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Briefing Rooms

Vegetables and Melons: Background

Contents
 

The vegetable and melon industry might best be described as "diversity within a common framework." While frequently viewed as a single industry, it is actually composed of hundreds of independent markets that function within the U.S. food marketing system. Vegetable and melon farm cash receipts averaged $18.0 billion between 2000 and 2007, 8 percent of total cash receipts (crops and livestock) and 16 percent of crop receipts. This was generated on less than 2 percent of all U.S. harvested acreage.

One way to classify the vegetable and melon industry is by the two major end uses: fresh market and processing. Processing can be further divided into canning, freezing, and dehydrating. Commodities grown specifically for one use frequently cannot be diverted to another in response to short-term market signals because they do not meet the exacting requirements of the alternative use.

According to the 2002 Census of Agriculture, vegetable and melon farms are largely individually owned and relatively small, with nearly three-fourths harvesting fewer than 25 acres. However, relatively few farms account for most commercial sales of vegetables and melons. About 12 percent of vegetable and melon farms had sales in excess of $500,000, yet these farms accounted for 87 percent of vegetables and melons sold by growers.

Production of vegetables and melons in the United States continues to trend higher with output this decade running about 12 percent above that of a decade earlier. While total vegetable output has continued to rise over the past decade, acreage has declined slightly, indicating increasing productivity per acre.

Potato field with a center pivot irrigation system

Vegetable and melon production (including potatoes, sweet potatoes, mushrooms, and pulses) occurs throughout the United States, with the largest acreage in California, North Dakota (primarily potatoes and pulse crops), Idaho, Michigan, Minnesota, Washington, and Wisconsin. More than half of all vegetable production occurs on irrigated acreage. The Upper Midwest (Wisconsin, Minnesota, and Michigan) and the Pacific States (California, Washington, and Oregon) report the largest vegetable acreage for processing, while California, Florida, Georgia, Arizona, and New York harvest the largest acreage for the fresh market.

California and Florida produce the largest selection and quantity of fresh vegetables. California also produces vegetables for processing (especially tomatoes), while the Upper Midwest States (Michigan, Wisconsin and Minnesota) grow a large portion of the green peas, snap beans, and sweet corn used in canning. Northwestern States (Washington, Oregon, and Idaho) along with New York supply the lion's share of frozen vegetables and more than half the potatoes. Significant potato production also takes place in Wisconsin, North Dakota, and Colorado. North Carolina, California, and Mississippi produce more than three-fourths of the sweet potato crop. Pennsylvania and California raise the majority of the Nation's mushrooms.

Processing Versus Fresh

For most vegetables, growing for processing is distinct from producing for the fresh market. Generally, little diversion takes place between the fresh and processing markets in the United States. Most varieties grown for processing are better adapted to mechanical harvesting and often do not have characteristics desirable for fresh-market sale. For example, processing tomatoes are generally smaller and possess different internal attributes (such as soluble solids) than most fresh varieties (except plum types). Most vegetables destined for processing are grown under contractual arrangements between growers and processors, whereas contracting for fresh market sales, although increasing, is still less common. About half of all vegetable and melon production is destined for processing.

Climate causes most domestic fruit and vegetable production to be seasonal, with the largest harvests occurring during the summer and fall. Imports supplement domestic supplies, especially of fresh products during the winter, resulting in increased choices for consumers. For example, Florida produces the majority of domestic warm-season vegetables like fresh tomatoes during the winter and spring, while California produces the bulk of U.S. output in the summer and fall. Fresh tomato imports, primarily from Mexico and Canada (largely hothouse), boost total supply during the first half of the year and compete directly with winter and early spring production from Florida.

Cabbage harvesting

Vegetable and melon yields have been rising. The major source of higher yields has been the introduction of more prolific hybrid varieties, many of which exhibit improved disease resistance as well as increased fruit set. The adoption of precision farming techniques, including the adoption of drip irrigation, plastic mulches, row covers, more effective pesticide sprays, high-density planting, use of global positioning systems (GPS), and other methodological improvements have also boosted yields.

Over the longer run, shifting from less productive areas to better yielding areas has also contributed to higher U.S. average yields. For example, much of the U.S. potato and onion production has moved from lower yielding Eastern States to more productive Western States, which also offer lower unit production costs.

Vegetable and melon output likely will continue to rise faster than population growth over the next decade due largely to continued emphasis on health and nutrition, resulting in expanding consumer demand. In 1992, the fruit and vegetable industry, in cooperation with the National Cancer Institute, embarked on a campaign (National 5-A-Day) to increase awareness of, and substantially expand, U.S. fruit and vegetable consumption. This effort has been joined by the Specialty Crop Competitiveness Act of 2004 and various provisions in the Food, Conservation, and Energy Act of 2008, which, among other things, seeks to enhance the domestic consumption of vegetables, melons, and fruit. These programs, together with grassroots industry promotion efforts and the strengthened message of the USDA Food Guide Pyramid, will continue to educate consumers on the benefits of a balanced diet that includes a variety of vegetables and melons.

 

For more information, contact: Gary Lucier

Web administration: webadmin@ers.usda.gov

Updated date: October 30, 2008