growing hemlock and boxwoods. Today, we are a wholesale grower of B & B material. We farm around 700 acres, 300 of which we row crop corn. At one time, it was all in nursery stock. But with the fall of the economy, we had to diversify to survive. I have been in the business since graduating from high school in 1978 and continue to work alongside my father, Robert, and brothers Chris and Neal. As we welcome 2017, it looks to be a great year for our industry. The demand is up for material and everyone seems to be busy filling orders and locating product for spring. Last year was one of weather extremes — from flooding in the east caused by Hurricane Matthew, to drought and major forest fires in the western part of the state. Many in the industry are still recovering. It’s times like that when you really see what our state association can do and why supporting it is so important.

Chadd Gragg (with his dogs, Duke & LuLu) Buffalo Creek Nurseries, Inc.

“As we welcome 2017, it looks to be a great year for our industry. The demand is up for material and everyone seems

to be busy filling orders and The NCNLA has been involved in assisting with cleanup efforts, gathering information from locating product for Spring.” members on damage, making them aware of any assistance available, and helping them with all the resources at their disposal. Our Executive Vice President, Corey Connors, also traveled to Washington, DC, to personally lobby legislators for assistance to growers affected by Hurricane Matthew. Thank you for your continued support of our great association and for allowing me to serve as your NCNLA president for 2017. Here’s to another great year ahead.

NCNLA's purpose is to be a flexible, knowledgeable, responsive, environmentally-conscious organization providing the nursery and landscape industries with leadership, technological and business advancement opportunities, and information services.

Goal Statement

NCNLA's ultimate goal is to benefit its members’ economic, professional and personal growth.

WINTER 2017 | NURSERY & LANDSCAPE NOTES | 5

NCNLA EXECUTIVE VICE PRESIDENT’S MESSAGE

Segway O

Fungicide

hile I enjoy writing in long form, I often produce a tedious read that may not paint a complete picture of all the different things NCNLA has going on at any one time. So for 2017, I’m trying something new in my quarterly column: more bullet points and short thoughts — similar to the reports I provide to the NCNLA Board of Directors on a bi-weekly basis. Let’s see how this goes…

Greenhouse & Nursery Fungicide #segway_o @OHPSolutions ohp.com (800) 356-4647

PERFORMANCE IN A

Green & Growin’

We will be just a week or two out from the show by the time you receive this. A great deal of thought and planning has gone into the new offerings that we have at Green & Growin’ 17. Hopefully you’ll have a chance to enjoy some of the new networking events, the NCNLA Member Lounge on the Marketplace floor and the other new opportunities that the Board developed based on attendee and volunteer feedback. Our member-owned show is truly one of the best in the industry. We hope that these new pieces continue to add value and put the icing on an already delicious cake. (ed note: Corey likes food metaphors)

Hurricane Matthew

and Nursery South (and other clean-up efforts), to

In the days and weeks following the storm, our industry came together to support their peers (and in many cases competitors) that were in need. I assure you, that kind of outpouring and sense of community is pretty unique to our industry. To the volunteers at the clean-up events at Casey’s and Nursery South (and other clean-up efforts), to those who provided support to their colleagues in a time of great distress, to everyone who has kept affected lives and livelihoods in their thoughts and prayers…THANK YOU! You continue to provide hope and inspiration at a time when it is desperately needed.

CMY

Controls Pythium, Phytophthora and Downy mildew Unique class of chemistry, no cross resistance Vital part of your Downy mildew rotation Spray or drench applications

those that have provided support to their colleagues in a time of great distress,

I would be remiss if I did not share a few special shout-outs to folks who went above and beyond to assist industry businesses as they started down the road to recovery after the storm:

GROUP OF ITS OWN

INSECTICIDES FUNGICIDES MITICIDES PGRS HERBICIDES

to everyone who has

The NC Cooperative Extension, and in particular Danny Lauderdale, has done yeoman work in providing hands-on support for affected producers in the eastern part of the state. His efforts have been both tireless and genuine. Danny and the other new Area Specialized Agents for commercial horticulture, Stacey Jones (central) and Amanda Taylor (west), are incredible assets for our industry.

Anthony LeBude, the statewide nursery extension specialist, has worked diligently to provide tools and resources to assist businesses with their ongoing damage assessment efforts.

Vernon Cox with the Plant Industry Division at NCDA&CS has continued to keep the unique challenges facing the industry in front of state policymakers as they consider supplemental relief to support recovery efforts.

Debbie Hamrick, as she so often does, has advocated incessantly to ensure that the interests of the green industry are front-and-center with the powers that be throughout the state’s agricultural community.

“To the volunteers at the clean-up events at Casey’s

Almost immediately after the fall edition of Nursery & Landscape Notes was put in the mail, Hurricane Matthew struck North Carolina, causing significant damage to several green industry businesses. Our feature article this quarter (pages 14-20) will go more in-depth with the effects of the storm on member businesses, but I wanted to take a moment in this space for an aside.

Getting to the Points

kept affected lives and livelihoods in their thoughts and prayers…THANK YOU! You continue to provide hope and inspiration at a time when it is desperately needed.”

There are so many more folks who deserve recognition, but space is limited. Again, to all of you who stepped up: THANK YOU! As for NCNLA, there is much work ahead. We’ll continue to update the recovery information page on NCNLA.com and the Facebook page we created to disseminate the latest recovery information in a timely manner. In the meantime, it’s clear that there will be ongoing challenges for our industry in accessing relief funding from both federal and state sources. It may take some more time to finally crack the code on relief programs that will work seamlessly for our industry; but one thing I can promise you is that we’ll stay at it.

WINTER 2017 | NURSERY & LANDSCAPE NOTES | 7

“Merits of either argument aside, the biggest question to me is: to what extent

The Election We’ll save the screaming for cable news and the talking heads. After all, they have a 24-hour news cycle to fill. What I will say is, when in DC a few weeks back meeting with key offices in the NC congressional delegation advocating for relief for industry businesses in the wake of Matthew, the folks I connected with were in a state of shock. Few believed that Republicans would retain the U.S. Senate. Not a one thought Trump had any shot of winning the White House. It has left folks scrambling in our nation’s capital. Some in the business community in DC are licking their chops at the prospect of having a business-friendly pragmatist in the Oval Office. Others have expressed skepticism. To be sure, the policy “sausage-making” process may be decidedly different than any in recent memory.

brand/reputation

Statewide, Republicans retained a veto-proof majority in both chambers of the General Assembly and held on to many elected offices with the lone, large exception of the Governor’s mansion. At press time, an emboldened majority in the legislature has called a special session during which they hope to curtail executive powers prior to Governor-elect Cooper assuming office. The extent to which the General Assembly can curb executive and judicial authority is unknown, though this action will almost certainly be a precursor to a lengthy (and perhaps litigious) process that will keep North Carolina in the national headlines for some time.

across the region

Merits of either argument aside, the biggest question to me is: to what extent will this impact our industry’s brand/ reputation across the region and the country?

and across the

The Rules of the Road, 2017 Edition

country?”

Finally, there are some matters of legal compliance at the Federal and state levels of government that will be different for green industry businesses across the state this year. Briefly:

will this impact our industry’s

Federal Overtime Regulations – The US Department of Labor’s overtime rule, which was slated to go into effect on December 1, was delayed just days before final enactment due to a temporary injunction granted by a judge in east Texas. While it’s likely that President-elect Trump’s Department of Labor will abandon the new rule, it is not an absolute certainty. Breathe a little easier now, but be sure to keep any work you did preparing for new OT rules handy.

Sales & Use Tax – For the third consecutive year, the industry will be operating under different NC sales & use tax collection regulations. Generally speaking, the statute and subsequent guidelines issued by the NC Department of Revenue for 2017 should be considered favorable for our industry. (More on page 29).

“Landscaping services,” as defined (important for your professional accountants to understand), are by-in-large exempted from the collection of the Repair, Maintenance and Installation provisions of the law. Landscaping is now also considered a “capital improvement” to real property, which has important and positive ramifications both to your operation, and more broadly, regarding the value of our products and services in general. Make sure your CPA understands the new guidelines and how they apply to your particular operation/situation.

NC Landscape Contractor’s License – The state’s Landscape Contractors Licensing Board has continued its work to implement provisions contained in statute. For 2017, you will still be required to earn seven CEUs before July 31, 2017 to maintain a license. However, provisions requiring a minimum of two business and three technical credits of those seven total are now in effect. Additionally, it sounds as if both the testing and enforcement provisions of the license are close to being finished.

EPA Worker Protection Standards – Most provisions from the EPA’s new Agricultural Worker Protection Standards are set to take effect January 2nd. Hopefully growers have had an opportunity to review the updates to determine the best means by which they will comply.

