August 2024 Connect

2024: August

An AmericanHort Member Benefit

A KNOWLEDGE RESOURCE FOR OUR INDUSTRY

IN THIS ISSUE

Initiatives that Drive Growth Between educational series and certifications, in-person conferences, and on-demand education from Cultivate’24, our fall schedule offers numerous opportunities to expand your knowledge and optimize your performance. Plus, see how other businesses meet compliance guidelines and use innovative tools to drive them forward.

FEATURES

ADVOCACY & HRI UPDATES

Altman Plants: The Journey to SANC Certification

2

Market Metrics

4

Member Spotlight: AG2TC

6

EVENTS & EDUCATION

AmericanHort Surveys

9

Your Voice Matters

12

Key Issues Affecting the Industry

13

What You’ll Learn at Plug & Cutting

8

Upcoming Education Programming

14

SANC EXPERIENCE Altman Nursery Lake Mathews facility

Altman Plants: The Journey to SANC Certification The Systems Approach to Nursery Certification (SANC) offers a comprehensive framework designed to ensure the safety and quality of production processes through meeting state regulatory compliance. It is also a pathway to growing healthier plants, lowering operational costs, and improving customer satisfaction.

Altman Plants obtained SANC certification for their Lake Mathews and Fallbrook, California locations in 2024. Their experience with the process offers valuable insights for other operations interested in the program.

“When we looked at the SANC program, one of the overriding goals is to facilitate interstate trade. We do ship nationwide, so being part of something that will facilitate trade between the states was certainly appealing,” says Jim Hessler, Director of West Coast Operations for Altman Plants.

Steps to Becoming SANC Certified

✓ Ccertifying onnect with your state’s authority ✓ Apply for the program ✓ Cofomplete a risk assessment your operation ✓ Cmanual reate an operational that addresses risks ✓ Othrough btain state approval audits 2 | AmericanHort.org

Assessing Risks One of the crucial steps in the SANC process, after meeting with your state’s representative, is conducting a comprehensive risk assessment of your facilities. This step helps you identify the potential for harm to your plants through contamination or pests. It also allows you to review best management practices and control points that can reduce or eliminate any threats.

“It's just such a helpful process to go through the entire operation, every single aspect of it, and identify all the different risk points,” says Hessler. “Then, asking ourselves, ‘how do we mitigate that risk?’

It was incredibly helpful in terms of making us better growers.”

The AmericanHort Horticultural Research Institute (HRI) teamed up with the National Plant Board and the USDA to develop an online tool to help growers perform risk assessments more easily.

When Altman began the process in 2018, the risk assessment tool had not yet been developed, so they used an Excel spreadsheet.

At Altman Plants, a diverse team of about eight staff members, including growers, section growers, and technical services staff, met weekly to identify and mitigate various risk points. The risk assessment is often the longest part of the process because it needs to be thorough enough to cover all aspects

of the nursery’s operations. The team at Altman completed the assessment in less than 12 months.

Creating an Operational Manual The next step is creating a comprehensive operations manual that documents all the growing practices and procedures identified during the risk assessment. Hessler explained that all facilities have what they consider standard practices, but “until you start documenting them and having an audit process, it's tough to make sure that they happen every single time.”

Altman’s team spent about six months working on the manual and another six months refining it to ensure it was accurate and fully covered operational processes. The team that helped with risk assessment also created the manual.

“Involve as many people as you can and make sure you get everybody's insight,” Hessler says. “Every single person in the group was able to identify risks that others had not thought of.”

The Deputy Agricultural Commissioner from Riverside County Agricultural Commissioner’s Office also reviewed the manual and provided feedback. Hessler says that collaborating with an official ensures your manual meets the certification requirements and their feedback was incredibly valuable.

Once completed, the manual should include a pest management plan, facility roles and responsibilities, how audits should be conducted, and documentation of audits, training and testing. It is such a comprehensive look at their operation that Altman uses it for annual staff training and onboarding new hires. Each person within the facility has a role in maintaining the certification.

Local Challenges Each county in California has its own regulatory requirements, unlike many other states with a more centralized auditing process. That difference in agricultural regulatory framework meant that Altman, working with the National Plant Board, and the California Department of Food and Agriculture had to gain consensus with each of the state’s 58 counties.

