Overview
In April 2024, North Carolina State University conducted its ninth annual survey to examine the inventory and pricing of North Carolina sod.
- The supply of bermudagrass sod is expected to be greater in 2024 compared to 2023, but 37% of the producers are still anticipating shortages.
- The supply of zoysiagrass is expected to be similar in 2024 compared to 2023, with 33% of the producers anticipating shortages.
- Approximately half the producers expected shortages in centipedegrass and St. Augustinegrass sod in 2024.
- Twenty-five percent of producers expect shortages for tall fescue in 2024.
- Kentucky bluegrass sod producers anticipate shortages in 2024.
- Producers reported nominal price increases (between 2% and 5%) for most turfgrass species in 2024. The exceptions are tall fescue, with a 20% price increase; Kentucky bluegrass, with a 33% increase; and zoysiagrass, with an 8% decrease.
- There was a 7% increase in growers reporting that they grew proprietary grasses, and no increase in certified sod growers.
- Production acreage is projected to increase in 2024 at an amount similar to 2023.
- Landscape contractors continue to be the primary market for North Carolina sod producers, accounting for almost 71% of sales.
- The average number of full-time employees per producer increased by 16% in 2024, and seasonal employee numbers increased 40%.
- Average sod sales decreased 6% from 2022, although 64% of producers reported increased sod sales in 2023.
- Two new questions on this year’s survey addressed how producers handle pallet costs and price adjustments made for sod size.
Survey Details
Twenty-five producers representing the following farm sizes completed the anonymous online survey:
- Less than 200 acres (ten respondents)
- 201 to 500 acres (eight respondents)
- 501 to 800 acres (three respondents)
- More than 800 acres (four respondents)
The North Carolina Sod Producers Association (NCSPA) membership records suggest that the number of completed surveys represents 60% of the sod farms in North Carolina. The number of farms with the respective farm sizes suggests that the survey represents the majority of the sod production acreage in the state.
Inventories
We obtained inventory estimates for bermudagrass, zoysiagrass, centipedegrass, St. Augustinegrass, tall fescue, and Kentucky bluegrass, as well as a tall fescue and Kentucky bluegrass mix. These estimates were based on anticipated sales and availability of sod. An inventory rating of excellent means that more than 10% of demand was expected to be met; adequate means that supply was expected to be equal to demand; poor means that a shortage of more than 10% was expected.
Bermudagrass is being grown by 19 (76%) of the surveyed producers. Bermudagrass is currently the most popular turfgrass species grown by North Carolina sod producers. Sixty-three percent of these producers rated their inventory as adequate this year. No producer rated inventory as excellent. This was the first year since 2020 without an increase in the number of producers projecting bermudagrass inventory shortages (Figure 1).
Zoysiagrass is being grown by 18 (72%) of the surveyed producers, which made this grass the second most popular turfgrass species grown by North Carolina sod producers. Thirty-nine percent of these producers rated their inventory as adequate this year, and 22% indicated that their inventory was excellent. For 2024, 39% of all zoysiagrass producers projected shortages.
Centipedegrass is being grown by 16 (64%) of the surveyed producers. Fifty-six percent of these growers reported adequate to excellent inventory. Forty-four percent of all centipedegrass growers anticipate a shortage during 2024.
St. Augustinegrass is being grown by eight (32%) of the surveyed producers. Fifty percent of these growers reported adequate to excellent inventory, but 50% anticipated a shortage during 2024.
Tall fescue is being grown by eight (32%) of the surveyed producers. Seventy-five percent estimated that they would have adequate to excellent inventory, but 25% anticipated a shortage in 2024. For the past seven years, more than 75% of producers reported adequate to excellent inventory levels of tall fescue (Figure 1).
Tall fescue + Kentucky bluegrass is being grown by 10 (40%) of the surveyed producers. Ninety percent rated their inventory as adequate to excellent this year, with 10% anticipating shortages.
Kentucky bluegrass is being grown by three (12%) of the surveyed producers. All anticipated an inventory shortage.
Pricing
Pricing information included costs for on-farm purchase and truckload orders delivered to the closest urban market or within 100 miles of the farm. All costs were reported as price per square foot of sod. Table 1 summarizes the average sod prices by species.
