AN ECONOMIC ASSESSMENT OF HONEYDEW MELONS Executive Summary USDA reported 336 million pounds of U.S. honeydew production in 1993, 23 percent less than in 1992 and marginally lower than the output realized in 1981. California, Texas, and Arizona, respectively, are the leading honeydew-producing states and the only states for which USDA reports honeydew acreage and production. California is by far the leading state in honeydew production. As with cantaloupe, U.S. honeydew production is highly seasonal, with peak output occurring from May through September. The first domestic shipments originate from south Texas during May, followed by supplies from Arizona (mostly during June and July), and California (from June through October). The domestic season ends during November, with the harvesting of a fall crop in California, Arizona, and Texas. Virtually all honeydew are used fresh. U.S. honeydew consumption doubled from about 1.0 pound per person during the early 1970's to about 1.8 pounds during the early 1990's. This increase in consumption is due partly to the increased availability of imported honeydew during the winter and spring months, which are considered to be the U.S. off-season. Grower prices for honeydew are highly variable due to seasonal changes in the volume of production. F.o.b. shipping point prices usually average between $5.00 and $10.00 per 30-pound carton during May, when the domestic season begins and south Texas is the principal source of supplies. Prices typically reach their lowest levels during the July through September period, when California's San Joaquin Valley reaches peak production, and usually rise during the fall and winter. The Census of Agriculture reported 383 farms with 35,005 harvested acres of honeydews in 1992, up from 374 farms and 25,699 harvested acres in 1987. California reported the largest number of farms with honeydews and about three-quarters of U.S. honeydew acreage. In combination, California, Arizona, and Texas accounted for 98 percent of the 1992 Census honeydew acreage. Virtually all--99 percent--of the U.S. honeydew acreage was irrigated. The ideal climate for honeydew production consists of a long, frost-free season with plenty of sunshine, warm temperatures, and relatively low humidity. Although closely related, honeydews are more susceptible to fungal diseases than are cantaloupes. This situation may explain why commercial honeydew production is limited almost exclusively to arid climates in Arizona, California, and Texas. Honeydews can be grown on a wide range of soil types, but produce the highest yields and best-quality melons on fertile, well- drained, slightly acid (pH of 6.0 to 6.5) sandy or silt loam soils. Both open-pollinated and hybrid honeydew varieties are grown commercially. Open-pollinated seed is less expensive than hybrid seed, but more hybrid varieties are being planted. Hybrids tend to be sweeter, produce higher yields, and have greater disease resistance than open-pollinated varieties. Both direct-seeding and transplant-planting are used in establishing honeydew, although increasingly, growers are planting with transplants. Transplanting is generally more expensive than direct seeding, but growers can harvest transplanted honeydews a few days earlier than direct-seeded honeydews. Early-maturing honeydews often are the most profitable because market prices are highest early in the season. Unlike cantaloupes, honeydews do not form an abscission layer between the melon and the stem that permits easy separation from the vine at maturity. Consequently, honeydews are harvested by cutting the stem rather than by pulling the melon from the stem. Pickers select melons for harvest on the basis of background color, which changes from predominately greenish to predominately white when the melons mature. Among production perils, excessive rain is generally the most serious hazard in honeydew production. Excessive heat, excessive cold, excessive cloudiness, hail, drought, and high winds may also cause yield losses. Whiteflies are the most frequently- mentioned insect pest, while vine decline is the most serious disease. Among the major-producing states, weather-related perils appear to be much more serious in Texas than in Arizona and California. In California, weather-related crop losses are relatively uncommon. However, the sweetpotato whitefly caused severe losses to fall cantaloupe and honeydew crops in the southern desert valleys in 1991 and 1992. The impact on overall state production was less severe for honeydew than for cantaloupe, however, because honeydew production was less heavily concentrated in the infested region. Whiteflies have also been a problem in Arizona, although the insecticide "Admire" has been an effective control in that state. Our assessment is that honeydew is a good candidate for multiple- peril crop insurance in Texas, but that there would not be very much interest in insurance among Arizona and California growers. Growers in Texas face a wide array of yield-reducing production risks, especially perils linked with excessive moisture. Disaster assistance payments provide evidence. While Texas accounted for 15 percent of the U.S. honeydew acreage during 1988-1993, Texas growers received 87 percent of the U.S. disaster assistance payments for honeydews over that period. These payments were close to 5 percent of the state's crop value. It is our judgment that interest in honeydew insurance would be relatively minimal among growers in Arizona and California. The basis for this judgment is the small amount of disaster assistance paid for honeydews in these states. California growers harvested about 76 percent of the reported U.S. honeydew acreage between 1988 and 1993, but received only 7 percent of the disaster assistance payments made for that crop. In Arizona, harvested acreage accounted for 9 percent of the U.S. total, but honeydew growers received negligible disaster assistance for that crop between 1988 and 1993. However, there may be some interest among growers in Arizona and the desert valleys of California in buying insurance if the policy covered losses due to whiteflies.