Vol. XX No. 4
July / August 2026
Serving Soil, Mulch, Compost & Firewood Producers www.SoilandMulchProducerNews.com
NEWS
Attention Readers !
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producers Green Industry Sales Ornamental maintain post-pandemic gains, profitability pressures Stabilize as Rising Costs, but and market uncertainty Housing Slow Growth drive focus on efficiency
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he green industry continues to maintain sales gains achieved during the pandemic era, but growth has slowed as producers navigate rising input costs, trade uncertainty and a challenging housing market, according to an article on hortidaily.com. During his annual Economic Update keynote at Cultivate 2026, Dr. Charlie Hall, chief economist for AmericanHort, said the industry has entered a period of stabilization following several years of rapid expansion. “We’re definitely moving sideways. We’ve plateaued and we’re maintaining that plateau,” Hall said. While sales continue to increase for many greenhouse growers and ornamental producers, the pace of growth has moderated compared with previous years. Hall said the industry is now focused less on expansion and more on managing costs, improving efficiencies and protecting margins .
Sales Remain Above Pre‑Pandemic Levels
D
ata from Hall’s Green Industry MarketMetrics benchmarking program show that 81% of growers reported higher gross sales during the first half of 2026 compared with the same period in 2025. About 20% reported declining sales. Most of the gains were modest, with the largest group of respondents reporting sales increases between 0% and 5%. Despite slower growth, the industry remains significantly ahead of pre-pandemic levels. Hall noted that 98% of growers are reporting sales above 2019 levels, reflecting the lasting impact of
increased gardening activity during the pandemic. “We had anywhere from 18 to 20 million new gardeners during that time period,” Hall said. “Apparently, we’ve captured them and they’re still engaged.” A five-year comparison shows a gradual return to more typical growth patterns. In 2023, approximately 20% of growers reported annual sales increases exceeding 10%. By 2026, that figure had declined to about 12%, indicating a market that continues to expand but at a slower pace.
Unit Sales Continue to Support Demand
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he industry’s growth is not solely the result of higher prices. Survey results show 68% of growers reported increased unit sales during the first half of 2026, while 32% reported lower volumes. Nearly 80% of growers are selling more units than they were in 2019, demonstrating continued consumer engagement with gardening and landscaping products. Hall emphasized that tracking unit sales separately from revenue is important because price increases implemented in recent years can make sales growth appear stronger than underlying demand. Consumer spending trends also support continued interest in ornamental products. Purchases of flowers, seeds and potted plants surged during the pandemic, then stabilized at higher levels rather than returning to pre-pandemic patterns. After declining during the second half of 2025, spending increased again during the first five months of 2026. Continued on page 3
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Green Industry Sales Stabilize as Rising Costs, Housing Slow Growth Continued from page 1
Profitability Remains a Challenge
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hile sales remain positive, profitability trends are more mixed. Approximately 61% of growers reported higher net profits compared with the previous year, while 41% reported lower profits. Compared with 2019, about 79% of growers remain more profitable. Hall suggested some businesses may be experiencing margin pressure because pricing strategies have not fully kept pace with higher production costs. “I might theorize that those are growers that maybe didn’t keep up with their pricing strategy with the added input cost,” he said.
Retail Channels Continue to Show Strength
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arden centers also reported continued sales growth during the first half of 2026. Data from The Garden Center Group showed revenue increasing 5.3% year over year, with transaction counts up 1.7% and average transaction values rising 3.6%.
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Large home improvement retailers also posted gains in lawn and garden categories. While overall comparable sales at major retailers increased only slightly, Hall noted that lawn and garden sales were approximately 7.5% higher than the previous year. Retail promotions funded by large chains rather than suppliers have helped support demand, while direct-to-consumer online sales continue to grow, although they remain a smaller portion of the overall market.
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Consumers Continue Purchasing Despite Economic Concerns
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onsumer confidence remains weak, but Hall said spending behavior is a more important indicator for the green industry. “I don’t care how we feel, I care how we spend our money,” he said. Consumer spending on ornamental products increased 2.4% year over year despite declining sentiment. However, household financial conditions are becoming more uneven. Higherincome consumers continue to spend, while lowerincome households face greater financial pressure. At retail, one emerging trend is consumers shifting toward lower-priced products rather than eliminating purchases altogether.
