AN ECONOMIC ASSESSMENT OF ARTICHOKES Executive Summary The globe artichoke, Cynara scolymus, is a thistle-like herbaceous perennial. The adjective "globe," which describes the immature flower head, is used to differentiate this true artichoke from the Jerusalem artichoke (Helianthus tuberosus L.) and the Japanese or Chinese artichoke (Stachys sieboldii Miq.), both of which are grown for their edible tubers. Virtually all U.S. commercial artichoke production, about 9,000 acres, is located in California. Of the 67 U.S. farms reporting artichoke production in 1992, 63 were located in California. The value of the California crop was $58.5 million in 1994, a record high. The United States produced 109 million pounds of artichokes in 1994, down from the peak output of 134 million pounds in 1985. Domestic production follows a distinct seasonal pattern, peaking between March and May, and remaining relatively low during the remainder of the year. In addition to domestic production, the U.S. imported nearly 71 million pounds of artichokes in 1994, mostly canned and brined products from Spain. Artichokes are a minor vegetable in the American diet. Although consumption is rising, U.S. consumers use less than one pound of artichokes annually. Consumption of fresh artichokes closely follows the seasonal availability of domestic shipments, cresting in the spring when California s production peaks. Artichoke prices vary substantially from month-to-month, largely due to the highly seasonal nature of production. The highest prices usually occur from November through February, when the quality of fresh artichokes is relatively high, but volume is low. The lowest prices occur during March, April, and May, when high volumes drive prices down. Because its cool, foggy summer climate and frost-free winters are ideal for artichokes, the coastal areas of central California (in particular, Monterey County) account for a large share of U.S. artichoke production. The Desert valleys in southern California and western Arizona have emerged as minor commercial areas since 1990. An estimated 450 acres of artichokes were grown in California's Imperial County in 1993, with about 200-300 acres, in total, in the Coachella Valley in Riverside County, California and in Yuma County, Arizona. In addition, nominal acreage is planted to artichokes in Oregon's Willamette Valley for late summer and fall harvest. Due to the lack of homogeneity in seed-propagated populations, artichoke varieties traditionally have been propagated vegetatively to maintain the genetic consistency needed to assure uniformity among artichoke buds. A high degree of uniformity is needed for commercial acceptability. In recent years, several seed-propagated varieties have been released that produce uniform buds. One of these, "Imperial Star," was released by the University of California and is grown commercially in the coastal regions of southern California and in the Desert areas of California and Arizona. Vegetatively-propagated perennial artichokes are grown almost exclusively in coastal California, while seed-propagated annual artichokes are grown mainly in the low Desert areas of southern California and in western Arizona. Coastal California's mild winters permit the production of artichokes as a perennial crop, and the cool spring, summer, and fall promote artichoke quality. Perennial culture has been desirable because it allows spreading the high costs of establishing vegetatively-propagated artichokes over time. Vegetative propagation was at one time necessary to maintain commercially-acceptable uniformity. The development of seed-propagated varieties that have commercially-acceptable uniformity permit production of artichokes as an annual crop. Growers can now afford to establish a planting for a single season because seed propagation is less expensive than vegetative propagation. Annual production of seed-propagated artichokes is adapted commercially in the low desert areas, where summers are too hot for artichokes. Desert- grown artichokes are seed-planted in late summer and harvested during the winter and early spring. Desert production ends when the on-set of hot weather lowers quality in the spring. Some growers in the California's coastal areas are currently experimenting with annual culture, but at this time, most continue following perennial culture practices. Artichokes are a comparatively hardy plant that produce over an extended harvest period. They can withstand severe stress and yet survive to produce a considerable crop later in the season. A hard freeze in December 1990, for example, appeared to have destroyed the California artichoke crop, but the plants recovered and produced a typical-size crop the following spring. Although recovery appears less complete than following the 1990 freeze, a substantial amount of California's artichokes survived flooding during the winter of 1995, and produced a crop later in the season. As of the end of November, 1995, artichoke shipments for the year to date from California were about 55 percent of the shipments at the same time in 1994. Our assessment is that there is a fairly limited potential for artichoke crop insurance, particularly at the buy-up coverage levels, because growers are likely to view artichokes as relatively free of production perils. Most growers reportedly feel they can manage the production risks associated with artichoke pests by following recommended cultural practices, particularly in California's coastal areas. Hard freezes, excessive rains, and flooding are the greatest production perils, and damage from these hazards occurs rather infrequently. Large growers account for the bulk of artichoke acreage in the Salinas Valley and are often not eligible to receive benefits under the Non-Insured Assistance Program (NAP) because their annual gross incomes (and hence, qualifying gross revenues) exceed $2 million. In addition, these growers are likely to quickly reach the $100,000 payment limit in the event of disasters. These growers may want to see artichokes become an insurable crop so that they may buy catastrophic insurance coverage, which they could do at a negligible cost. The director of the San Mateo County Farm Bureau indicated that his organization is currently working with USDA to establish an artichoke policy.