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Background  Sugarcane is one of the most important crops in Brazil, mainly because of its use in biofuel production. Recent studies have sought to determine the role of sugarcane endophytic microbial diversity in microorganism-plant interactions, and their biotechnological potential.  Epicoccum nigrum  is an important sugarcane endophytic fungus that has been associated with the biological control of phytopathogens, and the production of secondary metabolites. In spite of several studies carried out to define the better conditions to use  E. nigrum  in different crops, little is known about the establishment of an endophytic interaction, and its potential effects on plant physiology.    Methodology/Principal Findings  We report an approach based on inoculation followed by re-isolation, molecular monitoring, microscopic analysis, plant growth responses to fungal colonization, and antimicrobial activity tests to study the basic aspects of the  E. nigrum  endophytic interaction with sugarcane, and the effects of colonization on plant physiology. The results indicate that  E. nigrum  was capable of increasing the root system biomass and producing compounds that inhibit the  in vitro  growth of sugarcane pathogens  Fusarium verticillioides ,  Colletotrichum falcatum ,  Ceratocystis paradoxa , and  Xanthomomas albilineans . In addition,  E. nigrum  preferentially colonizes the sugarcane surface and, occasionally, the endophytic environment.    Conclusions/Significance  Our work demonstrates that  E. nigrum  has great potential for sugarcane crop application because it is capable of increasing the root system biomass and controlling pathogens. The study of the basic aspects of the interaction of  E. nigrum  with sugarcane demonstrated the facultative endophytism of  E. nigrum  and its preference for the phylloplane environment, which should be considered in future studies of biocontrol using this species. In addition, this work contributes to the knowledge of the interaction of this ubiquitous endophyte with the host plant, and also to a better use of microbial endophytes in agriculture.

Epicoccum nigrum P16, a Sugarcane Endophyte, Produces Antifungal Compounds and Induces Root Growth