The Use of Limited Access Privilege Programs in Mixed-Use Fisheries (2021) / Chapter Skim
Currently Skimming:
5 Social and Economic Effects for Commercial Participants in Mixed-Use Fisheries
5 Social and Economic Effects for Commercial Participants in Mixed-Use Fisheries
Pages 91-118
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From page 91... ...
In some cases there are commercial fisheries involved that are not in the LAPP as well, as for example the large number of vessels permitted to take small incidental catches of golden tilefish, which is otherwise allocated through a LAPP. Chapter 7 considers effects in communities where such participants work and/or reside.
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From page 92... ...
For example, in the Mid-Atlantic golden tilefish fishery, certain successes of the fishery are better attributed to the 2001 Fishery Management Plan that established key measures for a healthy fishery (i.e., a constant quota rule and accountability measures) , rather than to the later implementation of the LAPP.
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From page 93... ...
Reducing overcapitalization often becomes an issue that leads to consideration of LAPPs when the fishery has become a "derby" fishery, where participants race competitively for the fish. This is created by the use of fishery management regulations (or in some circumstances buyer demands)
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From page 94... ...
This style of regulation encourages harvesting as a race where fishers harvest as much as possible before a season has ended or a total allowable catch is reached, closing the fishery. Even if the stock is held at a sustainable level, the regulatory regime must shorten the season further if more vessels enter, exacerbating the derby conditions in a vicious cycle (Homans and Wilen, 1997)
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From page 95... ...
Most of the largest effect sizes out of the 39 fisheries were Gulf of Mexico reef fish species in the red snapper or groupertilefish IFQ programs. Results for red snapper, red grouper, gag, other shallow-water grouper, deepwater grouper, and tilefish all showed a slowing of the race to fish, and all results were statistically significant in both model types except one model for red snapper.
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From page 96... ...
The quasi-experimental evidence is consistent with perceptions of derby conditions, although the baseline derby conditions were not as severe as in red snapper (Gulf of Mexico Fishery Management Council, 2013)
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From page 97... ...
The conceptual underpinning is so straightforward that it formed part of the narrative in the popular reality television show Deadliest Catch. A social survey of Gulf of Mexico reef fish permit holders conducted in 2005 highlights safety concerns about derby conditions and the need for management changes in the fisheries.
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From page 98... ...
; Gulf of Mexico reef fish fishers fishing less in bad weather (Marvasti, 2017; Smith et al., 2008) ; and Gulf of Mexico shrimpers fishing less in high waves (Smith et al., 2017)
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From page 99... ...
The simple before-after comparison reveals "annual fatalities per million vessel days in the Gulf decreased by 51%" (Gulf of Mexico Fishery Management Council, 2013)
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From page 100... ...
and simple before-after comparisons (Gulf of Mexico Fishery Management Council, 2018a)
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From page 101... ...
Evidence for price increases: strong based on before-after comparison of inflation-adjusted prices. Red snapper experienced inflation-adjusted price increases after the LAPP (Gulf of Mexico Fishery Management Council, 2013)
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From page 102... ...
All species categories experienced inflation-adjusted price increases after formation of the LAPP (Gulf of Mexico Fishery Management Council, 2018a)
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From page 103... ...
Evidence for profitability increases: strong based on the trend of inflation-adjusted share prices. Red grouper, gag grouper, and tilefish experienced very large inflation-adjusted share price increases in the first 5 years of the LAPP, suggesting large increases in profitability (Gulf of Mexico Fishery Management Council, 2018a)
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From page 104... ...
. Further the evidence is all based on before-after comparisons, so it lacks statistical control of the counterfactual (Gulf of Mexico Fishery Management Council, 2013)
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From page 105... ...
. DATA SOURCE: Table 7, red snapper 5-year review (Gulf Mexico Fishery Management Council, 2013)
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From page 106... ...
showed that the initial distribution and subsequent consolidation made social distinctions between "big guys" and "little guys" more obvious than before; the latter were those who had to lease, work as crew for others, or leave the fishery. There is also a perception that a few of the "big guys" can exert undue control over the price of leasing allocation (Gulf of Mexico Fishery Management Council, 2018a)
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From page 107... ...
For example, changes in the unit value of catch may affect wages and employment. The intended reduction of the fleet that often accompanies IFQ programs reduces captain and crew jobs as well as fishing opportunities for vessel owners who do not qualify for the initial allocation, some of whom may become crew members on other boats (Overbey, 2016)
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From page 108... ...
The effects of LAPP-related consolidation on former hired captains and crew members are especially difficult to assess because there is usually no official record of their identities and histories of participation. As the 5-year review for red snapper states, "A survey of crew members and vessel owners who were omitted from the IFQ fishery would be helpful to gauge the level of stress and impact the decisions of management had on them and their families" (Gulf of Mexico Fishery Management Council, 2013)
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From page 109... ...
Finally, the study only focuses on the short-run effects of LAPPs potentially failing to reveal longer-run impacts to crew as quota consolidates, the rate of leasing among vessels increases, and as "sticky" remuneration practices, such as a crew's share of net revenues or the list of costs that are deducted before calculating this share, change. Evidence on Labor and Employment Shifts in Study Fisheries No information is available on labor and employment shifts due to LAPPs for the wreckfish, golden tilefish, and Atlantic bluefin tuna programs.
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From page 110... ...
report a reduction in crew size in the red snapper fishery since IFQ implementation, especially in the western Gulf region and among small and medium-sized vessels (Gulf of Mexico Fishery Management Council, 2013)
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From page 111... ...
The rise of a new broker class was mentioned in the 5-year review of the red snapper LAPP as a social impact (Gulf of Mexico Fishery Management Council, 2013)
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From page 112... ...
include measures to assist, when necessary and appropriate, entry-level and small vessel owner operators, captains, crew, and fishing communities through set-asides of harvesting allocations, including providing privileges, which may include set-asides or allocations of harvesting privileges, or economic assistance in the purchase of limited access privileges; (D) ensure that limited access privilege holders do not acquire an excessive share of the total limited access privileges in the program by -- (i)
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From page 113... ...
or allow for leasing (which creates markets for two types of assets: quota shares and annual allocations)
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From page 114... ...
Consequently, the LAPPs of this study have had various features such as caps on ownership of shares or holding of allocations, tiered vessel size classes and other measures to reflect fleet diversity in initial allocation (the golden tilefish and red snapper IFQs) , and owner-on-board provisions intended to prevent what is deemed as excessive consolidation and maintain fleet diversity.
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From page 115... ...
. The overall conclusion for the grouper-tilefish review was simply that "as economic theory would suggest, the distributions of GT landings and revenues have become somewhat more unequal since the IFQ program was implemented" (Gulf of Mexico Fishery Management Council, 2018a)
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From page 116... ...
. In that initial allocation process, of the 31 limited access permits in the prior management system, 18 did not qualify because of low landings during the qualification period.
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From page 117... ...
(Gulf of Mexico Fishery Management Council, 2019)
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