Yesterday and today, various media sites have been chattering about the “Christmas Tree Tax”. A few people have e-mailed me with questions about it, so here’s the 411 from the perspective of a Christmas tree grower.
The “Christmas Tree Tax” is not an actual tax, but a commodity “checkoff” program stipulated under the Commodity Promotion, Research, and Information Act of 1996 and overseen by the U.S. Department of Agriculture (USDA). The commodity checkoff program collects funds from producers of a particular agricultural commodity and uses these funds to promote and do research on the commodity. Organizations must promote their commodity in a generic way, without reference to a particular producer. Commodity checkoff programs include: “Got Milk?”, “Beef, It’s what’s for dinner”, “Pork: The Other White Meat”, and “The Incredible, Edible Egg”.
There is controversy surrounding commodity checkoff programs and the way they influence the American diet and how food products are produced (for example), but they are also an attempt to help farmers come together and market their goods.
In the last few years, Christmas tree farmers have faced tremendous competition from the artificial tree industry. Since there are a considerably smaller number of artificial tree manufacturers, it has been easier for the artificial tree industry to unite and promote their product. The real Christmas tree industry, on the other hand, is made up of hundreds of small farmers and it has been difficult for these farmers to come together to create an adequately-funded, consistent national marketing effort.
Christmas tree growers believe that the artificial tree industry has been able to spread false information, leading the American public to believe that artificial trees are safer, greener, and better for the American economy. Since 2009, growers have been working to find a way to spread their own message, that they believe it is the exact opposite: real trees are safer, greener and better for the American economy (see my article discussing real vs. artifical trees for more information). They believe the commodity checkoff program will give them an opportunity to do just that.
More than 70% of the growers that submitted comments to the USDA and 90% of the state and multi-state associations that represent the Christmas tree industry were in favor of the program. The program will be funded by growers (who sell 500+ trees) and administered by an independent 12-member board of small business owners who grow and sell farm-grown Christmas trees. The program is not expected to have any impact on the final price consumers pay for their Christmas tree.
Betty Malone, a Christmas tree farmer in Oregon, wrote a thoughtful post on the National Christmas Tree Association’s blog, Tree Talk, about the Christmas tree checkoff program that is well worth reading as well.
For more information, see the following:
For more information about the USDA Commodity Checkoff Program, you can visit the USDA Agricultural Marketing Service website.