WCGT_SS_072610 Part Brev

SUPPORTING STATEMENT
WEST COAST GROUNDFISH TRAWL ECONOMIC DATA
OMB CONTROL NO. 0648-xxxx

B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
1. Describe (including a numerical estimate) the potential respondent universe and any
sampling or other respondent selection method to be used. Data on the number of entities
(e.g. establishments, State and local governmental units, households, or persons) in the
universe and the corresponding sample are to be provided in tabular form. The tabulation
must also include expected response rates for the collection as a whole. If the collection has
been conducted before, provide the actual response rate achieved.
Description of the Respondent Universe
The objective of this survey is to collect economic cost earnings data from all harvesters, first
receivers, and processors participating in the West Coast groundfish trawl fishery on an annual
basis. The survey population includes catcher vessels, catcher-processors, motherships, and first
receivers/shorebased processors. Each of these four groups will receive a unique survey
questionnaire, and has a survey population defined on the basis of available fishery participation
and contact information.
The survey will be a census of the survey population. As explained in the following paragraphs,
the survey population included 268 entities in 2009. There is no sampling of the survey
population. Submission of a survey response is mandatory for all members of the survey
population.
The survey population for catcher vessels is defined as all owners, lessees, and charterers of a
unique catcher vessel registered to a limited entry trawl permit at any time during the survey
period for which data is being collected. This definition covers both catcher vessels making
shoreside landings and catcher vessels delivering to motherships. This definition is used for both
the pre-IFQ period (2009 and 2010) and the post-IFQ period (2011 and subsequent years). There
were 168 members of the catcher vessel survey population in 2009. Catcher vessels exhibit a wide
variety of target groundfish species, and often operate in other West Coast fisheries such as crab
and shrimp as well as the groundfish fishery. In a typical year, about 25 of these vessels also
operate in Alaska fisheries.
The survey population for catcher-processors during the pre-IFQ period is all owners, lessees, and
charterers of a catcher-processor vessel that harvested whiting during the year for which data is
being collected (2009 or 2010) as recorded in NMFS’ North Pacific Fisheries Information Network
(NORPAC) database. There were 9 catcher-processor vessels in 2009. After the implementation
of IFQ management, the survey population for catcher-processors will be defined as all owners,
lessees, and charterers of a catcher-processor vessel registered to a catcher-processor permit at any
time during the year for which data is being collected. Catcher-processors typically operate in
only the whiting fishery on the West Coast, and also operate in Alaska fisheries.
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The survey population for motherships during the pre-IFQ period is all owners, lessees, and
charterers of a mothership vessel that received whiting in 2009 or 2010 as recorded in NMFS’
NORPAC database. There were 7 motherships during 2009. The survey population of
motherships during the post-IFQ period is all owners, lessees, and charterers of a mothership
vessel registered to a MS permit at any time in during the year for which data is being collected.
Motherships typically operate in only the whiting fishery on the West Coast, and also operate in
Alaska fisheries.
The survey population for first receivers/shorebased processors during the pre-IFQ period is
defined as all owners and lessees of a shorebased processor and all buyers that received groundfish
(including whiting) harvested with a limited entry trawl permit as listed in the PacFIN database
during the year for which data is being collected. There were 84 members of the first
receiver/shoreside processor survey population in 2009. The survey population for first
receivers/shorebased processors during the post-IFQ period is defined as all owners of a first
receivers license and all owners and lessees of a shore-based processor that received round or
headed-and-gutted IFQ species groundfish (including whiting) from a first receiver in the year for
which data is being collected.
Survey Population, Survey Sample, and Response Rates
Because this data collection is a mandatory survey with significant penalties for non-compliance a
100% response rate is expected. This is the first mandatory cost earnings survey of the West Coast
limited entry trawl fleet catcher vessels. Two previous voluntary cost earnings surveys of the
limited entry trawl fleet catcher vessels have been conducted by the NMFS in cooperation with the
PSMFC. The first economic survey of the limited entry trawl catcher vessels was conducted in
2005-6 by the NMFS in cooperation with the PSMFC, and achieved a response rate of 69%. This
survey collected data through in-person interviews rather than a mail questionnaire, had the
endorsement of the two leading industry groups, and utilized a relatively short four page
questionnaire. The second survey of the limited entry trawl catcher vessels was conducted during
2009 using the same fielding protocol as the first survey, and achieved a response rate of 67%.
Table 1 --- Population and Commercial Fish Landings for all West Coast
Fishing Engaged Communities

Survey Group
Catcher Vessels
Catcher-Processors
Motherships
Shoreside Processors
Totals

