How Tree Fruit Nurseries Are Grappling With Change

In reviewing the responses to this year’s American Fruit Grower and Western Fruit Grower Nursery Survey, it was clear the results definitely reflect the locations of the respective nurseries that serve the industry so well.

It makes perfect sense. In California, growers farm crops such as almonds that can’t be grown in most other parts of the country. And in Washington, only that state’s growers can plant an apple variety, ‘Cosmic Crisp’, which has had a tremendous impact on the state’s nurseries.

We asked the nurseries about how the industry has changed, what issues are top of mind for growers, the importance of rootstock, and what challenges lie in the future for nurseries.

CALIFORNIA

For growers in the Golden State, potted, or containerized trees have become commonplace. With potted trees and California’s warm climate, growers can plant when they want — a big advantage.

“Containerized nut trees are now the industry norm,” says John Duarte of Duarte Nursery, Hughson, CA, noting that the nursery was the first to come out with potted trees back in the 1990s. “It was new then. Potted trees are the norm now.”

However, Tom Burchell of Burchell Nursery, Oakdale, CA, says the majority of his customers still prefer traditional bare-root trees, though it is changing.

“There’s a lot more acceptance of potted trees because growers don’t have to wait until January to plant,” he says, “and we are producing a lot more.”

But while potted trees provide a lot more flexibility to growers, Burchell cautions that there are trade-offs.

“With potted trees, growers need to accept smaller trees,” he says. “With smaller trees, growers need to do a little more work. Perhaps there is a little more suckering to take care of on those trees. But with a little more work, they’ve been able to be quite successful with them.”

ISSUES

Water and labor always come up on the West Coast, and this year’s survey results reflect that.

“Water supply and staffing — less individuals willing to work in the fields, less experience, and the recent wage and hour law changes,” Denise Moore, co-owner of Fowler Nurseries, Newcastle, CA, says.

High input costs and low commodity prices are problems for his customers, Burchell says. “For nurseries, because of our increasing costs, the price of trees has to go up, which is a shock for smaller growers who don’t plant every year. ‘Oh my goodness,’ they will say, ‘they’re 10 bucks now, not five?’”

Besides labor, low prices and a large global wine supply top the list for grape growers, Duarte says. For nuts, it’s finding markets for larger crops, and “new farming systems with higher density orchards, minimal pruning, and dust-free harvesting,” as well as “water, water, and water.”

ROOTSTOCKS

Rootstock decisions can be as impor­tant as varietal decisions, according to the nurseries.

“Growers need to make sure the rootstocks they are planting are well-tested in their specific soil or environment,” Moore says.

Growers have more choices to address soil issues, including soil-borne pests such as nematodes, Burchell says.

“Growers are looking to plant on marginal ground,” he says, “and also use rootstocks to address drought issues.”

As for grapes, Duarte says the big issue is that Freedom rootstock is failing due to virus complexes. “This is very significant for the Central Valley. Unfortunately, after 30 years of industry funding for new grape rootstocks, there are no significant new grape rootstocks,” he says.

FUTURE CHALLENGES

Labor isn’t just an issue for growers, as nurseries, too, are struggling.

“Staffing is our greatest challenge — wage and hour laws have changed how we get the job done,” Moore says. “We are looking at ways to modify our operation and tasks to reduce the specialized labor that is needed but unable to be found, even with a significant increase in all hourly wage levels.”

The need for new varieties is also a challenge, Burchell says. “(We need) new varieties to address grower issues. Our own breeding program produced the ‘Shasta’ almond and lots more, such as ‘Carmel’, ‘Monterey’, ‘Fritz’, and ‘Wood Colony’. Besides developing new varieties of almonds, we are looking at new rootstocks in stone fruit.”

Taking a more holistic view of today’s climate, Duarte says, “Nurseries are a derivative of agriculture. When agriculture is expanding, we see extraordinary demand. When agriculture hits a wall, nursery sales drop dramatically. Current fiscal and monetary policies may play out with high economic growth in the short run. In the long run, it is hard to see how we avoid high inflation — that will hurt long-term ag development.”

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PACIFIC NORTHWEST

When one variety absolutely dominates planting, such as the ‘Cosmic Crisp’ apple has in the state of Washington in recent years, it obviously becomes a big point of discussion. The nurseries’ comments in the survey reflected that, though their sentiments differed.

