Cape Cod Fisheries Trust: Solving a Community Resource Access Problem: Atlantic Sea Scallop Example A Working Conference on Social Impact Investing For Sustainable Fishing Communities April 10-11, 2013

Cape Cod Fishing Community

• Cape Cod Geology and Ecology • Small Boats (Capt. & 1-2 Crew) • Owner Operated and Family-

Based • Diversified & Opportunistic.

(Groundfish, Lobster, Scallop, Tuna, Skate, Dogfish, Monkfish)

• Culturally important • Good Cape Cod jobs. • Low impact gears.

Catch Shares

• Improve management and conservation performance.

• Annual science-based quotas. • Fishermen allocated quota

shares. • Quota market for lease and

sale. • Rapid price appreciation. • Fails to prioritize social

concerns and may threaten communities.

• End Overfishing. • Reduce Bycatch and Waste. • Decrease gear habitat

impacts. • Improve safety at sea • Improve prices and profits.

Catch Shares Benefits

• Efficient gears advantage. • Small Businesses

disadvantage • Young fishermen cannot

finance quota. • Crew pay is cut • Defer maintenance,

insurance and safety equipment.

• Specialize and lose business diversity.

Catch Shares Costs

Atlantic Sea Scallop Fishery

• Largest wild scallop fishery in world.

• Use a scallop dredge. • Not overfished • No overfishing. • $400-600M fishery • Stable & high price • High population levels • MSC Certification Process • Rotational management. • IFQs for inshore fleet.

Scallop IFQ Trends

• Low Cape Cod allocations.

• Expensive Quota. – 2008 = $6 per lb – 2013 = $37 per lb

• Leasing is 40% of ex-vessel price.

• Rapid Consolidation. • Specialized Businesses • Young fishermen want

to get in but very competitive.

CCFT Solution

CCFT runs a business that: • Buys quota from retiring

fishermen. • Provides affordable leasing to

qualified Cape Cod businesses.

• Helps local fishermen improve their business competitiveness.

• Offers business planning and other business technical assistance.

CCFT Vision and Goals

• Cape Cod fishing businesses are strengthened.

• Cape Cod fishing resources are protected.

• Fishing as a way of life is maintained in Cape Cod communities.

• A sustainable community based model is developed

The Cape Cod fishing industry is vibrant, sustainable, and a model for other fishing communities.

Guiding principles for our lease activities are:

• Supporting future generations of fishermen

• Encouraging Diversification

• Providing Services for Business Improvement

Guiding Principles

Who’s  Eligible?

• Cape Cod resident

• Owner operator.

• Share to local crew.

• Pay Taxes & Fully Insured

• Regulatory compliance

• Maintains strong business operations.

CCFT’s  community  model  improves  management  performance  for the environment, the fishermen and local economy.

Impacts & Opportunities

• 13 Vessels 62 fishermen. • Leased 160K lbs scallop. • Fishermen saved $280K on

leasing. • Direct $2M scallop value to

Cape Cod Fishermen. • Increasing demand for

quota and services. • Launching a Revolving

Loan Fund for fishermen to buy their own quota.