Financing options for Bristol Bay permit retention and ownership

Bristol Bay residents have opportunity in fishery

This past fall’s Board of Fisheries agenda was full of a number of restructuring proposals, including proposals to allow permit stacking, larger vessels, and longer nets. While there may have been legitimate reasons for proposing any number of these restructuring ideas to the Board of Fisheries, the overall consensus, both here in the Bristol Bay, and at the State of Alaska Board of Fisheries level was that the residents of Bristol Bay would be even further disenfranchised from the fishery if these proposals were sanctioned by the Board.

So, how did we get to this point? How is it possible that since 1975, Bristol Bay watershed residents no longer hold the majority of the fishing permits?

The number of permits owned by residents has been steadily declining, while the number owned by non-residents has been steadily increasing. In the case of the drift fleet, the number of permits owned by non-residents is now greater than the number of permits owned by residents. Because these numbers were obtained from ADF&G, the numbers do not separate out Bristol Bay residents from Alaska residents. When you take those transfers into account the curve is even steeper.

How did we lose control over our resources so quickly? Well, without doing a massive study on each and every permit buyout from resident to non-resident, one can only surmise. One possibility is that the high cost of living forced residents to look at the short-term cash opportunity present with selling their fishing assets, including permits. Another possibility, often overlooked in this discussion, is that perhaps it isn’t so much that the permits were sold to non-residents, but that past residents purchased permits, but now reside elsewhere. Yet another reason is that extended family members could have purchased permits from their resident family members.

However, the real question we should be asking ourselves and our fishing families, is this: how can we reverse the trend of non-resident permit ownership in Bristol Bay? How can we encourage our younger generations of Bristol Bay watershed residents to engage in the fishery and assume ownership and control over the fishing rights (i.e. permits)?

The answer lies in financing. This is where BBEDC residents can really gain a lot. For those readers who haven’t heard about the BBEDC Permit Loan Program, it is a fantastic opportunity for BBEDC village residents to get involved in the fishery as permit owners. With a permit, a fisherman can earn a lot more than a deckhand, and have some control over their own destiny. BBEDC has partnered with the Commercial Fisheries and Agriculture Bank (CFAB), to guarantee loans to qualified residents, provide financial assistance through subsidies and “sweat equity,” and to help teach permit holders how to successfully manage their fishing business. For more information about BBEDC’s Permit Loan Program, call 1(800) 478-4370 or 842-4370.

For watershed residents who do not resident within one of the BBEDC villages, there are other options. If you would like to purchase a permit or a boat, the State of Alaska Division of Investments offers financing packages through their Commercial Fishing Revolving Loan Fund. More information on the State’s program is available at www.commerce.state.ak.us/investments/comfish.cfml. Additional opportunities exist if a person is willing to work directly with CFAB. Information can be found online at www.cfabalaska.com or by calling 1(800)544-2228.