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)

Proceedings of the Nineteenth Annual Symposium on Sea Turtle Conservation and Biology, 2-6 March 1999 South Padre Island, Texas, U.S.A.

The 19th Annual Symposium on Sea Turtle Biology and Conservation was the largest to date. The beautiful venue was the South Padre Island Convention Centre on South Padre Island, Texas from March 2-6, 1999. Key features of the 19th were invited talks on the theme The Promise, the Pain, and the Progress of 50 years of Sea Turtle Research and Conservation, a mini-symposium on the Kemp's ridley and an increased emphasis on high quality poster sessions. Hosts for the meeting included Texas A&M University, the Texas Sea Grant College Program, The Gladys Porter Zoo and Sea Turtle, Inc. Co-sponsors included the National Marine Fisheries Service-Southeast Fisheries Science Center, the National Marine Fisheries Service-Protected Resources Branch, Padre Island National Seashore and the U.S. Fish and Wildlife Service. With the assistance of Jack Frazier, we were fortunate to obtain a $30,000 grant from the David and Lucile Packard Foundation. This grant provided travel support to 49 individuals from 24 nations who presented a total of 50 presentations. (PDF contains 309 pages)

Proceedings of the Twenty-second Annual Symposium on Sea Turtle Biology and Conservation, 4-7 April, 2002, Miami, Florida

The 22nd Annual Symposium on Sea Turtle Biology and Conservation was held April 4-7, 2002 in Miami, Florida and hosted by the U.S. Fish and Wildlife Service. The 22nd symposium was the most globally diverse ever with 839 individuals from 73 countries attending the symposium and associated regional meetings. One third of the attendees were from outside the United States. This diverse attendance was made possible in large part because of substantial donations from The Packard Foundation, National Fish and Wildlife Foundation, National Marine Fisheries Service, U.S. Fish and Wildlife Service, Convention on Migratory Species, Oceanic Research Foundation, and International Sea Turtle Society which supported travel grants for 170 international travelers. (PDF contains 336 pages)

Pendleton Artificial Reef: annual progress report presented to Southern California Edison Company

(PDF contains 82 pages.)

Proceedings fo the Seventeenth Annual Sea Turtle Symposium, 4-8 March 1997, Orlando, Florida, U.S.A.

The 17th Annual Sea Turtle Symposium was held at the Delta Orlando Resort in Orlando, Florida U.S.A. from March 4-8, 1997. The symposium was hosted by Florida Atlantic University, Mote Marine Laboratory, University of Central Florida, University of Florida, Florida Atlantic University and the Comité Nacional para la Conservación y Protección de las Totugas Marinas. The 17th was the largest symposium to date. A total of 720 participants registered, including sea turtle biologists, students, regulatory personnel, managers, and volunteers representing 38 countries. In addition to the United States, participants represented Australia, Austria, the Bahamas, Bonaire, Bermuda, Brazil, Canada, Colombia, Costa Rica, Croatia, Cuba, Cyprus, Dominican Republic, Ecuador, England, Guatemala, Greece, Honduras, India, Italy, Japan, Madagascar, Malaysia, Mexico, The Netherlands, Nicaragua, Peru, Philippines, Republic of Seychelles, Scotland, Spain, Sri Lanka, Switzerland, Taiwan, Turkey, Uruguay, and Venezuela. In addition to the 79 oral, 2 video, and 120 poster presentations, 3 workshops were offered: Selina Heppell (Duke University Marine Laboratory) provided “Population Modeling,” Mike Walsh and Sam Dover (Sea World-Orlando) conducted “Marine Turtle Veterinary Medicine” and “Conservation on Nesting Beaches” was offered by Blair Witherington and David Arnold (Florida Department of Environmental Protection). On the first evening, P.C.H. Pritchard delivered a thoughtful retrospect on Archie Carr that showed many sides of a complex man who studied and wrote about sea turtles. It was a presentation that none of us will forget. The members considered a number of resolutions at the Thursday business meeting and passed six. Five of these resolutions are presented in the Commentaries and Reviews section of Chelonian Conservation and Biology 2(3):442-444 (1997). The symposium was fortunate to have many fine presentations competing for the Archie Carr Best Student Presentations awards. The best oral presentation award went to Amanda Southwood (University of British Columbia) for “Heart rates and dive behavior of the leatherback sea turtle during the internesting interval.” The two runners-up were Richard Reina (Australian National University) for “Regulation of salt gland activity in Chelonia mydas” and Singo Minamikawa (Kyoto University) for “The influence that artificial specific gravity change gives to diving behavior of loggerhead turtles”. The winner of this year’s best poster competition was Mark Roberts (University of South Florida) for his poster entitled “Global population structure of green sea Turtles (Chelonia mydas) using microsatellite analysis of male mediated gene flow.” The two runners-up were Larisa Avens (University of North Carolina-Chapel Hill) for “Equilibrium responses to rotational displacements by hatchling sea turtles: maintaining a migratory heading in a turbulent ocean” and Annette Broderick (University of Glasgow) for “Female size, not length, is a correlate of reproductive output.” The symposium was very fortunate to receive a matching monetary and subscription gift from Anders J. G. Rhodin of the Chelonian Research Foundation. These enabled us to more adequately reward the fine work of students. The winners of the best paper and best poster awards received $400 plus a subscription to Chelonian Conservation and Biology. Each runner up received $100. The symposium owes a great debt to countless volunteers who helped make the meeting a success. Those volunteers include: Jamie Serino, Alan Bolton, and Karen Bjorndal, along with the UF students provided audio visual help, John Keinath chaired the student awards committee, Mike Salmon chaired the Program Commiteee, Sheryan Epperly and Joanne Braun compiled the Proceedings, Edwin Drane served as treasurer and provided much logistical help, Jane Provancha coordinated volunteers, Thelma Richardson conducted registration, Vicki Wiese coordinated food and beverage services, Jamie Serino and Erik Marin coordinated entertainment, Kenneth Dodd oversaw student travel awards, Traci Guynup, Tina Brown, Jerris Foote, Dan Hamilton, Richie Moretti, and Vicki Wiese served on the time and place committee, Blair Witherington created the trivia quiz, Tom McFarland donated the symposium logo, Deborah Crouse chaired the resolutions committee, Pamela Plotkin chaired the nominations committee, Sally Krebs, Susan Schenk, and Larry Wood conducted the silent auction, and Beverly and Tom McFarland coordinated all 26 vendors. Many individuals from outside the United States were able to attend the 17th Annual Sea Turtle Symposium thanks to the tireless work of Karen Eckert, Marydele Donnelly, and Jack Frazier in soliciting travel assistance for a number of international participants. We are indebted to those donating money to the internationals’ housing fund (Flo Vetter Memorial Fund, Marinelife Center of Juno Beach, Roger Mellgren, and Jane Provancha). We raise much of our money for international travel from the auction; thanks go to auctioneer Bob Shoop, who kept our auction fastpaced and entertaining, and made sure the bidding was high. The Annual Sea Turtle Symposium is unequaled in its emphasis on international participation. Through international participation we all learn a great deal more about the biology of sea turtles and the conservation issues that sea turtles face in distant waters. Additionally, those attending the symposium come away with a tremendous wealth of knowledge, professional contacts, and new friendships. The Annual Sea Turtle Symposium is a meeting in which pretenses are dropped, good science is presented, and friendly, open communication is the rule. The camaraderie that typifies these meetings ultimately translates into understanding and cooperation. These aspects, combined, have gone and will go a long way toward helping to protect marine turtles and toward aiding their recovery on a global scale. (PDF contains 342 pages)

