Partner Stories
Catch Together
The Financialization of Fish
In 2007, the National Marine Fisheries Service divvied up the rights to catch red snapper in the Gulf of Mexico. Historically, it’d been managed like a race: scientists set an annual harvest limit, fishermen competed to catch as much of that total haul as possible as fast as possible (the full annual harvest once took 52 days to fill). Gluts of red snapper would then hit the market all at once, depressing prices, and the pressure to compete for share meant that fishermen often navigated in dangerous weather.
The alternative was to divide the total allowable catch into shares (called Individual Fishing Quotas) based on who’d caught the most in prior years.
But that system produced its own set of problems. By 2016, just 55 people owned the right to catch 77 percent of the red snapper. Those owners would lease out their shares to others, charging fees equal to 60 percent of the catch’s sale price. Those leases generated $60M between 2007 and 2016; share owners in some cases far out-earned the fishermen they leased their quota to, without ever taking their boats out (read more here).
Tradable fishing quotas now govern fisheries across the country. Designed to end overfishing and protect the financial viability of the industry, they face a range of structural challenges. Concentration and absentee owners, like in the Gulf with red snapper, are two — but climate change and environmental volatility are changing where fish live and how many there are year-to-year, meaning that the value of quota can swing dramatically. Purchasing quota often requires a loan, and a fisherman can find himself underwater (pun intended!) quickly if the fish population changes. Leasing avoids that risk, but equates to a 20-60 percent tax on their income. The dilemma for young fishermen, weighing purchasing versus leasing their way into quota, is often, “This isn’t a great investment…but I gotta have it”.
Even with quota, the modern fisherman is operating on thin margins. Pricing is dictated by volatile markets, and the combination of science, industry bodies, and regulations dictates how much can be caught in the first place. Beyond the cost of their lease or loan payment, they also need to cover gear, fuel, crew, dockage and insurance…not to mention a loan payment on their boat, if they don’t own it outright.
That sums to a tremendous amount of pressure on any one individual fisherman. When the load is shared cooperatively, however, access to fishing rights can be secured collectively and financial risks can be shared, while individual communities retain control and financial benefits through ownership. Catch Together, a Walden nonprofit partner, is working to provide the capital and infrastructure to help communities of fishermen operate collectively. Much like a land trust keeps farmland in farming, Catch Together holds quota on its nonprofit balance sheet so individual fishermen don’t have to leverage themselves to get access.
The model is built for deals no single fisherman could take on alone. When a large scallop portfolio came up for sale, it included quota, permits, and a vessel: a big business for an individual to buy outright. Seven young fishermen worked with Catch Together to secure the opportunity:
- Four young scallopers bought small amounts of quota with cash, so a bank loan wasn’t required
- Two Maine lobstermen picked up scallop permits to diversify their businesses
- The boat went to a young captain just starting out
- The deal included excess quota, which becomes the anchor for a cooperative
Catch Together joined Walden as a partner late last year, after years of being treated like a number by Big Banks. As Rebecca Kern, Director of Growth & Capital, experienced it: “I’ve worked with so many banks…and the balance in your account typically makes a difference. And at Walden, I don’t think that matters. You treat us the same, and help us get business done.”
That level of partnership can go a long way. Larger deals like the acquisition of the scallop shares can take months of preparation and often crescendo in one final in-person meeting where the money changes hands. Earlier this year, Catch Together needed a large bank check cut after-hours in order to close a deal later in the same evening. Rebecca Kern recalled: “Mel [Walden’s Partner Onboarding Manager] offered to stay after hours to make sure we got the check in time. Our director drove to the office to pick up the check, went straight to the auction…and we were able to secure quota for fishermen who otherwise wouldn’t have had access.”
Their long-term vision is a world where fishing rights can be allocated to communities, and stay with those communities across generations. Through a national cooperative with strong regional hubs, fishermen would collectively decide who accesses the quota, how it’s used, and how the money generated gets reinvested. Getting to that vision takes capital. They’re in the middle of raising a $10M fund that will accelerate their acquisition of quota assets, and unlock an additional tranche of catalytic capital from other philanthropic partners. They’ve raised $7.2M to date. If you’re interested in supporting their fundraise, you can donate here.
Not a Walden partner yet? Use promo code “Catch Together” when you apply for an account between now and December 31, 2026 and we’ll make a $100 donation to Catch Together.*
Photo credit: David Hills