Risk Assessment Tool The Horticultural Research Institute (HRI), the National Plant Board, and USDA developed a free web-based risk assessment tool to help nurseries and greenhouses participate in SANC more easily. The tool is available at no cost to any nursery or greenhouse seeking to improve its processes.

Learn more at HRIResearch-SANC.org or scan the QR code.

Altman’s due diligence with the counties means that other operations in California may be able to go through the process more quickly because many counties have agreements allowing the state to oversee the auditing during the SANC process.

Despite the regulatory complexities in California, their commitment to completing the certification had been worth it.

“At its core, it makes us better growers. It has also reduced our pesticide use because the program focuses on prevention, scouting, and catching things early. And when you catch something early, it's easier and cheaper to deal with it than if you catch it late,” says Hessler.

They have also found that customers are more thoughtful about who they support and want to work with companies that are developing broader sustainable practices. As the SANC program grows, customers will become more knowledgeable about its value.

When asked if he had advice for other nurseries or greenhouses contemplating starting the certification process, Hessler says, “The hardest part is the first step.”

Read more about SANC in the June issue of Connect at HortKnowledgeCenter.org or scan the QR code to see the issue.

2024: August | 3

MARKET METRICS

An Index of Prices Paid by Growers in the Green Industry– Mid-Year Update This special summer supplement to the Index of Prices Paid provides a mid-year update to my beginning-of-the-year forecast. The green industry supply chain is back to its pre-COVID performance and, according to most supply chain metrics, inflationary pressures on key green industry inputs are declining. However, key inputs (such as labor) are still experiencing YOY increases, so we are still not fully out of the woods yet.

This mid-year release should prove useful as growers are in the midst of negotiating with suppliers for next year’s inputs and simultaneously attempting to set next year’s plant prices. Please note that all line items in the index have been updated, but the available data I incorporate into my econometric models are still subject to revision between now and end of the year.

While forecasts, by their very nature, are moving targets, I hope this initial guidance looking ahead to EOY 2024 and into 2025 can provide insight to guide your decisionmaking.

At the time the original annual report was published at the beginning of this year, I projected that there may be further adjustments that manufacturers, distributors, and other allied trade firms would make in their respective 2024 price schedules. However, it is obvious from the revised Index that inflationary pressures on the industry are starting to ease. Lead times within the allied trade sector have improved dramatically, and spikes in the price of certain inputs (e.g., fertilizer and freight) have offered some relief.

While these inflationary pressures have slowed, they have not subsided entirely, so adjustments were made to my econometric models (based on the latest economic and supply chain data) to generate the current end-of-year (EOY) forecast for 2024 and a preliminary estimate for 2025 was included since many industry participants are in the midst of negotiating input prices for the 2025 spring season, as well as setting 2025 prices for their plants. The table reflects updated estimates for each of the inputs.

Note: EOY 2024 data will be available in early 2025 with the next full edition of the Index.

Also, please note that the weights associated with each input were updated this year based on their respective share of tracked expenses. They had not been updated since before the pandemic and given the changes in relative input prices, it was time to do so. The tracked expenses that totaled to 63.5% of sales eight years ago now represent 67.8% of sales in 2024.

Labor, the most expensive line item, is weighted at 42.9% of the expenses tracked in the index.

By Dr. Charlie Hall, AmericanHort Chief Economist & Ellison Chair in International Floriculture, Texas A&M University

After adjustments were made to all of the input categories, a projected YOY increase in input costs of about 1.0% by EOY 2024 was estimated, assuming present trends continue throughout the remainder of the year.

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REVISED Forecast for EOY 2024 & PRELIMINARY Forecast for 2025

Additionally, preliminary projections for the 2025 forecast indicate that another 3.2% YOY increase in the cost of inputs is expected next year, mostly driven by labor. The next update will be released in the first quarter of next year as EOY data revisions for each green industry input sector become available.

Download the March 2024 report by scanning the QR code.

Watch a Greenhouse Technician Certification Course for Free!

See how the AmericanHort Greenhouse Technician Certification works with a preview of Pillars of Integrated Pest Management. The self-paced course, taught by Michele Opela of Costa Farms, teaches you how to create an effective IPM plan.

You can access the course at no cost to see how the certification teaches real-world concepts to train your team to become successful greenhouse technicians.

