NCTA or CTPB?

Why the Christmas tree industry needs both organizations.

By Tim O’Connor, Executive Director

For example, a few of the issues NCTA advances and defends as industry priorities are:

• Maintaining IRS Designation that Christmas tree production is classified as lumber and therefore taxed at capital gains rates.

• Ensuring Christmas tree production retains its agricultural status and associated overtime wage payment exemptions.

• Positively influencing fire codes to protect opportunities for real trees.

• Providing the White House Christmas tree each year.

CTPB can’t work on these vital industry advocacy matters because it is a checkoff program. All checkoff programs are prohibited from funding public policy advocacy initiatives because their revenue comes from a government mandated assessment.  NCTA, on the other hand, is funded by members’ dues payments, sponsorships, state TIP fund investments and advertising from its publications. NCTA can undertake public policy advocacy work because it’s funding is derived through these voluntary contributions from the industry.

CTPB’s mission is to conduct promotion, education and research programs to increase demand for real Christmas trees. The industry has seen significant erosion in demand for real Christmas trees as many consumers have found artificial trees to be “easier” to use. Reversing this demand loss will require a sustained promotion and education program, which is now possible with the resources available through the checkoff managed by CTPB.

To build long-term sustained demand it is highly important that we connect real Christmas trees with young Millennial families as they are beginning to form their own family traditions. The Millennial generation is the largest in US history, even larger than the Baby Boomer generation; they are about one-fourth of the US population and have $2.5 trillion in purchasing power. They are the best-educated cohort of young adults in US history and are the first generation of digital natives utilizing technology and social media to make most of their purchasing decisions. CTPB’s marketing campaign prioritizes Millennial families as its core target because of the long-term importance of not losing these consumers for the future.

Having worked for both trade associations and checkoff programs I know the value the industry receives from each organization delivering results that matter to advance the industry. To be successful you need NCTA representing your interests as your advocate and CTPB building demand for your products. It is not helpful to the industry if growers make the decision because they are required to pay an assessment to one organization they will no longer voluntarily pay to support the other.

CTPB is launching its first consumer ad campaign for the 2016 Christmas season. It will be exciting and we encourage the whole industry to utilize the campaign to extend its reach to consumers and ability to build demand.

NCTA is going through a transition to be more focused and more effective. There have been some disconnects between growers and NCTA in the past; but that was the past. This is a new future for NCTA, a future that seeks to be more connected with the industry.

Let’s move forward together to make the Christmas tree industry stronger by supporting both NCTA and CTPB to accomplish their missions.

By Craig Regelbrugge

The votes are counted, the dust has begun to settle, and it was a “change election” the likes of which we have not seen in a long, long time. And the pollsters will be cleaning egg off their faces for weeks to come. In some ways, the ending of this protracted, bitter campaign season is a bit like the dog that chased, then with some surprise, caught the car. Attention now turns to preparing to govern.

Our industry undoubtedly had plenty of Trump supporters and plenty of Clinton supporters, with a variety of personal and professional reasons. Of the former, some are surely weary after years of Obama “government is the solution” regulatory initiatives and policies. Some prioritized the balance of the Supreme Court. Of Clinton supporters, many felt she had the experience and credentials on her side. Some were ready to see the first woman President elected. Many struggled with who was the lesser of evils.

Beyond our industry, and certainly across the Rust Belt states where results were most stunning, voters weren’t so much making a political or policy choice as they were revealing deep economic and cultural anxieties. And a sense that “government is working against me, not for me.” So although Clinton appears to have actually won the popular vote, she lost key states that were, to varying degrees, taken almost for granted by her campaign.

Come 2017, many see business-friendly opportunity on the horizon. Significant infrastructure spending is a distinct possibility. So is tax reform. There could be significant efforts to roll back or reshape some of the Obama administration’s most prominent but controversial achievements and initiatives, ranging from the Affordable Care Act to labor and environmental regulation to certain immigration executive actions. There may be new challenges and threats, as well.