Temporary Guest Worker Programs – Despite a last-minute push by industry advocacy groups in Washington, DC, the H-2B temporary guest worker program’s returning worker exemption from the statutory cap of 66,000 visas was not renewed. With an already low unemployment rate both nationally and across the state, our industry’s continued challenges with attracting and retaining qualified talent may prove to be even greater than in years past.

A bunch of additional questions – And then there are several outstanding things that may or may not change in 2017. What will become of the Affordable Care Act? If the ACA is repealed, with what will it be replaced and what will become of the law’s individual and large employer mandates? What will become of the EPA’s oft-debated and delayed Waters of the United States rule? Is federal corporate tax reform on the table and/or possible? Will there be additional investments in federal infrastructure?

Probably a little longer than I had intended on this first go-round, but there was considerable ground to cover. Thank you, so much, for your support of NCNLA. Please do not hesitate to reach out to me, the Board or the NCNLA staff if you need assistance with the issues described above or anything else. We’re here to help. Have a great and profitable Spring! 8 | NURSERY & LANDSCAPE NOTES | WINTER 2017

WINTER 2017 | NURSERY & LANDSCAPE NOTES | 9

NCNLA MEMBER SPOTLIGHT

Five Minutes with Art Miller, Carolina Creations Landscapes, Inc. Art Miller Title: Co-owner, Founder, Business Development & Sales Education: NCSU, Major(s): Horticulture & Ag. Business Management

Carolina Creations Landscapes, Inc. Shallotte, NC

Hobbies/Interests: Hunting, Fishing, Backpacking, Camping Personal: Married - Carrie Miller, Children - Kayla (16), Greyson (10), Sawyer (4)

Owners/Manager Art Miller Co-Owner & Founder Michael Webster Co-Owner Commercial and residential landscape construction; lawn and landscape maintenance; and swimming pool installation are Carolina Creation’s specialties.

Jonathan Thrift General Manager Years in Business 20

In 2001 I decided to relocate to the Ocean Isle beach area and essentially had to build the business again from the ground up. That’s when we disbanded the nursery side and “Carolina Creations” became “Carolina Creations Landscapes, Incorporated.” I took on a partner, Michael Webster, about ten years ago. The company today has more than 90 employees and revenue in excess of $8 million.

Employees 90+ Annual Revenue $8 million+ Services

Landscape construction Swimming pool construction Landscape maintenance

Awards & Honors

Best of Brunswick Award - Landscape Services (08, 09, 10, 11, 12, 13, 14, 15, & 2016) LandOpt Landscape Contractor of the Year, 2009, 2011 NCNLA Young Landscape Professional “Jerry Ragland Award, 2005” Angie’s List Super Service Center ® Award (13, 14, 15, & 2016)

What led you to a career in the green industry? My Grandma was an avid gardener and she passed the love of gardening on to me at a very young age. By high school that had morphed into a genuine individual interest, so I took horticulture courses and earned hands-on experience in the industry through co-op programs. I was in the Boy Scouts growing up and when I was about 14 or 15, the father of one of the boys in the troop came by and asked if any of us wanted to earn some extra money that day. He happened to own the only landscape and nursery business in town (Clinton, NC). It was a pretty rural area and there weren't many job opportunities other than traditional agriculture, so I jumped on it. We loaded transfer trailers at Darden’s Nursery & Landscaping that day and when we were done I said, “Need any more help?” Jim Darden said to show up the next day, and I did. That’s where my interest in the business started. The next summer, I got a job working at Darden’s pulling weeds and potting plants. As soon as I got my driver’s license, I became a full time employee. By my

10 | NURSERY & LANDSCAPE NOTES | WINTER 2017

junior year in high school, I was going to school for half a semester and working the other half with Jim Darden, effectively running the landscape division — presenting plans and managing jobs from beginning to end. In the summer worked I full time — 50-60 hours a week. By the end of my senior year, in addition to working at Darden’s, I branched out on my own. I had five acres of containers under management and was running the landscaping company, Carolina Creations. As a dough-eyed, star-struck young man attending NCSU, I saw opportunity at every corner. I went to school full time, operated my landscaping business in the robust Raleigh area and managed my nursery in Clinton about once a month on the weekend. When it was harvest time I would load plants in every nook and cranny of my truck – seat, dashboard, truck bed, trailer, even my lap — and make a sales circuit to all the local garden centers in the Raleigh/Cary area. During my last year of college, I was pretty much running “Carolina Creations” 40 hours a week while also attending classes. When I graduated I naturally put all of my time and energy into my business, which grew into a small, but well-established firm in the Raleigh area.

What are your main responsibilities at the company today? I used to be the traditional owner/operator – handing day-to-day functions as president and general manager, but we wanted to move to a different business model – one which would not be owner/operator driven. Nine years ago we hired Landopt, a Pittsburgh based consulting firm, who assist green industry businesses implement proven business tools and processes for sustainable, measurable growth and profitability. Three years ago, we promoted Jonathan Thrift to General Manager and I now operate as an employee responsible for business development and sales.

What products and services does Carolina Creations provide? What is your business best known for? Carolina Creations is very well diversified. We are primarily comprised of three departments: The landscape construction division offers design, planting and installation of green goods and products, irrigation, outdoor kitchens and other outdoor living construction services. The landscape maintenance/service segment

covers general lawn maintenance and mowing, grounds management, horticultural services, floral programs, etc. Swimming pool installation is the third part of our business.

Why do your customers love you? We sell service, period...Our #1 business philosophy is customer service.

What has been most rewarding part of your career? I enjoy knowing that we've helped build a significant number of jobs in the local community and provided career paths for people to grow professionally and personally.

What kinds of things keep you up at night? The most stressful part of my job is knowing that we will have to solve problems created by unnecessary regulation and bureaucracy.

What advice would you give someone that is trying to start a business or career in North Carolina’s green industry?

“I enjoy knowing that we’ve helped build a significant number of jobs in the local community and provided career paths for people to grow professionally and personally.” — Art Miller

Surround yourself with a close circle of trusted advisors, each bringing a unique offering or area of specialty. Consult with them frequently. Get actual experience out there in the field selling and getting your hands dirty. A Horticulture degree will make you a subject matter expert, but it will not prepare you to run your own business.

NCNLA VENDOR SPOTLIGHT

MEMBER NEWS

Parker Bark

Two Nominated for 2017 Board of Directors

he NCNLA Nominating Committee, comprised of Past-Presidents Kirk Davis (Kirk Davis Nursery), Mark Gantt (Hefner’s Nursery) and Brian Nelson (Nelson Nursery), has nominated the following individuals to serve on the NCNLA Board of Directors beginning in January 2017.

Richard Gant, Gant’s Nursery, Marion, NC Top: Chocolate Cypress Mulch covered the streets of downtown New Bern to create a period look for an episode of the Fox TV series Sleepy Hollow.

From left to right: Ashley Guy, Gay Parker Stanley and Susannah Parker Reynolds

Millions of plants have been grown in Parker Bark Company’s potting media and custom mixes; and Parker Bark’s mulches have been used in countless landscapes. A full service company, Parker Bark uses its own fleet of tractor-trailers in order to provide customers with immediate, hands-on attention. Parker Bark Company, Inc. Rose Hill, NC Top Team: Linda Parker, Owner Susannah Parker Reynolds, Corporate Officer/ Manager Gay Parker Stanley, Corporate Officer/Manager Ashley Guy, Plant Manager Years in Business: 33 NCNLA member since: 1986 Number of Employees: 14

Past, Present, Future 1983: Thomas “Tommy” H. Parker begins aging pine bark for potting and creating custom potting media for nurseries — products which remain the basis of Parker Bark Company today. 1995: Using organic dyes, Tommy creates vibrant red, chocolate brown and black landscaping mulch that retained its color in North Carolina’s hot weather longer than natural mulches. The company begins to expand its operations. 2007: Parker Bark Company starts manufacturing and trademarked production of Parker’s PlayCushion®, an IPEMA certified playground mulch, now shipped to schools and municipalities throughout the Carolinas. 2012: Tommy’s daughters, Susannah Parker Reynolds and Gay Parker Stanley, take over day-to-day operations and management of Parker Bark. Tommy continues in an advisory role, helping to sculpt the company’s future, until his death in December. Under his leadership, Parker Bark had grown to a 50-acre facility. 2014: Ashley Guy brings 20 years of agriculture and manufacturing experience to the Parker Bark team. With her help Gay and Susannah continue Tommy’s dreams

of growth. The Parker Bark facility expands to nearly 80 acres — creating more space and inventory for perfectly aged pine bark. Looking ahead: Susannah, Gay and Ashley continue to run Parker Bark Company in Tommy’s tradition — with a commitment to quality, consistency and customer service. The growing demand for aged pine potting bark has prompted yet another expansion of the Parker Bark facility — to be completed this year.

