The Annual Economic Survey of Federal Gulf Shrimp Permit Holders: Report on the Design, Implementation, and Descriptive Results for 2006

This technical memorandum documents the design, implementation, data preparation, and descriptive results for the 2006 Annual Economic Survey of Federal Gulf Shrimp Permit Holders. The data collection was designed by the NOAA Fisheries Southeast Fisheries Science Center Social Science Research Group to track the financial and economic status and performance by vessels holding a federal moratorium permit for harvesting shrimp in the Gulf of Mexico. A two page, self-administered mail survey collected total annual costs broken out into seven categories and auxiliary economic data. In May 2007, 580 vessels were randomly selected, stratified by state, from a preliminary population of 1,709 vessels with federal permits to shrimp in offshore waters of the Gulf of Mexico. The survey was implemented during the rest of 2007. After many reminder and verification phone calls, 509 surveys were deemed complete, for an ineligibility-adjusted response rate of 90.7%. The linking of each individual vessel’s cost data to its revenue data from a different data collection was imperfect, and hence the final number of observations used in the analyses is 484. Based on various measures and tests of validity throughout the technical memorandum, the quality of the data is high. The results are presented in a standardized table format, linking vessel characteristics and operations to simple balance sheet, cash flow, and income statements. In the text, results are discussed for the total fleet, the Gulf shrimp fleet, the active Gulf shrimp fleet, and the inactive Gulf shrimp fleet. Additional results for shrimp vessels grouped by state, by vessel characteristics, by landings volume, and by ownership structure are available in the appendices. The general conclusion of this report is that the financial and economic situation is bleak for the average vessels in most of the categories that were evaluated. With few exceptions, cash flow for the average vessel is positive while the net revenue from operations and the “profit” are negative. With negative net revenue from operations, the economic return for average shrimp vessels is less than zero. Only with the help of government payments does the average owner just about break even. In the short-term, this will discourage any new investments in the industry. The financial situation in 2006, especially if it endures over multiple years, also is economically unsustainable for the average established business. Vessels in the active and inactive Gulf shrimp fleet are, on average, 69 feet long, weigh 105 gross tons, are powered by 505 hp motor(s), and are 23 years old. Three-quarters of the vessels have steel hulls and 59% use a freezer for refrigeration. The average market value of these vessels was $175,149 in 2006, about a hundred-thousand dollars less than the average original purchase price. The outstanding loans averaged $91,955, leading to an average owner equity of $83,194. Based on the sample, 85% of the federally permitted Gulf shrimp fleet was actively shrimping in 2006. Of these 386 active Gulf shrimp vessels, just under half (46%) were owner-operated. On average, these vessels burned 52,931 gallons of fuel, landed 101,268 pounds of shrimp, and received $2.47 per pound of shrimp. Non-shrimp landings added less than 1% to cash flow, indicating that the federal Gulf shrimp fishery is very specialized. The average total cash outflow was $243,415 of which $108,775 was due to fuel expenses alone. The expenses for hired crew and captains were on average $54,866 which indicates the importance of the industry as a source of wage income. The resulting average net cash flow is $16,225 but has a large standard deviation. For the population of active Gulf shrimp vessels we can state with 95% certainty that the average net cash flow was between $9,500 and $23,000 in 2006. The median net cash flow was $11,843. Based on the income statement for active Gulf shrimp vessels, the average fixed costs accounted for just under a quarter of operating expenses (23.1%), labor costs for just over a quarter (25.3%), and the non-labor variable costs for just over half (51.6%). The fuel costs alone accounted for 42.9% of total operating expenses in 2006. It should be noted that the labor cost category in the income statement includes both the actual cash payments to hired labor and an estimate of the opportunity cost of owner-operators’ time spent as captain. The average labor contribution (as captain) of an owner-operator is estimated at about $19,800. The average net revenue from operations is negative $7,429, and is statistically different and less than zero in spite of a large standard deviation. The economic return to Gulf shrimping is negative 4%. Including non-operating activities, foremost an average government payment of $13,662, leads to an average loss before taxes of $907 for the vessel owners. The confidence interval of this value straddles zero, so we cannot reject, with 95% certainty, that the population average is zero. The average inactive Gulf shrimp vessel is generally of a smaller scale than the average active vessel. Inactive vessels are physically smaller, are valued much lower, and are less dependent on loans. Fixed costs account for nearly three quarters of the total operating expenses of $11,926, and only 6% of these vessels have hull insurance. With an average net cash flow of negative $7,537, the inactive Gulf shrimp fleet has a major liquidity problem. On average, net revenue from operations is negative $11,396, which amounts to a negative 15% economic return, and owners lose $9,381 on their vessels before taxes. To sustain such losses and especially to survive the negative cash flow, many of the owners must be subsidizing their shrimp vessels with the help of other income or wealth sources or are drawing down their equity. Active Gulf shrimp vessels in all states but Texas exhibited negative returns. The Alabama and Mississippi fleets have the highest assets (vessel values), on average, yet they generate zero cash flow and negative $32,224 net revenue from operations. Due to their high (loan) leverage ratio the negative 11% economic return is amplified into a negative 21% return on equity. In contrast, for Texas vessels, which actually have the highest leverage ratio among the states, a 1% economic return is amplified into a 13% return on equity. From a financial perspective, the average Florida and Louisiana vessels conform roughly to the overall average of the active Gulf shrimp fleet. It should be noted that these results are averages and hence hide the variation that clearly exists within all fleets and all categories. Although the financial situation for the average vessel is bleak, some vessels are profitable. (PDF contains 101 pages)

