The economic contribution of U.S. salmonid farms

Abstract

The economic contributions of United States (U.S.) salmonid (finfish of the Salmonidae family) farms have not been estimated despite trout and salmon constituting the second‐largest finfish sector of U.S. aquaculture. This study assessed the size and scope of the U.S. commercial salmonid farming sector using secondary data and estimated the direct, indirect, and induced contributions to total economic output, employment, labor income, and value added using IMPLAN methodologies and software. Commercial salmonid farms operated in 78% of U.S. states and were located in all regions in 2023. Farms raised various species in different production systems to supply diverse supply chains on production scales that ranged from small farms (<9000 kg/year) to large, vertically integrated farming businesses. Supply chains for U.S. salmonid farms reflected the development of local, regional, and national markets not only for foodfish but also for markets that purchased live trout for stocking in private and public waters to support recreational fishing activities. The economic contribution of commercial U.S. salmonid farms was estimated to be $394 million (2023 value), of which $207 million was in direct economic output, $113 million in indirect output, and $74 million in induced contributions. The estimated economic multiplier of 1.91 indicates that every dollar spent on a salmonid farm supported an additional $0.91 in economic activity. Salmonid farms supported 2254 jobs across the U.S. and contributed $18 million in tax revenues. U.S. salmonid farms supported 97% of the economic sectors where they were located. Given U.S. demand for salmonids, the economic contributions of U.S. salmonid farms could increase to $591 to $690 million with 25%–50% growth in the sector. Constraints to growth include the high on‐farm regulatory compliance burden, regulatory restrictions on access to water resources, and increased competition from imported salmon and trout.