Products

potting mix a nursery customer may wish, allowing them to change formulas to meet the needs of certain plants such as mums or tropicals. They can do the same for landscape and garden center customers — dying hardwood mulch or cypress mulch any custom color they may need for special occasions such as weddings or to support a school’s colors.

Business Philosophy Parker Bark is committed to providing exceptional quality and consistency in its products. It uses only top quality raw materials and ages its pine potting bark in a carefully monitored nine-month process to ensure a properly aged, stable product.

Aged pine potting bark

Custom nursery mixes

Parker’s Nursery Mix and Greenhouse Mix

Propagation bark

Manufactured topsoil

Certified compost

Color enhanced mulches (red, chocolate and black are the most popular but they can do any color)

Shredded fresh pine mulch

Space. Creating enough room to properly windrow and age potting bark is an ongoing challenge. The company is continually expanding in order to meet growing demand.

Pine bark nuggets (3 inch) and mini chips (1-1/2 inch)

Thoughts about NCNLA

Cypress mulch (natural or color enhanced)

Certified PlayCushion®

Services Parker Bark Company is a manufacturing company and can provide customers with custom manufactured products to their specifications. They will create any

Get in Touch: 800.346.4627 | sales@parkerbark.com | www.parkerbark.com 12 | NURSERY & LANDSCAPE NOTES | WINTER 2017

Fresh ground bark, which the company will windrow, water and turn while it ages for nine months.

Richard Gant has been growing trees at Gant’s Nursery since the 1990’s. He built the nursery from the ground up after buying 15-20 acres of open land. Today the nursery specializes in hard to find native plants, including Buckeyes, Silver Belles, and American Fringe Trees. Gant has about 25 years of experience in the green industry. He has shared his knowledge as an active member of numerous industry organizations including: Western Horticulture Alliance, Caldwell County Nurserymen Association and South Carolina Nursery & Landscape Association. A longstanding member of NCNLA, Gant’s Nursery has been exhibiting at Green & Growin’ for about 15 years.

William Bass, Hawksridge Farms, Hickory, NC William Bass has been the Production Manager at Hawksridge Farms for 32 years. The wholesale-only nursery sells to garden centers and registered landscape contractors. Bass oversees the growth of container trees and woody ornamentals, with a focus on introducing new plants to the trade. He is a member of multiple industry groups, including: Wholesale Nursery Growers of America, Inc, Southern Nurserymen’s Association, N.C. Landscape Contractors Association, Perennial Plant Association, Maryland Nurserymen’s Association, Virginia Nurserymen’s Association and of course, NCNLA. The nominations of Gant and Bass will be considered by the general membership at NCNLA’s Annual Meeting and Breakfast, which will be held at 7:30 A.M on Thursday, January 19 at Green & Growin’ 17.

Core Customers Nurseries, garden centers and landscapers.

Biggest Challenge

“Tommy was always proud to be involved with and support NCNLA. He taught us that the NCNLA is an invaluable resource to us and to our customers. We have found that being part of NCNLA provides us with up to date information about the concerns and challenges facing our customers. That knowledge allows us to meet those needs better and provide our customers with the best possible product.”

New CPPs Announced The Certified Plant Professional exam was held on November 3 in Wilson, NC. The following individuals have earned the CPP designation.

Samantha Branson

Donna K. Harbolt

Ashley Myers

Maryanna Bennett

Sarah Harkey

Chase Thompson

Latricia Brown

Kim Holloway

Ryan Wade

Julie M. Chandler

Alexandra Holton

David Curry

Katelyn Martin WINTER 2017 | NURSERY & LANDSCAPE NOTES | 13

Life after Matthew

By Shelley Estersohn

An Industry Rallies to Rebuild

We can listen to the warnings. We can try to prepare for the worst a hurricane has to offer. But watching a life’s work literally wash away... nobody “prepares” for that. And when it’s over — when the winds are gone, floodwaters receded and we're staring at a mass of mud and destruction — what then? With the help of family and friends, we begin again.

14 | NURSERY & LANDSCAPE NOTES | WINTER 2017

WINTER 2017 | NURSERY & LANDSCAPE NOTES | 15

Hope Floats

Currin’s Nursery Willow Spring, NC

“T

here’s a creek at the back of the property, but we’re supposedly located on the 500 year flood plain. We thought we’d be okay,” said Ruth Currin Holcomb. Currin’s Nursery hadn’t seen a flood since Hurricane Fran in 1996. So they prepared for Hurricane Matthew but weren’t overly worried about it. She realizes now they’d missed the big picture. “We didn’t consider what was happening beyond our property line.” The land around and upstream of Currin’s had been built up in the past 20 years. New neighborhoods — and all the impervious surfaces that go with them — had cropped up everywhere. The forecast was for 4-5 inches of rain. They got a foot inside of 12 hours. All that water had to go somewhere and the easiest route led right to Currin’s Nursery. “It was insane how fast the water was moving. We had rapids going through here, ” Holcomb said. “It picked up trees with 500-pound root balls and tossed them 1000 feet away like they were nothing.” Fortunately, it didn’t stick around. The water started rising around 2:00 in the afternoon, crested 12 hours later and was gone by 6:00 p.m. the next day. “We were underwater maybe 30 hours total – not days and days like other people,” she said. It still left havoc in its wake. “Our pot-in-pot system was completely destroyed.” The pots and irrigation system were gone, grading was ruined and silt was everywhere. “A lot of plants were thrown out of their pots and deposited in the woods. We couldn’t save them,” said Holcomb. Even the equipment they’d moved to higher ground for safety had been washed away and destroyed. When the water receded, “we were so overwhelmed we didn’t know where to start,” said Holcomb, who was eight months pregnant at the time. “We didn’t want to ask for help when everybody else had issues,” she said.

16 | NURSERY & LANDSCAPE NOTES | WINTER 2017

They didn’t need to say a word. On Sunday afternoon a couple of nurserymen stopped by Currin’s to see how things were going. The next morning nearly 40 men and women from other green industry businesses showed up ready to go to work. When she saw them, Holcomb broke down and cried. “They just descended upon us and knew exactly what to do,” Holcomb said. About 30 percent of the crop was completely destroyed, but they were able to salvage plants the water had just washed over. “We’d never have had the labor to save all those plants ourselves.” With help came hope and confidence in their ability to recover. Two months later much remained to be done. “There are pots all over the place, and we’re still working on the regrading. We’re also battling deer, because the fence around the property was destroyed,” Holcomb said; but they’re trying to help others, too. “We were so touched by the selflessness of people who put their own problems aside to come and help somebody else,” Holcomb said. “It’s a real testament to our industry.”

Lessons Learned We asked Holcomb to share any insight she’s gained from her experience. Here’s what she had to say. 1. “Don’t underestimate what needs to be done. Prepare for the worst-case situation. Go a few steps beyond whatever seems necessary. We thought moving our equipment two feet above the last flood line would be fine, but we should have moved it a lot higher up.” 2. “Look beyond your property line. Consider how changes to the areas around you might change what you need to do to prepare.” 3. “If it flooded once, it’ll flood again. We developed an area that had flooded during Fran. That’s where the rushing water flowed the fastest this time. In hindsight, we should never have developed that spot. Also, turn off any electricity in flood-prone areas.” 4. “Give extra protection to anything related to irrigation. The door to our pump house blew off, the well pump flooded and we ended up having to replace it. We should have taken the time to pull the well pump out before the storm.”

WINTER 2017 | NURSERY & LANDSCAPE NOTES | 17

Raising Plants and Spirits Casey Nursery, Inc. Goldsboro, NC

t wasn’t like the last flood. “My dad went through Hurricane Floyd in 1999. He says they had a day or two to get ready while the rivers were rising,” said Hunter Casey. This time, Casey Nursery wasn’t so lucky. It took just 12 hours for Hurricane Matthew to dump more than a foot of rain across the Goldsboro area on Saturday, October 8. “When we got there on Sunday morning to assess the damage, the nursery was already under three feet of water,” Casey said. The flash-flood nature of the disaster may have been a blessing in disguise. “The flood hadn’t picked up everybody else’s water upstream, so the overall quality of the water was probably considerably better than after Floyd,” he said. October’s cooler temperatures and slower plant growth, may also help more of the nursery’s stock survive. None of this, of course, was going through Hunter’s head that Sunday as he surveyed the devastation. His grandfather had purchased that land. The nursery has been his family’s life and livelihood for three generations. “When you get into a disaster like that, your mind goes into gridlock,” Casey said. “It’s hard to see your way out.” A week later, as they struggled to dig out of the muck, a volunteer cleanup crew of fellow NCNLA

members arrived to lend a hand. “We had 52 people come here from all over North Carolina and even some from Virginia. Corey Connors, the head of NCNLA was here too,” Casey said. “They brought so much optimism. That’s when our spirits began to rise. To quote my father: ‘They stood up a whole lot of plants — and they stood up our morale too.’”

