Regulatory costs on Pacific coast shellfish farms

Figures & data

Table 1. Definitions.

Term	Definition
Effects on farm costs
Regulatory costs	Costs reported to acquire permits/licenses, testing and other direct costs, costs of equipment and supplies purchased as a result of regulatory actions, and the value of manpower used for monitoring, record keeping, reporting, and other compliance activities.
Effects on farm sales revenue
Value of lost sales	Value of sales into specific markets that were subsequently lost due to regulatory action. Values based on farm records that documented those sales prior to regulatory action.
Value of lost opportunities	Value of sales not received because of regulatory barriers to expansion or diversification. Values based on respondent estimates rather than farm records.

Table 2. List frame development, Pacific coast shellfish survey, 2017.

State	Initial contact list (no.)	Out of business	Not a shellfish producer (no.)	List frame (no.)
California	27	1	0	26
Oregon	12	1	0	11
Washington	231	9	84	138
Total	270	11	84	175

Table 3. Coverage and response rates, Pacific coast shellfish survey, 2017.

	List frame (no. shellfish farms)	Refusal/unable (no. farms)	No response (no. farms)	Completed	Response rate (%)
California	26	2	11	13	50
Oregon	11	4	2	5	45
Washington	138	22	86	30	22
Total	175	28	100	48	27

Coverage Rate: by volume of sales 74%.

Figure 1. Percentage of Pacific coast shellfish farm 2017 survey respondents by farm size.

Figure 2. Primary challenges to Pacific coast shellfish farms among 2017 survey respondents.

Figure 3. Ranking of regulations reported by Pacific coast shellfish 2017 survey respondents as causing the greatest problems for their shellfish business, Pacific coast shellfish survey respondents, 2017.

Table 4. Lost markets, lack of business expansion, unexpected changes, farms that have gone out of business due to regulations, Pacific coast shellfish survey respondents, 2017 (N = 48).

	Yes	No	No response
Know of farms that have gone out of business	56%	13%	31%
Unexpected changes	50%	27%	23%
Lost markets	33%	56%	11%
Lost opportunities for expansion or diversification	64%	21%	15%

Table 5. Total number of recurring regulatory filings (includes all applications required), Pacific coast shellfish survey respondents, 2017.

	Total number	Per farm
		Mean	Median	Range
California	90	7	6	2–15
Oregon	22	4	5	0–8
Washington	203	7	7	0–16
Pacific coast	315	6	6	0–16

Table 6. Total number of recurring regulatory filings reported (includes all applications required) by level of government agency, Pacific coast shellfish survey respondents, 2017.

	Local	State	Tribal	Federal	International	Total
California	5	66	0	19	0	90
Oregon	0	18	0	4	0	22
Washington	12	109	14	64	4	203
Pacific coast	17	193	14	87	4	315
Percentage of total	5%	61%	4%	28%	1%	100%

Table 7. Number of recurring permits/filings by regulatory category, Pacific coast shellfish survey respondents, 2017.

	Total required		Mean per farm		Median per farm
	No.	%^a	No.	%^b	No.	%^b
Aquaculture permit^c	138	44	3	44	3	50
Interstate transport	34	11	1	11	0	0
Environmental management	61	20	1	20	1	17
Aquatic animal health	0	0	0	0	0	0
Legal and labor standards	8	3	0	3	0	0
Food safety	70	22	1	22	2	33

^a Percent of column, by regulatory category.

^b Percent of row, of each regulatory category promulgated by type of government level.

^c Includes Aquatic Farm Registration, Shellfish Operator’s License, and other permits specifically to culture shellfish.

Table 8. Number of recurring permits/filings by regulatory category by state, Pacific coast shellfish survey respondents, 2017.

