By Sheila Dassatt
Some of us have been introduced to a new legislation that introduces Legislation to “Strengthen American Fisheries.” The reason I’m saying “some” is because a lot have seen it on social media posts and have asked for more information about what it is all about. I don’t totally have all of the answers either, but I will do my best.
This bill was introduced by U.S. Senators, Angus King I-ME and Lisa Murkowski (R-AK) to strengthen the American seafood industry. The legislation is called The American Seafood Competitiveness Act. This would expand access to the U.S. Department of Agriculture (USDA) Loan and grant programs for commercial fishermen. This would also expand Farm Credit eligibility to businesses providing services to fishermen and fish processors. The American Seafood Competitiveness Act would: (taken from a monthly newsletter), 1) Amend the Consolidated Farm and Rural Development Act to include commercial fishing and fish processing as eligible agricultural activities under USDA programs. 2) Include wild caught fish and shellfish as eligible agricultural products under USDA’s Local Agricultural Market Program and allow USDA to waive or reduce matching fund requirements lowering barriers for small rural operators. 3) Update USDA regulations to ensure seafood processors can access financing to acquire or upgrade processing facilities and address significant operating costs. 4) Expand eligibility for USDA farm ownership and operating loans to allow fishermen to purchase permits, acquire vessels, make capital improvements, and cover operating and maintenance costs. 5) Broaden Farm Credit eligibility to businesses that support fishermen and fish processors providing access to lending from Farm Credit institutions similar to that available to farm related businesses. 6) Create additional financing options for coastal communities that rely on the seafood economy, in the same manner as those supported by traditional agriculture. This Act would recognize the seafood industry’s role as “farmers of the sea” by ensuring that they have the same opportunities as traditional farmers. Last year, Sen. King led the Fishing Industry Credit Enhancement Act (FICA) which would allow businesses that provide direct assistance to fishing operations.
In a nutshell, these are the basic facts that go with this legislation. Now I’m not trying to be negative, but I so carry an “air of caution” with this piece of work. How many of us knew ahead of time that this was a plan in the making? I wasn’t aware of it until it was just about a done deal.
Recently, I watched a documentary about Margaret Holcomb, who was a young woman whose father passed away unexpectedly and left her with a farm in Kansas. She worked the farm all of her life, as her father raised her after her mother died when she was young. Margaret went to the tractor dealership there and they basically laughed her out of there. She was determined to work the farm herself and ended up buying two Farmall tractors at an auction with what money that she had. It was hard work for her, but she worked the farm with those old tractors.
I will try to put this story in a nutshell. She saved what money she made and all of the equipment was owned by her. She knew how to repair the tractors if they needed work and was able to keep them going. A lot of the neighboring farmers had top of the line equipment as well as the best of everything for their farms. Of course, most of their equipment was from Farm loans and low interest funds sponsored by the USDA.
When the wheat business took a big fall in the 70s and 80s, the farmers could not pay their loan bills and eventually lost their farms and had to let them go to auction. Margaret was able to attend the auctions and purchase their lost land to add to her farm. With that being said, they could not pay their equipment loans as well. This put the tractor dealership out of business because they ended up re-possessing their tractors and equipment. This all came from these loans and lower interest funds. Margaret stayed with the farming, because financially, she was able to add these repossessed lots to her farm-stead. The owner of the tractor dealership actually came to her and apologized for the way that he laughed and treated her. There is a moral to this story and I hope that you can read between the lines. Check it out with the farmers, nothing is done for free. There will be fees and control that will come along with this. What is going to happen to our marketing collaborative? They offer marketing assistance or emergency loans that offer insurance related to fishing, such as gear manufacturers or bait suppliers and gain access to the Farm Credit System.
The USDA will have control of our product much like the farmers. If they reject any of the product, they can call it dead loss. They did this with Mike when he was driving cattle to a processor. They deemed one of the cows weak, shot it and who knows what they did with the cow? The farmer was out $3,000 and never did receive it. It was just one example of what can happen when you give up some of the control of your product.
Now this may be a good thing for the fishermen, but ask questions, this is what I plan to do. I’m not a spring chicken any more, so I have a tendency to be cautious when things sound too good to be true. Also, our best interest is with our own industry, we want to be sure that we don’t get caught in financial situations that leave it over our heads. “Nothing is for free!”
