2006 Annual Report 4d.Progress report. This report serves to document research conducted under a reimbursable agreement between ARS and the USDA, CSREES, NRI. Additional details of research can be found in the report for the parent 1931-21000-015-00D Integrated Orchard Management and Automation for Deciduous Tree Fruit Crops. In collaboration with Dr. Clarissa R. Mathews, Shepherd Univ., and Dr. Aijun Zhang, USDA, ARS, Chemicals Affecting Insect Behavior Laboratory, Beltsville, it was shown that the multicolored Asian Lady beetle did not respond to odors of extrafloral nectar from peach. The attraction to these food sources was concluded to be due to feeding on the nectar once encountered while searching for food, whether it is for aphids or other sources. Studies have been initiated to evaluate the tufted apple budmoth parasitoid, Goniozus flavadana, to nectar. Further field studies on predator and parasitoid reaction to peach extrafloral nectar have continued. Field data showed that peach extrafloral nectar in apple orchards does enhance biological control of spirea aphid on apple. It was also shown that if too many sources of nectar are provided there can be a reduction in biological control. Apple orchards with 9% of the trees being peach trees showed greater biological control by the multicolored lady beetle than orchards with no peach trees or orchards with 50% of the trees being peach. It is concluded that to optimize biological control of spirea aphid in apple orchards, no more than 20% of the trees should be producing extrafloral nectar, otherwise the nectar would compete with aphids for the searching lady beetles.