Here are three dynamics to watch in the days and weeks ahead.

Trump and Ryan – House Speaker Paul Ryan and Candidate Trump had a rocky relationship during the campaign. Will they bridge their differences? The House is poised to hold its leadership elections swiftly. Ryan is politically savvy and policy-driven. He understands that it’s not enough to be “against everything;” you need to have alternative solutions. If he is elected to continue as Speaker in 2017, we’ll have a steady legislative hand on the wheel and a better shot at a realistic, coordinated, policy-oriented legislative agenda in the House next year. If House Republicans reject Ryan, the next six months could be much more chaotic.

The Pence Factor – While Trump has absolutely no governing experience, Vice President-elect Mike Pence is an experienced lawmaker, having served six terms in the U.S. House before becoming Governor of Indiana. He may play an outsize role in the process of shaping a Trump administration cabinet, and as a liaison to Congress come January.

Checks and Balances – The American electorate usually displays an instinctual preference for the check-and-balance of divided government. This time, the “change wave” put Republicans in control of everything. Admittedly, their margin of control in both chambers is a bit narrower. In the Senate, Republicans lost two seats (Incumbent Mark Kirk (R-IL) lost to challenger Tammy Duckworth, and Kelly Ayotte (R-NH) to Governor Maggie Hassan).

Though clever procedural moves are sometimes possible, under Senate rules it typically takes 60 votes to take up legislation, and to end debate and vote on final passage. This gives incoming minority leader Chuck Schumer more than a little power, if and so long as his caucus of 48 Senators is unified. But the 2018 electoral map is hostile for Democrats, who will be defending 25 of 33 seats. These 25 include a Rust Belt swath from Pennsylvania to Wisconsin where Trump prevailed, so incumbents might be skittish about stonewalling much of a Trump legislative agenda.

A cautionary note. Ours is an industry substantially reliant on foreign-born labor. It runs the gamut – citizens, legal permanent residents, temporary and seasonal visa holders, refugees, and (presumably), quite a few unauthorized workers whose employment documents aren’t as good as they look. Trump wasn’t elected on the immigration issue, but regardless of how you feel about it, his campaign rhetoric resonated with voters who have lost faith in their government and believe in the rule of law.

So what happens next on this critical issue? The Trump transition team point persons on immigration have called for tougher, some would say heavy-handed, immigration laws. Early moves will surely be enforcement-centric. Trump’s calls for a border wall and tripling the number of immigration enforcement agents won’t happen all that quickly; these things require major funding, and involve Congress. That takes time. As would imposing mandatory E-Verify, which Trump has supported.

But some things could be done sooner, and within current resources. He could rescind the Obama executive actions granting deferred action, such as the Deferred Action for Child Arrivals (DACA) program, or limiting refugee admissions, for instance. While these aren’t often seen as business issues, there are many DACA recipients and a growing number of people admitted as refugees now employed in horticulture.

A Trump administration could also return to the practice of worksite enforcement, whether that means raids, or I-9 audits, substantially worsening the labor challenges already facing many horticulture businesses. Screening practices for visa applicants abroad could change, slowing the already-clogged pipeline for H-2A and B worker admission during peak seasons. Perhaps there will be some openings for positive visa program reforms, but it’ll be defense more than offense for the foreseeable future.

The Long View. AmericanHort has earned a reputation for credibility, integrity, and taking the long view. Our leaders and staff understand that a good reputation takes years to build and minutes to destroy. We are about good policy, not politics or party. And so, we’ll continue to work with elected men and women of both parties who want to support policies that ensure a vibrant future for our industry and our country.

You are a key part of this equation. Especially after an election like this one, elected officials aren’t as interested in hearing from a lobbyist (even one who is a horticulturist!) than a constituent who is running a business, creating jobs, paying taxes, and doing his or her part to keep America great. Your voice, your participation, your support will be ever more critical in the months ahead.