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Potential Assistance for Alternative Oyster Culture

Oyster Advisory Committee

August 21, 2012

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Alternative Oyster Culture Status

• Alternative Oyster Culture was authorized by Act 293 (La. 2012 Reg. Sess.)– Suitability mapping is nearing completion– Implementing regulations are under development

• Oyster hatchery at Grand Isle is operational– Produces spat, primarily for use on public seed grounds– Spat will also be used for remote setting– Investigating whether spat can be sold for private AOC– NRDA early restoration hatchery expansion is proceeding

• Oyster remote setting facility at Buras is proceeding– Will combine spat with substrate, for use on public seed

grounds, and eventually for transplant to private leases

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Investments Needed for AOC

• Private hatcheries– To supply additional spat needs – Using techniques developed in state

hatchery

• Nurseries– To grow spat to sufficient size to use for AOC

• Equipment– To contain and grow oysters

• Others?

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Potential Funding Sources

• Tax credits or deductions– Federal or state

• Loan programs– Federal, state, private

• Grant programs– Federal, state, private

• Others?

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Tax Credits or Deductions

• Federal Commercial Fishing, Farm, and Ranch Risk Mgmt. Act (H.R. 6276, 112th Cong., 2d Sess.)– Introduced 8/2/12– Would grant federal tax deduction for

contributions to management accounts (trusts) for fishing

• North Carolina Oyster Shell Recycling Program– Precludes disposing of shells in landfills– Provides $1/bushel state tax credit for shells

(sunsets in 2013)

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Loans• NOAA Fisheries Finance Program, 50 CFR 253

– Loans for up to 80% of cost for fisheries facilities, including for aquaculture

– $115 M est. in FY 12; $83 M est. in FY 2013– http://www.nmfs.noaa.gov/mb/financial_services/

ffp.htm

• Maryland Shellfish Aquaculture Loan Program – Low-interest loans for start-up costs, up to $100,000– $1.8 M in 2012; Less in 2013

• Maryland Remote Setting Shellfish Aquaculture Loan Program– Low-interest loans for larvae, substrate, tanks, pumps,

blower, valves and heaters, up to $30,000

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Grants • Research & development, not industry

support– Small Business Innovation Research Program

(NOAA, USDA, NSF)– Saltonstall-Kennedy Grant Program (NOAA)

• No funds for FY 11• Amendment: Fisheries Investment and Regulatory

Relief Act (S. 2184/H.R. 4208, 112th Cong., 2d. Sess.)

–Marine Fisheries Initiative Program (NOAA)– National Institute of Food and Agriculture

(USDA)• Various grants

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Recommendations and Requests for Louisiana

• For what should assistance be requested?– Overcoming barriers to entry– Not merely for routine business investment

• What type of assistance should be requested?

• Who should be asked for assistance?• Other thoughts?