SCAN ME

Learn more at AmericanHort.org/GT or scan the QR code.

MEMBER SPOTLIGHT g tin e op! t Cu us St & h o ur ug en To Pl r e o n G ti uc od r P

AG2TC—Roots in Tissue Culture and Propagation Apopka, Florida AmericanHort member AG2TC is one stop on this year’s greenhouse production tour. Located in the horticulturally thriving town of Apopka, AG2TC has deep roots in Florida’s tissue culture and propagation industry.

The location is one of the four original Agri-Starts operations. The company’s current iteration is owned and operated by brothers Mike and Tyler Donn, who purchased AG2 in April 2021 and rebranded it as AG2TC.

“We primarily propagate a mix of tropicals, as well as ferns, landscape items and succulents,” Mike told us in an interview. “We produce for the mass market, so our items, such as Ficus lyrata and philodendron hybrids, will end up in box stores such as Lowe’s, Home Depot, Kroger, and IGCs across the nation for use in residential applications.”

production, with labs and office space occupying roughly 12,000 square feet.

100% Locally Grown

“I think it’s good to see different operations in order to see how things are done elsewhere,” Mike says. “Whether it’s from the production room side, or how we stick the plants into liner trays, or maybe our shipping, our humidity tents—whatever it is, maybe we use something or have a technique that a visitor doesn’t use currently and seeing our system might spark a change for them.”

AG2TC is committed to producing 100% of its offerings via its Apopka-based tissue culture lab. Nothing is sourced from overseas. AG2TC propagates and grows close to six million plants annually with its Apopka facilities. For a production of that size, the growing area at AG2TC includes up to 70,000 square feet of greenhouse

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Those participating in the Plug & Cutting tour will get the “soup to nuts” tour. It starts with the mother block at AG2TC— home to their stock plants—and then the labs and production rooms as staff go about their everyday tissue culture and sticking processes. The tour then heads through five production greenhouses at AG2TC and on to the shipping department to get a sense of the operation’s flow.

September 23-25, 2024 | Orlando, FL

Cleanliness is Key Mike believes the tour attendees will appreciate the dedication AG2TC has to cleanliness. “Tissue culture procedures are supposed to be clean, not just the plant material, but also with the facilities themselves,” he said.

Sticking to standard practices daily, such as sanitizing and cleaning the greenhouse, raking dirt, and removing weeds, goes a long way in producing the best crops possible. AG2TC takes pride in delivering the cleanest product possible, knowing it’s important for their customers’ success.

“It’s a great idea to get out and see another young plant operation,” Mike said, “to gain new ideas through things you might see in practice that you don’t already employ.”

Tour AG2TC, Costa Farms, Knox Horticulture, or Agri-Starts this fall at the 2024 Plug & Cutting Conference. Tours are an add-on to conference registration. The $195 cost includes transportation and lunch at the University of Florida IFAS Research Center in Apopka, Florida.

The Plug & Cutting Conference, which will be held September 23–25 in Orlando, Florida, is known for its educational offerings specifically focused on the propagation and culture of young plants. While these sessions are the most comprehensive presentation of information in this field, the conference also offers another important method of learning the ins and outs of young plant production.

The experiential greenhouse production tour is a day-long outing to some of Florida’s best young plant propagators. The tour allows attendees to see how these firms differentiate themselves, operate their entire production system from start to finish, and integrate each team within the company to run as a single seamless operation.

Learn more at AmericanHort.org/Plug or scan the QR code.

2024: August | 7

PLUG & CUTTING

What to Expect at Plug & Cutting Education Plug & Cutting, the biannual conference for young plant producers, returns this September 23–25, along with an education program tailored to this segment of the green industry.

Our expert speakers include people working in the field, university professors, and researchers who can explore topics with real-world best practices. New for 2024, registrants receive access to three On-Demand tracks, providing further learning opportunities on your own time.

On-Site Education Tracks

On-Demand Education Tracks

Best Management Practices

Back2Basics

Designed for growers looking to refine practices and maximize efficiency, this track covers troubleshooting propagation issues, supply chain logistics, mist irrigation techniques, and cost-saving automation.

Refresh and strengthen your foundational skills with essential knowledge of lighting, plant nutrition, and plant growth regulators for young plants. Plus, discover how to maximize rooting in transplants by effectively controlling the environment.

