AN ECONOMIC ASSESSMENT OF CARROTS
                            Executive Summary


Carrots are grown year-round in the United States, with
California accounting for 58 percent of production in 1993. 
Although far distant in magnitude to California, other states
reporting sizeable carrot production include Washington,
Michigan, Wisconsin, Texas, Florida, and Colorado.

The total value of the U.S. carrot crop in 1993 was approximately
$292 million.  About 10 percent of that total represents
processed carrots; the remainder is the value of fresh carrots. 
Carrots are machine-harvested, and can be stored for several
weeks after harvest.  

Carrot production for both the fresh and processing markets
increased during the 1970's and 1980's and has generally
increased during the 1990's.  With approximately one-third of the
market for processed carrots and two-thirds for fresh carrots,
1992 production was at a record high of 3,324.1 million pounds. 
Production for 1993 was estimated at 3,223.1 and 1994 production
is forecast at a lower 3,110 million pounds.

Most carrots are produced for the U.S. domestic market.  Slightly
more carrots are exported than are imported, with most of the
trade taking place with Canada and Mexico.  Because carrots can
be stored for up to four or six months for fresh use, the supply
of carrots is less weather sensitive than that of other
perishable vegetables, such as lettuce.

Different varieties of carrots are usually planted depending on
their expected use in either the fresh or processing markets. 
However, carrots which fail to meet fresh market standards may
occasionally be diverted for processing use.  Processing carrots
tend to have higher per acre yields than those destined for fresh
market use because all carrots, including the cull carrots, are
acceptable for processing.  However, processing carrot prices are
generally about one-third fresh-market carrot prices.

Carrots are a cool-season crop and can be grown virtually
anywhere provided the growing season remains relatively cool. 
The optimum temperature range is 60 to 70 degrees F.  When the
air temperature rises above 82 degrees F, plant emergence is
poor, top growth is reduced, yields are depressed, and the roots
may become strong-flavored.  Also, high temperatures increase the
woody character and coarseness of the root flesh.  Conversely, if
the air temperature during the early vegetative period falls
below the optimum, long slender roots of much lighter color than
typical and unwanted flower stalks (bolters) will appear.

The natural perils that are most likely to result in yield losses
vary from area to area and depend partly on the time of year that
the production and harvesting activities are occurring.  The
greatest perils in many states are nematodes and diseases.  In
the northern carrot-growing states, freeze damage at planting or
harvesting and lack of water in the nonirrigated areas are major
concerns.  Other natural hazards in carrot production include
insect damage, physiological disorders, and fungus-induced
forking of the root.

Overall, contacts in carrot-growing areas indicated that the
natural perils confronting carrots are not generally as severe as
for lettuce, celery, and certain other vegetable crops.  Because
carrots can be at times "stored in the ground" for several weeks
upon maturity, timely harvesting is not as great a concern. 
Further, carrots are storable over fairly lengthy periods after
harvest. Because of their storability, price risks and price
variability are not as important to the grower as for lettuce and
celery. 

Ad hoc disaster data can be used to indicate which carrot-
producing areas have received large payments relative to their
production.  For example, California accounted for about 57
percent of total U.S. carrot harvested acreage between 1988-93,
but received only 4 percent of the payments made for carrots over
that period.  Similarly, Florida accounted for an average 9
percent of harvested acreage, and received virtually no carrot
disaster assistance payments over the same period.

In contrast, Michigan and Ohio collected a high proportion of
payments relative to production.  Michigan accounted for 7
percent of U.S. harvested area over the years 1988-93, and
received 31 percent of total carrot payments.  Likewise, Ohio had
a very small harvested area, and collected 11 percent of carrot
disaster payments.  Payments were made to at least one Michigan
carrot grower in each of the 6 years.  The maximum collected in
any year in Michigan was $1.1 million (in 1989).  In four of the
six years, over $350,000 was paid in that state.  

These data suggest that, under a potential carrot policy, the
probability of yield losses for carrots in the Michigan-Ohio is
considerably greater than in California and Florida.  Extension
contacts in Michigan indicate that, in recent years, either too
much or too little rain has been a serious problem resulting in
yield losses.

Insurance issues addressed in this report include the possibility
of multiple harvests on a unit in several states, and the
potential demand for insurance.  Demand for insurance may be
strongest, as a percent of total carrot acres and of carrot
growers, in the northern Midwest area.  In this area, not all
acres are irrigated, and growers tend to be smaller and less
diversified than in California and other major carrot production
states.