Housing Market Limits Landscape Growth
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he housing market remains a key factor affecting future growth opportunities for landscape-related businesses. New home construction continues below demand levels, limiting potential installation activity tied to new housing. Hall said mortgage rates remain the primary barrier to stronger housing activity. “As housing goes, we go,” he said. Hall expects housing-related demand to improve once mortgage rates decline below approximately 5.5%. In the meantime, remodeling activity continues to provide support for landscape projects.
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Rising Costs Continue to Pressure Producers
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nput costs remain one of the industry’s largest challenges. Fuel, fertilizer and freight expenses continue to increase, adding pressure throughout the production and distribution chain. Hall forecasts freight costs increasing approximately 6% for the year, although spotmarket rates remain significantly higher in some areas. Since 2019, overall input costs have increased approximately 23%. Continued on page 4
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Soil & Mulch Producer NEWS
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Green Industry Sales Stabilize Continued from page 3 “If you have not adjusted pricing, just know that the input cost structure is not going down,” Hall said. “Our cost structure is going to continue to go up.” For producers of soil amendments, mulch, compost and related products, continued cost increases in transportation, raw materials, labor and equipment are likely to require ongoing pricing adjustments and operational improvements. Hall pointed to automation, mechanization and artificial intelligence as tools businesses can use to improve productivity and offset rising expenses.
Trade Uncertainty Remains a Concern
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hanging trade policies continue to create uncertainty for businesses throughout the green industry supply chain. Hall cited ongoing discussions surrounding Section 301 tariffs and global transportation risks as factors that could influence future costs. Depending on how trade issues develop, input costs in 2027 could increase between 2.5% and more than 5%. Despite economic uncertainty, Hall’s recession model currently places the probability of a U.S. recession at approximately 16%, similar to estimates from the Federal Reserve Bank of New York.
Efficiency Becomes the Priority
W
ith market growth moderating and costs continuing to rise, Hall said businesses should focus on improving operational efficiency, managing working capital and evaluating product mix. “We’ve got to sharpen the pencil,” Hall said. “We have to find those operational efficiencies and manage our cost structure.” For soil, mulch and compost producers, the outlook points toward a continued focus on controlling production expenses, optimizing logistics, strengthening pricing strategies and finding new ways to improve efficiency while serving a market that remains larger than it was before the pandemic.
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Soil & Mulch Producer NEWS
Anaerobic Digestion Offers New Revenue Opportunities for Farms and Organics Management
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naerobic digestion continues to gain traction as livestock producers and organic waste generators look for new ways to improve waste management, generate renewable energy, and diversify revenue streams. While the technology has long been used on large dairy operations, researchers at Penn State say significant opportunities remain to expand its use through manure and food waste codigestion, reports phys.org. Anaerobic digestion is a biological process that breaks down organic materials without oxygen, producing biogas that can be converted into electricity or renewable natural gas (RNG). The process also produces digestate, a nutrient-rich material that can be used as fertilizer or animal bedding. According to the U.S. Department of Agriculture, roughly 400 anaerobic digesters currently operate on large livestock farms in the United States, with approximately 86% installed on dairy farms. California, Wisconsin, and Pennsylvania account for the highest concentration of these systems. However, the U.S. Environmental Protection Agency estimates that more than 8,000 large dairy and swine operations could technically support biogas recovery systems. Christine Costello, associate professor of agricultural and biological engineering at Penn State, believes anaerobic digestion has the potential to become a larger component of both agricultural and organic waste management systems. Although digesters are often viewed primarily as manure management systems, Costello says they offer multiple operational and environmental benefits. Anaerobic digestion can reduce the volume of organic waste by as much as 60% while destroying many pathogens and weed seeds through elevated operating temperatures. Captured methane is converted into usable energy rather than being released into the atmosphere, allowing farms to offset purchased electricity or produce renewable natural gas for sale. The remaining digestate retains valuable nutrients that can replace commercial fertilizers. Solid digestate is also commonly used as livestock bedding on dairy farms. One of the fastest-growing applications for anaerobic digestion is the co-digestion of manure with food waste from food and beverage processors. Continued on page 8