More than 50 people representing 10 NCNLA member companies participated in the NCNLA volunteer cleanup day at Casey Nursery on October 15. Here’s an excerpt from the company’s Facebook post the following day:

Optimism still prevailed in mid-December, as they were beginning to dispose of plants that had browned out. “It looks like about 25 to 30 percent of what went under water was truly affected. The rest we’ll watch through the winter,” he said. In April or May, if things look good, they’ll put the plants back on the market. “At this point, I’m about 75 percent confident that it’s going to be okay.”

“We had such a great turn out and everyone worked so hard! There is still so much work to do ... but because of your help and support we know there is a light at the end of the tunnel! It is just amazing to have you all come together to help us during this very trying time and we appreciate it so very much. Thank you from the bottom of our hearts.”

So what about the future?

Casey’s now owns adjacent land that sits about 30 feet higher than the current location. They’d initially intended to lease it out until they need it, but Matthew changed their minds. In the short-term, they’ll move plants most at risk of water damage to the spot. They’re also stepping plans to build facilities at the higher elevation and make it the focus of any future expansion. “The nursery has flooded three times since my grandfather bought the property in the 1950s —1964, 1999 and now,” Casey said. “There were 30 years between the first two and we’ve had 16 good years since Hurricane Floyd; but you always have to keep the possibility in mind.”

Casey Nursery, Inc. Family and Staff

Jump Back, Spring Forward

hey were still a mile from their business and the water was more than three feet deep. Bryan Freeman and Lee Grantham put on waders and walked the rest of the way to Nursery South. Trudging through the flood, they saw people coming out of homes carrying what was left of their lives in a single trash bag. “It really put things in perspective,” Freeman said. “We were under 41 inches of standing water for six days. Our entire crop was gone,” Freeman said. Calls and e-mails offering help had been coming nonstop. “Tell us when the water goes down and we’ll be there...” said one person. “I’ve got plants for you whenever you’re ready...” said someone else. A nursery owner who was dealing with his own flood problems sent his son over to lend a hand. A man just showed up with a tractor, a tracking trailer and two moving carts. Unasked, he’d driven two-and-half hours to drop them off saying, “You need these. Use them however you want for a month and let me know when to come back and get them.”

Nursery South Lumberton, NC

On October 18, dozens of volunteers from landscaping companies, nurseries, suppliers and other green businesses arrived for a clean-up day organized by NCNLA. Even competitors came to help put Nursery South back together. Just knowing that so many people would be willing to take time from their own businesses in order to “do a bunch of dirty, nasty, back-breaking work” for a fellow industry member left Freeman stunned. “They wanted nothing in return...not even a thank-you. All they wanted was to see us back on our feet.” “When folks like that have got your back you have to keep moving forward.” They’re still assessing their situation, trying to clean up, get through the winter and restart in the spring. “We lost six or seven years of production, but we were already swinging the nursery in a new direction,” Freeman said. “So now we’ll just do it faster,” he said. “How could we not rebuild?” Freeman said. “It’s the people in this industry who make me want to stay. I wouldn’t want to do anything else.”

They’d lost everything, but the green industry wouldn’t let them lose hope. 18 | NURSERY & LANDSCAPE NOTES | WINTER 2017

WINTER 2017 | NURSERY & LANDSCAPE NOTES | 19

After, and Before Renfrow Nursery Fair Bluff, NC Nurseryman Jimmy Renfrow has specialized in grafting and growing Japanese Maples for more than 40 years. His home and business were underwater for 10 days when floodwaters covered the entire town of Fair Bluff. He posted these photos to Facebook, saying he took them from the back of his house “before the water got deep.” This photo of the Renfrow backyard was taken two years ago. The golden trees are Sango Kaku (coral bark); tall red trees in corner of fence are Seiryu; short mounding red trees are Inaba Shidare.

Superior Plants Nursery Benson, NC Superior Plants Nursery is a wholesale container grown nursery specializing in Camellia, Daphne odora, Illicium, Edgeworthia, Helleborus, Chionanthus and other rare or unusual plant varieties. These photos, taken by owner Jason Stevens, were posted to Facebook on October 11.

Photos by The News & Observer

Hurricane Recovery Resources As historic flooding devastated eastern North Carolina’s green businesses, offers of help poured in from around the state and the nation. NCNLA created these online resources to help collect and disseminate information quickly, coordinate volunteer assistance and support long-term recovery efforts.

Two months before Hurricane Matthew, Stevens posted these images of his nursery’s recent expansion.

20 | NURSERY & LANDSCAPE NOTES | WINTER 2017

NC Green Industry – Hurricane Recovery Facebook Page This quickly became a key communication point — used by affected businesses to post updates and NCNLA to share news and call for volunteers. It continues to be the source for the latest news, including recovery and relief information from federal and state authorities. (www.facebook.com/ncgreenhurricanerecovery) NCNLA Hurricane Recovery Resource Web Page NCNLA added a page to its website containing information about state and federal programs available to members as they begin to rebuild. It includes details about eligibility for these programs as well as the correct contact information when requesting assistance. (www.ncnla. com — under “News & Info” click “Hurricane Recovery Resources”)

Green Industry Damage and Loss Assessment Survey NCNLA developed this industry-specific survey in conjunction with North Carolina Cooperative Extension and the North Carolina Farm Bureau. Affected green industry businesses across North Carolina are encouraged to complete the survey so that state and federal agencies have accurate data when considering aid packages and other support. (www.surveymonkey. com/r/hurricanematthewassessmentsurvey)

In late-October NCNLA executive director Corey Connors went to Capitol Hill to update North Carolina’s lawmakers on the extent of damages sustained by North Carolina’s green businesses. He also lobbied for specific regulatory changes that would allow green businesses greater access to relief funds.

Within NC counties designated as a disaster area, there are 300 nursery farms totaling more than $65 million in 2014 wholesale sales and 282 floriculture farms totaling more than $25 million in 2014 wholesale sales.

Current FSA loss estimates do not include structural damage to nursery and floriculture farms in the region.

The total costs of clean-up, including labor and materials, could be between $20 million – $30 million (or more) in the nursery/floriculture industry alone.

NCNLA remains ready to assist the industry’s recovery in any way possible. If your business was affected and needs help, or if you have help to offer, please don’t hesitate to contact the NCNLA office so staff can direct resources effectively (Phone: 919-816-9119; Email: info@ ncnla.com).

WINTER 2017 | NURSERY & LANDSCAPE NOTES | 21

LEGISLATIVE UPDATE

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Provided by NCNLA and AmericanHort as a Lighthouse Program partner benefit. For the latest information about these and other federal legislative concerns, visit AmericanHort.org

Congress Passes Major Water Resources Bill Along with the short-term spending plan that funds the federal government until Apri 28, 2017, Congress passed the Water Infrastructure Improvements for the Nation (WIIN) Act (also knows as the Water Resources Development Act or WRDA). Years in the making, this sprawling $12 billion reauthorization bill provides federal funding for a wide array of water-related projects ranging from storage to flood prevention to dredging to fisheries management.

U.S.-Canada Greenhouse Certification Program Revised USDA’s Animal Plant Health Inspection Service (APHIS) and the Canadian Food Inspection Agency (CFIA) have announced

the finalization of a revised greenhouse grown plant certification program. The United States Canada Greenhouse-Grown Plant Certification Program (GCP) is a bilateral export certification program for greenhouse grown plants shipped between Canada and the continental United States. The revised program will continue to facilitate the movement of greenhouse-grown plants between the United States and Canada and allow authorized facilities to ship plants using a GCP certification label (GCP sticker) in place of a phytosanitary certificate. The revised GCP strengthens oversight of plant movement, ensures consistent implementation of the program and reflects current business practices.

U.S., Canada, Mexico Talk Plant Protection In early November, the Canadian Food Inspection Agency hosted the annual meeting of the North American Plant Protection Organization (NAPPO), which offered a few nice opportunities for AmericanHort. The meeting offered AmericanHort the opportunity to:

Ensure that the American horticultural industry was represented in important trilateral discussions that took place on quarantines, trade, invasive plants, and other issues; Establish, sustain and strengthen key relationships with the three countries’ officials and technical staff. These relationships are

key in problem-solving during the rest of the year;

Participate directly in conversations on important emerging issues like “risk-based sampling” at the ports of entry and the effort AmericanHort is spearheading to establish and improve certification programs for offshore-produced cuttings and domestically-produced plants.

AmericanHort chairs the U.S. Industry Advisory Group to NAPPO, giving our association special credibility and influence in this unique international forum.