	Total required		Mean per farm		Median per farm
	No.	%^a	No.	%^a	No.	%^a
California
Aquaculture permit^b	32	36	2	33	2	40
Interstate transport	14	16	1	17	1	20
Environmental management	15	17	1	17	0	0
Aquatic animal health	0	0	0	0	0	0
Legal and labor standards	4	4	0	0	0	0
Food safety	25	28	2	33	2	40
Oregon
Aquaculture permit^b	9	41	2	50	1	33
Interstate transport	7	32	1	25	1	33
Environmental management	3	14	1	25	1	33
Aquatic animal health	0	0	0	0	0	0
Legal and labor standards	1	4	0	0	0	0
Food safety	2	9	0	0	0	0
Washington
Aquaculture permit^b	97	49	3	60	3	50
Interstate transport	13	7	0	0	0	0
Environmental management	43	22	1	20	1	17
Aquatic animal health	0	0	0	0	0	0
Legal and labor standards	3	2	0	0	0	0
Food safety	43	22	1	20	2	33

^a Percent of column, by regulatory category.

^b Includes Aquatic Farm Registration, Shellfish Operator’s License, and other permits specifically to culture shellfish.

Table 9. Total annual regulatory cost by state.

State	Per state	Per farm		Per hectare
		Mean	Median	Mean	Median
Regulatory costs
California	6,158,446	473,727	186,775	125,072	23,042
Oregon	246,908	49,382	41,160	2,628	1,647
Washington	5,144,430	171,481	38,151	55,662	2,961
Pacific coast	11,549,784	240,621	58,769	68,936	7,273
Adjusted for coverage (74%)	15,607,817	–	–	–	–

Values are in US $.

Table 10. Annual effects on farm sales revenue by state.

State	$/state	Mean $/farm	Mean $ per hectare/farm
Lost sales
California	3,170,430	243,879	124,422
Oregon	560,000	112,000	5,230
Washington	78,024,400	2,600,813	15,862
Pacific coast	81,754,830	1,703,226	44,156
Adjusted for coverage (74%)	110,479,500
Lost opportunities
California	19,187,921	1,475,994	91,363
Oregon	9,242,431	1,848,486	9,434
Washington	97,358,518	3,245,284	35,129
Pacific coast	125,788,870	2,620,601	47,682
Adjusted for coverage (74%)	169,984,960

Values are in US $.

Table 11. Annual regulatory costs by type of cost.

	Permits and licenses	Indirect costs other than manpower and changes due to regulation	Manpower	Changes due to regulations
State	Mean	Mean	Mean	Mean
California	6,569	241,729	58,169	155,490
Oregon	6,920	13,854	13,218	13,640
Washington	12,129	76,954	49,290	39,787
Pacific coast	10,080	115,008	47,937	64,207

Values are means in US $/farm.

Table 12. Annual regulatory cost by type of regulation, excluding Manpower,^a Pacific coast shellfish survey respondents, 2017.

	Aquaculture permits^b	Interstate transport	Environmental management	Aquatic animal health	Legal and labor standards	Food safety
State	Mean	Mean	Mean	Mean	Mean	Mean
$/farm
California	109,949	72	207,941	0	1,570	85,472
Oregon	8,182	2,008	14,524	0	0	4,205
Washington	58,749	263	42,856	0	1,821	7,300
Pacific coast	65,974	393	84,615	0	1,563	28,149
$/state
California	1,429,339	937	2,703,230	0	20,406	1,111,132
Oregon	40,910	10,040	72,622	0	0	21,026
Washington	1,762,477	7,900	1,285,683	0	54,633	218,997
Pacific coast	3,232,726	18,877	4,061,535	0	75,039	1,351,155

Values are in US $.

^a Values exclude the costs of manpower. Data collected on manpower costs could not be broken into regulatory categories.

^b Includes Aquatic Farm Registration, Shellfish Operator’s License, and other permits specifically to culture shellfish.

Figure 4. Average manpower expended for obtaining licenses and permits, Pacific coast shellfish survey respondents, 2017.

Table 13. Annual regulatory costs associated with obtaining permits by farm and by state.

