Pecan Growers Return on Investment Study Published

March 05, 2021

Please find attached a summary memo and a copy of the Federal Agriculture Improvement & Reform (FAIR) Act Study for the American Pecan Council.  The purpose of the independent study is to ensure that the industry’s resources are being utilized in an efficient and effective manner. Federal Marketing Orders are required to conduct a FAIR Act Study to monitor this. According to the study’s Executive Summary:

The primary conclusion from the promotion analysis is that, despite its relatively recent launch, the American Pecan Council has effectively enhanced domestic and export demand for U.S. pecans over 2016/17 through 2019/20 through its generic promotion activities and generated a relatively high rate of return to pecan producers who have paid for the promotion over that period. The principal accomplishment of the APC domestic and export promotion program has been to support the annual average producer price of pecans about 24¢/lb (11%) above the level to which it might have fallen over the period of 2016/17 through 2019/20 if the promotion had not been done. Given APC promotion expenditures (including MAP funds but excluding administrative costs), the benefit-cost ratio for the APC promotion program for 2016/17 through 2019/20 is calculated at 9.9, meaning that the promotion returned $9.9 in profit to pecan producers for every dollar spent on promotion.

This is great news as the study shows that the federal marketing order is working, in just 4 short years.  A copy of the complete report is attached below.

FAIR ACT Study Memo

Full FAIR Act Study

Should you have any questions, please do not hesitate to contact the Council office.

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