National Aquaculture Act — Fish & Shellfish Farming

The National Aquaculture Act of 1980 (16 U.S.C. §§ 2801–2809) established a national policy to encourage and support the development of aquaculture in the United States — the controlled cultivation of aquatic animals and plants including fish, shellfish, crustaceans, and seaweed. Congress found that wild fish stocks were being overharvested (a problem now addressed primarily by the Magnuson-Stevens Act), that the U.S. was importing increasing amounts of seafood, and that aquaculture could help meet growing demand while reducing pressure on wild fisheries. The Act directed the Secretaries of Agriculture, Commerce (through NOAA), and the Interior to develop a National Aquaculture Development Plan, coordinate federal aquaculture activities, provide research and technical assistance, and identify regulatory barriers to aquaculture growth. Despite these ambitions, the U.S. aquaculture industry has grown more slowly than in many other countries — the U.S. imports over 80% of its seafood, and a significant portion of that is farm-raised abroad.

Current Law (2026)

Legal Authority

• 16 U.S.C. § 2801 — Congressional findings, purpose, and policy (Congress finds that aquaculture can supplement wild fish production, reduce imports, create jobs, and improve food security; declares it U.S. policy to encourage aquaculture development)
• 16 U.S.C. § 2802 — Definitions (defines "aquaculture" as propagation and rearing of aquatic organisms in controlled environments; "aquaculture facility" means a hatchery, farm, feedlot, or related facility for aquaculture; "Secretary" means whichever department head is responsible for the activity in question — Agriculture, Commerce, or Interior)
• 16 U.S.C. § 2803 — National Aquaculture Development Plan (Secretaries must create and revise a national plan identifying aquaculture species with commercial potential, research priorities, capital needs, and regulatory constraints)
• 16 U.S.C. § 2804 — Functions and powers of Secretaries (authorizes research, technical assistance, extension services, and education programs to support aquaculture development)
• 16 U.S.C. § 2805 — Coordination of national activities (establishes the Joint Subcommittee on Aquaculture within OSTP to coordinate federal aquaculture programs across agencies)
• 16 U.S.C. § 2806 — Contracts and grants (authorizes grants and contracts to support plan implementation)
• 16 U.S.C. § 2807 — Capital requirements for aquaculture (requires study of capital needs and financing options for aquaculture enterprises)
• 16 U.S.C. § 2808 — Regulatory constraints on aquaculture (requires identification of federal and state regulations that impede aquaculture development)
• 16 U.S.C. § 2809 — Authorizations for appropriations ($1,000,000 per year authorized for each of the three Departments — Agriculture, Commerce, and Interior — for fiscal years 1991 through 2023; total authorization of $3 million annually; amounts reflect the program's modest scale relative to its ambitions)

How It Works

The National Aquaculture Development Plan is the Act's central mechanism. The three Secretaries must jointly develop and periodically revise a plan that identifies: aquatic species with the greatest potential for commercial aquaculture, research and development priorities, capital and financing needs, and regulatory barriers. The plan is meant to give the fragmented aquaculture industry a unified federal strategy — but in practice, federal aquaculture policy has remained scattered across multiple agencies with different missions and priorities.

The coordination challenge is built into the Act's structure. Aquaculture sits at the intersection of three federal departments: Agriculture (which handles catfish, trout, and freshwater species), Commerce/NOAA (which handles marine species and ocean farming), and Interior/Fish & Wildlife Service (which manages hatcheries for species restoration). The Joint Subcommittee on Aquaculture was created to coordinate these agencies, but coordination across three cabinet departments with competing priorities has been a persistent challenge.

Regulatory barriers are a major reason U.S. aquaculture has lagged behind countries like Norway, Chile, and China. Federal permits for marine aquaculture can require approvals from NOAA, the Army Corps of Engineers, EPA, FDA, Fish & Wildlife Service, and state agencies — a process that can take years. The Act directed the Secretaries to identify and address these barriers, but the permitting landscape remains complex. Offshore aquaculture (fish farming in federal waters beyond state jurisdiction) has been particularly difficult to develop due to the lack of a clear federal permitting framework.

Research and extension services authorized by the Act support aquaculture through USDA's Agricultural Research Service, NOAA's National Marine Fisheries Service, and the land-grant university system (particularly through Sea Grant programs). Research focuses on disease prevention, genetics, nutrition, water quality, and production efficiency. Extension services help fish farmers apply research findings to commercial operations.