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According to Costello, Pennsylvania dairy producers have found co-digestion to be economically attractive because it generates additional biogas while creating new revenue through tipping fees paid by food waste generators. The added organic material increases renewable energy production beyond the farm’s own requirements, allowing excess electricity or renewable natural gas to be marketed to utilities. At the same time, nutrients contained in the digestate can be recycled back onto cropland, creating a more circular nutrient management system. As more states implement policies to divert food waste from landfills, anaerobic digestion is expected to play an increasingly important role in processing unavoidable organic waste while recovering both energy and nutrients. Penn State researchers, working with Iowa State University through the Grass2Gas project, have also investigated the use of perennial grasses and winter cover crops as supplemental digester feedstocks. The goal is to determine whether the additional value generated through energy production, nutrient recovery, and bedding products can offset the costs of establishing perennial grasses and cover crops that also provide soil conservation and environmental benefits. While the research indicates many systems would still require policy incentives or premium renewable energy pricing to achieve favorable economics, the work demonstrated that integrating grasses and cover crops into anaerobic digestion systems can deliver meaningful ecosystem benefits while modestly increasing biomethane production. Because every livestock operation has unique feedstocks, herd sizes, and energy needs, Penn State researchers developed a spreadsheet-based decision tool to help producers evaluate potential digester projects. The model allows users to compare different feedstocks—including manure, food waste, and grasses—along with varying digester sizes and energy production systems. The program estimates greenhouse gas reductions, renewable energy output, digestate nutrient levels, system costs, and projected payback periods, enabling producers to assess whether anaerobic digestion is economically viable for their operation while ensuring nutrients generated can be effectively utilized on available cropland. Costello believes anaerobic digestion will become increasingly important as both renewable Continued on page 10
Soil & Mulch Producer NEWS
Biomass Power Generation Expected to Ease Slightly Through 2027, EIA Reports
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recent article on bioenergytimes.com reports that biomass-based electricity generation in the United States is expected to decline modestly over the next two years, while renewable energy continues to capture a larger share of the nation’s overall power mix, according to the latest ShortTerm Energy Outlook from the U.S. Energy Information Administration (EIA). The EIA projects renewable energy sources will account for nearly 28% of U.S. electricity generation in 2027, up from an estimated 26% in 2026 and 24% in 2025. However, biomass is expected to represent a slightly smaller portion of renewable electricity output during that period. Biomass is forecast to account for approximately 1.76% of renewable electricity generation in 2026, declining to 1.61% in 2027, compared with 1.97% in 2025. Total electricity generation from biomass is projected at about 20 billion kilowatt-hours (kWh) in 2026, followed by a slight decrease to 19.9 billion kWh in 2027. That compares with approximately 20.5 billion kWh generated from biomass in 2025. The EIA reported that the U.S. electric power sector had approximately 2.6 gigawatts (GW) of waste biomass generating capacity at the end of 2025. That capacity is expected to decline slightly to 2.47 GW in 2026 and remain at that level through 2027. Wood biomass generating capacity in the electric power sector is expected to remain stable at approximately 2.1 GW through 2027. Outside the utility sector, industrial and commercial biomass capacity is also projected to remain relatively consistent. Industrial and commercial facilities are expected to maintain about 5.1 GW of wood biomass capacity and 1.3 GW of waste biomass capacity during 2026 and 2027. Consumption trends vary by biomass category and end-use sector. Waste biomass use by electric power producers is expected to increase slightly, rising from 0.151 quadrillion British thermal units (Btu) in 2025 to 0.154 quadrillion
Btu in 2026 and 0.155 quadrillion Btu in 2027. Wood biomass consumption in the electric power sector is projected to decline, falling from 0.167 quadrillion Btu in 2025 to 0.159 quadrillion Btu in 2026 and 0.156 quadrillion Btu in 2027. The industrial sector is expected to maintain waste biomass consumption at approximately 0.156 quadrillion Btu annually in 2026 and 2027, up slightly from 0.154 quadrillion Btu in 2025. Wood biomass consumption in the sector is forecast to increase from 1.3 quadrillion Btu in 2025 to 1.34 quadrillion Btu in 2026 before declining to 0.423 quadrillion Btu in 2027. Commercial sector waste biomass consumption is expected to remain steady at 0.067 quadrillion Btu through 2027, while commercial wood biomass consumption is projected to increase slightly from 0.072 quadrillion Btu in 2025 to 0.073 quadrillion Btu in 2026 and remain at that level in 2027. Residential wood biomass consumption is expected to decline modestly, decreasing from 0.372 quadrillion Btu in 2025 to 0.365 quadrillion Btu in both 2026 and 2027. Despite a slight decline in biomass-generated electricity, overall biomass consumption across sectors is expected to increase. Total waste biomass consumption is projected to rise from 0.372 quadrillion Btu in 2025 to 0.377 quadrillion Btu in 2026 and 0.378 quadrillion Btu in 2027. Total wood biomass consumption is expected to increase from 1.912 quadrillion Btu in 2025 to 1.937 quadrillion Btu in 2026 and reach 2.017 quadrillion Btu in 2027. For the wood products, mulch, and organics recycling industries, the outlook indicates continued demand for biomass resources, even as the role of biomass in electricity generation remains relatively stable. The availability of clean wood residuals, recovered wood, and other biomass feedstocks will continue to influence markets serving energy producers, manufacturers, and other end users.