An approach to estimating rockfish biomass based on larval production, with application to Sebastes jordani

An assessment of the total biomass of shortbelly rockfish (Sebastes jordani) off the central California coast is presented that is based on a spatially extensive but temporally restricted ichthyoplankton survey conducted during the 1991 spawning season. Contemporaneous samples of adults were obtained by trawl sampling in the study region. Daily larval production (7.56 × 1010 larvae/d) and the larval mortality rate (Z=0.11/d) during the cruise were estimated from a larval “catch curve,” wherein the logarithm of total age-specific larval abundance was regressed against larval age. For this analysis, larval age compositions at each of the 150 sample sites were determined by examination of otolith microstructure from subsampled larvae (n=2203), which were weighted by the polygonal Sette-Ahlstrom area surrounding each station. Female population weight-specific fecundity was estimated through a life table analysis that incorporated sex-specific differences in adult growth rate, female maturity, fecundity, and natural mortality (M). The resulting statistic (102.17 larvae/g) was insensitive to errors in estimating M and to the pattern of recruitment. Together, the two analyses indicated that a total biomass equal to 1366 metric tons (t)/d of age-1+ shortbelly rockfish (sexes combined) was needed to account for the observed level of spawning output during the cruise. Given the long-term seasonal distribution of spawning activity in the study area, as elucidated from a retrospective examination of California Cooperative Oceanic Fisheries Investigation (CalCOFI) ichthyoplankton samples from 1952 to 1984, the “daily” total biomass was expanded to an annual total of 67,392 t. An attempt to account for all sources of error in the derivation of this estimate was made by application of the delta-method, which yielded a coefficient of variation of 19%. The relatively high precision of this larval production method, and the rapidity with which an absolute biomass estimate can be obtained, establishes that, for some species of rockfish (Sebastes spp.), it is an attractive alternative to traditional age-structured stock assessments.

Description of economic data collected with a random sample of commercial reef fish boats in the Florida Keys

This study summarizes the results of a survey designed to provide economic information about the financial status of commercial reef fish boats with homeports in the Florida Keys. A survey questionnaire was administered in the summer and fall of 1994 by interviewers in face-to-face meetings with owners or operators of randomly selected boats. Fishermen were asked for background information about themselves and their boats, their capital investments in boats and equipment, and about their average catches, revenues, and costs per trip for their two most important kinds of fishing trips during 1993 for species in the reef fish fishery. Respondents were characterized with regard to their dependence on the reef fish fishery as a source of household income. Boats were described in terms of their physical and financial characteristics. Different kinds of fishing trips were identified by the species that generated the greatest revenue. Trips were grouped into the following categories: yellowtail snapper (Ocyurus chrysurus); mutton snapper (Lutjanus analis), black grouper (Mycteroperca bonaci), or red grouper (Epinephelus morio); gray snapper (Lutjanus griseus); deeper water groupers and tilefishes; greater amberjack (Seriola dumerili); spiny lobster (Panulirus argus); king mackerel (Scomberomorus cavalla); and dolphin (Coryphaena hippurus). Average catches, revenues, routine trip costs, and net operating revenues per boat per trip and per boat per year were estimated for each category of fishing trips. In addition to its descriptive value, data collected during this study will aid in future examinations of the economic effects of various regulations on commercial reef fish fishermen.(PDF file contains 48 pages.)

Relationship between abundance of juvenile rockfishes (Sebastes spp.) and environmental variables documented off northern California and potential mechanisms for the covariation

We estimated annual abundance of juvenile blue (Sebastes mystinus), yellowtail (S. f lavidus), and black (S. melanops) rockfish off northern California over 21 years and evaluated the relationship of abundance to oceanographic variables (sea level anomaly, nearshore temperature, and offshore Ekman transport). Although mean annual abundance was highly variable (0.01−181 fish/minute), trends were similar for the three species. Sea level anomaly and nearshore temperature had the strongest relationship with interannual variation in rockfish abundance, and offshore Ekman transport did not correlate with abundance. Oceanographic events occurring in February and March (i.e., during the larval stage) had the strongest relationship with juvenile abundance, which indicates that year-class strength is determined during the larval stage. Also of note, the annual abundance of juvenile yellowtail rockfish was positively correlated with year-class strength of adult yellowtail rockfish; this finding would indicate the importance of studying juvenile abundance surveys for management purposes.

