Chesapeake Bay News

Maryland is implementing a new streamlined and centralized aquaculture permitting process for growing oysters and other shellfish in Maryland waters. Thanks to a realignment of State requirements approved by the General Assembly earlier this year and a cooperative effort between the Maryland Department of Natural Resources (DNR) and the U.S. Army Corps of Engineers, qualifying applicants will now be able to submit a joint state-federal application and the Corps is expediting the approval process through issuance of the Regional General Permit.

Along with expanded sanctuaries and increased enforcement against poaching, one of the key components of Governor O’Malley’s 2010 Oyster Restoration and Aquaculture Development Plan is a streamlined permit process. As of July 1, all aquaculture functions have been consolidated and transferred to DNR, which now coordinates all aquaculture permitting, issues water column leases and staffs the Aquaculture Coordinating Council and Aquaculture Review Board.

The U.S. Army Corps of Engineers, Baltimore District approved the new permit, which goes into effect on August 15. The permit will be available for aquaculture projects up to 50 acres placed directly on the water bottom, 5 acres for aquaculture cages on the bottom and 3 acres for floating aquaculture projects. This covers activities such as shellfish seeding, rearing and cultivation as well as the installation and deployment of aquaculture structures including cages, floats, racks and trays.

Since September 2010, DNR has received 38 applications to lease nearly 1,600 acres. 24 of those applicants are commercial watermen. These permits all require federal approval by the Corps. On August 1, DNR began accepting applications for new aquaculture leases within oyster sanctuaries. In less than two weeks, DNR received 6 complete applications and expects more as word of this new opportunity spreads.

The Corps administers Section 404 of the Clean Water Act and Section 10 of the Rivers and Harbors Act. These authorities require that a Department of the Army permit is issued for the discharge of dredged or fill material into waterways and wetlands; and for the placement of structures in, over, or under navigable waters.

A copy of the public notice and permit can be found online here: http://www.nab.usace.army.mil/Wetlands%20Permits/public_notices.htm

source: MD DNR

A new Maryland program will provide subsidized loans to business owners interested in launching or expanding commercial shellfish aquaculture operations in Maryland.

Of the State’s $10.6 million oyster restoration budget for fiscal year 2011, $2.2 million in subsidized loans will be available for aquaculture projects through a partnership between the Maryland Department of Natural Resources (DNR) and the Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO).

Maryland now offers a mix of State and Federal funding to support a revolving loan fund administered by MARBIDCO. The University of Maryland Extension (UME) and the Maryland Department of Agriculture (MDA) are also contributing to this effort, providing training and business planning assistance to current and prospective shellfish growers.

More than two-thirds of the funding for the program comes from a $15 million federal blue crab fishery disaster allocation to Maryland. The National Marine Fisheries Service award, which was requested by Governor O’Malley and advocated for by Senator Mikulski and Maryland’s congressional delegation in 2008, has supported a variety of watermen work programs as well as a program to retire inactive commercial limited crab catcher licenses.

Enacted in September, Maryland’s Oyster Restoration and Aquaculture Development plan increases Maryland’s network of oyster sanctuaries from 9 percent to 24 percent of remaining quality habitat; increases areas open to leasing for oyster aquaculture and streamlines the permitting process; and maintains 76 percent of the Bay’s remaining quality oyster habitat for a more targeted, sustainable, and scientifically managed public oyster fishery.

Shellfish aquaculture startup expenses can run from $5,000 to more than $100,000 depending on the scope of the enterprise. Obtaining a loan from traditional commercial lenders for aquaculture business projects can be challenging for small enterprises and individuals considering the two- to three-year growing period between oyster planting and growth to market size, as well as frequently the lack of available business equity and collateral security.

“This is a good start and I am glad the Governor has dedicated this initial funding to help watermen and others who are interested in pursuing aquaculture and a new business venture,” said Larry Simns, president of the Maryland Watermen’s Association.  “We have a lot to learn in this phase of the oyster arena and it appears we have men and their families who may be willing to try to make a go of it. Any financial help from the State will make it that much more doable.”

Maryland’s new aquaculture loan program is a subsidized program with all principal payments returning to a revolving fund to support an additional round of future funding.  The loan program also offers a partial loan forgiveness element for borrowers meeting certain performance conditions. MARBIDCO is pricing the loans at a fixed annual interest rate not to exceed 4.5 percent.

The State is establishing a Shellfish Aquaculture Financing Committee ? including representatives from DNR, MDA, UME, a Maryland farm credit association and MARBIDCO ? to evaluate applications and proposed business plans.