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energy markets and organic waste diversion policies continue to expand. She points to Denmark as a model, where centralized biogas facilities convert agricultural and industrial organic wastes into renewable natural gas that supplies a significant share of the country’s gas demand. Similar policies are beginning to emerge in the United States. New York’s Food Donation and Food Scraps Recycling Law requires large food waste generators to donate edible food and recycle remaining organics when recycling facilities are available nearby. The law’s requirements will expand through 2029, potentially increasing the supply of feedstocks for manure and food waste co-digestion projects. As regulations limiting landfill disposal of organic waste continue to expand, researchers expect greater collaboration among agriculture, waste management, and renewable energy sectors to support new anaerobic digestion projects and create additional market opportunities for farms and organics processors.
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ccording to an article on ca.news.yahoo. com, Ramsey County, Minnesota, has temporarily suspended mulch and compost distribution from its yard waste sites after invasive jumping worms were confirmed at one facility and suspected at another. The county halted distribution to help prevent the spread of the invasive pest into residential landscapes and gardens. Jumping worms were confirmed at the Arden Hills yard waste site following a June 28 inspection, with the identification later verified by the Minnesota Department of Natural Resources. Officials also suspect the worms may be present at the county’s White Bear Township site. As a precaution, all county mulch and compost distribution remains on hold while officials assess the extent of the infestation. Ramsey County has also incinerated wood mulch from the Arden Hills site to destroy any worms or cocoons that may have been present. County officials are urging residents who recently collected mulch or compost from county yard waste sites to inspect the material for signs of jumping worms. Unlike common earthworms, jumping worms thrash vigorously and appear to “jump” when disturbed. Native to Asia, jumping worms are considered a significant invasive species because they consume organic matter rapidly, depleting nutrients in the upper soil layer. Their feeding leaves behind loose, granular soil resembling coffee grounds, reducing soil structure and water retention while making it more difficult for plants to establish healthy root systems.
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USDA Provides $80 Million to Expand Timber Processing, Forest Management in Oregon and Nevada
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he U.S. Department of Agriculture (USDA) is investing $80 million to expand timber processing capacity in Oregon and Nevada, supporting sawmill upgrades, increased lumber production, and improved forest management efforts, reports global-agriculture.com. The funding, provided through the USDA’s Timber Production Expansion Guaranteed Loan Program (TPEP) and Business and Industry Guaranteed Loan Program, will support two wood products companies as they expand operations and increase their ability to process timber from regional forests. USDA officials said the investments are part of an effort to increase domestic timber production, strengthen rural economies, and improve forest health by expanding the n2on’s wood processing infrastructure. “By strengthening forest sector businesses, these efforts boost rural prosperity, support long-term economic growth, and create much-needed jobs in rural communities,” said Todd Lindsey, USDA acting under secretary for rural development. The funding also supports efforts to reduce wildfire risks by increasing the capacity of local mills to process timber removed through forest management activities, including hazardous fuel reduction projects. Tahoe Forest Products LLC, based in Nevada, will receive $50 million in TPEP and Business and Industry Guaranteed loans through a partnership with MapleMark Bank. The funding will help the company expand its processing capabilities Continued on page 16
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USDA Provides $80 Million to Expand Timber Processing Continued from page 14 with new equipment, including kilns, a planer mill, and an additional saw line. The improvements will allow the company to move beyond producing primarily rough lumber and increase production of higher-value finished lumber products for retail distributors and large-scale construction markets. The expansion is expected to increase the company’s premium lumber production capacity by 60,000 thousand board feet (MBF). In Oregon, Clatskanie Scion LLC will receive $30 million in loan guarantees through a partnership with First Interstate Bank. The funding will support expansion of Myers Woodline’s operations, including construction of a new sawmill and installation of related processing equipment. The project is expected to create at least 35 jobs while increasing manufacturing capacity for industrial lumber products and strengthening the region’s timber industry. The USDA’s Timber Production Expansion Guaranteed Loan Program was created through a partnership between USDA Rural Development and the U.S. Forest Service to help sawmills and wood processing facilities establish, reopen, expand, or modernize operations. For the mulch, compost, and soil industries, expanded timber processing capacity can also influence regional availability of wood residuals, including bark, chips, and other byproducts used in landscape materials and soil amendments. USDA said investments in local wood processing infrastructure help create markets for forest materials removed during restoration and wildfire mitigation projects, while supporting rural businesses and jobs. Since the program’s launch, USDA has invested $165.2 million through TPEP in wood processing projects across California, Idaho, Kansas, Louisiana, Maine, Nevada, Oklahoma, Oregon, Virginia, and Wisconsin.