State	Pacific coast	California	Oregon	Washington
$/farm
Regulatory costs
Permits and licenses	10,080	6,569	6,920	12,129
Transportation	847	2,600	4	277
Shipping	503	1,852	0	2
Consultants	16,274	27,126	6,000	13,283
Surveys	8,924	25,962	0	3,028
Analysis	6,990	25,000	0	350
Expert witness	9,500	23,308	0	5,100
Legal fees	43,171	68,577	720	39,238
Sunk costs	18,364	38,469	3,640	12,105
Manpower	27,273	42,329	8,794	23,829
Total	141,925	261,791	26,078	109,291
Effect on farm sales revenue
Lost sales	1,668,099	223,462	12,000	2,570,124
Lost opportunities	2,620,601	1,475,994	1,848,486	3,245,284
$/state
Total regulatory cost associated with obtaining permits US $/region or state	6,812,401	3,403,281	130,392	3,278,728
Total effect on farm sales revenue US $/region or state
Lost sales	80,068,733	2,905,000	60,000	77,103,733
Lost opportunities	125,788,870	19,187,921	9,242,431	97,358,518

Values are means in US $.

Figure 5. Average manpower expended for regulatory monitoring and compliance, Pacific coast shellfish survey respondents, 2017.

Table 14. Annual regulatory costs of monitoring and compliance by farm and by state.

State	Pacific coast	California	Oregon	Washington
$/farm
Regulatory costs
Changes for compliance	64,207	155,490	13,640	33,078
Testing	2,141	6,322	1,315	467
Transportation	470	1,329	6	175
Mileage	29	108	0	0
Consultants	5,205	18,392	0	358
Legal	3,389	11,769	1,750	30
Employee training	1,799	662	150	2,567
Public relations	491	915	2,018	53
Manpower	20,664	15,840	4,424	25,461
Other	300	1,108	0	0
Total	98,695	211,936	23,303	62,190
Effect on farm sales revenue
Lost sales	35,127	20,418	100,000	30,689
Lost opportunities	0	0	0	0
$/state
Total regulatory cost of monitoring and compliance mean US $/region or state	4,737,384	2,755,165	116,516	1,865,703
Total effect on farm sales revenue US $/region or state
Lost sales	1,686,097	265,430	500,000	920,667
Lost opportunities	0	0	0	0

Values are means in US $.

Table 15. Pacific coast regulatory costs as percent of total costs (production and marketing costs), and sales.

Cost categories/scenario	Mean (%)	Median (%)	Range (%)
Percent of total costs
Regulatory costs	29	29	0–97
Effects on farm sales revenue
Lost sales	11	0	0–76
Lost opportunities	20	6	0–87
Percent of sales
Regulatory costs	25	9	0–124
Effects on farm sales revenue
Lost sales	23	0	0–300
Lost opportunities	70	11	0–689

Table 16. Total annual regulatory cost by farm size.

Farm size	Per farm		Per hectare per farm
	Mean	Median	Mean	Median
X-Small (<4 ha.)	77,993	29,060	196,376	90,043
Small (≥4 ha. <40 ha.)	149,127	43,243	13,644	5,236
Medium (≥40 ha. <200 ha.)	550,267	203,169	9,176	1,715
Large (≥200 ha.)	465,417	97,100	514	363
Pacific coast	240,621	58,769	68,936	7,273

Values are means and median in US $/farm and $/ha.

Table 17. Effects on annual farm sales revenue (lost sales and lost opportunities) by farm size.

Farm size	Per-farm	Per-ha
Lost sales
X-Small (<4 ha.)	55,289	118,066
Small (≥4 ha. <40 ha.)	148,592	14,230
Medium (≥40 ha. <200 ha.)	244,943	5,043
Large (≥200 ha.)	15,190,000	11,236
Pacific coast	1,703,226	44,156
Lost opportunities
X-Small (<4 ha.)	137,876	117,540
Small (≥4ha. <40ha.)	201,665	14,810
Medium (≥40 ha. <200 ha.)	1,699,022	14,634
Large (≥200 ha.)	20,660,440	25,507
Pacific coast	2,620,601	47,682

Values are means in US $/farm and $/ha.

