Christmas tree growers challenged by drought, inflation and supply issues
RAMSEY, Minn. -- It's only Nov. 1, but for many, it's time to push the pumpkins aside. If you plan on getting a Christmas tree, drought and supply conditions could make things more complicated this year, similar to last.
It's the busiest time of year for Mark Hansen at Hansen Tree Farm in Ramsey, Minnesota. The fifth-generation family farm has thousands of trees ready for families to cut, a popular activity since the start of the pandemic.
"We had at least a 50% increase in people coming to cut their own tree and spending the afternoon out here," Hansen said.
But keeping up with demand isn't easy when the supply was planted 8-10 years ago.
"There's always been some trees but people are finding towards the end of the season not as big of a tree or not as nice of a tree," Hansen said.
Drought is also causing some concern. Hansen said they lost about 15% of their newly planted trees over the past two years because of the drought. If they didn't have an irrigation system, they said it would have been worse.
"This drought is really going to impact not the supply next year but the supply in 8 years in what will be available," Hansen said.
"There will be a Christmas tree for everyone who wants one," said Tim O'Connor, Executive Director of the National Christmas Tree Association.
O'Connor said consumers should expect higher prices this year, just as they did last year.
"Anybody who is in any industry has experienced higher cost. Farmers in particular," O'Connor said.
In August, the Real Christmas Tree Board surveyed 55 wholesale growers accounting for about two-thirds of the nation's supply. It found that 71% expect to raise the wholesale prices they charge retailers by 5% to 15% compared to last year, and some others reported increases as high as 20%.
Hansen Tree Farm recommends getting a tree early and then making sure it has a fresh cut and plenty of water to make it last through the holiday.
