COSTS OF THE U.S. REGULATORY ENVIRONMENT ON BAITFISH AND SPORTFISH AQUACULTURE.

The aquaculture industry in the United States is subject to over 1,300 state and federal laws affecting the sector. The breadth and complexity of this regulatory environment is believed to be limiting both the growth of the industry and placing increased pressure on existing firms. While regulations are not inherently harmful, they can introduce inefficiency and result in added costs to producers and/or consumers. Quantifying these regulatory costs on producers is the first step in developing an understanding of the regulatory impact.

A survey of U.S. baitfish and sportfish growers was conducted in 2014 to collect data on direct and indirect regulatory costs, and any changes implemented on the farm to remain in compliance with regulations. The survey questionnaire was distributed to producers in 13 states (Alabama, Arkansas, Florida, Illinois, Kansas, Louisiana, New York, North Carolina, Ohio, Pennsylvania, Texas, Virginia, and Wisconsin). These states represented 59% of all baitfish/sportfish farms and 80% of all baitfish and sportfish production value in the U.S. The survey was conducted as a census, with all known baitfish and sportfish producers in the sampling area included. The overall response rate was 31% of all farms and 77% of all U.S. production value of baitfish and sportfish. The dataset obtained from this effort is a new and unique glimpse into the effects of the regulatory environment on the U.S. baitfish and sportfish industry.  We have summarized average regulatory costs across different states as well as across different farm sizes. The dataset has also allowed us to develop an understanding of the total number of different regulations affecting baitfish and sportfish producers in different states, as well as group these regulations into six regulatory categories (Environmental Management, Food Safety, Legal and Labor Standards, Interstate Transport, Fish Health, and Culture of Commercially Harvested Species). Furthermore, we have been able to identify which regulations typically result in the largest direct and indirect expenses for baitfish and sportfish producers, and what portion of their production and marketing costs are associated with regulatory compliance.