Development and Implementation of a Quota Valuation Calculator for IFQ Fishers
Catch shares management programs that allow for both the sale and lease of harvest privileges (quota) creates an asset similar in nature to financial stocks and bonds. The value of quota is equal to the discounted flow of expected quota lease prices during the investment period plus the discounted terminal value of the quota at the end of the investment period. While fishers need to be able to calculate the value of quota they are rarely provided with the financial training or tools necessary for the task. The absence of relevant training and tools related to catch shares management programs could negatively impact fisher opinions about these programs and their willingness to trade quota which could limit trading market efficiency and negatively impact management outcomes (decreasing overcapitalization and limiting discards). While the use of financial training and valuation tools in ag-based extension is quite common, the development of similar programs in fisheries is quite rare. This presentation examines the development of a calculator to assist Gulf of Mexico IFQ fishers (red snapper and grouper/tilefish) with valuing quota. Topics addressed will include: calculator design, tool format (online, app., etc.,), development of user training, and tool marketing. This presentation is part of a special session at the American Fisheries Society annual meetings on the role of extension in fisheries and fisheries management.