Red Snapper

Individual Fishing Quota

Review

August 17, 2010

Tab B, No. 11(a)

Outline

• Overview of the Red Snapper IFQ Program

• Landings and Share Ownership

• Review Requirements

• Objectives of the IFQ Program

• Program Review

Overview - Red Snapper IFQ

Duration: No time limit – program review every 5 years

Ownership Cap: Maximum % issued to a recipient during initial apportionment

Initial Eligibility: Owners of a Class 1 or Class 2 license

Initial Apportionment:

Class 1: 10 consecutive years between 1990 -2004

Class 2: 5 years between 1998 – 2004

Historical Captains: 7 years between1998-2004 continued

Overview - Red Snapper IFQ

Appeals Process: RA review (no hardship cases)

Transfer: Commercial reef fish permit holders during the first 5 years; all US citizens and permanent residents thereafter

Quota Adjustments: Proportional -based on share ownership

Use it or Lose it: No minimum landings requirement

Cost Recovery: 3% of ex vessel value of landings

Landings & Cost Recovery Fees

  Landings Value Quota % Cost Recovery

Year   (gutted wt) ($) (gutted wt) Quota Fees Collected

2007 2,867,326 $10,127,176 2,986,486 96.0% $303,816

2008 2,237,480 $8,262,729 2,297,297 97.4% $247,815

2009 2,237,399 $8,005,184 2,297,297 97.4% $240,157

Share Ownership

Share Percentage 1/1/2007 12/31/2007 12/31/2008 12/31/2009

0.0001% - 0.0049% 159 150 146 142

0.0050% - 0.0099% 91 76 68 58

0.0100% - 0.0999% 184 158 147 130

0.1000% - 1.9999% 104 94 93 92

2.0000% - 2.9999% 3 5 6 3

3.0000% - 6.0203% 5 6 6 7

Total 546 489 466 432

Source: Strelcheck – NMFS-SERO

Share Distribution – by State

Source: Strelcheck – NMFS-SERO

Shareholder's Percentage of Shares as of

State of 1/1/20007 12/31/2007 12/31/2008 12/31/2009Residence        

AL/MS 9.60% 9.60% 9.50% 8.80%

FL 44.00% 42.30% 42.30% 43.90%

LA 11.60% 10.70% 10.60% 10.20%

TX 32.90% 35.70% 35.80% 35.30%

Other 1.80% 1.80% 1.80% 1.80%

Review - Requirements

Section 303A(c)(1)(G) of the MSA states that “Any limited

access privilege program (…) shall –

include provisions for the regular monitoring and review

by the Council and the Secretary of the operations of the

program, including determining progress in meeting the

goals of the program and this Act, and any necessary

modification of the program to meet those goals…”

Objectives of the IFQ Program

The purpose of the red snapper IFQ program is

to reduce overcapacity in the commercial fishery

and,

to eliminate, to the extent possible, the problems

associated with derby fishing.

Program Review

NMFS has initiated a review (Agar and Keithly)

Evaluation using logbook data and IFQ database

• Indicators (effort, transfers, landings, share prices)

• Economic performance (stochastic frontier analysis)

• Cost adjustments, Supply responses

IFQ Participants Survey

• Attitudes towards the program

• Socioeconomic assessment of the program continued

Program Review

• Additional issues Council would want to address

• Are other reviews warranted