LABOR Overtime Rule Blocked by Federal Judge On November 22, a U.S. District Court judge issued a nationwide preliminary injunction blocking the implementation of the Department of Labor’s (DOL) new overtime rule, which was slated to go into effect on WINTER 2017 | NURSERY & LANDSCAPE NOTES | 23

New Year, New Form I-9 On November 14, 2016, the U.S. Citizenship and Immigration Services (USCIS) bureau of the Department of Homeland Security released a revised version of Form I-9, Employment Eligibility Verification. Starting January 22, 2017, employers must use ONLY the new version dated 11/14/2016 N. Until then, employers may use the version dated 03/08/2013 N or the new version.

New Year, New Worker Protection Standard

December 1. The court acted out of concern that the overtime rule may violate the Administrative Procedures Act and the Fair Labor Standards Act, which exempts employees from overtime pay if they perform executive, administrative or professional duties. The new rule would raise the “white collar” salary exemption level to $913/week ($47,476/year) from the current level of $455/week ($23,660), and would mandate an automatic update of the salary threshold every three years. The Justice Department has filed an appeal to the 5th Circuit and is attempting to have the appeal heard on an emergency basis. It is uncertain, and unlikely, that the 5th Circuit will see the need to act quickly. If the injunction remains into the new Trump administration, it may have the practical effect of stifling the rule as the new administration will likely drop the legal defense.

Congress Adjouns Without Addressing H-2B Returning Workers President Obama has signed into law a temporary spending bill to fund the federal government through April 28. Despite a massive effort by our industry and others in the H-2B Workforce Coalition, congress did not reinstate the H-2B returning worker exemption. The exemption expired on October 1, the start of fiscal 2017. The spending bill will extend through April 28 with several “regulatory relief” provisions that allow for a 10-month H-2B season and the use of private wage surveys.

Switching to Offense on Labor Relations The National Labor Relations Board (NLRB) under President Obama has been called the most partisan ever. Does the claim hold up under scrutiny? Well, a recent report coproduced by the business-oriented Coalition for a Democratic Workplace, with which Amer24 | NURSERY & LANDSCAPE NOTES | WINTER 2017

icanHort collaborates, suggests so. In fact, the authors determined that Obama NLRB decisions have cumulatively upended over 4,500 years of legal precedent in a concerted effort to tilt the labor organizing playing field toward the unions. With a new administration coming to town, the business community can now shift from pure defense to playing some NLRB offense. For this reason, AmericanHort joined with CDW colleagues on a letter to Vice President-elect Mike Pence and the transition team urging the new Administration to move swiftly to fill two NLRB slots and begin the process of restoring balance to the body and its decisions.

As you think about your New Year’s Resolutions for 2017, don’t forget to include updating your compliance plans for the EPA worker protection standard (WPS) and pesticide applicator certification. EPA finalized changes to the WPS earlier this year and some will take effect January 2, 2017. The revisions are meant to strengthen protections for agricultural workers and their families. Between 1,800 and 3,000 occupational incidents involving pesticide exposure are reported annually, and widespread underreporting is suspected. But some of the changes were controversial, and it remains to be seen if they will be tweaked by the new Trump administration. Read more about the changes at www.epa.gov.

Many H-2A program users, already frustrated with the AEWR, face another steep increase wage in 2017. According to an AEWR analysis that economist Dr. Steve Bronars did for AmericanHort, the AEWR in 2017 will go up by nearly 8% in some states.

Herbicide Drift Concerns May Drive State Restrictions Concerns over damage from dicamba drift are heightening at the state level. Over 100 crop injury complaints covering over 41,000 acres of soybeans, specialty crops (peaches, watermelon, cantaloupe, tomato, etc.) and residential trees are suspected from dicamba offsite movement in 2016. The Arkansas Plant Board unanimously voted to adopt measures limiting some dicamba use by 2017. The governor must approve the restrictions before they are enacted.

ments of Justice, Labor, Agriculture and State will have major influence on immigration enforcement and visa program policy. AmericanHort is a leader in the effort to secure sensible immigration reforms to ensure a stable and legal workforce. As part of the steering committee of the umbrella Agriculture Workforce Coalition, we recently communicated via a letter to Vice President-elect Mike Pence and the Trump transition team the precarious workforce situation confronting our growers and the agriculture sector specifically.

IMMIGRATION Trump Transition and Immigration President-elect Donald Trump’s transition process is in full swing. As we’ve reported previously, key appointees at the depart-

States Urge Continued Federal Fire Ant Quarantine Early last year, USDA’s Animal & Plant Health Inspection Service initiated a periodic review of the federal domestic quarantine designed

old courthouse ads_Old Courthouse ad 2014 12/8/14 1:56 PM Page 1

WHOLESALE GROWERS OF Azaleas, Hollies, Junipers, and Ornamentals

Going Up: ABCs of AEWR The “adverse effect wage rate,” or AEWR, is typically the applicable minimum wage that must be paid to temporary and seasonal agricultural workers employed through the H-2A foreign worker program. The AEWR wage must also be paid to any U.S. worker considered to be in “corresponding employment,” currently interpreted by the Department of Labor to mean the worker performs any job task in common with the H-2A workers on a farm.

to prevent the movement of imported fire ants via nursery plants and other means of accidental spread. AmericanHort and our state association grassroots partners have taken the position that the quarantine benefits the industry by ensuring a consistent framework for plant certification and shipment.

OLD COURTHOUSE NURSERY PEST/PESTICIDE CONTROL Farm Bill Pest and Disease Funding Targets Horticulture Priorities On December 13, Agriculture Secretary Tom Vilsack announced that the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) is allocating nearly $58 million under Section 10007 of the 2014 Farm Bill to support 513 projects with partners in 53 states, territories, and the District of Columbia. These projects aim to prevent the introduction or spread of plant pests and diseases that threaten U.S. agriculture, horticulture and the environment and to ensure the availability of a healthy supply of clean planting stock.

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4265 Lat tice Road | Wilson, North Carolina 27893 WINTER 2017 | NURSERY & LANDSCAPE NOTES | 25

GREEN INDUSTRY UPDATE Blue Green Innovator of the Year Award

Hoffman Nursery received the 2016 Annual Blue Green Innovator of the Year Award, which recognizes outstanding leadership and innovation in environmental stewardship in regards to water conservation, water use efficiency and the development and implementation of green infrastructure by an individual, organization or government entity. Hoffman works with wholesale growers to help them see the potential of grasses, sedges and other plant species for green infrastructure projects, and handles water on site with a series of bio-swales and wetland areas to increase infiltration and clean the water. Jill and John Hoffman accepted the award and thanked both their employees and the GIC for their hard work and dedication to improving the environment.

GIC 6th Annual Water Symposium… another tremendous success

University on Thursday, June 22, 2017, are already underway. Warren S. Gorowitz, Vice President of Sustainability for Ewing Irrigation and Landscape Supply in Phoenix, AZ, is the planned keynote speaker. Additional speakers and event details are to follow and will be posted on the SavingWaterNC.com website.

GIC Annual Meeting and Reception Scheduled for the 2017 Green & Growin’ Show The GIC Reception and Annual Meeting are scheduled for Wednesday, January 18, 2017, 5:00 - 7:30 P.M. at the Sheraton Greensboro, in conjunction with the NCNLA Green & Growin’ Show. Past receptions and annual meetings have included NC General Assembly leaders such as Senator Phil Berger, Agriculture Commissioner Steve Troxler and other public figures. Always well attended, this is a great event to meet and talk with legislative leaders and state officials, as well as an opportunity to get to know others who “bleed green” and are passionate about the green industry… so plan to attend.

NCNLA Members Doug Chapman (right) presents the Blue Green Innovator of the Year Award to John and Jill Hoffman of Hoffman Nursery

GIC Friend of the Industry Award

Bill Holman, with The Conservation Fund in Chapel Hill, NC and honorary chair for the 2016 GIC Water Symposium, received the GIC Friend of the Industry Award in recognition of his dedicated service. Bill has been a champion of North Carolina’s conservation trust funds in the state legislature and a leader working with water and electric utilities to protect water supplies. His unwavering support for common sense approaches to protect our most precious resource made him the unanimous choice for this recognition.

2017 GIC Water Symposium – Save the Date

Plans for the 7th Annual GIC Water Symposium, co-hosted again with NC State 26 | NURSERY & LANDSCAPE NOTES | WINTER 2017

that it did two things: (1) exempted landscaping from sales tax and (2) it made capital improvements exempt from sales tax. The effect of this was to exempt all installation and maintenance of plants and exempt the addition of capital improvements (hardscapes). Legal opinion of the statute is that the GIC industry is fully exempt from collecting sales tax on its services except when someone does repair or maintenance to an existing capital improvement. However, all NCGIC members should check with their tax advisers.

It is through your membership in NCNLA that the GIC is the effective force in the NC General Assembly and the voice for the green industry in North Carolina. With the combined support of NCNLA and other green industry member associations, the GIC has accomplished, and will continue to accomplish, so much more with a united group than any one association could do on its own.

