By Tobey Wagner, President, Sod Solutions, Inc.

 

Changes and challenges are occurring in the turfgrass industry at an unprecedented rate. Water issues are dramatically affecting turf production and consumer perception. New equipment and processes are changing the way turf businesses operate. Information technology is changing sales avenues and buying patterns. Government regulations on labor and chemical restrictions have become hot political issues, creating uncertain futures. The turf business for 2007 and beyond is changing.

 

Are you ready? Or are you stuck in the past? Does your business plan take into account how these issues will determine your strategy and business model? Consider these key current and developing trends as you plan for 2007 and beyond:

 

Water! Water! Water! We are all talking about it. The government and regulatory agencies are actively pursuing ways to conserve water. Laws and regulations that monitor and control water use are now standard in many states. Developers in many areas now must have a “water plan” as part of development design. Specific drought tolerant grasses are being specified in developments in areas like Florida, where grasses like EMPIRE^TM Zoysia have become favored by water management agencies and developers. EMPIRE was highlighted in a recent front page Tampa Tribune article describing the area’s water crisis. A local politician developed a long-term model, with EMPIRE projected to save significant amounts of water. Other drought tolerant grasses are being specified elsewhere, with some regions seeing dramatic shifts in buying patterns because of the impact of water use.

 

Other water developments: some homeowners are restricted from watering at certain times – or at all - during extreme circumstances. These standard practices were once “future concerns,” but are now a reality, and will soon be part of everyday lives. TPI published the Water Rights Handbook several years ago: it is an excellent guidebook and reference for the turf industry. More cooperative work is needed to make sure the turf industry continues to have a voice.

 

New equipment and associated technologies are improving turf quality and helping growers become more efficient. Mower designs and technology from New Zealand, Australia, and now the United States are helping growers reduce mower maintenance costs. Better harvester technology is reducing waste and labor costs, while improving harvest quality. Growers that were considering “auto stacking machine” technology a few years ago now have multiple auto style machines. Emerging moisture sensor technology and irrigation systems use water more efficiently, thus conserving water resources. Increases in land costs have forced growers to use sophisticated computer software to plan better planting patterns; and lasers are now regularly used to grade fields.

 

Labor is an issue that threatens the heart of our industry; and it is a political issue fraught with uncertainty. These issues and pending laws must be monitored closely, as outcomes can be sudden and dramatic. TPI and all associated industries need to watch closely, and be proactive with politicians, to ensure that turf and other agriculture interests are effectively articulated and protected.

 

Chemicals and fertilizers that have been industry standards are being prohibited, sometimes suddenly and with no replacements. Government regulators decide that a certain chemical, fertilizer or rate is harmful and quickly remove it from use, not realizing effects on the horticulture industry. The “playing field” of current chemical and fertilizer regimens will change appreciably. Changes will dramatically influence farming practices.

 

The turf industry has a bright future. Population growth and construction in most U.S. areas are expected to continue at strong rates in 2007. The excessive building boom of the past several years will not continue: a slowdown (“correction”) has already occurred. No longer can a home or other property be bought and “flipped” at a profit in a few months, as was recently the case. Developers speculated well ahead of markets in several regions of the country, and a temporary “check and balance” is occurring in most areas.

 

Brisk population growth and construction will spur building and home sales. Sports turf, including golf course construction, remains strong in most markets, with renovation rates expected to be brisk through 2008. Despite recent “corrections”, several markets continue to see above average expansion. The good news is that, with land costs up and turf sales moderating, reports show fewer new farms starting up. The result should be less competition for turf growers, which could result in a prolonged positive market as inventories will be in balance with demand.

 

Pricing is up in most US markets. This situation should hold or continue if growers think logically and maintain a consistent pricing strategy, even during normally slow seasons. Growers and the industry have worked hard, and have earned recent price increases. Reducing price unnecessarily diminishes profits and DOES NOT create more sales for a given market. You should know, and regularly meet with, competitors on local issues and ways you can collaborate on turf marketing. Educate “fringe” growers on the cost of doing business to help them price for profit. Don’t hesitate to work with competitors: it is a fact that area growers that know one other and meet regularly have better prices. Be the leader in your market, not a “price matcher”. Understand market seasonality, and be reluctant to cut prices.

 

Turf growers must continue to be progressive and adaptable to the changing business environment. The turf industry has proven it is up to the task; and its spirit and determination are strong and innovative. The future is bright for a united and progressive industry.