Population
(2009)
168
9
7
84
268

Response Rate
Sample
168
9
7
84
268

100%
100%
100%
100%

This mandatory survey will be the first economic survey of the catcher-processors, motherships,
and shoreside-processors. A survey of the shoreside processors was developed and received PRA
approval in 2007, but was not fielded when developments in the IFQ program design convinced
NMFS to wait for mandatory economic data collection.
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2. Describe the procedures for the collection, including: the statistical methodology for
stratification and sample selection; the estimation procedure; the degree of accuracy needed
for the purpose described in the justification; any unusual problems requiring specialized
sampling procedures; and any use of periodic (less frequent than annual) data collection
cycles to reduce burden.
There is no stratification and sample selection in the survey design. All members of the survey
population are being surveyed. There are four different questionnaires that are being used based
on whether the respondent operates a catcher vessel, catcher-processor, mothership, or first
receiver/shore-based processing plant. Within each of these four groups, all members of the
survey population would be required to complete the questionnaire.
NMFS needs to measure the economic performance of harvesters, first receivers, and processors
operating in the West Coast groundfish trawl fishery in order to meet legal and regulatory
requirements, support fisheries management decision making, and undertake economic research.
Currently available cost earnings data from non-survey sources is very limited and does not meet
these needs. This survey collect the data that is needed (but not currently available from other
sources) to construct key economic performance measures such as quasi-rents (revenues less
variable costs), capacity utilization, efficiency, economies of scale, as well as economic models
such as regional economic impacting and econometric models. The data gathered and performance
measures constructed will be used to address a wide range of issues; these issues include (but are
not limited to) the economic effects of the IFQ program on fishery participants, regional
economies, and net benefits to the nation, as well as how the distribution of those measure may
have changed. While the data will be used to comply with legal and regulatory requirements, these
requirements do not specify a level of data accuracy.
Much of the data requested will be used to compute total (or average) revenue, cost (by revenue or
cost category as specified in the questionnaires), and quasi-rents. This information is useful in and
of itself to help understand the economic condition of the fishery and how it may have changed.
Such data summaries are the type of information that fishery managers, participants and the public
commonly wish to have provided. These data summaries will also be used in a regional economic
impact model that has been developed by the NWFSC. A basic input to this model is the average
cost (by cost category) as a percentage of revenue. The output of the regional economic impact
model is used by NMFS and the Council to report on the economic contribution of the fishery to
regional economies.
To understand the relationships between the quasi-rents (revenue minus variable costs) and the
variables we collect that affect total or average quasi-rents, econometric models will be used.
NWFSC analysts will use the data contained within the completed EDCs to construct statistical
models that characterize the determinants and factors affecting the costs and revenues of vessels,
first receivers and processors. The benefit of using statistical models to characterize the
relationship between costs or revenues and the factors that influence them is that the models may
initially be used to analyze the way in which economic performance changes after the immediate
implementation of the program. If the Council makes adjustments to the program at a later date,
analysts will be able to observe the changes in quasi-rents not attributable to the factors that have
historically been the predominant statistical determinants to draw conclusions about the impact of
the adjustments. That is, these statistical techniques can be used to disentangle the influence of
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particular economic variables on quasi-rents from “policy” or “management” variables that change
directly as a result of managers’ choices over policies or regulations. Examples of economic
variables would be the prices of fuel, materials, or other inputs used in fishing and processing.
The data collected in the EDCs will be used to develop cost and quasi-rent functions that
characterize the relationships between fishing and processing activities and their economic
impacts. In order to estimate such functions one needs individual observations on vessel or
processor variable costs of operation and gross earnings. These variables will form the basis for
the dependent part of the statistical model, while the other data collected on input quantities, catch,
and prices will be used as exogenous variables. The analysts will determine the exact
specification of the cost and quasi-rent functions based upon the questions desired by fishery
managers, the number of observations available, and the perceived quality or accuracy of the
collected data.
3. Describe the methods used to maximize response rates and to deal with nonresponse. The
accuracy and reliability of the information collected must be shown to be adequate for the
intended uses. For collections based on sampling, a special justification must be provided if
they will not yield "reliable" data that can be generalized to the universe studied.
While this is a mandatory survey, key measures have been taken to maximize response to the
survey and the quality of data provided. First, the survey questionnaire has been kept as short as
possible while still meeting the needs of NMFS to meet MSA monitoring requirements, provide
advice to the NMFS on the economic effects of catch share management, and perform economic
research. Second, NMFS economists have held meetings with the owners of catcher vessels,
catcher-processors, motherships, and shoreside processors to insure that questions are
understandable and ask for data in format that is readily available to survey respondents.
Discussions were also held with industry groups at PFMC meetings to solicit additional feedback
on questionnaires in an environment where many survey respondents can simultaneously
participate in the discussion. Third, the questionnaires will be mailed to members of the survey
population soon after the April 15 federal tax filing date. Discussions with industry participants
indicated that they would prefer receiving the questionnaire after completing their federal tax
filing, when much of the financial information needed to complete the questionnaire would already
be at hand. All of these questionnaires have undergone substantial revision as a result of
discussions with industry participants. Finally, the NWFSC will make reminder telephone calls to
members of the survey population who have not yet submitted an EDC about one month before the
survey due date of September 1.
Since these are mandatory surveys, non-response bias is not expected to be a major issue in data
analysis. Nevertheless, those variables which are available for both respondents and nonrespondents (such as pounds of landings, revenue from landings, and vessel physical
characteristics) will be used to compare respondents and non-respondents in cases where some
responses are not available for any reason. Procedures used to test for non-response bias may
include two sample t tests for normally distributed variables and permutation tests for any
variables found to have a non-normal distribution. In cases where non-response bias is detected,
appropriate procedures will be used to adjust survey responses for the non-response bias.

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4. Describe any tests of procedures or methods to be undertaken. Tests are encouraged as
effective means to refine collections, but if ten or more test respondents are involved OMB
must give prior approval.
NMFS economists have met with members of the populations that will receive each of the four
survey questionnaires. These meetings have included a question by question discussion of draft
questionnaires to (1) insure that the question is clearly understandable and (2) the data requested is
readily available to survey respondents. In addition, the questionnaires provided with this filing
were distributed to advisory groups at the June 2010 PFMC meeting for discussion.
5. Provide the name and telephone number of individuals consulted on the statistical aspects
of the design, and the name of the agency unit, contractor(s), grantee(s), or other person(s)
who will actually collect and/or analyze the information for the agency.
Todd Lee, Ph.D.
Manager, Economics Group
Northwest Fisheries Science Center
206-302-2436
Carl Lian, Ph.D.
Economist
Northwest Fisheries Science Center
206-302-2414
Jerry Leonard
Economist
Northwest Fisheries Science Center
206-302-1742
Leif Anderson, Ph.D.
Economist
Northwest Fisheries Science Center
206-302-2403

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