Caribbean connectivity: implications for Marine Protected Area Management. Proceedings of a Special Symposium, 9-11 November 2006, 59th Annual Meeting of the Gulf and Caribbean Fisheries Institute, Belize City, Belize

Executive Summary: Tropical marine ecosystems in the Caribbean region are inextricably linked through the movement of pollutants, nutrients, diseases, and other stressors, which threaten to further degrade coral reef communities. The magnitude of change that is occurring within the region is considerable, and solutions will require investigating pros and cons of networks of marine protected areas (MPAs), cooperation of neighboring countries, improved understanding of how external stressors degrade local marine resources, and ameliorating those stressors. Connectivity can be broadly defined as the exchange of materials (e.g., nutrients and pollutants), organisms, and genes and can be divided into: 1) genetic or evolutionary connectivity that concerns the exchange of organisms and genes, 2) demographic connectivity, which is the exchange of individuals among local groups, and 3) oceanographic connectivity, which includes flow of materials and circulation patterns and variability that underpin much of all these exchanges. Presently, we understand little about connectivity at specific locations beyond model outputs, and yet we must manage MPAs with connectivity in mind. A key to successful MPA management is how to most effectively work with scientists to acquire the information managers need. Oceanography connectivity is poorly understood, and even less is known about the shape of the dispersal curve for most species. Dispersal kernels differ for various systems, species, and life histories and are likely highly variable in space and time. Furthermore, the implications of different dispersal kernels on population dynamics and management of species is unknown. However, small dispersal kernels are the norm - not the exception. Linking patterns of dispersal to management options is difficult given the present state of knowledge. The behavioral component of larval dispersal has a major impact on where larvae settle. Individual larval behavior and life history details are required to produce meaningful simulations of population connectivity. Biological inputs are critical determinants of dispersal outcomes beyond what can be gleaned from models of passive dispersal. There is considerable temporal and spatial variation to connectivity patterns. New models are increasingly being developed, but these must be validated to understand upstream-downstream neighborhoods, dispersal corridors, stepping stones, and source/sink dynamics. At present, models are mainly useful for providing generalities and generating hypotheses. Low-technology approaches such as drifter vials and oceanographic drogues are useful, affordable options for understanding local connectivity. The “silver bullet” approach to MPA design may not be possible for several reasons. Genetic connectivity studies reveal divergent population genetic structures despite similar larval life histories. Historical stochasticity in reproduction and/or recruitment likely has important, longlasting consequences on present day genetic structure. (PDF has 200 pages.)