AN ECONOMIC ASSESSMENT OF CANTALOUPE
                            Executive Summary

USDA reported 1.855 billion pounds of U.S. cantaloupe production
in 1993, up 6 percent from the prior year and about 39 percent
above output reported for 1981.  California, Arizona, and Texas
were the leading cantaloupe-producing states, accounting for 91
percent of 1993 output.  California alone accounted for two-
thirds of U.S. production in that year.

U.S. cantaloupe production is highly seasonal, with peak output
occurring from May to September.  During May, the first domestic
shipments of the season originate from south Texas, California
(the Imperial Valley), and Arizona.  By the first week of June,
Georgia and other southern, central, and eastern states begin to
ship cantaloupes.  The central and eastern states ship mostly
during July and August. 

Cantaloupe is consumed almost exclusively fresh.  U.S. cantaloupe
consumption has increased modestly in recent years, rising from
about 6-7 pounds per person during the early 1970's to about 8-9
pounds during the early 1990's.  This rise is due partly to the
increased availability of imported cantaloupes during the winter
and spring months, which are considered to be the "U.S. off-
season." 

Domestic grower prices for cantaloupe are highly variable due to
seasonal changes in the volume of production.  F.o.b. shipping
point prices usually average between $5.50 and $11.00 per 40-
pound carton during May, when the domestic season begins.  Prices
typically drop to their lowest levels by July, when California's
San Joaquin Valley reaches peak production, and remain relatively
flat during July, August, and September.  Prices usually then
rise during October and November when the San Joaquin Valley
season ends.

The Census of Agriculture reported 7,501 farms with 106,938
harvested acres of cantaloupes in 1992.  Pennsylvania and Texas
have the largest number of farms with cantaloupes, while
California reported the largest acreage.  Eighty-five percent of
the total U.S. cantaloupe acreage was irrigated in 1992.  All of
the acreage in California, Arizona, and Colorado was irrigated,
and 79 percent of that in Texas.  On the other hand, only about a
quarter of the acreage in Pennsylvania and about half of that in
Michigan was irrigated.

The ideal climate for growing cantaloupe consists of a long,
frost-free season with plenty of sunshine and heat, and
relatively low humidity.  Cantaloupe may be grown in nearly all
areas of the United States, but the largest share of commercial
production is located in somewhat arid regions--particularly in
Arizona and California.  Production is relatively more
concentrated in arid areas than for certain other melons, such as
watermelons, because cantaloupes are more susceptible to fungal
diseases.

Numerous cantaloupe varieties are grown commercially, varying in
their fruit characteristics (size, shape, flavor, sugar content,
rind color, amount of netting, shipping quality), and in their
level of disease resistance.  Both open-pollinated and hybrid
varieties are planted across the United States.  Open-pollinated
seed is less expensive than hybrid seed, but more hybrid
varieties are being planted because they tend to be sweeter and
firmer, and to show increased plant vigor and higher yields.  

Cantaloupes mature in 80 to 110 days after direct seeding.  Sugar
content is the principal measure of maturity and an important
aspect of quality.  Cantaloupes should have at least 10 percent
soluble solids (sugar) for good dessert quality.  High quality,
crown-set fruit (the first melons on the vine to mature) may have
a soluble solid content of 14 percent or higher.  Sugar content
does not increase once the melon has been removed from the vine. 

Cantaloupes are usually harvested at what is known as "three-
quarters-" to "full slip."  Full slip is the condition in which
an abscission layer has formed between the stem and the melon
that allows the whole stem to separate cleanly from the melon
with a slight tug.  At three-quarters slip, one-fourth of the
stem usually adheres and breaks rather than slipping free.  In
addition to sugar content, growers may consider market prices,
weather conditions, anticipated yields, and distance to the
market in deciding when to harvest.  

Among production perils, excessive rain is identified as the most
serious peril in south Texas and in the eastern and midwestern
cantaloupe-producing areas.  Excessive heat, excessive cold,
excessive cloudiness, hail, drought, and high winds may also
cause yield losses.  Whiteflies, pickleworms, and cucumber
beetles are identified as the most widespread insect problems,
while mildews, blight, and vine decline are the chief disease
problems.

In California, weather-related crop losses are relatively
uncommon.  However,  the sweetpotato whitefly strain B
(silverleaf whitefly) has caused extensive crop damage in the
southern desert valleys since 1991, with the Imperial Valley
sustaining the greatest losses.  Whiteflies reduce the plant's
vigor and serve as carriers for plant viruses.  Because damage
occurs only after whitefly populations build up, losses have been
limited to fall cantaloupes.  Extended periods of heat are needed
for rapid growth of whitefly populations, and the spring crop,
consequently, has been largely unaffected.

Our assessment is that cantaloupe is a good candidate for
multiple-peril crop insurance in Texas and in the central and
eastern United States.  Growers in these areas face a wide array
of yield-reducing production perils, especially perils linked to
excessive rain and moisture.  Disaster assistance payment and
crop production statistics suggest relatively large crop losses
among growers in the central, southern, and eastern U.S., when
compared with those in Arizona and California. 

It is our judgement that participation in cantaloupe insurance
would be low among growers in Arizona and California.  The basis
for this judgment is the small amount of disaster assistance paid
to Arizona and California growers in recent years (0.1 percent of
the value of crop sales for each state), and the high percentage
of planted acreage that is harvested (100 percent for the 7
reported years between 1977-81, 1992, and 1993).  However, in
California's Imperial Valley, growers may have an interest if
whiteflies were covered by the policy.