Christmas tree growers back proposed U.S. import levy

by Keith Corcoran

A Christmas tree worker at a Lunenburg County lot hauls away a balsam fir in this photo taken last year. The U.S. Department of Agriculture is considering a levy on Christmas tree imports, starting as early as this year. Local producers, however, support the move.

COUNTY - Local Christmas tree producers are in support of a move by the United States Department of Agriculture to impose a new tax on Christmas tree imports.

"I think it's a wonderful thing," said Jim Delong of New Germany-based Delong Farms, exporter of 25,000 trees to American markets.

"It's for promotion of real trees. I think it's a great thing. I'm 100 per cent in favour of it."

Up to one million trees from Nova Scotia are exported to the U.S. each year. The new cost would be introduced at the border in 2011 or 2012. The U.S. is this province's biggest market for balsam firs.

"Domestic producers and importers of Christmas trees would pay an assessment of up to 20 cents per tree produced or imported, with the initial assessment rate being 15 cents per tree," said a U.S. agriculture department statement released in November.

"Smaller producers and importers handling less than 500 Christmas trees would be exempt from paying assessments."

But Canadian producers seem to support a 15 cent per bale of tree check-off instead.

The reasoning behind the tax is to help growers of the fresh-cut tree in the marketplace and combat consumer interest in artificial trees. National groups are in support. Canada is expected to have representation on the board that administers the funds.

"We basically have to promote our product and do a better job doing it," Mahone Bay area producer Tom Ernst of T. Ernst Forest Products told CBC News, "and the only way we're going to do it is be able to collect a little more money in order to promote it."

U.S. authorities will receive public comment on the proposal until early next month with agriculture officials making a decision in the spring whether or not to impose the tax.

Provincial growers started a program, a code of practice, that certifies tree lots selling only Nova Scotian trees in hope of helping the industry. The Christmas Tree Council of Nova Scotia said the industry has partnered with Select Nova Scotia to produce promotional banners and signage.

Hebbville-based Lord's Forestry Enterprises, which sells about 20,000 various grades and sizes of balsam firs and 30,000 balsam bough and garland wreaths, referred to 2010 as an average year for exports.

posted on 01/18/11