GIC Legislative Report

It was a good session for NCGIC — lobbyist Dick Carlton did outstanding work. NCGIC will monitor and meet with state legislators and departments on green issues as needed until session reconvenes in early 2017.

Tax on Services. The legislature worked throughout the session to clarify the Tax on Service Bill, adding new services to be taxed and fixing the issue relating to retailers from last session. NCGIC was engaged from day one of the session to the benefit of the landscaping industry. The final language inserted into the budget was favorable to the NCGIC in

Farm Bill. Section 14 of the Farm Bill (SB 770) exempted horticultural uses from the Sedimentation Pollution Control Act. It specifically exempted mulch, ornamental plants and other horticultural products from the act. It defined mulch as “substances composed primarily of plant remains or mixtures of such substances.” Water Permitting. The NC Environmental Management Commission’s (EMC) Water Allocation Committee is once again discussing a statewide water-permitting program. There has been no progress on this issue, but NCGIC will continue to fight this program and educate key stakeholders about the work the agriculture industry has done with municipalities to reduce outside water use, and the voluntary water plans the agriculture industry has implemented since 2010 that protect the rights of landowners to use land water as they see fit.

GIC PAC Support

The GIC PAC (Political Action Committee) desperately needs your help. The PAC supports legislators that are friendly to the green industry. Your personal contribution to the GIC PAC helps us make contributions on behalf of the NCNLA and other member organizations to elect and re-elect legislators that understand and support our issues and concerns. It is critical that we support legislators that recognize and support North Carolina’s green industry. Contributions may be made through the GIC website (www.ncgreenindustrycouncil.com) or by contacting the office at 919.372.1586. Please help the PAC today!

On June 16, 2016 the GIC held the 6th Annual Water Symposium in Raleigh, and this event just keeps getting bigger and better. We had yet another record attendance and reached the point of standing room only. Water purveyors, irrigation and landscape contractors, nurserymen and greenhouse growers, engineers, landscape architects, landscape designers, storm water managers, environmental consultants, NCSU faculty and researchers and others were all on hand to hear about water… the lifeblood of our industry. This year’s event concentrated on the stewardship of the managed urban space with a focus on how the landscape functions as green infrastructure. Debbie Hamrick, Director of Specialty Crops for the North Carolina Farm Bureau Federation, NCGIC advisor and Water Symposium chair highlighted the GIC’s impact and value over the years since its member organizations came together to promote common interests. “The NCGIC has become a leader in the country for horticulture and landscape umbrella organizations,” said Hamrick. “The GIC is also a leader in North Carolina for the wise stewardship of water through smart irrigation technology, advocating innovative water pricing regimes, and proactively reaching out to develop common interests with municipal water utilities, state and local regulators, other nonprofits and most importantly the NC Legislature.” The range of attendees, including water policy makers, illustrates the reach and importance that the GIC Water Symposium has developed.

Dr. Charlie Hall of Texas A&M University set the stage for this timely symposium with his presentation “Future Value of the Landscape Services Sector.” In his opening keynote address Dr. Hall predicted that the next few years will be stable and encouraged the industry to work with cautious optimism, capture opportunities and stress to customers and builders that plants are more than pretty. They generate tourism revenue, improve air quality, reduce energy costs, reduce crime, create jobs and so much more. The key for long-term success is for each green industry business to educate customers about the real value of green industry products and services.

community’s approval and incorporate green infrastructure.

Dr. Bill Hunt, professor, NCSU, Biological and Agricultural Engineering, shared extensive research on green infrastructure and ecosystem services.

Tim Porter, chief arborist, and Marc Recktenwald, water quality and environmental permitting program manager for the City of Charlotte, reviewed how the city is using trees as its major green infrastructure tool to impact economic and environmental initiatives.

Eric Gunderson, owner of Southern Branch Nursery in Chesapeake, VA, spoke to the business of functioning landscapes — conservation-based landscaping practices to benefit watersheds and people.

Dr. Richard Linton, dean of NCSU College of Agriculture and Life Sciences (CALS), provided the audience with an update on the school’s collaborative efforts and strategic plan to maximize North Carolina’s agricultural impact throughout the state, the country and the world.

Michael B. Schlegel, graphic recorder and water resources program manager with the Triangle J Council of Governments, created a visual record of each session at the 2016 Water Symposium and closed out the day with a recap of the important takeaways from each presenter.

Other presenters reviewed projects around North Carolina that are using green infrastructure in new and innovative ways.

David Tuch, president of Equinox Environmental, reviewed several green infrastructure projects in the Asheville area that were built to use natural systems & ecological function to provide resiliency for future extreme weather. Thomas D’Alesandro of Blakefield LLC, and Hunter Freeman of WithersRavenel spoke on the planning and engineering for Chatham Park – a 7500-acre town being built just outside of Pittsboro. Both emphasized the collaboration and forward thinking needed to maintain the current

All of the 2016 GIC Water Symposium speaker presentations can be found online at www.SavingWaterNC.com .

WINTER 2017 | NURSERY & LANDSCAPE NOTES | 27

BEST PRACTICES

GIC Legislative Day and Ice Cream Social at the NC General Assembly On May 9th and for the next two weeks leading up to the GIC Legislative Day and Ice Cream Social at the NC General Assembly on May 24th, 2,000 placemats featuring North Carolina’s green industry were distributed throughout the General Assembly cafeterias.

Every time lawmakers, staff and visitors dined in the General Assembly cafeterias, the GIC placemat was right in front of them reminding them about the green industry… who we are… the vital part the green industry is to the NC economy… and how we contribute to everyone’s quality of life.

Left: Sen. Fletcher Hartsell. Right: Sen. Buck Newton. Below: GIC served ice cream to nearly 1,500 people.

On May 24th the GIC hosted the GIC Legislative Day and Ice Cream Social with a record attendance, serving nearly 1500 people, at the NC General Assembly. Member associations and GIC representatives were out in force promoting our industry and serving up NCSU ice cream to legislators, including Senate President Pro Tempore Phil Berger, Senator Buck Newton, Senator Bob Rucho, Representative John Szoka and other legislators, legislative staff members, state officials and visitors at the General Assembly.

NC Sales Tax on Services — New Rules in Effect Now “This is a fun event that allows us to maintain and build relationships with our legislators and the staff who support them,” said Chris Mitchell, NCGIC President.

Aside from the ice cream, GIC members met with legislators to remind them of the positive impact North Carolina’s green industry has on the state’s economy and environment.

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Important Changes for Landscape/ Nursery Businesses

orth Carolina made its first foray into sales tax on services in 2016. The move had been anticipated for some time as states seek to broaden their revenue base within economies that are increasingly service-based. However, many found the new tax on Repair, Maintenance, and Installation (RMI) services to be very confusing. In an attempt to NOT create new collectors of sales tax, North Carolina only imposed the new tax on transactions incurred within “retail trade.” The result is that the same transaction was taxable for some taxpayers and not others. In an attempt to clear up the confusion, the NC Legislature passed House Bill 1030 last summer, and those changes became effective on January 1, 2017. The concept of “retail trade” has been eliminated. Taxable transactions are defined the same regardless of what type of business they are transacted by.

Delivering from Connecticut to Georgia and everywhere in between!

28 | NURSERY & LANDSCAPE NOTES | WINTER 2017

Most RMI services with regards to real property are now subject to sales tax — unless the transaction meets the definition of a “capital improvement.” The North Carolina Department of Revenue has worked hard to provide guidance to the taxpayer regarding the upcoming changes. The most important are Directives SD-16-3 and SD-16-4, issued on November 15.

In general, landscapers and nurserymen faired pretty well in the new legislation. Landscaping services are now specifically exempted from the tax on RMI services; and they are included in the definition of capital improvements. As a result, landscapers and nurserymen who perform landscaping services are considered “real property contractors.” Real property contractors are the consumers of property and services used to fulfill a real property contract. This means they pay sales tax on the purchase of the property or material used to fulfill the contract (or use tax, if removed from their own inventory). For example: a landscaper pays sales tax on plants purchased for installation. No sales tax is charged to the landscaper’s customer. Also, keep in mind that neither sales nor use tax is required on plants purchased from a “producer.”

By Ken Martin, CPA, Stancil & Company

The North Carolina General Statute Section 105-164.3(16e) defines “landscaping services” as “service to maintain or improve lawns, yards, or ornamental plants and trees. Examples include the installation of trees, shrubs, or flowers; tress trimming, lawn mowing, and the application of seed, mulch, pesticide, or fertilizer to a lawn or yard.” You are advised to consult a professional tax advisor regarding application of these new rules to your business and specific transactions.

