analysis therefore should probably turn its attention to these 



"her types of programs and, at least for the present, not 

 attempt to alter the financing systems for aquaculture." 



In general, if the technology to produce a species exists and 

 markets are available to return a reasonable profit, it appears 

 that financing is not currently a constraint. Consequently, the 

 JSA does not find adequate justification for recommending the 

 creation of new Federal financing programs. Aquaculturists (and 

 potential aquaculturists) can and do compete in the financial 

 markets for capital. It should be pointed out also, that 

 Federal tax and other policy changes that stimulate the formation 

 and nurturing of high-technology, high-risk businesses can be 

 expected to similarly effect the establishment and growth of new 

 aquaculture ventures pioneering new species. 



However, entrepreneurs who cannot raise enough capital and must 

 borrow funds may find that lenders have little experience with 

 aquacultural enterprises. Although the usual financial channels 

 are open to aquaculturists, they may not be open to the extent that 

 they are to, for example, producers of soybeans, beef cattle, or 

 swine. This is especially true of entrepreneurs who are culturing 

 species that have not become established in the marketplace. At 

 the same time, many potential aquaculturists may not be aware of 

 private and public sources of financing. 



The JSA and the Panel on Economics will seek to develop the 

 public's awareness of financing opportunities by: 



o Developing and disseminating a directory of funding sources 

 to assist would-be aquaculturists 



o Providing educational materials about aquaculture that may 

 be useful to financing institutions not now familiar with 

 aquaculture 



o Encouraging research on the relationship between potential 

 aquaculture products and the land, labor, capital and 

 operating inputs required to produce the species 



Regulatory Impacts 



The JSA authorized a comprehensive investigation of the impacts of 

 Federal and State regulations on the development of aquaculture in 

 the U.S. The objectives of the study were to identify Federal and 

 selected State laws and regulations which could potentially affect 

 the initiation and operation of aquaculture enterprises and to 

 define the practical effects of these laws and regulations. 



The issue of regulatory impacts is complex. A regulation may be 

 viewed by one individual as a constraint and by another as a 

 benefit. Regulations are presumably developed to meet a public 



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