The industry today produces approximately $1.5 billion annually, led by catfish (Mississippi Delta), trout (Idaho), salmon (Maine, Washington), shrimp (Texas, Gulf Coast), and shellfish — oysters, clams, and mussels (coastal states from Maine to Washington). The U.S. is a minor player in global aquaculture, which is dominated by China, India, Indonesia, and Vietnam. The gap between U.S. production and consumption means enormous market opportunity — but also enormous regulatory and competitive challenges.

How It Affects You

State Variations

Implementing Regulations

• 50 CFR Part 253 — Fisheries Finance Program (FFP) (NOAA/NMFS, 28 sections): NOAA's direct federal loan program for commercial fishing vessels, aquaculture facilities, and related shoreside infrastructure. Unlike the MARAD Title XI loan guarantee program (which covers commercial vessels broadly), the FFP makes direct U.S. government loans — the government is the lender — to operators who cannot obtain affordable conventional financing for fishing or aquaculture infrastructure. The program was created to provide long-term, low-interest capital to the fishing industry for modernization and safety improvements. Key provisions:

  • § 253.11 — Credit standards: loans may not exceed 80 percent of actual cost of the project; the program applies commercial credit standards — evaluating the applicant's creditworthiness, collateral value, and repayment capacity; loans are "capacity neutral," meaning they may not be used to expand fishing capacity beyond existing permit levels in limited access fisheries
  • § 253.12 — Eligibility: applicants must be U.S. citizens eligible to document a vessel in the coastwise trade (i.e., Jones Act-qualified ownership); only the legal title holder of the project property (or its parent company or long-term lessee) may apply; eligible projects include new vessel construction, vessel purchase, major refits and safety upgrades, and aquaculture facility construction and expansion
  • § 253.13 — Application and approval: NMFS conducts a due diligence investigation to determine whether an application is (1) eligible — meeting applicable loan requirements — and (2) creditworthy — the project is financially viable and the obligor can repay; NMFS approval is at the program's "sole judgment"; unlike bank financing, there is no appeal to a secondary lender
  • § 253.14 — Loan documentation: loans are evidenced by a U.S. Note (the government's loan instrument); security is typically a preferred ship's mortgage on the vessel or deed of trust on facility property; loan terms extend up to 25 years for vessels and 20 years for facilities — substantially longer than conventional commercial fishing vessel loans
  • § 253.15 — Recourse and guarantors: the program may require personal guarantees from principals of the borrowing entity, additional collateral, or letters of credit; the program has full recourse against all principal parties in interest — borrowers cannot limit their personal liability through corporate structure alone
  • § 253.16 — Actual cost calculation: for vessels, actual cost is the current market value plus depreciated total project cost; for aquaculture facilities, actual cost is the sum of all amounts paid for the project, including construction, equipment, and installation but excluding working capital
  • § 253.17 — Insurance requirements: all collateral property must be continuously insured for as long as any loan balance remains outstanding; insurers must be acceptable to the program; hull and liability insurance is required for vessels; property and casualty for facilities

  The FFP was the primary federal mechanism through which aging fishing vessel fleets received modernization capital in the 1980s–2000s — particularly in Alaska, New England, and the Gulf of Mexico. With the proliferation of limited access fisheries (catch shares, IFQ programs) that made fishing vessels valuable assets, conventional lenders entered the market, reducing demand for FFP loans. Today the program primarily serves smaller-scale operators and aquaculture businesses that remain underserved by commercial lenders. No major Part 253 rulemakings in recent years — the program framework has been stable while aquaculture financing demand has grown with expansion of U.S. marine aquaculture.

• 50 CFR Parts 254–258 — Additional NOAA aquaculture regulations (marine aquaculture permits, offshore aquaculture)

• 21 CFR Part 123 — FDA seafood HACCP (applies to aquaculture processing facilities)

Pending Legislation

No standalone National Aquaculture Act reform bills have been introduced in the 119th Congress. Aquaculture provisions appear in broader agriculture and fisheries legislation — see Magnuson-Stevens Fisheries.

Recent Developments

NOAA has been developing a national framework for permitting aquaculture in federal waters (the Exclusive Economic Zone), which would open vast ocean areas to fish farming — but the effort faces opposition from environmental groups and commercial fishers. The 2018 Farm Bill included provisions supporting aquaculture research and the Regional Aquaculture Centers. Interest in seaweed farming (for food, animal feed, and carbon sequestration) has grown significantly. Several states have streamlined aquaculture permitting, and the Army Corps of Engineers has issued nationwide permits for certain aquaculture activities. The industry continues to grow, but the U.S. remains far behind global competitors in aquaculture production.