That Christmas tree will cost you more this year: Inflation, supply issues are to blame
Christmas tree farm in Canton, South Dakota, takes an economic hit this holiday season
Riverview Christmas Tree Farm owner Todd Gannon joined 'Fox & Friends First' to discuss how rising prices are impacting his business ahead of the holidays.
Christmas is around the corner — and many Americans are already getting a head start on decorating their homes for the holiday.
Inflation is impacting businesses across the country, and that includes Christmas tree farms.
Riverview Christmas Tree Farm owner Todd Gannon of Canton, South Dakota, joined "Fox & Friends First" this week to discuss how his business has been impacted ahead of the holidays.
INFLATION TO CURB HOLIDAY TRAVEL PLANS
"Diesel fuel is more than double, fertilizer is more than double — even the smallest of things are up 20-30%," he said.
The South Dakota, business owner said one of the issues he’s experiencing is the diesel price increase. He said fueling just one tractor can cost him several hundred dollars.
Christmas tree farm owner Todd Gannon of South Dakota joined "Fox and Friends First" to discuss the impact inflation is having on his business this year. (Fox News / Fox News)
Fertilizer, on the other hand, is costing him anywhere from $500-$800 per acre.
YOUR THANKSGIVING DINNER COULD CAUSE 20% MORE THIS YEAR BECAUSE OF INFLATION
On top of inflation issues hitting the farm, Gannon said he and his team have been working through a Christmas tree shortage for a few years now.
"We’ve been working through a shortage over the last couple of years," he said.
Gannon said the cost of supplies is up 100%, but he chose to increase tree prices for consumers by just 10%. (Fox News / Fox News)
Gannon noted that part of it can be traced back to a drought in 2012 when seedlings were being planted.
"The last couple of growing seasons have been pretty ‘drought-stricting’ for us, so we just haven’t gotten the growth out of the trees," she said.
INFLATION HITS HOLIDAY SEASON: TOY MAKERS UNVEIL SMALLER ITEMS PRICED BELOW $10 AS FAMILIES STRUGGLE
Although the supply side is struggling — demand remains strong.
Gannon said people are still coming to pick up their tree, no matter the cost.
The Christmas tree farm owner increased his prices 10% this year to try to make up for some of his loss.
Gannon said the demand is still high and families are still coming to buy a Christmas tree this year, regardless of price. (Fox News / Fox News)
He said that even with some supply prices up 100%, he didn’t want to shock the customers by increasing the sticker price more.
CLICK HERE TO SIGN UP FOR OUR LIFESTYLE NEWSLETTER
"Our family, we’re Midwestern farmers, so we’ll work hard and get through it," he said.
His favorite type of Christmas tree is a Frasier fir, but it depends on what a customer is looking for, said Gaston.
TREE QUIZ! HOW WELL DO YOU KNOW THESE SURPRISING FACTS ABOUT TREES?
The farm also offers painted trees in various colors for those who want a colorful Christmas.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"My two boys picked out a blue tree this year, so we’ll have a blue Christmas tree at our house," he said.
To learn more about costs this holiday season, check out this video:
Kingsview Wealth Management Chief Investment Officer Scott Martin joined 'Kennedy' to weigh in on reports the average Thanksgiving turkey costs $34 and inflation's impact on food prices.