delete PART 986—PECANS GROWN IN THE STATES OF ALABAMA, ARKANSAS, ARIZONA, CALIFORNIA, FLORIDA, GEORGIA, KANSAS, LOUISIANA, MISSOURI, MISSISSIPPI, NORTH CAROLINA, NEW MEXICO, OKLAHOMA, SOUTH CAROLINA, AND TEXAS
This regulation establishes the American Pecan Council, a government-sanctioned industry body that governs the pecan industry across 15 states. It imposes mandatory assessments on growers and handlers, sets quality standards, regulates handling and marketing, and creates a governance structure where large producers control the council through volume-weighted voting. The council operates under USDA oversight with powers to enforce compliance, conduct research, and manage promotional activities funded by compulsory fees.
This is a classic regulatory capture scheme that uses government coercion to enable large pecan producers to cartelize the industry at the expense of small growers and consumers. The mandatory assessment is a hidden tax. The voting structure gives disproportionate control to massive operations (176+ acres, 1M+ pounds), entrenching incumbents and raising barriers to entry. Federal micromanagement of a single agricultural commodity violates Tenth Amendment principles of state sovereignty. The same industry coordination and quality standards could be achieved voluntarily through trade associations and existing USDA grading services without compulsion. The unseen consequences include reduced competition, stifled innovation, and higher consumer prices to fund bureaucratic oversight.