Table 18. Farm size effects by types of annual regulatory costs.

	Permits and licenses		Indirect costs other than manpower and changes due to regulations		Manpower		Changes due to regulations
Farm size	Mean	Median	Mean	Median	Mean	Median	Mean	Median
Large (≥200 ha.)	11,674	9,170	256,973	42,000	156,469	57,750	40,310	0
Medium (≥40 ha. <200 ha.)	4,261	2,469	281,510	8,398	75,044	42,200	173,576	9,525
Small (≥4 ha. <40 ha.)	20,648	1,050	63,848	150	28,479	11,625	36,006	7,049
X-Small <4 ha.	2,078	1,103	22,329	50	17,993	11,438	35,500	804

Table 19. Farm size effects of regulatory costs: mean and median percent of total costs (production and marketing costs) and sales.

	Large (≥200 ha)		Medium (≥40 ha, <200 ha)		Small (≥4 ha, <40 ha)		X-Small (<4 ha)
	Mean (%)	Median (%)	Mean (%)	Median (%)	Mean (%)	Median (%)	Mean (%)	Median (%)
Total costs
Regulatory costs as a percent of total costs	5	2	31	22	24	28	41	39
Effects on farm sales revenue
Lost sales as a percent of total costs	14	0	11	3	12	0	9	0
Lost opportunities, as a percent of total costs	37	22	15	10	21	6	17	1
Farm sales
Regulatory costs, as a percent of sales	2	2	15	3	19	19	48	38
Effects on farm sales revenue
Lost sales, as a percent of sales	34	0	14	3	17	0	35	0
Lost opportunities, as a percent of sales	145	36	38	12	78	9	62	5

Table 20. Means of annual costs associated with obtaining permits by farm size.

	Large	Medium	Small	X-Small
Category	(≥200 ha.)	(≥40 ha. <200 ha.)	(≥4 ha. <40 ha.)	(<4 ha.)
Permits and licenses	11,674	4,261	20,648	2,078
Transportation	0	237	1,496	851
Shipping	0	2	115	1,477
Consultants	33,000	47,604	7,918	367
Surveys	1,200	34,850	4,021	367
Analysis	1,200	32,800	88	0
Expert witness	0	45,600	0	0
Legal fees	181,323	91,840	12,089	2,780
Sunk costs	40,000	0	31,262	10,000
Manpower	59,275	52,724	18,870	10,701
Total	327,672	309,918	96,506	28,620
Effect on farm sales revenue
Lost sales	15,066,667	200,000	125,024	40,667
Lost opportunities	20,660,440	1,699,022	201,665	137,876

Values in US $/farm.

Table 21. Means of annual costs of monitoring and compliance by farm size.

	Large	Medium	Small	X-Small
Category	(≥200 ha.)	(≥40 ha. <200 ha.)	(≥4 ha. <40 ha.)	(<4 ha.)
Changes for compliance	40,310	173,576	36,006	35,500
Testing	0	2,118	1,796	3,405
Transportation	0	114	174	1,232
Mileage	0	100	0	27
Consultants	0	24,575	0	273
Legal	0	15,875	147	93
Employee training	250	352	4,371	486
Public relations	0	1,319	519	105
Manpower	97,185	22,320	9,609	7,292
Other	0	0	0	961
Total	137,745	240,348	52,621	49,374
Effect on farm sales revenue
Lost sales	123,333	44,943	23,569	14,622
Lost opportunities	0	0	0	0

Values in US $/farm.

Figure 6. Truncated example of sequential shellfish permits for Washington state producers, Pacific coast shellfish survey respondents, 2017.