Inflation and labor costs contribute to the increase in Christmas tree prices

If you want to celebrate Christmas with the sweet smell of pine and citrus, you may need to spend a little more money.

According to the American Christmas Tree Association, the average price of Christmas trees has increased 10% since last year, largely due to inflation and drought.

Christmas tree suppliers and growers had to pay more for raw materials, labor and distribution, which resulted in them charging the public more if they wanted to survive.

John’s Christmas Trees lot at Huntington Plaza on Algonquin Road in Hoffman Estates has been in business at this location for 39 years.

“I heard there is a national tree shortage,” said Troy Veraghen, whose family owns the farm where the trees are grown. “In my opinion, a major contributing factor is that there are fewer tree farmers. When I go to the Christmas tree conventions, I am the youngest face there every year. Fraser fir is in short supply because it takes the longest to grow.”

Veraghen set up the tree lot the Monday before Thanksgiving and opened it on Black Friday. The property will remain open until supplies are exhausted, usually the weekend before Christmas, he said.

Veraghen’s grandfather founded the company more than 60 years ago and is based in Powers, a city in Michigan’s Upper Peninsula, 100 miles north of Green Bay.

“All of our trees grow in northeastern Wisconsin and the Upper Peninsula of Michigan, so obviously our trees are unaffected by hurricanes,” Veraghen said. “Given inflation and everything that has happened over the last few years, we have adjusted, but now everything seems to have stabilized quite a bit and we have similar prices to last year.”

Andrew Viskup, a technician at McGrath Volvo in Barrington, said he and his wife purchase their tree every year from John’s Christmas Trees.

On Tuesday, he brought two of his colleagues – service manager Dariusz Wieczorkiewicz and salesman Luke Wozniak – to the parking lot to buy a tree for display at the car dealership.

“I think it’s more affordable, especially with trees like this, they’re three or four weeks into growth,” Wieczorkiewicz said. “But these are very nice and very affordable.”

According to manager Mike Blank, Blanks Ever-Green Acres in Creve Coeur, Illinois, has always considered itself one of the more affordable places to purchase Christmas trees.

This year, the tree population in southwestern Illinois had to move away from its usual practice of selling every tree for the same price, regardless of size. They now charge between $20 and $40 more for trees taller than 10 feet.

“A 10-foot tree costs between $80 and $100 here,” Blank said.

Richardson Farm in Spring Grove offers home-grown and home-cut trees, as well as pre-cut trees delivered from outside the farm.
Courtesy of Richardson Farm

Richardson Farm in Spring Grove offers home-grown and home-cut trees, as well as pre-cut trees delivered from outside the farm. This year, he increased the price of each of his home-grown trees by $5 and pre-cut trees by $10 to $15 each.

Owner George Richardson attributes this to increased trucking costs, minimum wages and liability insurance.

All trees cut on the farm are $95 plus tax for all heights and sizes. The trees available in the field are up to 9 feet tall. Select individual trees are available for as low as $49. Pre-cut trees up to 12 feet tall cost between $95 and $300, not including taxes.

“The cost of everything has gone up,” Richardson said. “Every $1 hourly wage increase means $50,000 to us. Liability insurance…they have almost doubled their prices in the last three years. Pretty much everything comes down to labor costs.”

Richardson has repeatedly seen his company’s expenses increase each year. Although the prices may seem unjustified, he insists they reflect global inflation and the labor his farm requires. Richardson Farm tries to offer customers something special, like free hot chocolate, to sweeten the deal and make the tree prize more palatable.

“I think this price is very fair for the experience we provide,” Richardson said.

Most tree suppliers feel the need to increase prices, but some have decided to cover the costs and offer families a discount on their holiday treat.

Ben’s Christmas Tree Farm has been in operation at Harvard since 1982. The farm claims to be 100% herbicide and pesticide free, but this means that the physical labor required to grow the trees is multiplied. The farm has had to increase tree prices in past years, but decided not to do so this season, said manager Chris Czarnowski.

“Just like everyone else, our labor costs have gone up,” Czarnowski said. “But this year we didn’t increase our prices.”

• Daily Herald staff writer Joe Lewnard contributed to this report.

Rick Jourdain (right) gets help selecting a Fraser fir from Kenny Conder of Anderson’s Christmas Trees while shopping at the Christmas tree lot on Black Friday at Wesleyan Park Plaza in Owensboro, Kentucky.
Associated Press

Bailey Peters looks for a Christmas tree with his wife, Katherine, and daughter, Jane, at Carnes Farms in Pontotoc, Mississippi, on November 23.
Associated Press