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)

Sustainable Aquaculture for Poverty Alleviation (SAPA): Strategy and implementation

There is general agreement amongst Government and many donors that aquaculture and improved aquatic resources management can make a significant and direct impact on poverty reduction and hunger eradication in Vietnam. The key policy issue is to better support poor and vulnerable groups who depend on or could make use of aquatic resources through the use of the livelihoods perspective. To address this issue the Ministry of Fisheries of Vietnam (MOFI) has prepared this Sustainable Aquaculture for Poverty Alleviation strategy - the SAPA strategy. (Pdf contains 54 pages).

Strategies for meeting the fishing input requirements of small scale artisanal fisheries

An examination is made of the socio-economic factors associated with the failure of existing approaches to the fishing input requirements of small-scale fisheries in Nigeria. The fishermen and secretaries of the fishermen cooperative societies in three major settlements (Uta-Ewa, Okoroete and Iko) were selected for interviews. The survey showed that the idealogy of the fishermen of the role of cooperative society is wrong and specific programmes need to be directed towards correcting this perception. Thus, for any meaningful support programme for the artisanal small-scale fishermen, the perception of the fishermen about the cooperative organization must first be aligned rightly. It is suggested that the fishing input be determined by type and specification as a preliminary step in the delivery of inputs to the fishermen. Social, economic and cultural variabilities should be related to the requirement by the fishermen. The price level of fishermen will determine the direction and level of government support required

Problems and prospects of community-based resource management approach: an experience with the implementation of the ban on beach seines on Lake Kainji

Community Based Resource Management (CBRM) understood as an approach emphasizes a community's capability, responsibility and accountability with regards to managing resources. Based on the recommendations for the Nigerian-German Kainji Lake Fisheries Promotion Project (KLFPP), the Niger and Kebbi States Fisheries Edicts were promulgated in 1997. These edicts, among other things, banned the use of beach seines. Given the conviction of KLFPP, that if communities whose livelihood is linked to the fishery, understand and identify the problems and by consensus agree to the solutions of fisheries problems, they are more likely to adhere to any control measures, specifically the ban on beach seine. In 1999 a first agreement was reached between beach seiners, non-beach seiners and government authorities leading to an almost complete elimination of beach seine on the Lake Kainji. However, despite on going efforts of the Kainji Lake Fisheries Management and Conservation Unit in 2000 and possibly because of certain oversights during and after the first agreement, in May 2001 a significant number of beach seiners was observed. This led to a re-assessment of our approach, which lately culminated into another round of negotiation. The paper presents the latest results on this on-going process

Climate adaptation and the fifth amendment of the United States Constitution: How do adaptation strategies impact regulatory takings claims?

As the impacts and potential of climate change are realized at the governance level, states are moving towards adaptation strategies that include greater regulatory restrictions on development within coastal zones. The purpose of this paper is to outline the impacts of existing and planned regulatory mechanisms on the Fifth Amendment to the United States Constitution, which prevents the government taking of private property for public use without just compensation. A short history of regulatory takings is explained, and the potential legal issues surrounding mitigation and adaptation measures for coastal communities are discussed. The goal is to gain an understanding of the legal issues that must be resolved by governments to effectively deal with regulatory takings claims as coastal mitigation and adaptation plans are implemented. (PDF contains 3 pages)

Impact assessment of Niger State fisheries legislation on fisheries conservation in Edozhigi local government area (L.G.A.) of Niger State

A preliminary survey was conducted among the fishermen in five selected villages in Edozhigi L.G.A. of Niger State. One hundred and fifty fishermen were randomly selected and interviewed to find out the impact of Niger State fisheries legislation on fisheries conservation resources in the area. The analysis of data collected using descriptive statistics indicated that undersized mesh of gill nets, beach seines and traps are being used unabated. Also, fenced barriers across the entrance of flood plain ponds and Ex-bow lakes from the main stream are in the area. The fisheries rules and regulations implementers are rarely seen or not seen at all in the area. The decreasing nature of fish catches was detected. It is observed that government policy on fish conversation is neglected due to inadequate or lack of funding for meaningful extension and implementation of the fisheries rules and regulations

Final Evaluation Memorandum: Strategies for Resolving Low Dissolved Oxygen and Methylmercury Events in Northern Suisun Marsh

