AN ECONOMIC ASSESSMENT OF BROCCOLI
                            Executive Summary


The U.S. produced about 12 million cwt of broccoli annually
between 1988 and 1993, of which 82 percent was destined for
fresh-market use.  Although the USDA reports acreage and
production for only California, Arizona, Oregon, and Texas,
broccoli is widely grown in the United States.  The Census of
Agriculture reported 46 states having farms with broccoli
production in 1987, and ad hoc disaster assistance data indicate
that payments were made for broccoli in 43 states between 1988
and 1993.  

Broccoli is a relatively new vegetable for many Americans.  The
per capita use of fresh and frozen broccoli increased from an
estimated 1.5 pounds (farm weight equivalent) in 1970 to 5.1
pounds in 1993.  Per capita use has remained relatively constant
or declined slightly since the peak per capita consumption of 6.2
pounds was reached in 1988.  

Although broccoli prices follow a fairly well-defined seasonal
pattern, they can vary substantially from month to month.  They
are generally lowest during May, June, and July, and highest
during December.  The lowest prices occur when supplies from
central California are at a high level and states in the South,
East, and Midwest are shipping broccoli.  Prices rise throughout
the Summer and Fall and usually peak during December. 

The U.S. Census of Agriculture reported 2,821 farms with broccoli
sales in 1987, an increase of more than 200 farms above the 1982
level.  The relative stability in the number of farms, combined
with a 25 percent increase in broccoli harvested acreage over
that period, reflects the growing popularity of broccoli in the
American diet.  

Off-farm employment is not an important source of income
diversification for farmers growing broccoli.  According to the
1987 Census, more than three-fourths of the operators on farms
growing broccoli reported that farming was their main occupation
and over half reported no off-farm work in 1987.  Of the 45
percent of the operators who reported at least one day of off-
farm work, the majority operated small farms.  

Broccoli is grown in at least one part of the U.S. at any given
time of the year.  California, for example, markets fresh
broccoli throughout the year, and accounts for 90 percent of U.S.
production.  Arizona and Texas, also large broccoli-growing
states, each produce during the Fall and Winter.  Northern
states, such as Oregon, Michigan, and Maine, produce for the fall
market only.  Some mid-latitude states, including Virginia and
North Carolina, produce a spring crop and a fall crop, while
several Midwestern states produce during the Summer and Fall.

Broccoli is a cool-season crop.  Most cultivars produce the best-
quality heads during cool weather, and only a few are productive
at temperatures above 85o F.  Broccoli grows best on well-drained
soils with good moisture-holding capacity, with loams, clay
loams, and muck soils ideal for production.

Broccoli is customarily direct-seeded in the field.  However,
young broccoli plants are increasingly transplanted in order for
growers to harvest earlier in the season and to utilize land to
the maximum.  In California, for example, transplanting can cut
at least 15 days off the field-growing period and allows some
growers to harvest three crops per year.

Broccoli needs a steady moisture supply.  The large leaves of the
broccoli plant lose moisture at a fast rate, leading quickly to
drought stress.  The equivalent of 1 to 2 inches of rainfall per
week is required for successful broccoli development. 
Nationally, 94 percent of U.S. broccoli harvested area was
irrigated in 1987.  Virtually all broccoli is irrigated in
Arizona, California, and Texas; far less is irrigated in
Michigan, New York, and Maine. 
Broccoli is normally ready for harvest 45 to 60 days after
transplanting or 60 to 75 days after direct seeding.  Broccoli is
harvested by hand-cutting the heads from the stalk.  Although
mechanical harvesting is available, it is not used because the
heads do not mature uniformly enough to cut all plants in one
pass through the field.  After the primary head has been cut from
the plant, side shoots or secondary heads develop.  These
secondary heads are not usually harvested unless market prices
are exceptionally high.

The natural perils that would be most likely to result in
indemnities under a broccoli policy include excessive rain,
excessive heat (which can cause heads to over-mature), extreme
cold, and drought (in the generally non-irrigated Midwest and
Eastern states).  Growers generally report that they can cope
with insect perils by following prudent pest management
practices.  Various diseases, particularly rots, can cause
significant yield losses.

Ad hoc disaster data can be used to indicate which broccoli-
producing areas received large payments relative to their
acreage.  NASS does not report broccoli acreage in Illinois and
Wisconsin, although those states accounted for an average of 11
to 12 percent of U.S. ad hoc disaster payments made for broccoli
between 1988 and 1993.  Similarly, NASS data indicate that Texas
accounted for a relatively large share of payments.  In contrast,
Arizona and California collected a small share of ad hoc
payments.

Insurance issues addressed in this report include the setting of
reference prices, estimating "appraised production," moral
hazard, and the demand for insurance.  Our research suggests that
the demand for a broccoli policy would likely be higher in states
in the Midwest and East, and in Texas, than in Arizona and
California.

A limitation to offering broccoli insurance in the eastern states
is the lack of sufficient acreage in any one county to justify
offering a crop insurance policy.  Except for Aroostook County in
Maine and Cameron and Hidalgo counties in Texas, very few
counties in the eastern states have 500 acres or more of
broccoli.  Most have less than 100 acres.