AN ECONOMIC ASSESSMENT OF WATERMELONS
                            Executive Summary

U.S. watermelon production reached 3.67 billion pounds in 1993,
up 1 percent from the prior year and up about 41 percent from
watermelon output in 1981.  Florida, California, Texas, and
Georgia, respectively, are the leading watermelon-producing
states, accounting for two-thirds of U.S. output.  Although
Florida is the leading producer, the largest gains in output
between 1981 and 1993 occurred in California and Georgia.

U.S. watermelon production is highly seasonal, peaking from May
through August and declining through December.  The season begins
with production from Florida, followed by output from Arizona,
Texas, California, and the southeastern and south-central states. 
Florida is the only domestic source of watermelons from December
through April, and then only in small quantities.  Although
Florida growers harvest watermelons during virtually every month,
the peak harvest occurs during May, June, and early July.

U.S. watermelon consumption has increased modestly in recent
years, rising from about 12 pounds per person during the early
1980's to about 14 pounds during the early 1990's.  The rise in
consumption may be due partly to increased availability of
imported watermelons in the U.S. off-season, and the increased
use of watermelon in restaurants and deli salad bars.  The
development of "seedless" watermelons has increased their appeal
to some consumers who disliked the seeds in seeded watermelons.

Considerable variability exists in watermelon prices within the
year, due mostly to seasonal changes in the volume of production. 
The prices that growers receive early in the season, when Florida
is the principal source of domestic watermelons, may reach 10-15
cents a pound.  Prices usually reach their lowest point, at
around 4-5 cents a pound, during July and August, when
watermelons are available from a wide number of sources.  

According to the Census of Agriculture, there were 10,706 farms
with 220,244 harvested acres of watermelons in 1992.  Forty-six
percent of U.S. watermelon acreage was irrigated in 1992.  All of
California's and Arizona's acreage was irrigated, as was 73
percent of Florida's acreage.  There is a significant amount of
non-irrigated  watermelon acreage in other southern and
midwestern states, which is susceptible to yield losses during
periods of drought.

Watermelons prefer a long, warm growing season and are,
therefore, produced primarily in the southern half of the United
States.  The optimum average temperature for growing watermelon
is 70o F to 85o F, but they can tolerate average temperatures as
high as 95o F.  Watermelons are relatively tolerant of high
humidity and can be grown in both humid and arid conditions.

Watermelons prefer well-drained, sandy loam soils which are
slightly acidic or neutral, with a pH in the 6.0 to 7.0 range. 
Watermelons will also do well on other types of soils as long as
adequate water is available and good drainage is provided. 
Currently, approximately 50 varieties of watermelons are produced
commercially in the United States.  The new seedless hybrid
varieties are particularly growing in popularity.

Watermelon can be either direct-seeded or transplanted.  When
direct-seeding is used, growers overplant and then thin to the
desired number of plants per acre after the young plants have
become established.  The high cost of seed--compounded by
overplanting--has led to the increased use of transplants. 
Transplanting is the standard method for planting the seedless
varieties because of high seed costs and because they tend to be
harder to establish by direct seeding than the seeded varieties. 
The use of transplants not only reduces seed costs, it also
offers the potential for an earlier harvest.  

Watermelons are cut from the vine, rather than being pulled or
broken off.  Harvesting crews typically consist of 2 or 3
cutters, 4 to 6 loaders, 2 stackers, and one truck driver.  The
cutters select ripe melons and cut and place them along in-field
roadways.  Loaders pick up and pass the harvested melons to
stackers located on a wagon or field truck.  The melons are then
hauled out of the field to a waiting over-the-road tractor-
trailer for bulk loading or to a nearby packingshed for bin- or
carton-packing.

Because watermelons in a given field ripen at different times,
growers need to harvest several times to achieve maximum yields. 
The first harvest yields the largest and highest-quality melons. 
Size and quality generally decline with successive harvests and
costs rise because the harvesting crew must glean a larger area
to collect a load of melons.

The major production perils affecting watermelons include
excessive rain, excessive heat, and, in non-irrigated areas,
drought.  Excess rain during any stage of growth can reduce
watermelon yields.  Excessive heat and direct sunlight increase
the likelihood of yield losses due to sunscald or sunburn, which
causes yellowing of the rind.  Drought may reduce watermelon
yields by diminishing plant growth, limiting the development and
size of the melons, and can exacerbate losses due to sunscald.  

Bacterial fruit blotch, a relatively new watermelon disease in
the United States, is also a major concern.  It is thought to be
a seedborne disease, and its symptoms include brownish scabs and
eventual souring of the flesh.  Yield losses can be substantial
in infected fields.  The disease is thought to be more serious in
humid areas than in drier production areas. Since the disease
appears to be seedborne, some seed companies have withdrawn their
seed from the market because of concerns over liability for crop
losses. The watermelon industry is working with the seed
companies to establish an effective protocol for certifying
disease-free seed.
 
Our assessment is that watermelon is a good candidate for
multiple-peril crop insurance.  There is likely to be a
substantial demand for insurance among growers in the central and
eastern U.S. growing areas, as these growers face a considerable
array of production perils, particularly when compared with
Arizona and California growers.  Overall, the National Watermelon
Association's position is that they would like for watermelons to
become a "full partner" in crop insurance in the same manner as
the major field crops.