“The demand for ‘Cosmic Crisp’ has been staggering,” Tye Fleming of Helios Nursery, McMinnville, OR, says. “The change has been accepting, as a nursery, that regardless of how many trees are already in the ground, if returns look good today, demand will remain strong. It can be difficult to convince yourself that you want to risk 50% of your production on one variety four years in a row.”

Peter Van Well of Van Well Nursery, East Wenatchee, WA, agrees. “The jury is still out. I think many club varieties struggled this year. The trees still seem to be in high demand, but there could be a hiccup if the marketing of the fruit can’t keep up with the ever-increasing production. If the price on ‘Cosmic Crisp’ weakens, it will ripple back to tree sales.”

Kevin Brandt of Brandt’s Fruit Trees, Yakima, WA, says industry emphasis has changed. “Much more focus has been placed on the propagation of ‘Cosmic Crisp’. From the nursery end of things, the growing of these trees really hasn’t changed the landscape as much as we are now putting a lot more eggs in one basket.”

Todd Cameron of Cameron Nursery, Eltopia, WA, says ‘Cosmic Crisp’ reflects the better eating quality of apples available today. “Obviously ‘Cosmic Crisp’ (WA38) increased demand for trees, and it continues to,” Todd Cameron of Cameron Nursery, Eltopia, WA, says. We are hoping for a landscape of increasing apple demand given the improved eating experience provided by WA38, ‘Honeycrisp’, and the many club apples.”

Todd Snyder of C&O Nursery, Wenatchee, WA, says following all the ‘Cosmic Crisp’ planting, growers are understandably taking a breath.

“As we have stated in the past, many growers put their hat in the ring in unprecedented numbers for a new variety. This is not a critique but a simple observation. To that end, with the influx of large production apple numbers growing exponentially, these growers are tending to step back and see what alterations/changes they may need to make as their ‘Cosmic Crisp’ comes into full bearing.”

Brent Smith of TRECO, Woodburn, OR, agrees. “’Cosmic Crisp’ was a breath of fresh air for the apple industry,” Smith says. “There has been a rush to plant this apple, which has been good for the nurseries. The flip side of that coin is that all the money spent on promotion and planting has created somewhat of a lull in the market. Growers are waiting for the new orchards to generate enough return on their investment before starting a new venture.”

ISSUES

It’s not hard to discern the most pressing topic for Pacific Northwest (PNW) nurseries these days. “The top issue on customers’ minds is “What do I plant?” With prices low, everyone is searching,” Fleming says.

Van Well agrees, saying “It is the toughest question in farming. Labor is most likely next — how to find enough labor without blowing the budget.”

Customers are concerned about costs, in general, Brandt says. “The question of ‘What should I be planting next?’ is also a main concern in today’s industry. This not only pertains to ‘Will this new variety/rootstock combination work at my orchard site?’ but ‘Who will champion the marketing of the new selections?’”

But the ultimate question is what to plant next, Smith says. “What will be the next ‘Cosmic Crisp’ or ‘EverCrisp’?”

ROOTSTOCKS

When it comes to rootstocks, growers must not overlook how the varieties they intend to plant can interact with certain rootstocks.

“Growers need to be looking at taking the next step in apple rootstock selection, and that is the interaction of the rootstock with their particular soil type and replant issues,” Fleming says. “They need to be planting some of all the different selections to see what truly performs best for them.”

Growers shouldn’t just opt for the most popular rootstock, Van Well advises. “With the popularity of Geneva 41, growers really need to take care because of the brittle nature of the graft union and brittleness of the roots,” he says. “We are hoping to license Malling 116 this year, which would provide the benefits of EMLA.106 without the crown rot problems. Van Well is very high on this rootstock.”

It’s important to take location into account, Smith says. “There are many rootstocks that cater to many different conditions, regions, trellis systems, disease resistance, and scion varieties,” Smith says.

Brandt agrees. “Growers need to consider their sites before making final decisions that they may regret at a later time. Be sure that the vigor of the rootstock is a good match for the cultivar that is desired. Also, make sure that the cold hardiness of a rootstock is conducive to its growing region.”

