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Provides some good entertainment too watching them fighting over those worms!Get chickens and build a chicken coop close the garden. Toss the horn worms into the chicken pen.
ticndig, those are actually cocoons of parasitic wasps that have eaten the insides of the caterpillar. If the wasp larvae don't get out before the caterpillar dries up they will die with it. It's a very interesting life cycle.
The best way to get rid of the hornworms is like everyone else has said, hand pick and destroy. You chose the method of destruction.