The long term effects of limited entry on rural communities dependent upon fishing have been of considerable interest to the legislature, the administration and the public, and the degree to which limited entry permits have been transferred away from these communities has been a matter of concern. Since 1975, about two-thirds (66.2%) of the 6,662 transfers made by Alaska Rural Locals have been to other Alaskan Rural Locals. This percentage has been relatively consistent, ranging from a low of 60.8% in 1982 to a high of 72.6% in 1994 (Table 5). The remaining 33.8% (2,254) of the transfers have been to other resident types (cross-cohort transfers). This section will present information regarding only the cross-cohort transfers from Alaska Rural Local residents.

In every year except 1975 and 1990, cross-cohort transfers by ARL's have resulted in a net decrease in ARL-held permits -- in other words, ARL's have transferred more permits to other resident types than other resident types have transferred to them (Table 23). Through 1994, this cross-cohort transfer activity resulted in a net decrease of 728 transferable permits held by Alaska Rural Locals. Statewide, the number of permits held by each of the other resident types increased through these ARL cross-cohort transfers as follows: Alaska Urban Nonlocal permits increased by 322, Alaska Urban Local permits increased by 85, Alaska Rural Nonlocal permits increased by 35, and Nonresident permits increased by 266.

From 1977 through 1986 (with 1985 excepted), net decreases of Alaska Rural Locals ranged from 52 to 92 permits per year. Since then the annual net decreases have been much smaller.

Net transfer activity of Rural Local permits is presented in Table 24 for each fishery, all years combined. The same data is presented in Appendix D by fishery and year.1 The Bristol Bay drift and set gill net fisheries have had the largest net numerical decreases in rural local permits due to transfer activity (199 and 152 permits, respectively), which represents 48.2% (351 of 728 permits) of the statewide ARL net transfer decrease.

While the Bristol Bay fisheries have had the highest numerical decreases in the number of permits held by ARLs, other fisheries have had larger proportional decreases. For example, the ARL net decrease of 57 permits in the Southeast salmon seine fishery represents 53.8% of the 106 ARL permits originally issued (Table 24). Other fisheries with net decreases greater than 25% of the number of permits initially issued to Alaska Rural Locals (and with more than 5 initial permits issued to ARLs) are the Peninsula/Aleutians drift gill net fishery (55.1%), the Southeast sac roe gill net fishery (50.0%), the Cook Inlet sac roe and salmon seine fisheries (33.3% and 32.4%, respectively), and the Kodiak beach seine and set net fisheries (30.8% and 25.0%, respectively).

Table 25 provides information concerning the relationships between transfer parties for 1,655 Alaska Rural Local cross-cohort transfers that occurred over the 1980- 1994 time period. The information comes from the CFEC transfer survey. As might be expected, most (61.3%) cross-cohort transfers of ARL-held permits were between persons who had no previous relationship; however, the Kodiak salmon and herring fisheries, the Yakutat and Peninsula/Aleutians set net fisheries, and the AYK salmon fisheries all show relatively high rates of transfer to friends or relatives. Note that by definition, those persons would be of a different resident type than ARL.2

The acquisition method used in permit transfers from Alaska Rural Locals to other resident types for the 1980-1994 period is presented in Table 26. As might be expected, most (80.0%) of these cross-cohort transfers were sales (1,324 of 1,655).

Transfer survey information on financing methods used in the permit sales from Alaska Rural Locals to other resident types is provided in Table 27 by fishery and year. The predominant source of financing has been the personal resources of the buyer (61.2%), especially in some of the fisheries that show lower permit values such as the hand troll (93.6%) and AYK salmon fisheries (71.4% to 81.8%). State-financed loans are also an important source of financing for buyers of permits held by ARLs (17.9%). These figures differ from the Alaska resident totals in Table 22 and suggest that other resident types who buy ARL-held permits tend to rely more on self-financing and banks and less on state loans than do Alaska residents as a whole.

The survey information also indicates that since 1984 there has been a sharp decrease in the number of sales of ARL-held permits which have been financed by the seller. In the years 1980-1983, approximately 19.3% of the sales were financed in this manner while in the years since 1984 only 5.1% were financed this way (44 transfers).

TABLE 23. Transfers from Alaska Rural Locals to Other Resident Types, by Year, 1975-1993

TABLE 24. Transfers from Alaska Rural Locals to Other Resident Types by Fishery, 1975-1994

TABLE 25. Relationships in Transfers from Alaska Rural Local Permit Holders to Other Resident Types By Fishery and Year (From 1980-1994 Survey Data)*

TABLE 26. Acquisition Methods Used in Transfers from Alaska Rural Local Permit Holders to Other Resident Types By Fishery and Year (From 1980-1994 Survey Data)*

TABLE 27. Permit Financing Methods Used in Transfers from Alaska Rural Local Permit Holders to Other Resident Types By Fishery and Year (From 1980-1994 Survey Data)*