USDA Pecan Council Changes: What Otero County Should Know
Published 9 November 2026
The U.S. Department of Agriculture published a proposed rule on November 9, 2026, that would change how the American Pecan Council seats pecan shellers, update a handler reporting form and add late fees and interest on unpaid assessments. Pecans are grown here in the Tularosa Basin, so the proposal touches Otero County's farm economy. Anyone can send USDA a comment until December 9, 2026.
What is USDA proposing for pecans?
The proposed rule in the Federal Register carries out recommendations from the American Pecan Council, the industry board that runs the federal marketing order for pecans grown in 15 states, including New Mexico. The council voted unanimously for the changes at its August 14, 2025, meeting. USDA's summary lists four main changes:
| Proposed change | What it would do |
|---|---|
| Sheller seats | Remove the regional and size designations for sheller members of the council |
| Sheller nominations | Change how sheller members are nominated |
| Transfer reports | Adjust the report handlers file when they pass pecans to another handler |
| Late payments | Add a late fee and interest on assessments that are not paid on time |
USDA also proposes two technical corrections to the rules.
Why does USDA want to change the sheller seats?
Right now the council's sheller seats are split by region, Eastern, Central and Western, with two seats in each. One seat in each region goes to a sheller handling more than 12.5 million pounds of pecans a year and one to a smaller sheller. New Mexico is in the Western region.
According to the proposal, fewer than 30 shellers were still in business as of August 2025, down from 50 in 2016, and the council has had trouble filling sheller seats. Removing the regional and size labels would let any qualified sheller fill an open seat. Supporters see that as a way to keep seats filled. The trade-off is that a region would no longer be guaranteed its own sheller seats.
What would the late fees look like?
Under the proposal, a handler whose assessment is still unpaid 30 days after the due date would owe a one-time late charge of 5% of the amount due. On top of that, interest of 1% per month would be added on the unpaid balance, including the late charge and any interest already added.
Here is what that means on a $1,000 assessment, using my own math:
| Step | Amount |
|---|---|
| Late charge (5% of $1,000) | $50 |
| Balance after the late charge | $1,050 |
| First month of interest (1% of $1,050) | $10.50 |
These charges only apply to handlers who pay late. Assessments are paid by handlers, the businesses that buy and pack or shell pecans, not directly by growers.
How big are pecans in Otero County?
New Mexico is one of the country's top pecan states. New Mexico State University's pecan program says the state produces roughly 20% of the U.S. crop each year and that about 5% of New Mexico's pecan acreage is in the Tularosa Basin in Otero County. Most of the state's acreage, about 70%, is in the Mesilla Valley near Las Cruces.
That makes Otero County a smaller player than its neighbors, but orchards are part of the landscape and the farm economy here.
How can I comment on the pecan proposal?
Comments are due by December 9, 2026. The Federal Register notice lists these options:
- Online: through Regulations.gov, searching for docket AMS-SC-25-0881
- By email: to MarketingOrderComment@usda.gov
- By mail: to the Docket Clerk at USDA's Agricultural Marketing Service, using the address in the notice
USDA asks that comments mention the document number and the date and page number of the Federal Register issue. Comments are made public and posted to Regulations.gov without change, so do not include anything you would not want shared.
What does this mean for landowners and buyers?
Most homeowners will not notice this rule at all. If you own, or are thinking about buying, land with a working pecan orchard in the Tularosa Basin, it is worth knowing how the industry around you is organized and who buys the crop. When I help buyers with farm and ranch property, questions like water rights, irrigation and existing crop contracts matter just as much as the house. If local agriculture is part of why you love it here, my posts on McGinn's PistachioLand (its website) and the Saturday farmers market show off more of what grows in Otero County.
Frequently Asked Questions
What is USDA proposing for the American Pecan Council?
USDA proposes removing the regional and size designations for sheller seats, changing sheller nominations, adjusting the handler transfer report and adding late fees. It also includes two technical corrections.
When is the deadline to comment on the pecan rule?
Comments must be received by December 9, 2026. You can comment online at Regulations.gov under docket AMS-SC-25-0881.
How much is the proposed late fee on pecan assessments?
It would be a one-time charge of 5% of the unpaid assessment. Interest of 1% per month would also be added on the unpaid balance after 30 days.
Are pecans grown in Otero County?
Yes. New Mexico State University says about 5% of New Mexico's pecan acreage is in the Tularosa Basin in Otero County.
Does the pecan rule change anything for homeowners?
Not directly. It mainly affects pecan shellers and handlers who report and pay assessments under the federal marketing order.
Information comes from the proposed rule published in the Federal Register on 9 November 2026 and New Mexico State University, checked 9 November 2026. This is a summary, not legal advice, so read the full notice before commenting.