Pests & Diseases Explore pest and disease management, including practical Integrated Pest Management (IPM) strategies, fungicide use, bio-pest control, diagnostic techniques, inhouse labs, biofungicides, dipping protocols, and fungus gnat control.

Production Inputs Discover advanced techniques for optimizing horticultural inputs, including nutrient management and light optimization for indoor ornamental seedlings. Learn about establishing plugs, tissue culture propagation labs, propagation best practices, and building strong roots on young plants.

Risk Management Gain the insights to manage risks effectively and ensure the resilience and productivity of your operation by exploring advanced techniques for nematode control, adapting production based on consumer reports, and advanced pH management using reducedpeat substrates.

Sessions Presented in Spanish Boost expertise and efficiency in production with sessions taught in Spanish. Topics include improving monitoring practices and problem prevention, detecting Phytophthora, and effective growing media management for technicians.

Learn more at AmericanHort.org/Plug or scan the QR code.

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INDUSTRY SURVEYS

Complete AmericanHort Benchmark Surveys to See How You Stack Up Gain the Edge: Complete the NEW Financial Benchmark Survey Compare your financial performance metrics with other green industry businesses to boost your competitiveness and improve your bottom line. See how your costs, such as labor, materials, transportation, overhead costs, and many other expenses, compare. The survey is open to greenhouse growers, nursery growers, garden retailers, or landscapers.

The surveys are conducted with Industry Insights, a leading independent research firm specializing in operating surveys.

They are the largest provider of Financial Benchmarking Surveys for national trade associations.

All Data is confidentially collected and maintained by Industry Insights’ professional data team and securely stored. Individual company data is never shared, and all benchmark data is only reported in aggregate.

The survey portal is open now through September 15. The final report will be available to participants in November.

AmericanHort

Salary and Benefits REPORT

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Learn more about both surveys at AmericanHort.org/BenchmarkSurvey or scan the QR code.

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2024: August | 9

BOARD OF DIRECTORS

Meet the 2024–2025 Board Members and Executive Officers AmericanHort installed the 2024-2025 Board of Directors during the annual AmericanHort business meeting held at Cultivate’24. The new slate of officers includes Ed Overdevest of Overdevest Nurseries LP as the incoming board chair and Kent Fullmer of Fullmer’s Landscaping as the incoming board vice chair.

Rob Lando of AgriNomix will become the immediate past chair, and J. Harvey Cotten will continue to serve as board treasurer in a non-voting position.

Ed Overdevest is the president and owner of Overdevest Nurseries, one of the leading nurseries in New Jersey, where they sell to independent garden centers and distributors within a 300-mile radius of Bridgeton. With production facilities encompassing 290 acres, the nursery produces over 2,000 varieties of perennials, shrubs, and trees for east coast garden centers. The company has earned a sustainability certification due to its exemplary practices in conservation, and it is known for its strong labor relations and community involvement.

Kent Fullmer is president of Fullmer’s Landscaping, Inc., a residential landscape design and building company. Kent leads the second-generation company with passion and integrity. He brings high energy to the art of landscaping to provide positive personal experiences to his clients. Kent has considerable experience working across the industry as he has served on the board of directors of the Ohio Nursery and Landscape Association, is currently serving on the AmericanHort Landscape Connector Committee, is a certified arborist as well as a member of the International Society of Arboriculture.

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The AmericanHort membership has elected the following new board directors: Ken Altman is the co-president of Altman Specialty Plants, a leading U.S. breeder and grower of horticultural plants with international reach. The family-owned company operates production nurseries and distribution facilities nationwide, covering over 38 million square feet of greenhouse space and 4,000 acres of outdoor space. Under Ken’s leadership, the company has championed sustainability through water recycling systems, a floating solar array for power generation, and a growing fleet of electric tractors and autonomous pull vehicles. Ken is a past San Diego Farm Bureau president and was named its 2022 Farmer of the Year.

Tom Fessler, President and Co-owner of Woodburn Nursery & Azaleas Inc., oversees a diverse operation renowned for florist azaleas, annuals, and containerized nursery stock. Founded by his parents in 1968, Tom and his four siblings manage the operation today. The nursery spans 675 acres, including 125 acres of greenhouses and 550 acres of gravel can yards and pot-in-pot operations.