Restricted Access vs. Open Access Methods of Management: Toward More Effective Regulation of Fishing Effort

This paper gives an overview of the economic rationale for limited entry as a method of fishery management and discusses general advantages and disadvantages of license limitation and catch rights as the two primary methods of restricting access to marine fisheries. Traditional open-access methods of regulation (e.g., gear restrictions, size limits, trip limits, quotas, and closures) can be temporarily effective in protecting fish populations, but they generally fail to provide lasting biological or economic benefits to fishermen because they do not restrict access to the fishery. The general result of regulation with unrestricted access to a fishery is additional and more costly and complex regulations as competition increases for dwindling fishery resources. Regulation that restricts access to a fishery in conjunction with selected traditional methods of regulation would encourage efficient resource usage and minimize the need for future regulatory adjustments, provided that enforcement and monitoring costs are not too great. In theory, catch rights are superior to license limitation as a means of restricting access to a fishery.

Structure and development of a Scalesia pedunculata stand in the Galapagos Islands

Stands of Scalesia pedunculata in the Galapagos Islands often develop as single-aged cohorts following episodes of mass death and regeneration. We updated earlier studies on a stand that had regenerated soon after the 1982–3 El Niño event. We quantified stem size distribution and dispersion pattern in a 0.56 ha plot near Los Gemelos on Santa Cruz Island. The plot was dominated (95% of basal area) by S. pedunculata. The stem size distribution showed the increased mean and variance for diameter (since 1987 and 1991) expected of an aging stand. Stems averaged smaller than in 1981, just before the last mass mortality episode. Large S. pedunculata stems were regularly dispersed while smaller stems were clumped and negatively associated with larger stems, implying that intraspecific competition may be important in structuring the stand. CDF Contribution Number 1008.

Local distribution patterns of Opuntia echios echios, Bursera graveolens and Scalesia crockeri on Santa Cruz Island, Galapagos

We mapped stems of three plant species in a 2.36 ha plot in the arid zone near the coast of eastern Santa Cruz Island, Galapagos, Ecuador, to determine factors influencing their local distribution. The three species were Opuntia echios var. echios (Cactaceae), a large cactus, Bursera graveolens (Burseraceae), a small tree that dominates dry woodland near the coast, and the shrub Scalesia crockeri (Asteraceae). In our plot, Opuntia was most abundant near the coast, while Bursera and Scalesia increased in density inland and with increased relief. Scalesia also increased in density with increases in Bursera and decreases in other woody plants and was most abundant 200–250 m from the coast. Both Opuntia and Bursera were clumped in the plot as a whole but selected stem size classes were randomly dispersed within homogeneous portions of the sample area. CDF Contribution Number 1012.

The geographic basis for population structure in Fraser River chinook salmon (Oncorhynchus tshawytscha)

We surveyed variation at 13 microsatellite loci in approximately 7400 chinook salmon sampled from 52 spawning sites in the Fraser River drainage during 1988–98 to examine the spatial and temporal basis of population structure in the watershed. Genetically discrete chinook salmon populations were associated with almost all spawning sites, although gene flow within some tributaries prevented or limited differentiation among spawning groups. The mean FST value over 52 samples and 13 loci surveyed was 0.039. Geographic structuring of populations was apparent: distinct groups were identified in the upper, middle, and lower Fraser River regions, and the north, south, and lower Thompson River regions. The geographically and temporally isolated Birkenhead River population of the lower Fraser region was sufficiently genetically distinctive to be treated as a separate region in a hierarchial analysis of gene diversity. Approximately 95% of genetic variation was contained within populations, and the remainder was accounted for by differentiation among regions (3.1%), among populations within regions (1.3%), and among years within populations (0.5%).Analysis of allelic diversity and private alleles did not support the suggestion that genetically distinctive populations of chinook salmon in the south Thompson were the result of postglacial hybridization of ocean-type and stream-type chinook in the Fraser River drainage. However, the relatively small amount of differentiation among Fraser River chinook salmon populations supports the suggestion that gene flow among genetically distinct groups of postglacial colonizing groups of chinook salmon has occurred, possibly prior to colonization of the Fraser River drainage.

Evaluation and application of microsatellites for population identification of Fraser River chinook salmon (Oncorhynchus tshawytscha)

Variation at 13 microsatellite loci was previously surveyed in approximately 7400 chinook salmon (Oncorhynchus tshawytscha) sampled from 50 localities in the Fraser River drainage in southern British Columbia. Evaluation of the utility of the microsatellite variation for population-specific stock identification applications indicated that the accuracy of the stock composition estimates generally improved with an increasing number of loci used in the estimation procedure, but an increase in accuracy was generally marginal after eight loci were used. With 10–14 populations in a simulated fishery sample, the mean error in population-specific estimated stock composition with a 50-popula-tion baseline was <1.4%. Identification of individuals to specific populations was highest for lower Fraser River and lower and North Thompson River populations; an average of 70% of the individual fish were correctly assigned to specific populations. The average error of the estimated percentage for the seven populations present in a coded-wire tag sample was 2% per population. Estimation of stock composition in the lower river commercial net fishery prior to June is of key local fishery management interest. Chinook salmon from the Chilcotin River and Nicola River drainages were important contributors to the early commercial fishery in the lower river because they comprised approximately 50% of the samples from the net fishery prior to mid April.