WINTER 2017 | NURSERY & LANDSCAPE NOTES | 29

INDUSTRY RESEARCH

Pace to Plant for a Healthier Urban Landscape

Researchers Adam Dale and Elsa Youngsteadt worked for several years to understand how urban heat and impervious surface affect scale insect abundance and red maple condition, growth, and ecosystem services. An IPM decision-making tool called ‘Pace to Plant,’ developed from their research. Pace to Plant will help planners and urban forest managers get the right tree in the right place, reducing future maintenance costs and insecticide applications while increasing tree survival and services.

rees provide ecosystem services that improve human and environmental health in cities. Unfortunately, herbivorous arthropod pests are often more abundant on urban than rural trees, reducing tree growth, survival and benefits.

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Unsuitable conditions can increase tree stress and pest abundance. The first step in urban landscape integrated pest management (IPM) is planting the appropriate tree species for the conditions at specific urban sites. Red maple is the most widely planted street tree in the Eastern US. In southeastern cities they are plagued with damage due to an extraordinary abundance of gloomy scale insects, Melanaspsis tenebricosa. Gloomy scale increases and tree condition decreases when trees have more impervious surfaces around them. Landscape architects, urban planners, arborists, landscapers and other tree care professionals can use impervious surface thresholds to identify planting sites where red maples will thrive.

by Dr. Steven Frank, NCSU, Dr. Adam Dale, University of Florida and Elsa Youngsteadt, NCSU

Arborists rate tree condition as poor, fair, good, or excellent. Trees surrounded by less than 33 percent impervious surface cover (at 25 m) will most likely be in good or excellent condition. Trees surrounded by 33 – 66 percent impervious surface are likely to be in fair condition. Trees surrounded by 67 percent or more tend to be in poor condition. Impervious surface cover can be measured from satellite images with software such as ArcGIS or by the Pace to Plant technique described in this article.

Pace to Plant — Five Simple Steps

Landscape designers and tree care professionals can use impervious surface thresholds to increase the likelihood red maples will survive and thrive after planting. Measuring impervious surface cover with computer softA red maple in poor ware is practical for landscape designers and planners but condition surrounded by may not be used by landscape and tree care professionals. more than 63% impervious The ‘Pace to Plant’ technique is a tool for landscape professionals to quickly and accurately quantify the amount of impervious surface surrounding a tree

surface.

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INDUSTRY RESEARCH

First transect of 25 steps 45 degrees to closest impervious edge.

Second transect 90 degrees from the first transect.

Third transect 90 degrees from the second transect.

Final transect 90 degrees from the third transect to complete 100 steps.

or planting site. Follow these steps to estimate the percentage of impervious surface area covering the ground around a planting site. Then apply the impervious surface threshold to determine if the site is appropriate for red maple. Step 1: Stand at the planting site and identify the closest impervious surface edge. (In the picture at top left it is the curb to the right of the tree.) Take 25 steps at 45 degrees to the nearest impervious edge, counting the steps that land on impervious surface (shown as white footsteps in the pictures). Step 2: Turn 90 degrees from the initial transect. Take 25 more steps counting the steps that fall onto impervious surface. Watch for traffic and obstacles as you walk. If you encounter a building count the rest of the steps in that transect as impervious. Step 3: Take 25 more steps, 90 degrees to the previous transect, counting the steps that fall onto impervious surface. Step 4: Take 25 more steps, 90 degrees to the previous transect, counting the steps that fall onto impervious surface. This is the final transect and will complete an ‘X’ through the planting site and total 100 steps taken.

Four designed landscape scenarios illustrating the ‘Pace-to-Plant’ technique. In each diagram, the tree or planting site is located at the intersection of the transects. Circle diameters are equal to 40 meters and road widths are equal to 9 meters. White dashes represent steps onto impervious surface and black dashes represent steps onto pervious surface. The number of white dashes equals the percent impervious surface estimate for each scenario. References: Dale, AG, Youngsteadt, E and Frank, SD. 2016. Forecasting the effects of heat and pests on urban trees: Impervious surface thresholds and the ‘Pace to Plant’ technique. Arboriculture & Urban Forestry.

Step 5: The total number of steps that fall onto impervious surface equals the percentage of the surrounding ground area that is impervious to water. Use the impervious surface thresholds to determine if the site is appropriate for a red maple:

0-32%

ed-headed flea beetle (RHFB), Systena frontalis, is a native insect that is an increasing problem for nursery growers. RHFB adults chew holes in tender leaves or feed through the upper or lower leaf surface on plants with thick leaves. Its native range runs from Maine to Florida to Texas and Montana. Nurseries along the Atlantic Coast, from Connecticut to Michigan, and throughout the south have reported injury. RHFB feeds on many woody plants in North Carolina nurseries, including:

Virginia sweetspire (Itea virginica)

forsythia (Forsythia x intermedia)

panicle hydrangea (Hydrangea paniculata)

anise-tree (Illiucium spp.)

azalea, (Rhododendron spp.)

crapemyrtle (Lagerstroemia spp.)

dogwoods, (Cornus spp.) Japanese holly (Ilex crenata) weigela (Weigela florida)

33-62%

Consider other options

63-100%

Do not plant red maples

Additional information is available online: ecoipm.org/ pace-to-plant/.

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Red-headed flea beetle adult. Photo by Dr. Matt Bertone, NC State Entomology Extension Associate

Suitable planting site

In the example shown, 66 out of 100 white footsteps landed on impervious surface, meaning that 66% of the area within the circle is impervious. This site is not suitable for a red maple.

A red maple branch heavily infested with gloomy scale, Melanaspsis tenebricosa. Photo: Adam Dale

Red-headed Flea Beetle Biology and Management

About the authors: Dr. Adam Dale is Assistant Professor, Turfgrass and Ornamental Entomology, at the University of Florida. Dr. Steven Frank is Associate Professor and Elsa Youngsteadt is Research Associate, Entomology and Plant Pathology, at NCSU.

loropetalum (Loropetalum sinense)

fragrant osmanthus (Osmanthus fragrans)

rose (Rosa sp.) viburnum (Viburnum spp.)

wax myrtle (Morelia cerifera, formerly Myrica cerifera).

By Danny Lauderdale

Herbaceous plant favorites include:

aster (Aster spp.)

chrysanthemum (Dendranthema spp.)

tickseed (Coreopsis spp.)

goldenrod (Solidago spp.)

Joe-Pye weed (Eutrochium spp., formerly Eupatorium spp.)

salvia (Salvia spp.)

sedum (Sedum spp.)

veronica (Veronica spp.)

zinnia (Zinnia spp.)

RHFB also feeds on many weeds including:

Canadian thistle (Cirsium arvense)

clover (Trifolium spp.)

common burdock (Arctium minus)

jewelweed (Impatiens capensis)

lambsquarter (Chenopodium album)

pigweed (Amaranthus spp.)

smartweed (Polygonum spp.)

Danny Lauderdale is the Area Specialized Agent – Nursery and Greenhouse, Eastern Region for the NC Cooperative Extension

Biology

Adults are shiny black with a red head and are 1/10 to 1/4 of an inch long. The insect overwinters as eggs. First generation larvae hatch and feed on roots of container

Plants in bloom in Delaware and Maryland during larval activity are black locust (Robinia pseudoacacia) and Chinese fringetree (Chionanthus retusus). Plants on the eastern shore of Virginia observed during larval activity include azaleas (Rhododendron spp.), wild cherry (Prunus serotina), and Virginia sweetspire (Itea virginica). Larvae do not significantly injure roots but controlling larvae will reduce adult foliar feeding. Larvae are creamy-white in color with some red streaking and are 2/10 to 4/10 of an inch in length. They look similar to small roots and move quickly inside the root ball when exposed to light. Larvae have a brown head capsule and six legs near the head. The feature that distinguishes RHFB larvae is a small fleshy projection on top of the last section of the abdomen. Between the larval and adult stage is the pupal stage.

Red-headed flea beetle with foliar damage. Photo by Danny Lauderdale

grown plants from 250 to 480 GDD50 (Growing Degree Day with a base temperature of 50 degrees Fahrenheit). Growing Degree Days are calculated for North Carolina starting on January 1 and use the daily average of the maximum and minimum temperature, then subtract the base temperature of 50 degrees Fahrenheit. For each degree above 50, a growing degree-day is accumulated. Growing degree-days take into account weather variables that cause earlier or later activity.

First generation adults emerge from 517 to 1028 GDD50, when southern magnolia (Magnolia grandiflora) and winterberry (Ilex verticillata) are in bloom in Delaware and Maryland. Second generation larvae are active from 1,570 to 1860 GDD50. Second generation adults emerge from 1,878 to 2,318 GDD50. By mid-summer you will find all three stages in containers as generations overlap. Brian Kunkel, Entomologist at the University of Delaware, determined that up to three generations are occurring along the Atlantic Coast in container grown ornamentals.

