WWW.WAS.ORG • WORLD AQUACULTURE • SEPTEMBER 2015 65 are shown in Table 2. Three applicants to the RSALF have also received funds from the MSALF. As of January 2015, shellfish aquaculture loan funds provided by MARBDICO have resulted in 61 projects approved for total funding of $3,385,817. Ten Maryland counties, including all counties bordering the Chesapeake Bay, have at least one aquaculture project funded by MARBDICO. Since realignment of the permitting process, DNR has issued over 100 new commercial shellfish aquaculture leases, representing over 930 hectares. As of January 2015, the industry has 319 leases covering over 1600 ha. While this is a small area in comparison to some other state shellfish aquaculture sectors, it demonstrates that regulatory changes and investment programs have had a significant effect on the establishment and growth of shellfish aquaculture in Maryland. Notes Maryland shellfish history provided by personal communication with Don Webster, Senior Agent, Agriculture and Natural Resources, Marine Science. Don Webster also provided additional editing. Matthew D. Parker, Aquaculture Business Specialist, University of Maryland Extension, Prince George’s County Office, 6707 Groveton Drive, Clinton, MD 20735 mparke11@umd.edu 301-868-8780 ext. 428, 301-599-6714 (fax) extension.umd.edu/ aquaculture References Tarnowski, M. 2014. Maryland Oyster Population Status Report 2013 Fall Survey. Maryland Department of Natural Resources Publication No. 17-8192014-723. harvest and income would develop thereafter. There is also a grant portion to the loan because federal disaster funds are being used. If the loan recipient is current on interest-only payments, the grant portion of the loan is implemented. From 2011-2013 the grant portion of the loan was 40 percent of the principle. From 2014, the grant portion was reduced to 25 percent. For example, if someone applied for a $100,000 shellfish aquaculture loan from MARBIDCO today, they would make quarterly interest-only payments totaling $3,000 for the first three years. At the beginning of the fourth year, 25 percent of the principle would be forgiven. The remaining $75,000 would be amortized over 2 years with an interest rate of 5 percent. Therefore, on a $100,000 loan, an applicant would be expected to pay back approximately $82,280 including interest. Loan totals since inception of the program are shown in Table 1. Eighteen borrowers have taken out multiple loans to expand and finance their operations. After the success of the Remote Setting Training Program (a partnership between DNR, the NGO Oyster Recovery Partnership, the University of Maryland Horn Point Lab and University of Maryland Extension), MARBIDCO obtained funds to start the Remote Setting Aquaculture Loan Fund (RSALF), which began in 2012. Eligible expenses in this program are seed, shell, and equipment to build a remote setting system for production of seed that would be used to plant a lease. Project budgets range from $5,000 to $30,000. Projects totaling less than $15,000 have a 5-year term. Projects in the $15,000-$30,000 range have a 6-year term with a requirement to pay interest only in the first year. All projects have an interest rate of 5 percent and, if all payments are current, the final year of payments are forgiven. For example, for a $15,000 remote-setting loan, the applicant would pay back $12,485, including interest. Loan totals since the program began TABLE 2. ITable 2. Remote setting aquaculture loan fund commitments by year. Year Projects Total amount committed 2012 2 $45,000 2013 2 $45,000 Total 4 $90,000 TABLE 1. Maryland shellfish aquaculture loan fund commitments by year. Year Water column Bottom culture Combination Total Total amount projects projects projects loans committed 2011 4 17 2 23 $1,270,908 2012 4 3 1 8 $260,944 2013 10 3 1 14 $778,969 2014 7 6 0 13 $884,496 2015* 1 0 0 1 $100,000 Total 26 29 4 59 $3,295,317 *Through January 31, 2015 Funds were set aside to help transition traditional Maryland watermen to oyster aquaculture to provide an alternative income source. The Maryland Agricultural Resource Based Industry Development Corporation (MARBIDCO) was enlisted to administer a Maryland Shellfish Aquaculture Loan Fund (MSALF). The program provides non-collateralized signature loans and has a requirement of 10 percent owner equity for which existing equipment can be used.
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