Cost of regulations on US catfish farms

Abstract Understanding the economic effects of regulations on US aquaculture farms provides insights into which compliance costs create the greatest compliance burden on farms. This can further guide strategies to improve the efficiency of regulatory frameworks and potentially reduce on‐farm compliance costs while maintaining adequate oversight. This study estimated the regulatory compliance burden on US catfish farms as part of a national effort to quantify the cost of regulations on US aquaculture farms. Completed survey interviews of catfish farms in the major catfish‐producing states covered 63% of the total US catfish production area. Total regulatory costs of the US catfish industry were estimated at 45 million annually. Lost farm revenues (measured as the value of lost production, the value of markets lost from regulations, and the value of business opportunities lost because of regulations) were estimated to be 35 million per annum. Catfish‐producing states outside the Alabama/Arkansas/Mississippi region had the highest (2856/ha) and Alabama the lowest (1127/ha) regulatory costs per hectare among the surveyed states. The greatest regulatory cost burden on catfish farms (18 million) was caused by environmental regulations related mostly to the management of federally protected piscivorous migratory birds, followed by labor regulations (12 million), and taxes/insurance (7 million). Regulatory costs (/kg) were 2. 6 times higher on smaller (300 ha) farms. Attention is needed to identify alternative regulatory frameworks that provide the same degree of regulatory oversight but are more cost‐efficient.