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Grower concerns

Nursery growers indicate concern about movement of this insect from wooded or crop production areas into nurseries. Literature includes references as far back as 1917, when it was first referred to as the cranberry flea beetle. It has been reported as an occasional pest on beans, beets, blueberries, cabbage, corn, clover, grapes, pears, potatoes, soybeans and sweet potatoes. An article in the Journal of Entomology from 1969 indicated it was not thought to be an abundant pest in these crops. My conversations with corn, soybean, and blueberry specialists indicate a similar lack of concern or knowledge about this insect. Literature does indicate that these crops are able to withstand a significant amount of defoliation without reducing yield (ex. Soybean threshold is 15-30% defoliation depending on growth stage).

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Clockwise from above: Red-headed flea beetle larvae look similar to plant roots. Red-headed flea beetle pupae are usually only found by destructively sampling roots. Red-headed flea beetle larvae are creamy-white, with red streaks, and a fleshy projection on the last section of the abdomen. Photos by Dr. Matt Bertone, NC State Entomology Extension Associate

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The yield of ornamental crops sold in retail is defined by appearance and need for foliage free of holes, so there is little to no threshold for damage in many markets.

Management

Early larval scouting is important to prevent foliar damage. Larvae can be found on the edge of plant root balls with and without previous year leaf damage during the 250 -480 GDD50 range. Scouting should be done when substrate is moist since larvae move inside the root ball when drying occurs. Documenting larval populations can determine need for larval treatments (drenches) or early adult applications just prior to emergence. A second larval scouting can be done from 1,570 to 1860 GDD50 to help determine need for later season management. Adults will be

actively feeding from 517 to 1028 GDD50 and from 1,878 GDD50 through the fall until eggs are laid. Scouting for larvae in purchased liners is also recommended. Research by Brian Kunkel has shown that inoculating containers when larvae are active with the entomopathogenic nematode, Steinernema carpocapsae, has significantly reduced larval and adult populations. Also, entomopathogenic fungi Beauveria bassiana and Metarhizium anisophliae show promise for controlling larvae as does azadiractin (from neem seed), and the insecticides acephate (Orthene), dinotefuran (Safari), bifenthrin (Talstar), cyantraniliprole (Mainspring), imidacloprid (Merit), chlorpyrifos (Dursban) and cyfluthrin + imidacloprid (Discus).

By mid-summer you will find all three stages in containers as generations overlap

Products that have shown promise on adult RHFB in Kunkel’s research, grower observations, and IR-4 research by Kristine Braman (Univeristy of Georgia) and Steve Frank (NC State University) include bifenthrin (Talstar), carbaryl (Sevin), cyfluthrin + imidicloprid (Discus), cyantraniliprole (Mainspring), diazinon (Diazinon), dinotefuran (Safari), imidacloprid (Merit), lambda-cyhalothrin (Scimitar), spinosad (Conserve), spinetoram + sulfoxaflor (Xxpire), tau-fluvalinate (Mavrik), and thiamethoxam (Flagship). Rotating active ingredients is important to prevent resistance and limit outbreaks of others pests like spider mites. Other management options might include control of host weeds, avoidance by not growing favored plants, exclusion, feeding confusion, or feeding deterrents. Trap crops seem unlikely to work due to the diversity of plants damaged. If you have ideas, interest in research, or need help managing this insect contact me at danny_lauderdale@ncsu.edu.

WINTER 2017 | NURSERY & LANDSCAPE NOTES | 35

INDUSTRY RESEARCH

Do Essential Oils from Ornamental Plants Have Biopesticide Potential?

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Essential oils have gained popularity in recent years due to ever-increasing consumer demand for natural products. Used for a variety of purposes, from aromatherapy to non-traditional health treatments to laundry to beauty care, plant-derived essential oils are yet another benefit plants bring to our world.

espite the popularity of essential oils for home and personal care use, there are only a few new plant-based products marketed as “plantbased” pest control for commercial or consumer use. The need to identify and develop natural, plant-based pest control chemicals is at the core of a Horticultural Research Institute (HRI) funded research project. Eugene K. Blythe of the South Mississippi Branch Experiment Station in Poplarville, MS, approached the Horticultural Research Institute in 2012 to request funding for a unique research project that would extract and screen the use of essential oils from ornamental plants for use as potential biopesticides.

Xanthostemon aurantiacus (Myrtaceae)

The development of essential oils for use as “natural” or “plant-based” pest control is an exciting endeavor for commercial horticulture. Plant based pest control can advance the green industry’s commitment to environmental sustainability, answer the call for reduced use of synthetic chemicals, provide new controls for pests that damage horticultural crops and open new markets for ornamental plant production.

By Jennifer Gray, Horticultural Research Institute

Untapped Resource Natural products offer a vast, virtually untapped reservoir of chemical compounds with many potential uses. Natural products with activity against plant pathogenic microorganisms, insect pests and weeds can be produced by plants which are often being grown as ornamentals in various regions of the world. Natural plant products, particularly essential oils, can show effectiveness as deterrents of insect pests of humans and animals.

The Horticultural Research Institute (HRI), founded in 1962, has provided more than $7 million in funds to research projects covering a broad range of production, environmental, and business issues important to the green industry. Nearly $11 million is committed to the endowment by individuals, corporations and associations. For more information about HRI, its grant-funded research, or programming, visit hriresearch.org or contact Jennifer Gray at 614.884.1155. WINTER 2017 | NURSERY & LANDSCAPE NOTES | 37

Essential oils are volatile, aromatic compounds produced by plants, many of which act as defensive chemicals against plant pathogens, insects, and herbivores. Some essential oils exhibit antimicrobial activity against a wide variety of microorganisms. Essential oils can be used effectively for protecting food from contamination by pathogenic bacteria and as natural antimicrobial agents for preservation of fish. Of course, the more pleasantly fragrant essential oils of some crops are used for flavoring and perfumes, with such crops constituting the largest world market for essential oils. One source of essential oil-bearing plants that has not been thoroughly investigated is ornamental plants.

Research Objectives Project objectives include: Angophora Hispida capsule (Myrtaceae)

More than 300 different species and cultivars of ornamental plants have been collected for this research.

Collecting a wide assortment of aromatic oil-producing plants as seeds, cuttings and plants from mostly domestic (and some international) sources and propagate these plants to produce bulk quantities needed for production, harvesting, drying and extraction of essential oils; Screening essential oils for activity against insect pests, weeds (using seeds of common nursery weeds), plant pathogens (using Colletotrichum, a fungal disease of plants as the initial test organism) and mosquitoes (as an insecticide and a repellent).

Efforts toward the first objective have focused on a wide assortment of ornamental plant species, including members of the Amaranthaceae, Amaryllidaceae, Asteraceae, Lamiaceae, Lauraceae, Myrtaceae, Poaceae and Rutaceae plant families. More than 300 different species and cultivars of ornamental plants have been obtained from mail-order seed suppliers, specialty nurseries, wholesale growers, botanical gardens, home gardens, landscape plantings and naturalized plantings.

Amaryllis (Amaryllidaceae)

Gomphrena decumbens (Amaranthaceae) 38 | NURSERY & LANDSCAPE NOTES | WINTER 2017

Plant materials have been purchased from nurseries in states from Florida to Texas to California. Plants, cuttings, and seed have been collected with the kind permission of institutions including the University of California – Riverside, J.C. Raulston Arboretum, San Francisco Arboretum, Sarah P. Duke Gardens and Birmingham Botanical Garden. Plants and cuttings have also been donated by nurseries, including Green Seasons Nursery (Florida), Ten Mile Creek Nursery (Alabama), Nearly Native Nursery (Georgia) and Seaside Gardens (California). Efforts toward the second objective have involved extraction of essential oils from more than 50 different ornamental crops over the past months. These essential oils are being distributed to collaborating researchers at the USDA-ARS and University of Mississippi for screening against insects and pathogens. Extraction of essential oils from additional species is continuing as additional crops are propagated, grown, and harvested; these additional oils will be provided for further screening as they are produced.

Potential Benefits

Results of the screening of essential oils as potential biopesticides can benefit the green industry in two primary ways:

Identification of plant-based compounds or mixtures of compounds with activity against plant disease organisms and insect pests. With further development, these compounds can be developed into new agricultural chemicals. Being plant-based, these compounds can be viewed as ‘natural’ rather than ‘synthetic,’ with natural compounds more readily accepted by the general public;

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Future need for essential-oil-containing ornamental plants can create new markets for propagation nurseries in the mass production of seed-grown species or vegetatively propagated selections.

A wide variety of aromatic-oil producing ornamental plants have been obtained for this research, including members of the Amaranthaceae, Amaryllidaceae, Asteraceae, Lamiaceae, by Lauraceae, Sponsored Myrtaceae, Poaceae and Rutaceae plant families.

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