He has actively contributed to the Oregon Association of Nurseries, serving from the local chapter board to the state board of directors and as president. He also served on the Oregon State Board of Agriculture for eight years.

Christine Fortman’s corporate, non-profit, and political experience serves her well as a third-generation owner of her family's Arizona retail nursery, Berridge Nurseries, Inc. Since joining the business over a decade ago, Christine has contributed significantly to the industry.

She has served as Past President of the Arizona Nursery Association (ANA) and the Independent Nurseries of Arizona and is currently a board member of ANA’s charitable arm, ANAFund. Christine, a University of Colorado at Boulder graduate, participated in the inaugural Horticultural Research Institute (HRI) Leadership Academy class. She actively engages with school garden coordinators and has established two ANAFund scholarships for horticulture students.

Welcome

New AmericanHort Members!

We extend a warm welcome to the new members who joined in May and June.

See the list of organizations and individuals who joined at AmericanHort.org/NewMembers or scan the QR code below.

These new directors will join current board directors Derek Clark, South Central Growers, TN; Kurt Becker, Dramm Corporation, WI; Matt Edmundson, Arbor Valley Nursery, CO; Brian Lloyd, Olsen’s Greenhouses, UT; Emily Showalter, Willoway Nurseries, OH; and Ann Tosovsky, Home Nursery Inc., IL. AmericanHort and its members express appreciation to outgoing board members Steve Mostardi of Mostardi Nurseries, PA, and Lyndsi Oestmann of Loma Vista Nursery, KS, who each served a three-year term from 2021–2024; and Jon Reelhorn of Belmont Nursery, CA, who served on the board from 2018–2024 and was board chairman during his tenure.

Do you want to contribute to the horticulture industry?

The AmericanHort Board of Directors will begin accepting nominations in January 2025. Keep an eye out for the official announcement early next year.

2024: August | 11

ADVOCACY

Contact Your Local Representative with Voter Voice As an AmericanHort member, you can influence policies that impact your business. With our easy-to-use Voter Voice system, connecting with your Congressional representatives is just a few clicks away. Our government affairs team prepares pre-written messages for you to contact your Members of Congress—it’s quick, simple, and effective.

Our current Voter Voice form allows you to support H.R. 7024, the Tax Relief for American Families and Workers Act. The bill would aid U.S. growers, farmers, landowners, and agriculture and food supply chain workers. The bill seeks to restore certain tax provisions, such as bonus depreciation and Sec. 179 expensing, which will stimulate economic growth and ease financial burdens. Additionally, the bill aims to remove tax requirements on research and development costs, among other measures.

to our June winner:

Kathrein Markle Wekiwa Gardens, Inc. Apopka, Florida

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Learn more at AmericanHort.org/TakeAction or scan the QR code.

EK & F

I

In each issue of Connect, we’ll be “hiding” a new small graphic. When you find it, email us at ConnectSeekAndFind@AmericanHort.org, and tell us where you found it.

For this issue, respond by September 10.

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Understanding How Advocacy Supports You The AmericanHort Government Affairs and Advocacy Team makes your voice heard in Washington, D.C. We work by educating legislators on labor, immigration, plant health, production, transportation, research funding, and other concerns. Here’s an overview of our key issues: Workforce and Labor: AmericanHort advocates for reforms to the H-2A visa program to address labor shortages in plant production and installation. They also support initiatives to attract young people to careers in horticulture. We support H-2B cap relief and streamlining process to ensure it is a reliable safety net.

Farm Bill: We urge Congress to pass the Farm Bill to support growers, retailers, and researchers in the horticulture industry.

Research and Development: AmericanHort supports increased funding for research initiatives like the USDA Agriculture Research Service’s Floriculture and Nursery Research Initiative and programs such as the Specialty Crop Block Grant and IR-4 Project to drive innovation in horticulture.

Pesticides and Fertilizers: We advocate for a science-based approach to pesticide access and sustainable management practices to support plant health and productivity.

Trade, Plant Quarantines, and Regulatory Issues: Our team collaborates with agencies to modernize plant quarantine programs and ensure pest management best practices to protect against trade disruptions.

Taxes: We support key tax provisions like step-up in basis and 1031 exchanges to maintain stability and reduce uncertainty for businesses in the industry.

