Farm‐Level Cost Drivers of Salmonid Fish Health Inspections

Abstract

Regulatory costs on aquaculture farms have been shown to be of a magnitude that warrants additional analysis. The drivers of farm-level costs of fish health inspections were identified in this study from national survey data on U.S. salmonid farms. The greatest costs identified were related primarily to state fish health requirements for inspection and testing to certify that fish are free of specific pathogens prior to approval of necessary permits to sell and/or transport animals. Fish health inspection costs included laboratory testing, farm personnel time, veterinary fees, and shipping samples to laboratories, with laboratory testing and the value of farm personnel time being the most expensive components. Principal cost drivers were the number of tests and whether required sampling was farmwide or for each lot as identified by the collector. Farmers who primarily sold into recreational markets had greater fish health costs than farmers who primarily sold food fish because of the greater numbers of species and size-/age-classes of salmonids on their farms. Regulatory requirements to test all species and size-/age-classes on farms increased inspection costs by increasing the total number of tests, the total value of fish sacrificed, and shipping costs. Consequently, for farms with more than one species or more than one size-/age-class, annual farm-level testing was less costly than annual lot-based testing. Increased numbers of tests in a given year, although reported by only a few respondents, can increase costs dramatically and turn profitable farms unprofitable, even food fish farms. Smaller salmonid farms experienced disproportionately greater inspection cost burdens than did larger farms. The fish health inspection scenario of only one annual inspection of only the most susceptible species and size-/age-class showed a cost burden that did not generate economic distress, even on smaller salmonid farms. Other scenarios modeled (based on survey data) that included lot-based surveys of multiple species and size-/age-classes resulted in substantially greater fish health inspection costs that led to unprofitability for various farm sizes and business types. Study results suggest that implementing Comprehensive Aquaculture Health Program Standards might allow for risk-and pathogen-based reductions in the total number of inspections and fish sampled while maintaining equivalent or greater health status compared to current methods. American Fisheries Society-Fish Health Section Blue Book inspection methods are interpreted and applied inconsistently across states and generally yield lot-rather than farm-level health attestations because the

A regulatory cost assessment of ornamental aquaculture farms in Florida

“…Environmental regulations and fish health testing contributed significantly to the regulatory costs and value of lost production in the salmonid and sportfish/baitfish industries. Fish health testing costs were especially onerous on farms selling into sportfishing markets either for bait (van Senten & Engle, 2017) or for recreational fishing (Engle et al, 2021). Conversely, in the ornamental industry where farms tend to be smaller in scale and sell products to non-food markets, regulatory burdens have indirect production effects in the areas of restricted drugs and chemicals, predator control, and prohibited species.…”

Cost of regulations on US catfish farms

“…Nevertheless, several studies point to opportunities with regard to specific types of potentially useful regulatory reforms. For example, van Senten, Engle, et al (2018) and Engle, van Senten, et al (2021) found that risk‐based approaches to fish health testing required for interstate movement of live fish had potential for substantial reductions in on‐farm compliance costs. Boldt et al (2022) found that regulatory reforms that resulted in improved access to restricted drugs and chemicals for non‐foodfish species and use of risk‐based approaches to managing approvals of non‐native species in aquaculture would reduce negative impacts to US aquaculture farms.…”

“…For example, in the baitfish/sportfish farms, a 10% reduction in the cost of manpower spent on regulatory compliance alone could increase the technical efficiency of farms from 77% to 78% (van Senten, Dey, & Engle, 2018; van Senten, Engle, et al, 2018). Fish health testing costs required for sales into other states could be reduced through risk‐based approaches as compared with current practices (Engle, van Senten, et al, 2021). Adopting uniform health standards for aquaculture was estimated to save $6.6 million annually to the US baitfish/sportfish industry (van Senten, Dey, & Engle, 2018; van Senten, Engle, et al, 2018).…”

Characterization of supply of marine finfish species with potential for commercial growth in the United States

“…Moreover, the regulatory framework as implemented has resulted in inefficiencies on farms (van Senten, Dey, & Engle, 2018). Innovative approaches to regulating aquaculture have been shown to have potential to achieve equivalent oversight at lower cost (Engle, van Senten, Schwarz, Hartman, et al, 2021; van Senten, Engle, et al, 2018).…”