INTRODUCTIONThe tenn endophyte (Greek: endo == within + phyte = plant) has been defined as an organism contained or growing (entirely) within the substrate plant, whether parasitically or not (100, 106). Using this tenn in its broadest sense, the subject of this chapter could include all fungi that spend all or nearly all of their life cycles in the host grasses. We do not discuss such endophytic fungi as the smuts and vesicular-arbuscular mycorrhizas that infect grass. Instead, our interests lie primarily with a specific group of c1avicipitaceous fungi that belong or are related to fungi in the tribe Balansiae (5, 24). These fungi either are true endophytes that never produce external fructifications on the plant or else may produce external mycelium andlor spores that affect flower and seed production. We focus specifically on those grass-endophyte complexes that may also cause maladies of grazing animals.Using the above criteria, two recent events involving grass-endophyte associations have important implications for the livestock industry. In 1977 Bacon et al (9) reported the close association of an endophyte (Sphacelia typhina) in infected tall fescue (Festuca arundinacea) and the incidence of 293 0066-4286/87/090 1-0293$02.00Annu. Rev. Phytopathol. 1987.25:293-315. Downloaded from www.annualreviews.org by ILLINOIS STATE UNIVERSITY on 10/24/12. For personal use only. Quick links to online content Further ANNUAL REVIEWS 294 SIEGEL, LATCH & JOHNSON fescue toxicosis (summer syndrome) in cattle. A similar association between a then unidentified endophyte in perennial ryegrass (Latium perenne) and the incidence of ryegrass staggers in sheep in New Zealand was reported in 1981 by Fletcher & Harvey (27). Since the initial work of Bacon et al (9) in 1977, researchers have come to further understand the relationship between fungal endophytes of grasses and animal toxicoses. This understanding includes the origin and incidence of infected grasses, modes of dissemination of the fungi, identification of the chemicals responsible for toxicoses, and control of the fungi. Specifically, what has been learned is that endophyte-infected tall fescue and perennial ryegrass are widely distributed in the United States and New Zealand, respec tively; endophytic fungi are only seed disseminated; specific chemicals are responsible for fescue toxicosis and ryegrass staggers; infected pasture grasses cost the livestock producer hundreds of millions of US dollars annually in lost production; the fungi cannot be controlled in the field, but endophyte-free cultivars do result in greatly improved livestock production in the United States; and lastly, the relationship between grass and symbiont is primarily mutualistic. resulting in many benefits to host and fungus (5, 10, 97). With regard to this final point, it is now recognized that these grass endophytes can play an important role in survival of the host plants subjected to environmen tal stresses (insects, grazing animals, drought, and heat). The potential for improved insect resist...