I have the same thing in my yard here in GA. Do you see a pattern or are they randomly spread throughout the yard? I see discussions that grubs dig holes but my holes seem too big for that. The holes are perfectly round, about the size of a quarter or even a half dollar.What about crawldads? Someone on another site suggested that.

If these holes are located in an area that has been dry as dust for a long time, they might be caused by an ant lion insect (which google). The insect is a predator that waits, buried in the bottom of the hole for another insect to enter and slide down to the bottom, where it gets munched by the ant lion. hortster

Thanks Ottawapepper. I opened the holes in the peppers, and i don't see those critters but i guess i will try trapping them according to the article. Odd, that they don't like my spicier thai peppers. http://homeguides.sfgate.com/earwigs-pepper-plants-26228.html Damage to Peppers Earwigs eat the leaves and tender young growing points of pepper plants and can completely destroy or severely stunt seedlings. As plants mature with taller stems and tougher leaves, earwigs aren't as much of a problem to the foliage. Earwigs can destroy the fruit as well. They eat a hole through the pepper close to where it meets the stem, eating it from the inside. This deforms the pepper and ruins it for human consumption. Control Remove earwigs by trapping them. Shallow cans like tuna fish or cat food cans are good traps. Put about one-half inch of tuna or sardine oil or oil with a drop of bacon grease added in the can bottom and hide them amid pepper plants where earwigs were seen. Rolled-up tubes of moist newspaper or corrugated cardboard are also effective. Put the traps out before dark and shake trapped earwigs into a pail of soapy water the next morning to kill them. Repeat this daily until no more earwigs are being caught. If earwigs are found actively eating pepper plants at night, put soapy water in a spray bottle and spray it on the earwigs. Prevention Encourage insect-eating animals like toads, frogs and lizards to live in your garden. A combination of trapping and habitat management should keep garden earwig populations from becoming a problem. anyone have any spare lizards they don't want?

Looks like damage from a Tomato Fruitworm. Once in the tomato, the tomato is no good....you can't "cure" the damage. Prevention is the only step, now, from spreading to other fruit. If you see a tomato with a hole in it (some up to the size of a pea), pick it and get rid of it. I am not talking about "bites" such as tomato hornworms make, but holes that look like they were drilled into (or out) of the fruit. BT, Neem, or Spinosad can be applied to the plant and fruit, and I believe they are organic approved; but read the instructions. The little worms are the color of the stem and leaves, and prefer new green fruit. Good Luck!