AN ECONOMIC ASSESSMENT OF GARLIC Executive Summary Garlic, Allium sativum, is a bulbous plant closely related to the onion. Garlic is produced commercially for its composite bulb, which consists of several individual bulblets, known as cloves.' These individual bulblets are enclosed in a membranous bag that is whitish or purplish in color. In its fresh form, garlic is usually sold as a composite bulb. California produces 80-90 percent of the garlic grown in the United States and virtually all of the commercial production intended for consumption. Oregon, Nevada, and Arizona also have commercial garlic production. Although garlic is grown throughout California, the industry is concentrated in the central part of the state. The largest acreage is grown in the western San Joaquin Valley. The second major production area lies west of the Diablo mountain range, and centers around the towns of Gilroy and Hollister. This area was the original garlic-growing center in California, and most of the fresh-market shippers and dehydrators still have their facilities located in this area. Lassen and Siskiyou counties in northern California produce a small amount of garlic, which is used mainly for seed. Northern California's climate is more similar to the climate in eastern Oregon and in Nevada than it is to the central California garlic areas. As in northern California, production in eastern Oregon and Nevada is intended mostly for seed garlic. The dry, cool high-desert climates facilitate producing disease-free seed. Reportedly, about 20 percent of U.S. domestic garlic production is grown for the fresh market, 65 percent for dehydration ("dehy" garlic), and 15 percent for seed. Garlic can be switched among the different uses, and some switching occurs depending on the profitability associated with each use. Occasionally, garlic is diverted to processing when it falls short of required fresh market or seed quality standards. Most commercial garlic production is located in sunny, relatively dry climates with cold, but not severe, winter temperatures. The exception to this generalization regarding a dry climate occurs in western Oregon, where garlic is grown in a relatively humid region with a substantial amount of natural rainfall. To promote bulb production, garlic prefers a vernalization period with cool temperatures (below 40o F) for 6 to 8 weeks during the growing season. Once vernalized, the plant initiates bulb production when the day length reaches approximately 13 hours and soil temperatures are above 60o F. Prolonged low soil temperatures (below 32o F) may cause the plant to produce rough-shaped bulbs and numerous small axillary cloves. Because of garlic's sparse root system, the upper layers of the soil must be kept moist to attain maximum growth rates and yields. Plenty of moisture is especially needed in the spring to promote vegetative growth. Virtually all U.S. commercial garlic is irrigated. Even in western Oregon, where rainfall is relatively dependable, growers irrigate most garlic acreage. Although planting and harvesting dates vary somewhat among areas, garlic is generally planted in the fall and harvested the following summer. For ease of digging, and to reduce soil compaction, garlic is usually planted on beds raised 6-8 inches high and spaced 40 inches apart (center to center). Two rows are planted on each bed. Untimely rain at planting is the primary production peril in garlic production in central California. In contrast, a combination of extreme cold and lack of snow cover was cited as the most damaging peril in the seed-growing areas of northern California, Oregon, and Nevada. Various insects and diseases attack garlic, but growers are able to control losses with available management practices. White rot is a particularly serious peril for seed producers. If a field becomes infected, buyers do not want the garlic for seed. Farmers may be able to sell infected fields as dehydrated garlic, but at a heavily discounted price. The greatest loss from white rot infection, however, may be that the farmer's reputation as a producer of disease-free garlic becomes tainted. The white rot inoculum, once in the soil, remains for years. Ad hoc disaster payments for garlic losses were made in 19 states over the 1988-94 period, totaling $1.415 million. The major producing states--California, Oregon, and Nevada--collected 81 percent of the total payments. No payments were made to Arizona growers. Seed garlic growers in eastern Oregon, Nevada, and northern California may have more interest in purchasing crop insurance than producers in central California. The reason is that these areas have colder winter temperatures than central California, increasing the risk of crop loss. In central California, growers view garlic as relatively free of production perils. Despite the likely interest in crop insurance in seed garlic areas, there appears to be a limited potential for a garlic policy due to the small number of growers and the small acreage. Oregon reported 3,000 acres of garlic in 1995, having a value of $9.0 million. Nevada reported 1,650 acres of garlic in 1995, having a value of $4.4 million dollars. Nevada's acreage has ranged from 550 to 1,650 acres in the past eleven years.