A team of economists and extension specialists has published a long-awaited peer-reviewed study quantifying the regulatory cost burden on U.S. aquaculture. Their analysis, The National Regulatory Cost Burden on US Aquaculture Farms, estimates total costs and provides recommendations to simplify complex regulations.
The authors acknowledge that while many government regulations enhance environmental and social well-being, others impose costs that outweigh their benefits. Their study found that U.S. aquaculture incurs $196 million annually in regulatory compliance costs (9%–30% of total expenses), making it one of the industry’s top five costs. Smaller farms bear a disproportionate share of these expenses. Additionally, lost revenue due to regulatory constraints amounts to $807 million annually (36% of total sales), stemming from restricted market access, reduced production scales, and stalled expansion efforts.
When considering broader economic effects, the study estimates an annual loss of $1.4 billion and over 8,000 jobs within aquaculture farms alone, excluding impacts on supply chain partners.
The study highlights principles of effective regulation, including science-based policymaking, participatory rulemaking, sunset clauses for outdated regulations, and market-driven solutions. Key recommendations for improving regulatory efficiency include:
- Implementing sunset clauses for regulations.
- Providing incentives for environmental stewardship, such as reduced testing for compliant farms.
- Standardizing fish health testing to cover entire farms rather than individual lots.
- Utilizing non-lethal, multi-pathogen testing methods.
- Compensating farms for losses due to avian predation.
- Applying expert-driven risk management for aquatic invasive species and pathogens.
- Ensuring regulators are trained in aquaculture science and modern farm practices.
- Engaging independent experts and producers in rulemaking.
- Establishing a transparent appeals process for farmers.
- Allowing concurrent rather than sequential permit reviews.
- Promoting long-term aquaculture literacy programs.
- Streamlining permitting and regulatory frameworks for mariculture.
These measures aim to reduce regulatory burdens, improve efficiency, and support the sustainable growth of U.S. aquaculture.
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