Transportation and Supply Chain: AmericanHort supports efforts to address commercial driver shortages and advocates for an integrated supply chain approach involving trucking, rail, ports, and waterways.

USDA and EPA Funding: AmericanHort supports funding for USDA programs crucial to the horticulture industry and EPA’s Office of Pesticide Programs to ensure effective pesticide regulation based on sound science.

Sustainability: AmericanHort focuses on maintaining access to essential inputs like water and nutrients while promoting stewardship and economic benefits for its members.

Learn more about the issues at AmericanHort.org/Positions or scan the QR code.

2024: Aug ust An Ame

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Don’t forget to pass along your Connect Issue to your colleagues.

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2024: August | 13

UPCOMING EDUCATION

Upcoming AmericanHort Education Programming Landscape Roundtable with the AmericanHort Community Connectors On August 6, join the AmericanHort Landscape Community Connectors for a roundtable designed to equip business owners and managers with essential knowledge about the H2-B labor program. Industry experts will share comprehensive overviews and firsthand experiences to help you navigate its complexities.

The AmericanHort Community Connectors are representatives from the key segments of the green industry who help inform and guide initiatives so we can best serve your needs. Roundtables are a chance for AmericanHort members to meet with Community Connectors and other industry members for informative programs and group discussions.

Learn more or register at AmericanHort.org/Roundtable or scan the QR code.

Free for AmericanHort members.

Sponsored by

Grow Forward: Working with Gen Z Presented by Dr. Lauren Griffeth September 25 Unlock the secrets to effectively engage and collaborate with Gen Z, people born between the mid-1990s and early 2010s, and the newest generation entering the workforce.

Leading Virtual Meetings with Confidence Presented by Neal Glatt October 23 Explore the essential aspects of successfully setting up virtual meetings, including choosing the right equipment and techniques for connecting with your audience.

Creating a Career Development Plan Presented by Ben Molenda November 20 Learn in-demand skills and further your knowledge of industry best practices with the Cultivate On-Demand Education Pass. $99 for Cultivate’24 All-Access Pass Holders

Learn more or register at AmericanHort.org/OnDemand or scan the QR code.

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Learn to plan strategically for a rewarding professional life by exploring your role in the supply chain, the career options available in the industry, and how to network to open doors to advancement.

Learn more or register at AmericanHort.org/Education or scan the QR code.

Each class is $99 for AmericanHort members. You must register for each session individually.

Maximizing Garden Center Profitability: Five Part Series

Personal Branding Bootcamp: Three-Part Series

Presented by Tim Quebedeaux October 17, 24, 31 & November 7, 14

Presented by Becky Paxton and guest, Katie Dubow November 5, 12 & 19

Designed for garden center owners and managers, this five-part series will guide you through the essential aspects of financial management, helping you transform your business into a more profitable and sustainable enterprise.

Elevate your personal brand in this threepart series, where you’ll access your reputation, target the values that guide you, and leverage the skills that set you apart in the green industry, then launch your brand using the same principles and techniques of global brands.

Learn more or register for an upcoming webinar or series at AmericanHort.org/Education or scan the QR code.

WITH US

We want to get to know you better. Help us do so by following us on Social Media—our way of connecting with our members and community. @AmericanHort

@youramericanhort

About AmericanHort AmericanHort is the national association of horticulture businesses and professionals across the spectrum of the industry. Perform better, grow stronger and prepare for the future as a member of AmericanHort, the green industry’s leading association.

AmericanHort.org

@AmericanHort

@American_Hort

AmericanHort Connect 2024: August Publisher: Mary Beth Cowardin, Vice President, Marketing & Member Engagement Editor: Cindy Whitt, Marketing Communications Manager Hello@AmericanHort.org 2130 Stella Court Columbus, OH 43215-1033 USA (614) 487-1117

©2024 AmericanHort. All rights reserved. This material may contain confidential information, and it is for the sole use of AmericanHort members. The information contained herein is for general guidance and not for the purpose of providing legal advice. It cannot be distributed, reprinted, retransmitted, or otherwise made public without prior written permission by AmericanHort. Please contact the editor at (614) 884-1147 for permission with acknowledgment.

2024: August | 15

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T hanks for attending Cultivate’24!

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