The long-term effects of limited entry on rural coastal fishing communities have been of considerable interest to the Alaska State Legislature, the State of Alaska administration, and the public. Particular attention has been paid to the degree to which limited entry permits have been transferred away from rural fishing communities.
This section will present information regarding only the cross-cohort transfers of permits associated with Alaska Rural Locals (ARLs). A permit is classified as held by an ARL if the permit holder resides in a rural Alaska community that is local to the permit type in question1. Recall that a cross-cohort transfer is a transfer between persons of different resident types. Cross-cohort transfers result in a change in the distribution of permits among resident types. Tables are presented with transfer survey results from 1980 to 2022` for all permit transfers from ARL permit holders.
Table 6-01 presents time-series information on the net results of cross-cohort transfers of permits associated with Alaska Rural Locals. The total number of transfers from and to Alaska Rural Locals are displayed in the second and third columns respectively. Starting in the fourth column of Table 6-01, the net shifts as a result of transfers to and from Alaska Rural Locals are enumerated by resident type. A positive figure represents a net increase, while a negative figure represents a net decrease, and a zero means that there has been no net change. Resident type definitions can be found in Chapter 3. The DCCED/CFAB column represents net changes due to action on permits temporarily held by the Department of Commerce, Community, and Economic Development or the Commercial Fishing and Agriculture Bank. The Alaska Urban column is the sum of the net shifts for Alaska Urban Locals and Alaska Urban Nonlocals. The Alaska Nonlocal column is the sum of the net shifts for Alaska Rural Nonlocals, Alaska Urban Nonlocals, and DCCED/CFAB. The “Total” row at the bottom of Table 6-01 represents the total effects of transfers between Alaska Rural Locals and other resident types over the time period of limited entry (1975-2023). Intra-cohort transfers from Alaska Rural Locals to other Alaska Rural Locals can be found in Table 3-03 in Chapter 3.
Table 6-02 continues from Table 6-01 and breaks out the results of cross-cohort transfers between Alaska Rural Locals (ARLs) and other resident types, by permit type. By permit type, the total transfers from ARLs are reported in the second column labeled, “From Alaska Rural Local”. The third column reports the total number of transfers to ARLs labeled, “To Alaska Rural Local”. The fourth column represents the net change of permits held by Alaska Rural Locals (to ARL minus from ARL). The fifth column, “Initial Alaska Rural Local” presents the total number of limited entry permits initially issued to Alaska Rural Locals. Note that the initial count includes non-transferable permits. Non-transferable permits cannot be transferred and remain with the initial issuees. The “Percent Initial Level” column is the result of dividing the “Net Alaska Rural Local Shift” figure by the “Initial Alaska Rural Local” figure. Starting in the seventh column of Table 6-02, the net shifts as a result of transfers between Alaska Rural Locals and other resident types are examined by resident type. A positive figure represents a net increase, while a negative figure represents a net decrease, and a zero means that there has been no net change. Resident type definitions can be found in Chapter 3. The DCCED/CFAB column represents net changes due to action on permits temporarily held by the Department of Commerce, Community, and Economic Development or the Commercial Fishing and Agriculture Bank. The Alaska Urban column is the sum of the net shifts for Alaska Urban Locals and Alaska Urban Nonlocals. The Alaska Nonlocal column is the sum of the net shifts for Alaska Rural Nonlocals, Alaska Urban Nonlocals, and DCCED/CFAB.
Table 6-03 provides the relationships between parties for Alaska Rural Local cross-cohort transfers that occurred between 1980 and 2022. The relationship information is organized by permit type and year. The relationship columns provide both the number and percentage of transfers from ARLs. Relationship group definitions can be found in Chapter 5. Transfer survey information concerning foreclosed permits is not included in this table.
The methods used to acquire permits from ARL cross-cohort transfers are presented in Table 6-04. This table reports on all permit transfers from ARLs. Under the Limited Entry Act’s terms of free transferability, permanent limited entry permits may be sold, traded, gifted or inherited, thus enabling new participants to enter a fishery. The transfer recipient is required to report which acquisition method was used to obtain the permit on the CFEC transfer survey. The permit acquisition method columns provide both the number and percentage of permit acquired by each method: gift, sale, trade or other for permit transfers from ARLs. For more information on the four acquisition method categories see Chapter 5. Transfer survey information concerning foreclosed permits is not included in this table.
Information on financing methods used in ARL cross-cohort permit sales is provided in Table 6-05. This table reports on all permit sales where Alaska Rural Locals were involved as the transferor. The information on permit financing is gathered from the CFEC transfer survey. If the permit transfer was a sales transaction, the transfer recipient is required to report what financing method was used to finance the permit. The seven financing method categories are self/other, bank, DCCED, CFAB, transferor, processor, and combination. More information on the categories of financing methods can be found in Chapter 5. The table columns for methods of permit financing provide both the number and percentage of permits acquired by each financing method for permit transfers from ARLs.
For detailed information concerning local/nonlocal and urban/rural rules, please see Appendix A.↩︎