Turfgrass Produced (# of growers responding) |
On-the-Farm price/sq ft |
Delivered* price/sq ft |
---|---|---|
Bermudagrass (19) | $0.39 | $0.41 |
Zoysiagrass (18) | $0.55 | $0.57 |
Centipedegrass (16) | $0.35 | $0.39 |
St. Augustinegrass (8) | $0.56 | $0.57 |
Tall fescue (7) | $0.49 | $0.54 |
Tall fescue + Kentucky bluegrass (10) | $0.48 | $0.49 |
Kentucky bluegrass (3) | $0.77 | $0.54 |
*Delivered to either the closest urban market or within 100 miles of the farm. ↲
Bermudagrass on-farm prices in 2024 ranged from $0.25 to $0.91 per square foot (averaging $0.39), while delivered prices ranged from $0.33 to $0.55 per square foot (averaging $0.41). The average on-farm price for bermudagrass increased 5% from 2023.
Zoysiagrass on-farm prices in 2024 ranged from $0.39 to $0.80 per square foot (averaging $0.55), while delivered prices ranged from $0.42 to $0.83 per square foot (averaging $0.57). The average on-farm price for zoysiagrass decreased 8% compared to 2023.
Centipedegrass on-farm prices in 2024 ranged from $0.26 to $0.51 per square foot (averaging $0.35), while delivered prices ranged from $0.23 to $0.57 per square foot (averaging $0.39). The average on-farm price for centipedegrass increased 3% compared to 2023.
St. Augustinegrass on-farm prices in 2024 ranged from $0.43 to $0.67 per square foot (averaging $0.56), while delivered prices ranged from $0.49 to $0.68 per square foot (averaging $0.57). The average on-farm price for St. Augustinegrass was 2% higher than in 2023.
Tall fescue on-farm prices in 2024 ranged from $0.40 to $0.63 per square foot (averaging $0.49), while delivered prices ranged from $0.45 to $0.63 per square foot (averaging $0.54). The average on-farm price of tall fescue increased 20% compared to 2023.
Tall fescue + Kentucky bluegrass on-farm prices in 2024 ranged from $0.39 to $0.63 per square foot (averaging $0.48), while delivered prices ranged from $0.39 to $0.56 per square foot (averaging $0.49). The average on-farm price of tall fescue and Kentucky bluegrass mix decreased by 4% compared to 2023.
Kentucky bluegrass on-farm prices in 2024 ranged from $0.50 to $1.25 per square foot (averaging $0.77), while delivered prices ranged from $0.44 to $0.63 per square foot (averaging $0.54). The on-farm price increased 33% compared to 2023. It was not clear why the delivery price was 30% lower than the on-farm price; one possible explanation is that the calculated means can be heavily influenced by a single outlier when there are so few reported data points.
Figure 2 provides a six-year perspective of average sod prices that shows fluctuations of particular species since 2019. The percentage change reported for each grass in 2024 compared to 2023 was: bermudagrass, +5%; zoysiagrass, -8%; centipedegrass, +3%; St. Augustinegrass, +2%; tall fescue, +20%; tall fescue + Kentucky bluegrass, -4%; and Kentucky bluegrass, +33%. Figure 3 provides the average sod price ranges and the sale price in the middle of the dataset (median price) in 2024.
Projected Price Increases
Most growers in the survey forecasted steady sod prices in 2024. A few producers predicted increased prices for particular grasses. None expected prices to decrease. Producers reported the following price expectations for each grass species:
- Bermudagrass—40% expect price increases; 60% expect prices to remain steady.
- Zoysiagrass—33% expect price increases; 67% expect prices to remain steady.
- Centipedegrass—39% expect price increases; 61% expect prices to remain steady.
- St. Augustinegrass—67% expect price increases; 33% expect prices to remain steady.
- Tall fescue—40% expect price increases; 60% expect prices to remain steady.
- Tall fescue + Kentucky bluegrass—29% expect price increases, 71% expect prices to remain steady.
- Kentucky bluegrass—40% expect price increases; 60% expect prices to remain steady.
Proprietary Grass
In 2024, 58% of the growers reported that they grew some proprietary grasses on their farm. This represents a 7% increase from 2023. The average percentage of their grasses that were proprietary was 30% with a reported range of 1% to 92%.
