Many government regulations have improved environmental and social quality of life but others have resulted in negative consequences...

U.S. Aquaculture Loses $807M Annually Due to Regulatory Burden, Study Finds

UNITED STATES
Thursday, March 20, 2025, 00:10 (GMT + 9)

A new study analyzing the impact of U.S. aquaculture regulations estimates an annual revenue loss of $807 million (adjusted for national coverage, in 2023 USD).

Published in the Journal of the World Aquaculture Society, the study, titled “The National Regulatory Cost Burden on U.S. Aquaculture Farms,” examines the financial toll of compliance, the economic effects of regulations across different aquaculture sectors, and characteristics of well-designed regulatory policies.

Coverage and response rates of regulatory cost surveys of major sectors of US aquaculture.

Regulatory Costs Slowing Industry Growth

Despite aquaculture’s economic significance in many U.S. regions, increasing regulatory hurdles have hindered sector growth—particularly in contrast to other countries. The study found that total regulatory compliance costs amount to $196 million annually, with per-farm costs ranging from $29,128 to $450,564 per year.

To assess these impacts, researchers conducted a nationwide survey across nine major aquaculture sectors, covering baitfish/sportfish, salmonids, catfish, tilapia, hybrid striped bass, redfish, Pacific Coast shellfish, Atlantic Coast shellfish, and ornamental aquaculture in Florida.

Percentage of respondents ranking regulations as the no. 1 or no. 2 most problematic, by aquaculture sector.

Instead of sampling, the study employed a census-based approach, contacting all known producers nationally or regionally, based on the highest concentration of farms. This method was chosen due to substantial variations in regulatory effects across states and individual farms.

Industry Views: Regulations Among Top Challenges

Survey respondents ranked regulatory burdens among their greatest operational challenges:

• 54% of respondents named regulations as their first or second biggest challenge.
• 51% of Pacific Coast shellfish producers identified regulations as their primary concern.
• 33% of baitfish/sportfish producers, 29% of salmonid and Atlantic Coast shellfish producers, and 13% of redfish producers also ranked regulations as their top challenge.

Total regulatory cost of US aquaculture, average farm costs, percentages of regulatory costs of total costs, and percent of regulatory costs that were fixed costs, adjusted to 2023 values.

Pathways for Regulatory Reform

The study proposes several strategies to improve regulatory efficiency and reduce unnecessary burdens, including:

• Sunset clauses for outdated or ineffective regulations.
• Incentive programs to reward compliance and best practices.
• Nonlethal, multi-pathogen testing methods to streamline disease management.
• Regulatory training in aquaculture science and modern farming practices to ensure consistency and fairness in enforcement.

As U.S. aquaculture faces increasing global competition, the study highlights the need for a more balanced regulatory framework—one that maintains environmental and food safety standards while supporting industry growth.

editorial@seafood.media
www.seafood.media

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