35 



aquabusinesses. While RDA and FmHA^ did not guarantee any aquaculture loans 

 under this program between October 1990 and September 1993, the agency obli- 

 gated $845,000 in loans for seafood businesses. Because of the way RDA categorizes 

 loans, we could not readily identify the amount specifically for. aquaculture. 



USDA PROVIDES ADDITIONAL ASSISTANCE 



In addition to making and guaranteeing loans to aquabusinesses, USDA provides 

 a variety of other services to the industry. In fiscal year 1993, funding for these 

 services directly related to aquaculture amounted to over $24 million. USDA's prin- 

 cipal support for aquaculture includes the following: 



The Cooperative State Research Service (CSRS) sponsors aquaculture research, 

 through formula funds and competitive grants, at State universities, agricultural ex- 

 periment stations, and the five Regional Aauaculture Centers (which conduct region- 

 specific research). CSRS-sponsored research for aquaculture was approximately $17 

 million in fiscal year 1993, second only to that for beef, according to CSRS officials. 



The Agricultural Research Service (ARS) sponsors in-house research for aqua- 

 culture. Funding for the 18 ongoing projects in fiscal year 1993 amounted to about 

 $7 million. 



The Extension Service (ES) offers a variety of educational services to 

 aquaculturalists, including instruction on farm management and fish diseases. In 

 addition, in some areas ES has led seminars for lenders to educate them on the 

 business aspects of aquaculture. 



The National Agricultural Library's Aquaculture Information Center provides in- 

 formation services on all aspects of scientific and marketing research. These services 

 range from providing individualized information searches to publishing manuals, 

 such as one detailing Federal food safety regulations for aquaculture. For fiscal year 

 1993, funding allocated for the Center (excluding salaries) was about $33,000. 



The Foreign Agriculture Service (FAS) promotes exports of aquaculture through 

 the Market Promotion Program. FAS' only activity specifically for aquaculture pro- 

 motes catfish exports and was funded at $210,000 in fiscal year 1993. 



In addition, USDA's Office of Aquaculture, housed in CSRS, coordinates USDA- 

 wide activities and provides leadership for the executive branch's Joint Subcommit- 

 tee on Aquaculture. The office, in conjunction with ES, also coordinates the oper- 

 ations of the Regional Aquaculture Centers, funded at about $4 million in fiscal year 

 1993.7 Catfish farmers, the largest recipients of USDA-backed loans, are also a pri- 

 mary recipient of USDA's other assistance for aquaculture. The sole export pro- 

 motion program targeted for a specific aquaculture species is devoted to catfish ex- 

 ports. 



Further, catfish research projects constitute about 29 percent of all USDA-funded 

 aquaculture research. 



Numerous other agencies within and outside of USDA also ofler services to aqua- 

 culture. For example, USDA's Animal and Plant Health Inspection Service provides 

 assistance with damage and depredation done to facilities by birds. Outside of 

 USDA, Food and Drug Administration stafT work with the industry to develop qual- 

 ity assurance programs; the Interior Department's Fish and Wildlife Service makes 

 expertise in fish culture available to the private industry; and the Small Business 

 Administration provides financial assistance and management counseling. 



ADDRESSING INDUSTRY'S NEEDS 



While USDA offers numerous services to support aquabusinesses, some officials 

 indicated that these may not address the industry's unique or most urgent needs. 

 We did not evaluate the policy or budget implications oi changing USDA services 

 to respond to these concerns, which are summarized below. 



Some banking and research officials believe that FmHA's loan limits, set at 

 $200,000 for direct loans and $300,000 or $400,000 for guaranteed loans (depending 

 on their type), are often too low to be useful to aquaculturalists. According to re- 

 search experts and producers, aquaculture companies often require large loans be- 

 cause of high capitalization costs — often at least $1 million to begin — coupled with 

 a long lead time for the companies to become solvent. Some research experts and 

 producers told us that in the absence of commercial financing, FmHA's amounts 



oRDA's predecessor was FmHA. During fiscal year 1992, the responsibility for guaranteeing 

 business and industry loans was gradually transferred from FmHA to the newly created RDA. 



^The $4 million for the Regional Aquaculture Centers is included in the total budgeted for 

 CSRS aquaculture research, about $17 million. 