The purpose of the project is to improve our understanding about best management practices that can be utilized on diked managed wetlands in Suisun Marsh for reducing the occurrence of low dissolved oxygen (DO) and high methylmercury (MeHg) events associated primarily with fall flood-up practices. Low DO events are of concern because they can lead to undue stress and even mortality of sensitive aquatic organisms. Elevated MeHg levels are of concern because MeHg is a neurotoxin that bio-magnifies up the food chain and can cause deleterious effects to higher trophic level consumers such as piscivorous fish, birds, and mammals (including humans). This study involved two years (2007-2008) of intensive field data collection at two managed wetland sites in northwest Suisun Marsh and their surrounding tidal sloughs, an area with prior documented low DO events. In addition, the study collected limited soils and water quality field data and mapped vegetation for three managed wetland sites in the central interior of Suisun Marsh, for the purpose of examining whether wetlands at other locations exhibit characteristics that could indicate potential for similar concerns. In Year 1 of the study, the objective was to identify the baseline conditions in the managed wetlands and determine which physical management conditions could be modified for Year 2 to reduce low DO and MeHg production issues most effectively. The objective of Year 2 was to evaluate the effectiveness of these modified management actions at reducing production of low DO and elevated MeHg conditions within the managed wetlands and to continue improving understanding of the underlying biogeochemical processes at play. This Final Evaluation Memorandum examined a total of 19 BMPs, 14 involving modified water management operations and the remaining five involving modified soil and vegetation management practices. Some of these BMPs were previously employed and others have not yet been tested. For each BMP this report assesses its efficacy in improving water quality conditions and potential conflicts with wetland management. It makes recommendations for further study (either feasibility assessments or field testing) and whether to consider for future use. Certain previously used BMPs were found to be important contributors to poor water quality conditions and their continued use is not recommended. Some BMPs that could improve water quality conditions appear difficult to implement in regards to compatibility with wetland management; these BMPs require further elaboration and feasibility assessment to determine whether they should be field tested. In practice for any given wetland, there is likely a combination of BMPs that would together have the greatest potential to address the low DO and high MeHg water quality concerns. Consequently, this report makes no sweeping recommendations applicable to large groups of wetlands but instead promotes a careful consideration of factors at each wetland or small groups of wetlands and from that assessment to apply the most effective suite of BMPs. This report also identifies a number of recommended future actions and studies. These recommendations are geared toward improving the process understanding of factors that promote low DO and high MeHg conditions, the extent of these problems in Suisun Marsh, the regulatory basis for the DO standards for a large estuarine marsh, the economics of BMPs, and alternative approaches to BMPs on diked managed wetlands that may address the water quality issues. The most important of these recommendations is that future BMP implementation should be carried out within the context of rigorous scientific evaluation so as to gain the maximum improvement in how to manage these water quality issues in the diked managed wetlands of Suisun Marsh.

A working guide to the assessment, implementation and post project monitoring of fisheries habitat improvement schemes in South Cumbria

Due to changes in land use over the last century, the physical nature of many streams and rivers in the British Isles has probably changed. In some cases this change may be large for example as a result of flood defence schemes and is easily observed, whilst in other cases altered land use, farming, forestry or urbanization may have resulted in more subtle changes to river features. This working guide draws together a way of assessing habitat in any stream or river and determine sites or reaches on the assessed watercourse that may benefit from habitat improvement schemes. It will determine a method of measuring existing habitat in a broad sense, whilst referring to R and D studies currently being undertaken in this area. A method of prioritising any proposed habitat restoration work will be suggested. The limitations of fisheries improvement schemes in terms of cross functional acceptance (flood defence and conservation) will be examined along with suggested proposals for some example watercourses. The need for pre and post enhancement monitoring will be discussed as will the requirement for maintenance programs on schemes. Finally methods for determining the cost benefits of small schemes will be examined, compared to other currently used enhancement strategies. This will allow small scale revenue schemes to be used to back up pre project cost benefit analysis as required in future capital submissions.

Economics and management strategies for restocking sandfish in Vietnam

This paper assesses the costs and benefits of a proposed project for restocking sandfish (Holothuria scabra) in Khanh Hoa Province, Vietnam. It identifies the key stakeholders, institutional framework, management and financing required for its implementation. The recommended management strategy includes a 50 percent harvest at optimum size. Limiting the number of boats fishing an area, possibly through licensing, can control the number of sandfish removed. The easiest way to prevent harvesting of undersized sandfish is to control the size of processed sandfish from processors. The potential benefits of restocking are shown by the rapid changes in selected indicators, particularly the net present value, the internal rate of return, and the benefit-cost ratio. Probability analysis is used to estimate the uncertainties in the project calculations. Based on a conservative estimate, the restocking of sandfish is expected to be profitable, although cost-benefit analyses are sensitive to the survival of restocked sandfish and their progeny, and the number of boats fishing for sandfish in the release area.

Economic analysis of climate change adaptation strategies in selected coastal areas in Indonesia, Philippines and Vietnam

Climate change with its attendant geophysical hazards is well studied. A great deal of attention has gone into analyzing climate change impacts as well as searching out possible mitigating adaptive strategies. These matters are very real concerns, especially for coastal communities. Such communities are often the most vulnerable to climate change, since their citizens frequently live in abject poverty and have limited capacity to adapt to geophysical hazards. Their situation is further complicated by the prospect of dealing with a confluence of hazards in comparison with those in other ecosystems. Against this backdrop Worldfish and the Economy and Environment Program for Southeast Asia (EEPSEA) collaborated to implement the cross-country study “Climate Change Impacts, Vulnerability Assessments, Economic and Policy Analysis of Adaptation Strategies in Selected Coastal Areas in Indonesia, Philippines, and Vietnam”. As its title suggests the study covered selected sites in Vietnam, Indonesia and the Philippines. Employing a gamut of interdisciplinary methodologies -- ranging from community-based approaches such as community hazard mapping and focus group discussions (FGDs) to regression techniques -- the study documented the impacts from three climate hazards affecting coastal communities. These were typhoon/flooding, coastal erosion, and saltwater intrusion. The team also analyzed planned adaptation options suited to implementation by communities and local governments, augmenting autonomous responses of households to protect and insure themselves from these hazards.