Certified Grass
In 2024, 54% of the respondents grew some certified sod. This was the same percentage as 2023. The average amount of certified grass was 37% of their total sod acreage. Thirty-six percent of these producers charged higher prices for certified grass—$0.02 to $0.04 more per square foot.
Freight
Among the respondents, 62% charged a flat rate for delivery; 34% charged on a per-mile basis; and 4% either did not charge for delivery or included it in the sod price. Reported freight rates for 2024 ranged from $4 to $6 per mile and averaged $4.61 per mile, which was a 7% increase from 2023. Eleven respondents reported flat freight rates of $170 to $350 per shipment with a mean of $254, although these rates vary depending on other factors, such as the distance from the farm. Thirty-eight percent of the respondents indicated that they include freight prices in their price quotes to customers, while 62% invoiced the freight charges separately—a significant change compared to previous years. In 2023, for example, 75% of respondents included freight charges in price quotes, and 25% invoiced freight charges separately.
Twelve percent of respondents charge an unloading fee. Eighty-one percent of respondents make additional drops on loads. The low-end charge for additional drops on a load was $25; the high-end charge was $250; and the average cost for additional drops was $88. Several respondents reported that the charge depended on the distance between drops and that charges may be divided between buyers.
Fuel Surcharge
Nineteen percent of respondents added a fuel surcharge. Relative fuel prices each year influence this practice.
Pallet Cost Recovery
Sixty-nine percent of respondents charge a deposit on pallets and expect them to be returned. Thirty-one percent build the pallet’s cost into the sod sale, and no return is expected.
Sod Size Cost Adjustments
Twenty-seven percent of respondents adjust cost based on harvested sod dimensions.
Price Changes
Asked how often they adjust their prices, 54% of respondents indicated that they adjust prices as needed; 42% adjust prices yearly; and 4% adjust prices quarterly.
Credit Card Convenience Fee
Fifty percent of respondents charged a convenience fee for credit card purchases. This represents a 100% increase compared to 2023.
Sales by Industry Segments
Table 2 shows the industry segments that purchase North Carolina sod. The producers estimated that landscape contractors were their biggest customer segment, accounting for 70.8% of their sales. The next largest segments were homeowners and brokers, at 12.0% and 7.4%, respectively. Golf courses and sports/athletics represented 3.9% and 3.3% of the market, respectively. Retail garden centers were the smallest segment, at 2.6%. The largest changes compared to 2022 were a 428% increase in broker sales, a 35% increase in homeowner sales, a 57% decrease in golf course sales, and a 58% decrease in sports/athletics sales.
Industry Segment | Rank |
Average (%)* |
---|---|---|
Landscape contractors | 1 | 70.8 |
Homeowners | 2 | 12.0 |
Brokers | 3 | 7.4 |
Golf courses | 4 | 3.9 |
Sports/athletics | 5 | 3.3 |
Retail garden centers | 6 | 2.6 |
*Average percent of total sales. ↲
Acreage in Production
No producer indicated that they reduced sod production acreage during 2023. One producer expected to reduce production in 2024 (by 23%). Seventy-three percent of respondents indicated that they increased acreage during the previous three years; the average percentage of increase in acreage was 17%.
Employees
The 25 respondents reported an average of 14 full-time employees in 2024, a 16% increase from 2023. The number of full-time employees ranged from 1 to 140. The number of seasonal employees ranged from 0 to 66, for an average of 7, which represents a 40% increase from 2023.
Total Sod Sales
For the 18 respondents that provided data, the total sod sales for 2023 ranged from $12,000 to $6.8 million. The average sod sales were $2 million (a 6% decrease from 2022). Reported sod sales totaled $36,032,585. Sixty-four percent of the respondents indicated that their sales increased in 2023; 12% reported a decrease; and 24% reported that sales remained the same. This is a weaker outlook on sales compared to 2023 reports.
Summary
Notably, 2023 was the first year with reduced sod sales, following four consecutive years of growth in the sod industry, based on our annual surveys. Following a year of significant price increases for sod, most turfgrasses had nominal price increases from 2% to 5%. Only the cool-season species tall fescue and Kentucky bluegrass had significant on-farm price increases. The total acreage of sod appears steady with a small amount of growth indicated. Survey respondents projected shortages for all grass species in 2024.
Publication date: June 18, 2024
AG-809
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