Research, loans can aid fishery

NO BAIT: Michael Marchetti, a scallop fisherman, says many of his colleagues are wary of taking out loans. / PBN PHOTO/RUPERT WHITELEY
NO BAIT: Michael Marchetti, a scallop fisherman, says many of his colleagues are wary of taking out loans. / PBN PHOTO/RUPERT WHITELEY

For years, Narragansett scallop fisherman Michael Marchetti has believed information being used by government officials to manage the fishery did not correlate with his at-sea observations. He’s taken advantage of several research programs to both improve available data and increase his own financial opportunities in an industry in which many of his colleagues are feeling increasingly burdened by regulatory requirements.
Last month, Marchetti and other members of the Port of Galilee Task Force met at Narragansett Town Hall to discuss available funding to aid local fishermen through such research programs, loans and various federal grants. The meeting, however, failed to draw anyone from the fishing community, a reflection of either the inability of some fishermen to miss a day on the job or simply lack of interest.
“Fishermen have been … catching fluke and scup offshore, and the weather has been well within their reach of going out, making money and paying bills,” said Richard L. Fuka, president of the Rhode Island Fishermen’s Alliance, after the April 3 meeting. “[Most fishermen would not prefer] a handout of any sort, especially when the National Marine Fisheries Service is tied into it.”
Once the president of the Rhode Island Lobstermen’s Association, Marchetti and fellow task force member Chris Roebuck are veterans of several research programs and agree that they aren’t geared for every fisherman. In 2011, Marchetti contributed to research designed to evaluate a new dredge that would possibly reduce winter flounder bycatch – accidental catch – in the sea scallop fishery.
“It’s not always easy to participate in these studies, but it does make it easier when you are heavily invested in the [scallop] fishery,” Marchetti said.
This year he will participate in a Virginia Institute of Marine Science study evaluating the discarding of skates in the scallop fishery. It is a two-year study of fishing in Georges Bank Closed Areas I and II, using five-to-seven-day trips, and includes multiple vessels and owners. This project was awarded 115,992 pounds of scallops with a potential value of $1,092,642. For Marchetti the grant program is a means to harvest scallops in a periodically closed area and contribute to their study. It also serves as an alternative to fishing the area’s struggling lobster industry.
“There’s a certain amount of product that is set aside from our total allowable catch to do research projects,” Marchetti explained. “It’s one of the reasons why the scallop fishery is so improved than in the past. In the long run it has benefited the fleet. All the science that has been created through the recent set-aside has boosted the industry’s confidence in the resource. It has resulted in improved stock assessments.”
Such studies can also relieve some financial pressure on participating fishermen, but their availability is not always predictable.
Federal research funding fluctuates, dependent on the national budget, and takes a variety of forms. Generally it’s conducted by the NMFS or by its parent organization, the National Oceanic and Atmospheric Administration.
Funding is usually in the form of a grant, but recent budget cuts have limited their number. Funds to conduct marine research are obtained by the 1954 Saltonstall-Kennedy Act, but that money has been increasingly appropriated by Congress to pay for NOAA’s operating budget.
In 2010, of the $113 million designated for research, $8.4 million was spent on actual fishery uses throughout the nation, leaving $104.6 million for NOAA operations. U.S. Sens. John Kerry, D-Mass., and Olympia Snowe, R-Maine, have filed legislation in the Senate to dedicate all the funding to research.
An alternative to individual grants is collaborative research, a partnership between government managers and fishermen for the purpose of investigating specific areas of concern. Managers are well-versed in hypotheses and statistics, while fishermen have practical experience.
Research is accomplished through a “set-aside,” in which participants are allowed extra quota or days at sea for the sake of research, or through a binding contract. With funding becoming tighter, set-asides are becoming more popular because fishermen are allowed an extra quota and thus are paid in fish rather than currency. “With funds being cut to the NMFS, they may not be able to offer the same amount of [grants as] they have in the past,” said Laura Skrobe, a University of Rhode Island researcher. She’s currently involved in set-asides for scup and black sea bass.
“Participating in a set-aside isn’t for everybody and sometimes might not be as profitable as a year’s worth of standard fishing,” she acknowledged.
The task force, set up by the General Assembly to identify ways to strengthen the state’s fishing industry, also discussed financing available through the Small Business Loan Fund Corp. – part of the R.I. Economic Development Corporation.
According to Christopher Cannata, client-relations manager for the EDC, the fund can supply up to $250,000 for working capital or manufacturing, processing and selected services. All interest rates are fixed. The repayment terms are flexible, with up to five years of working capital and 10 years for hard asset financing. For each $50,000 lent, at least one job must be created and the funds cannot be used to pay existing debt.
The application submission includes the formation of a business plan, two years of financial projections, business financials and timeline planning, just to name a few of the requirements. Marchetti, however, said that in an industry dictated by quotas, allowable catch, potential bans, strict regulations and often unpredictable market prices, such loans can be a precarious proposition. Fellow task force member and commercial fisherman Jason Jarvis agreed, saying substantial loans are necessary to enter the business or maintain equipment but represent significant debt.
Echoing the ideals of EDC’s new “Access to Capital” plan announced March 27, Cannata stressed the SBLFC is willing to not only provide the loans but to listen and address the concerns of businesses.
“We can be flexible,” he said. “Our goal is not necessarily reporting numbers. We are a public institution and we’re here to help the Rhode Island economy.” •

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