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Soil & Mulch Producer NEWS
Mushroom-Based Soil Amendments Show Promise for Brownfield Remediation
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esearchers at the University of Connecticut (UConn) are investigating whether fungi-based soil treatments could offer a new tool for the remediation of contaminated brownfield sites, a development that could have implications for the soil, compost, organics recycling and environmental remediation industries. The project, led by assistant professor Mia Maltz and doctoral student Paulette Goyes of UConn’s Department of Plant Science and Landscape Architecture, focuses on the ability of certain mushroom species to alter the mobility and bioavailability of contaminants in soil. The work is centered on a former ax manufacturing facility in Collinsville, Connecticut, where elevated concentrations of lead remain in the soil decades after the plant ceased operations. Traditional remediation methods often require large volumes of contaminated material to be excavated and transported to specialized disposal facilities. Researchers believe fungal-based treatments could reduce the amount of soil that must be removed while allowing more material to be treated in place. “Fungi have been noted for their capacity to degrade hazardous compounds or mobilize them,” Goyes explained. Researchers are also examining how fungal activity affects the broader microbial community within the soil. In previous studies conducted in California, Maltz and her colleagues found that mushrooms helped reduce concentrations of polycyclic aromatic hydrocarbons (PAHs). The Connecticut project is designed to determine how those results translate to the Northeast, where higher moisture levels and more frequent rainfall could significantly influence fungal growth and contaminant movement. Among the questions being investigated is whether increased precipitation will enhance mycelial growth and improve remediation performance or whether heavy rainfall events could accelerate contaminant migration before fungal communities have time to act. For the study, researchers collected soil samples from the Collinsville site and inoculated them with two mushroom species known for their remediation
potential: the native tiger sawgill (Lentinus tigrinus) and the oyster mushroom (Pleurotus ostreatus). Scientists are also evaluating changes in soil chemistry, including pH, organic matter content and soil structure. These characteristics can strongly influence the movement and availability of heavy metals in the soil profile. Preliminary findings suggest that all treatments increased soil pH, potentially reducing the availability of lead. Researchers also reported that compost-only treatments appeared to increase lead mobility more than treatments involving mushrooms, although additional analysis is underway to determine the environmental significance of those findings. Another important consideration is the fate of the contaminants themselves. If heavy metals accumulate within mushroom tissue, the resulting biomass must be managed as hazardous material rather than entering the food chain. Researchers are exploring whether anaerobic digestion could provide a way to further reduce the volume of contaminated biomass requiring disposal. The study also highlights a potential circular-economy opportunity for the composting and organics recycling sectors. Instead of cultivating new fungal material, the team obtained spent mushroom mycelium from a food production operation and incorporated it into the remediation process. According to Maltz, using one industry’s byproducts to address environmental contamination aligns closely with broader goals surrounding beneficial reuse, waste reduction and soil restoration. As interest in regenerative land management and beneficial reuse continues to grow, fungal remediation technologies may eventually provide compost producers, soil blenders and environmental service providers with an additional strategy for restoring contaminated properties while reducing the cost and environmental impact of conventional excavation and disposal practices. The UConn team plans to expand the research through additional collaborations with municipal organizations and hopes to initiate larger-scale field trials in the future.
hogzilla@cwmill.com 18 Soil & Mulch Producer News July /August 2026
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Cleveland, OH Permit #1737
JUL /AUG 2026
Inside This Issue Green Industry Sales Stabilize as Rising Costs, Housing Slow Growth
PAGE 1
Anaerobic Digestion Offers New Revenue Opportunities for Farms and Organics Management
PAGE 6
Biomass Power Generation Expected to Ease Slightly Through 2027, EIA Reports
PAGE 9
Minnesota County Suspends Mulch and Compost Distribution Following Jumping Worm Discovery
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USDA Provides $80 Million to Expand Timber Processing, Forest Management in Oregon and Nevada
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Mushroom-Based Soil Amendments Show Promise for Brownfield Remediation
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www.mulchcolorjet.com brian@glennoncompany.com