Business Matters

Story by Becky Barrett

There’s a tension that exists in some family businesses between honoring the legacy of the founder and making sure the business remains relevant, meets market demands and is viable for future generations. 

At J. Frank Schmidt & Son Co., the values of hard work, honesty, integrity, being good stewards of the land and treating employees like family have been passed down for three generations. 

But when it came time for the second generation to retire, family members active in the business agreed there wasn’t anyone ready to step into the role of CEO. 

“Us Schmidts are good at growing trees and a lot of other peripheral stuff in our business,” said Gordy Webster ‘00, production coordinator and one of two members of the third generation working in the business. “It didn’t feel like any of us in the family really had what it would take.”

After consulting a family business advisor and professionalizing the ownership and governance structure, a decision was reached in 2020 to recruit a new executive from outside the family to secure prosperity for current and future generations. 

Succession planning in the nursery business industry is rare, said Ben Rough, CEO. That’s what makes what J. Frank Schmidt & Son, Co. unique. 

“One of the core foundations for the family is to invest in the future of the business,” Rough said. “They take pride in ownership and quality. It’s a much different world when they’re looking at generational ownership versus immediate returns.”

These efforts have been recognized with the 2024 Excellence in Family Business award for Generational Development by Oregon State University’s Center for Family Enterprise.

The nursery has grown to become a premier source of deciduous shade, flowering and ornamental trees with more than 1.5 million trees harvested and shipped each year to garden centers and landscapers. 

Frank and Evelyn Schmidt planted the first trees in 1946 on 10 acres west of Troutdale on the slopes near the Columbia River. Frank Schmidt grew up nearby and learned to grow trees from his father, J. Frank Schmidt, Sr., a leading nurseryman of his era. 

Farm manager Sam Barkley ‘07 is the other third-generation family member working in the business. He always wanted to work at the nursery. After earning a degree in business administration from Oregon State, his first day back illustrates the path for any family member wanting a job. It was 90 degrees, and he was on his hands and knees weeding between rows. 

“We start out just like anybody else,” Barkley said. “We get no free handouts.”

Barkley recalled how his grandfather told him at a young age, “Don’t ever ask someone to do something you haven’t done or you’re not willing to do.”

“It wasn’t just words coming out of his mouth,” Barkley said. “He was there every day.”

Family members have never been pressured to work for the nursery. Two of three second-generation siblings ran the company after Frank Schmidt, Jr. retired in 1986. Jan Barkley was executive vice president and Frank Schmidt III was CEO when the container and bare root product lines were developed and the nursery expanded. Both now serve on the board of directors since retiring.

Jan Barkley says her parents taught by example. While friends slept in and took family vacations, they worked weekends. 

“I can still hear him like it was yesterday, coming down the hallway saying, ‘It’s time to get up,” Jan Barkley said. 

After attending Oregon State, she worked in propagation before moving to the office. 

Jan Barkley recalls the transition from first to second generation ownership. 

“One day, Dad walked in, and he goes, ‘It’s your turn,’” she said. 

When it came time for the transition from second to third generation, it took years of planning. Now, each of the three branches of the family has two members on the board of directors to maintain equality of ownership. Two members from each branch also serve on the ownership council to advise on matters of business planning that affect the family. 

And J. Frank Schmidt & Son, Co. is also deeply invested in the community through the Frank & Evelyn Schmidt Family Foundation. Three members of each branch of the family serve on the foundation board. In 38 years, the foundation has distributed nearly $7 million to various causes, including gifts to build greenhouses at community colleges, support for horticulture research and scholarships.

“Dad always wanted to give back to the industry,” Jan Barkley said. “It’s how he learned and grew up in the business himself.”

Schmidt agreed his father was his best mentor, teaching him respect for employees and  making sure customers were taken care of. 

Receiving the Generational Development award makes him proud to see the family legacy recognized. 

“It’s a lot of hard work for over 75 years to get where we’re at today,” Schmidt said. “It’s a great honor.”