Offshore Aquaculture in the United States: Economic Considerations, Implications & Opportunities

Twenty years ago, offshore aquaculture – fish and shellfish farming in U.S. federal waters – was an emerging technology with tremendous potential. The United States and other countries were at the forefront of an engineering and technology revolution, much like the old race to the moon. Bit by bit, scientists, engineers, and researchers began to figure out the “how” for this type of aquaculture. They developed dependable cage systems, remote feeders, monitoring systems, and broodstock for species that would thrive in the open ocean environment. Every success fueled more interest. The potential for this type of seafood production was obvious – so were the challenges. Could this type of aquaculture be brought online safely as a way to complement wild harvest? Would it be economically viable? What about license to operate?

Today, aquaculture in federal waters is among the most talked-about technologies associated with the future of seafood production in the United States. This recent wave of interest in the offshore has strong roots in Chapter 24 of the U.S. Commission on Ocean Policy’s September 2004 report to Congress, An Ocean Blueprint for the 21st Century. In its report, the Commission recommended that the National Oceanic and Atmospheric Administration (NOAA) develop a comprehensive, environmentally sound permitting and regulatory program for marine aquaculture.

In December 2004, the Administration responded to Commission recommendations with the President’s Ocean Action Plan. That plan specifically called for national legislation to allow aquaculture in U.S. federal waters. The Administration’s legislative proposal to establish a regulatory framework was submitted to Congress in 2005 and again in 2007. The latter proposal also calls for an expanded research program for all of U.S. marine aquaculture.

The introduction of national legislation for marine aquaculture garnered attention in the media and spawned a useful and ongoing national debate about the role of domestic aquaculture in America’s seafood supply. That debate centers around a host of marine management, economic, environmental, conservation, health, social, and regulatory issues. It also includes the eventual design of aquaculture regulations for federal waters and associated federal programs. As the agency at the center of the debate, and the one that would likely be tasked with developing and implementing any new federal regulations, NOAA commissioned a study group composed of fisheries resource economists and business experts to address key economic issues associated with offshore marine aquaculture. That effort resulted in this report, Offshore Aquaculture in the United States: Economic Considerations, Implications & Opportunities.