Because the demand for funding is expected to exceed short term financial resources, MARBIDCO and DNR intend to give priority to applicants who will begin shellfish production operations in 2011. Those who plan shellfish production operations next year must hold a DNR shellfish aquaculture lease, or must have applied to DNR for a shellfish aquaculture lease by no later than 5:00 p.m., Monday, November 15, 2010.   Applications for financial assistance are now being accepted by MARBIDCO, and the deadline for applications to be submitted is Tuesday, November 30, 2010.

Maryland’s FY 2011 oyster restoration budget of $10.6 million will be allocated as follows:

* $2.48 million for aquaculture development — training, technical support, loan program;

* $3.72 million for sanctuary program / ecological restoration — habitat rehabilitation, hatchery seed oysters, MGO program, program management;

* $1.53 million indirect operational support for all programs — bottom surveys, monitoring and assessment, supportive services, staff, enforcement, buoy placement and maintenance; and

* $2.91 million for management of the public oyster fishery — habitat rehabilitation, seed oysters, program management.

A shellfish aquaculture financing program application form, aquaculture business planning template, fact sheet and checklist of required submission items is available at www.dnr.maryland.gov/fisheries/oysters/industry/funding.asp.

Information about the financing program and starting an aquaculture business in Maryland can also be obtained from the MDA Aquaculture Coordinating Office at (410) 841-5724.

Information concerning shellfish aquaculture leases may be obtained by calling Steve Schneider of the DNR Fisheries Services at (410) 260-8329.

source: MD DNR

The Maryland Department of Natural Resources (DNR) is now accepting applications for new aquaculture permits under new oyster leasing regulations. DNR will also be announcing its overall oyster management budget including a package of technical and financial opportunities for aquaculture ventures later this month to help accelerate the growth of this industry in Maryland and create new jobs.

Regulations to implement the State’s new Oyster Restoration and Aquaculture Development Plan became effective on September 6.  The regulations identify thousands of new acres open to leasing for aquaculture; establish a new application process and rules for aquaculture; identify areas off limits to leasing to support a continued public oyster fishery; and identify the State’s new network of oyster sanctuaries, which are expanding from 9% of the Bay’s remaining oyster bars to 25%, including some of the most productive bottom.

The plan was reviewed through a public process that included more than 150 meetings.  Numerous adjustments to the initial proposal were made to accommodate the concerns of affected stakeholders, including commercial watermen, members of the aquaculture industry, recreational fishermen, the environmental community, Marylanders Grow Oyster participants and other interested citizens.

“The newly adopted plan is very reasonable given the status of the Bay’s oyster population and interests of all of Maryland’s oyster stakeholders,” said Secretary John Griffin, “However, I have offered the commercial oyster industry one last opportunity to propose changes that meet our objectives for oyster restoration and aquaculture development, are based on industry consensus, and honor the supportive comments of our many other stakeholders.” The majority of affected counties submitted proposals by the September 2, 2010 deadline and they are currently under consideration.

Since 1994, the Chesapeake Bay’s oyster population has languished at 1 percent of historic levels; the amount of oyster bars has decreased 80% from 200,000 to 36,000 and the number of harvesters has dwindled from 2,000 in the mid 1980s to just over 500 annually since 2002. Today there are only eight oyster processing companies in Maryland, down from 58 in 1974.

Stakeholders can View the new sanctuaries and leasing areas at www.dnr.maryland.gov/fisheries.

Information on the leasing application process is available at http://www.dnr.state.md.us/fisheries/news/story.asp?story_id=88

source: MD DNR

The Magothy River Association, in conjunction with the state sponsored “Marylanders Grow Oysters” program, is again recruiting oyster gardeners for the 2010-2011 season. If you have access to a pier on the Magothy River, and can spare a few minutes every week or so, you can do this!  The MGO program is free to all participants.

This is at least a one year commitment. The oysters you grow will be placed on restored oyster reefs in the Magothy River in the summer of 2011.  We ask that you consider taking a new batch of oysters at that time to start the process over again.

This year the logistics are slightly different.  Many of you still have cages ready for the new spat. Many of you participated last year but turned in your cages. Many of you will be starting fresh in the program. When signing up, please indicate the following scenarios that apply:
1. I have __ cages and would like to participate again.
2. I participated last year but do not have the cages. I would like __ cages.
3. Last year, the location where I picked up my cages was _______________.
4. I am new to the program and will take up to four cages.

To sign up, send an e-mail to magothyriversavers at yahoo.com with your name, street address, phone, e-mail, and above information. A picture of the cage can be found at the below web site. The cut-off for signing up is September 1, 2010.

The oyster-spat pickup is tentatively planned for a weekend in September. Details will be sent as the program evolves.

For more information please visit the following website: http://www.h2006.net/MRAOys01