Growers should understand the nurseries will never stop learning about new rootstocks, Cameron says. “G.41 and G.11 struggle with light soils, desiccation, irrigation mistakes, etc. If you are planting these, give them extra pruning at planting and good care. The bigger Genevas like G.935 and G.890 seem to make good replacement trees.”

It’s important for growers to keep in mind that the best apple rootstocks for many planting situations are not always the easiest to produce into a finished tree as a nursery, Snyder says. “We have been in the Geneva game as long as anyone and have a very good handle on how difficult this tree production on Geneva situation is. Based on our up-to-date experience and determination, we are high on G.41 and G.11 for the apple orchardist.”

FUTURE CHALLENGES

Labor and regulation costs, as well as access to clean plant material, will be top of mind for PNW nurseries going for­ward.

“Over 55% of total costs are labor. Increases in efficiency have not been able to keep up with the rising costs. If we cannot control labor, growers will not be able to afford the trees. We are actively seeking increases in efficiency at every level. With the recent issues with G.935 and Western X as an example, maintaining a consistent supply of clean material is paramount today and will remain so in the future,” Fleming says.

Government regulations, some unique to Washington, are on Van Well’s radar.

“Washington state is looking to pass a capital gains tax on sale of assets, which is supposed to protect family farms, but you can’t really trust that. We are also going to see high gas taxes for infrastructure and a proposed cap-and-trade scheme. We are also finding it more difficult to find suitable land.”

But labor remains the top issue for some nurseries, such as TRECO. “Finding enough labor to complete the process year in and year out. We have a small window of when the rootstock is harvested to the time the customer needs it in their hands. Running at two-thirds capacity during this window can be rough,” Smith says.

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EASTERN STATES

Though Eastern apple growers weren’t as quick to jump on the club bandwagon as their Western counterparts, they have really been making up for it the past decade, according to the results of this year’s survey. The continued introduction of new varieties from breeding programs around the world has created new challenges in decision-making, Phillip Baugher of Adams County Nursery in Aspers, PA, says.

“We all wish we had the ability to predict what varieties will be important and which ones will not make the cut,” he says. “Growers make such a significant investment in planting new acreage and making the right call on the variety is so critical. Unfortunately, planting a variety that falters in the marketplace has become the reality many are facing. As a result, we are seeing many young blocks being topworked.”

Jacob Wafler of Wafler Nursery in Wolcott, NY, agrees. “We have seen the nursery industry change quite a bit in the past 10 years,” he says. “With clubs and newer varieties coming on and with the release of newer rootstock, it seemed like we couldn’t ever grow enough trees to meet demand. Now things are slowing up a little for the commercial orchards, and they are more unsure of what to bud. However, we do grow a lot of trees for the smaller- and medium-sized, direct-market farms, and they have seen one of their best years and are looking to plant new varieties and renovate older orchards.”

As for rootstock issues, Baugher says that generally speaking, rootstock choice can be as important as varietal selection.

“The performance of a new planting is dependent upon both the scion selection and the rootstock choice,” he says. “Performance of a specific rootstock may not be consistent across all growing regions and varieties. For example, Geneva 41 has become the rootstock of choice for growers in the Pacific Northwest but has not performed as well in the Mid-Atlantic region.”

For such reasons, growers should be very cautious of jumping too fast onto a new rootstock, Wafler says. “I feel it is important to try new rootstocks so you can make informed decisions if a rootstock will be a good fit for their farm for the future. But I wouldn’t bet the whole farm on a new rootstock because that is what was recommended,” he says. “Stick with what works and try some out for the future. Every rootstock has a problem — it takes time to learn how to overcome that problem and [to see] if there is a benefit.”

As for the future, Baugher says they will always be focused on the variety picture on all fruits.

“We are excited to be able to offer more disease-resistant varieties as a result of breeding programs’ continued work in this area,” he says. “We are also very interested in some of the new rootstocks for stone fruit.”

Wafler says the future looks very much like the present in that they will continue to try and hold down prices in light of rising input and labor costs.

“We have been using moving platforms to make the work easier on our workers and also make it very efficient for us,” he says. “We are also looking at how to provide trees quicker, so the grower doesn’t have to plan as far out and for a cheaper price.

We feel the Ellepot system will help with this.”