[PPT] - HOW MUCH DOES GOVERNMENT COST THE SHELLFISH INDUSTRY? Jonathan PowerPoint Presentation

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HOW MUCH DOES GOVERNMENT COST THE SHELLFISH INDUSTRY?

Jonathan van S enten & Carole R. Engle 44th East Coast Commercial Fisherman’s & Aquaculture Trade Exposition January 13, 2018

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AQUACULTURE REGULATIONS IN THE U.S.

BAITFISH & SPORTFISH TROUT WEST COAST SHELLFISH

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Thank you

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AQUACULTURE REGULATIONS IN THE U.S.

FEDERAL S TATE LOCAL

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AQUACULTURE REGULATIONS IN THE U.S.

FEDERAL S TATE LOCAL

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AQUACULTURE REGULATIONS IN THE U.S.

FEDERAL S TATE LOCAL

1,300+ laws

Fish Health Environmental Management Legal and Labor S tandards Interstate Transport Culture of Commercially Harvested S pecies Food S afety

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Across 3 studies, producers identified as the #1 challenge to their business.

AQUACULTURE REGULATIONS IN THE U.S.

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Producers reported significant time and labor

investments for

Permitting
Record keeping
Reporting
Monitoring
Compliance
Litigation

AQUACULTURE REGULATIONS IN THE U.S.

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WHAT DOES THIS MEAN FOR PRODUCERS?

IT BOILS DOWN TO $$ MONEY $$

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WHAT DOES THIS MEAN FOR PRODUCERS?

Regulations account for about

f farm costs

Average Regulatory Cost per Acre

Large farms >500 acres Medium farms 51-499 acres Small farms <50 acres

Permits and licenses account for only 1%

f regulatory costs.

99%

f costs are

indirect costs of compliance.

1%

U.S. producers spend an estimated per year on regulatory compliance. This breaks down to an average cost of $150,000/farm, or $3,000/acre. On average U.S. producers are faced with 17 permit and license renewals per year. Some report in excess of 200 annual renewals.

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WHAT DOES THIS MEAN FOR PRODUCERS?

Regulations account for about

f farm costs

Average Regulatory Cost per Acre

Large farms >500 acres Medium farms 51-499 acres Small farms <50 acres

Permits and licenses account for only 1%

f regulatory costs.

99%

f costs are

indirect costs of compliance.

1%

U.S. producers spend an estimated per year on regulatory compliance. This breaks down to an average cost of $150,000/farm, or $3,000/acre. On average U.S. producers are faced with 17 permit and license renewals per year. Some report in excess of 200 annual renewals.

WHAT WILL THEY BE FOR WES T COAS T S HELLFIS H? WE WILL KNOW S OON…

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PRELIMINARY FINDINGS CHALLENGES TO THE BUSINESS

Diseases 13% Labor 3% Markets 9% Regulations 53% Other 22%

WASHINGTON #1 CHALLENGE

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Diseases 0% Labor 20% Markets 20% Regulations 40% Other 20%

OREGON #1 CHALLENGE

PRELIMINARY FINDINGS CHALLENGES TO THE BUSINESS

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Diseases 8% Labor 15% Markets 0% Regulations 46% Other 31%

CALIFORNIA #1 CHALLENGE

PRELIMINARY FINDINGS CHALLENGES TO THE BUSINESS

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PRELIMINARY FINDINGS REGULATORY CHALLENGES

5 10 15 20 25

Washington Challenging Regulations Ranking

#1 #2 #3 #4 #5

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5 10

California Challenging Regulations Ranking

#1 #2 #3 #4 #5

PRELIMINARY FINDINGS REGULATORY CHALLENGES

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PRELIMINARY FINDINGS LOST OPPORTUNITIES?

Yes 52% No 21% NR 27%

WASHINGTON

Yes 40% No 40% NR 20%

OREGON

Yes 75% No 8% NR 17%

CALIFORNIA

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PRELIMINARY FINDINGS UNEXPECTED CHANGES?

Yes 55% No 26% NR 19%

WASHINGTON

Yes 0% No 40% NR 60%

OREGON

Yes 54% No 23% NR 23%

CALIFORNIA

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PRELIMINARY FINDINGS OTHER FARMS OUT OF BUSINESS?

Yes 55% No 13% NR 32%

WASHINGTON

Yes 0% No 60% NR 40%

OREGON

Yes 69% No 0% NR 31%

CALIFORNIA

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PERMITTING PROCESS FOR WEST COAST SHELLFISH

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0% 10% 20% 30% 40% 50% 60% 70% 80% Paperwork Meetings Testifying Public Relations Compiling S cience Other

Average Time S pent to Obtain Permits

Washingt on Oregon California

PRELIMINARY FINDINGS MANPOWER FOR PERMITS

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PRELIMINARY FINDINGS MANPOWER FOR COMPLIANCE

0% 10% 20% 30% 40% 50% 60% S ampling Monitoring Record Keeping Reporting Meetings Other

Average Time S pent for Compliance

Washingt on Oregon California

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22% 9% 58%

COSTS ASSOCIATED WITH OBTAINING PERMITS (WA)

ENVIRONMENTAL CONSULTANTS EXPERT WITNESS LOST SALES

PRELIMINARY FINDINGS

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PRELIMINARY FINDINGS

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55% 26% 19% Yes No NR

PRELIMINARY FINDINGS

UNEXPECTED CHANGES DUE TO REGULATIONS (WA)

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55% 13% 32% Yes No NR

PRELIMINARY FINDINGS

DO YOU KNOW FARMS THAT HAVE GONE OUT OF BUSINESS DUE TO REGULATIONS? (WA)

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Shellfish permits specify type of gear. New, more efficient gear requires new permits.

Permitting delays make adoption infeasible. Small-scale farms cannot adopt gear better for farms & environment

How many farms can survive more than a year without sales, waiting on a permit?

PRELIMINARY FINDINGS UNINTENDED CONSEQUENCES

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Multiple regulatory levels involved

(county, state, federal)

Overlap between regulatory agencies for

permitting

Permits delayed for 5, 10, 15 years
No new farm permits issued
Not possible to expand existing

businesses WEST COAST SHELLFISH WHAT WE ARE SEEING IN THE DATA

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Market demand for shellfish is growing, but

regulations and permit denials prevent producers from taking advantage of it

High start up costs – prohibitive to new

entry

High legal costs to fight permit appeals
Lost opportunities – restrictions on gear and

technologies WEST COAST SHELLFISH WHAT WE ARE SEEING IN THE DATA

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Jonathan van S enten Virginia S eafood AREC 102 S King S t, Hampton VA 23669 757-727-4861 j vansenten@ vt.edu

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