Christmas trees are running low in Minnesota

In the near 30-year history of running his family's Christmas tree farm in Isanti, Phil Hartley never shut down sales a week and a half into December.

Until this year.

Hartley, whose family owns and operates Pinestead Tree Farms, ended sales for people wanting to cut their own trees last Sunday. A few pre-cut trees sitting in his farm's lot remained until the business officially shut down for the season this weekend.

"We don't have enough to carry us over into this next weekend," Hartley said. "We have to hold back some so we have some for next year, or we'll wind up closing even earlier."

Though Hartley is "very happy" with sales this season, he's disappointed he won't have enough trees for repeat customers who like to wait until the week before Christmas.

Like Hartley, tree farmers and retailers across Minnesota and the nation are seeing increased demand from families wanting fresh trees while also feeling the squeeze of inflation and supply-chain issues.

Expenses have risen dramatically for Minnesota tree growers since the pandemic began, which includes higher costs for insurance, taxes and shipping equipment, said Jan Donelson, owner of Jan's Christmas Trees in Clear Lake and executive director of the Minnesota Christmas Tree Association, which has about 100 members.

At Pinestead, the Hartleys had to adjust prices this year to offset higher costs for maintaining the farm.

"Since last spring, everything we've touched has gone up in price," he said. "Fertilizer, chemicals and seasonal workers."

Some farmers have raised wages to compete with retailers and fast food companies for seasonal workers, adding more expenses, Donelson said.

On top of rising costs, tree suppliers had to work around issues caused by Mother Nature, Donelson said. Statewide drought conditions earlier this year, frost in May and an unusually hot month of June led to some trees not making it to market, she said.

Meanwhile, consumers are seeking a perfect tree to help them cope with living during a pandemic.

Pinestead was already dealing with tight inventory for 2021, after high demand for their trees in 2020 put a strain on this year's crop, Hartley said.

Just like this year, 2020 sales grew at a faster pace last year, leading to inventories being depleted because shoppers assumed there would be a Christmas tree shortage, according to the National Christmas Tree Association.

Despite certain challenges, though, 2021 is shaping up to be a great year for Minnesota's Christmas tree farmers, said John Krueger, whose family owns and operates Krueger's Christmas Trees in Lake Elmo.

In 2020 and 2021, most tree farmers in Minnesota have had near record years in sales, thanks to customers who are "looking for an authentic experience and are connected to what they're buying," said Krueger, president of the Minnesota Christmas Tree Association.

"It's a piggyback off last year with people wanting to come out and have that outdoor family experience and not just buying from a shelf or parking lot," he said.

Gino Pitera, co-owner and partner at Gertens, a 100-acre retail garden center and nursery in Inver Grove Heights, said sales this season are better than 2019 or 2020. The center has seen more online sales for both artificial and fresh trees, which Pitera attributes to people having to look harder to find trees.

Pitera has heard stories of other retailers that didn't receive the supply of trees they expected this year, or were left with trees of lesser quality. Longstanding relationships with growers allowed Gertens to fully stock its live tree inventory, he said.

Though sales of artificial trees at Gertens are steady as well, freight costs for importing them are up as much as 20% this year, forcing Gertens to raise prices to pass some of that cost to customers.

"It was too much to absorb," Pitera said.

Live tree costs this year are nearly double what they were in 2015, with artificial tree retailers reporting price increases of up to 30%, according to the American Christmas Tree Association.

Trees have been "selling like crazy," Johnson said, and his staff is constantly working to keep wreaths and other Christmas greenery in stock.

"We've had a lot of smiling faces come through," he said.

While B&J has increased prices on pre-cut trees by up to $5, and cut-your-own trees by as much as $10, Johnson has heard of other sellers' prices going up as much as 30%.

"That's not good for our market long term."