AGEC/FNR 406 LECTURE 28 North Atlantic Cod Biomass Index (Source: FAO)

Fishery policy: overview Basic objective: Protect fisheries from overexploitation (level of catch which exceeds growth for long periods) and thereby avoid collapse of fishery. How? Set limits on catch in open access fisheries (necessary because commercial fishing is very efficient, i.e. MC is very low leading to TC = TR at very high levels of effort, which means…very low stocking levels)

Fishery policy: examples Economic goal: prevent overexploitation without increasing consumption of goods and services per unit of fish output. Example of bad policy: limit fishing to boats with less than 10 horsepower. Why is this a bad policy? All fishing activity carried out becomes less efficient, uses more input per unit of output. Example of good policy: set total catch level and allow efficient operators to buy-out rights of inefficient operators to the allowable catch.

Two basic policy approaches: 1. Open-access techniques Modify behavior of fishers without directly affecting participation 2. Limited-entry techniques Directly affect participation

Open-access regulations  How fish may be caught  force inefficiencies on fishers  Which fish may be caught  restrictions on minimum size  When fish may be caught  prescribe fishing seasons  Where fish may be caught  protect valuable fish habitats  How many fish may be caught  by weight or number per time period

Analysis of open-access regulations  Raise cost of catching fish and social costs (loss of resources)  This may reduce catch  Increase in population from reduced catch may reduce cost of catching fish  What is the net effect?

Aquaculture - fish farming  Substitute farm for wild fish  Reduce demand for wild fish  Coast line - mussels, oysters, salmon pens  On land - outdoor ponds, indoor tanks  Techniques of animal agriculture apply:  Feed rations  Environmental controls  Management for feed efficiency - #flesh/#feed  genetic engineering – risk to native populations

ITQs  Read the article “Fishy Economics”  Be able to relate the issues in the article to the “conceptual” model presented in Fisheries Lectures 1 and 2  Be able to critically assess the use of ITQs in the fisheries industry

Analysis of limited-entry techniques  Goal: raise private cost but not social cost  Taxes - transfers resources within society only  Individual transferable quotas (ITQ)  Science used to set allowable catch  Fishers must own a part of quota to fish  Tradable permit representing right to specified amount of fish  Market allocates permits to efficient fishers  Equity issue must be solved when ITQ initiated

What about the Cod? In the US: - Managed under New England Fishery Management Plan (FMP) - Goal: reduce fishing mortality to levels which will allow stocks to rebuild above minimum biomass thresholds, and, remain at target biomass levels.  time/area closures  gear restrictions  minimum size limits  moratorium on permits  days-at-sea restrictions  trip limits In Canada:  managed under an individual quota system