Developing alternative shoreline armoring strategies: the living shoreline approach in North Carolina

This paper reviews the scientific data on the ecosystem services provided by shoreline habitats, the evidence for adverse impacts from bulkheading on those habitats and services, and describes alternative approaches to shoreline stabilization, which minimize adverse impacts to the shoreline ecosystem. Alternative shoreline stabilization structures that incorporate natural habitats, also known as living shorelines, have been popularized by environmental groups and state regulatory agencies in the mid-Atlantic. Recent data on living shoreline projects in North Carolina that include a stone sill demonstrate that the sills increase sedimentation rates, that after 3 years marshes behind the sills have slightly reduced biomass, and that the living shoreline projects exhibit similar rates of fishery utilization as nearby natural fringing marshes. Although the current emphasis on shoreline armoring in Puget Sound is on steeper, higher-energy shorelines, armoring of lower-energy shorelines may become an issue in the future with expansion of residential development and projected rates of sea level rise. The implementation of regulatory policy on estuarine shoreline stabilization in North Carolina and elsewhere is presented. The regulatory and public education issues experienced in North Carolina, which have made changes in estuarine shoreline stabilization policy difficult, may inform efforts to adopt a sustainable shoreline armoring strategy in Puget Sound. A necessary foundation for regulatory change in shoreline armoring policy, and public support for that change, is rigorous scientific assessment of the variety of services that natural shoreline habitats provide both to the ecosystem and to coastal communities, and evidence demonstrating that shoreline armoring can adversely impact the provision of those services.

Legal consideration on Convention for the Prevention of Dumping of Wastes and Other Matter (at sea) and assessment of its implementation in Iran (The London [dumping] Convention)

Making use of sea, as a place for dumping of wastes and other materials from human activities wasn’t forbidden before creation of the convention on the prevention of marine pollution by dumping of wastes and other matters (London Convention). Therefore, industrial countries, without any specific consideration, were dumping their wastes into the world’s seas. Many years and before the beginning of rapid development of industry, the great self- purification of seas were preventing some of discharging problems. But gradually, the increase of industrial development activities, exceeded the production of wastes and other matters, and this led to the misuse of world’s seas and oceans as a dump site. One of the most important consequences of 1972 Stockholm World Conference was to focusing world attention on threats have jeopardized marine environment balance. World countries` leaders committed in Stockholm to begin protecting the environment. Finally, this movement at marine environment section led to the creation of London Convention in the same year. London Convention was concluded for cooperating between countries at December 29, 1972 to promote effective control of all marine environment polluting resources and to prevent marine pollution by dumping wastes and other matters. Then it was opened for signature to other countries. At last, after 15 states signature, this convention was entered in to force at August 30.1975. Ratification and execution of London Convention resulted in coordinated performance of countries in marine waste management. Common actions with supports and cooperation of different international, regional, governmental and non-governmental organizations and agencies prevent marine pollution by dumping of wastes and other matters. Due to the importance of wastes in our marine and coastal areas, investigation of the performance of London Convention can identify the lack of regulations and lack of regulation supports about marine pollution prevention by dumping of wastes and other matters in Iran. Considering this issue, proper protection of seas will be achieved. London Convention has been studied here to achieve intended purposes. In first chapter, generalities about marine environment, including the importance and necessity of marine environment protection, with the focus on some internal and international resources of environmental law accompanying with marine pollution and its recourses, and finally, due to the study theme, dumping of wastes and other matters at seas with its impacts have been investigated .In the section of international measures, a brief history of marine pollution and marine environment international law with international law framework, exclusively for controlling of wastes and other material discharge at seas and oceans has been reviewed. In second chapter, obligations, amendments, and annexes of London Convention have been investigated and classified. The obligations have been categorized in to legal obligations and technical and organizational obligations. In former section, subject ,purpose, territory, exceptions, rights and duties of parties, convention amendments,… and in latter, special requirements for wastes assessment, determination of pollutants` permissible limit, site selection and type of discharge selection, design principles for marine environment quality monitoring program, and discharge license issuance mechanism have been studied. In third chapter, due to the examination of convention performance in Iran, the internal law system for marine environment conservation and its pollution has been mentioned in detail. Considering this, two issues have been compared .firstly, convention obligations with regional treaties that Iran as a party to them and secondly, Iranian internal law there of .Finally, common and different aspects of these issues have been determined. At last, recommendations and strategies for convention enforcement and conformity of its obligations with internal regulations have been presented. Furthermore, translation of convention English text has been reviewed and its protocol has been translated.